Asked by: Karen Bradley (Conservative - Staffordshire Moorlands)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the effect of the covid-19 pandemic on UK building societies; and if he will make a statement.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government recognises the vital role of credit unions in the financial wellbeing of their communities, providing an ethical home for their members’ savings, and affordable loans to those who may otherwise have to resort to high-cost lenders. The Government also recognises the important role played by building societies in supporting their local communities, particularly during the COVID-19 pandemic. In April 2020, I wrote to building society and credit union trade bodies to thank frontline staff for their efforts to continue to provide essential services to their members.
HM Treasury has regularly engaged with regulators and representatives from the building society and credit union sectors to understand the impact of the COVID-19 pandemic. I have engaged with representatives from both sectors through the Consumer Finance Forum and Financial Inclusion Policy Forum, which are bringing financial services and consumer group representatives together to discuss how to best support people through this period. I also attended a roundtable of building society chief executives hosted by the Building Societies Association in July 2020, to discuss experiences of COVID-19 and future priorities. HM Treasury officials have also been engaging with the Building Society Association on a regular basis to understand the impact of the COVID-19 pandemic and discuss the application of relevant measures to the sector.
Fair4All Finance, the independent body set up by Government to distribute dormant assets funding to support financial inclusion, has also set up a £5 million resilience fund to support credit unions and community development finance institutions in England.
Asked by: Karen Bradley (Conservative - Staffordshire Moorlands)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the effect of the covid-19 pandemic on the UK Credit Union sector; and if he will make a statement.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government recognises the vital role of credit unions in the financial wellbeing of their communities, providing an ethical home for their members’ savings, and affordable loans to those who may otherwise have to resort to high-cost lenders. The Government also recognises the important role played by building societies in supporting their local communities, particularly during the COVID-19 pandemic. In April 2020, I wrote to building society and credit union trade bodies to thank frontline staff for their efforts to continue to provide essential services to their members.
HM Treasury has regularly engaged with regulators and representatives from the building society and credit union sectors to understand the impact of the COVID-19 pandemic. I have engaged with representatives from both sectors through the Consumer Finance Forum and Financial Inclusion Policy Forum, which are bringing financial services and consumer group representatives together to discuss how to best support people through this period. I also attended a roundtable of building society chief executives hosted by the Building Societies Association in July 2020, to discuss experiences of COVID-19 and future priorities. HM Treasury officials have also been engaging with the Building Society Association on a regular basis to understand the impact of the COVID-19 pandemic and discuss the application of relevant measures to the sector.
Fair4All Finance, the independent body set up by Government to distribute dormant assets funding to support financial inclusion, has also set up a £5 million resilience fund to support credit unions and community development finance institutions in England.
Asked by: Karen Bradley (Conservative - Staffordshire Moorlands)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department has taken to ensure that a repeat of the Wirecard collapse could not occur in the UK.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The German merchant acquirer Wirecard AG entered administration in June. It has a UK subsidiary, Wirecard UK, which is authorised and regulated by the Financial Conduct Authority (FCA). The FCA ensures that payments firms make suitable safeguarding arrangements in compliance with the regulatory requirements as a condition of firms receiving FCA authorisation, protecting client money.
Shortly after the entry into administration of Wirecard AG, the FCA temporarily blocked the distribution of funds from the UK subsidiary, Wirecard UK, to ensure client monies were properly safeguarded. Wirecard UK is being wound down but the business will continue to trade while alternative arrangements are being made with its card providers.
Payments in the UK have seen rapid change over recent years, including the growth of firms like Wirecard UK. These changes offer exciting opportunities for UK businesses and consumers, with many making payments faster and cheaper. However, and as will always be the case with a rapidly changing technological landscape, they also present new challenges and risks.
Given the pace of change, a HM Treasury led review of the payments landscape was announced in June 2019. A Call for Evidence is the first stage in this review, open until 20 October.
The Government recognises the crucial role of challenger banks in providing customers with more choice and is committed to maintaining competition in financial services. We recognise the COVID-19 crisis has been difficult for many firms, including challenger banks, and we continue to engage regularly with the sector to understand how firms are being impacted.
Asked by: Karen Bradley (Conservative - Staffordshire Moorlands)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the effectiveness of the regulatory response to the collapse of Wirecard; and if he will make a statement.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The German merchant acquirer Wirecard AG entered administration in June. It has a UK subsidiary, Wirecard UK, which is authorised and regulated by the Financial Conduct Authority (FCA). The FCA ensures that payments firms make suitable safeguarding arrangements in compliance with the regulatory requirements as a condition of firms receiving FCA authorisation, protecting client money.
Shortly after the entry into administration of Wirecard AG, the FCA temporarily blocked the distribution of funds from the UK subsidiary, Wirecard UK, to ensure client monies were properly safeguarded. Wirecard UK is being wound down but the business will continue to trade while alternative arrangements are being made with its card providers.
Payments in the UK have seen rapid change over recent years, including the growth of firms like Wirecard UK. These changes offer exciting opportunities for UK businesses and consumers, with many making payments faster and cheaper. However, and as will always be the case with a rapidly changing technological landscape, they also present new challenges and risks.
Given the pace of change, a HM Treasury led review of the payments landscape was announced in June 2019. A Call for Evidence is the first stage in this review, open until 20 October.
The Government recognises the crucial role of challenger banks in providing customers with more choice and is committed to maintaining competition in financial services. We recognise the COVID-19 crisis has been difficult for many firms, including challenger banks, and we continue to engage regularly with the sector to understand how firms are being impacted.
Asked by: Karen Bradley (Conservative - Staffordshire Moorlands)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the implications of the Wirecard collapse for (a) UK financial regulation and (b) future financial services regulation.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The German merchant acquirer Wirecard AG entered administration in June. It has a UK subsidiary, Wirecard UK, which is authorised and regulated by the Financial Conduct Authority (FCA). The FCA ensures that payments firms make suitable safeguarding arrangements in compliance with the regulatory requirements as a condition of firms receiving FCA authorisation, protecting client money.
Shortly after the entry into administration of Wirecard AG, the FCA temporarily blocked the distribution of funds from the UK subsidiary, Wirecard UK, to ensure client monies were properly safeguarded. Wirecard UK is being wound down but the business will continue to trade while alternative arrangements are being made with its card providers.
Payments in the UK have seen rapid change over recent years, including the growth of firms like Wirecard UK. These changes offer exciting opportunities for UK businesses and consumers, with many making payments faster and cheaper. However, and as will always be the case with a rapidly changing technological landscape, they also present new challenges and risks.
Given the pace of change, a HM Treasury led review of the payments landscape was announced in June 2019. A Call for Evidence is the first stage in this review, open until 20 October.
The Government recognises the crucial role of challenger banks in providing customers with more choice and is committed to maintaining competition in financial services. We recognise the COVID-19 crisis has been difficult for many firms, including challenger banks, and we continue to engage regularly with the sector to understand how firms are being impacted.
Asked by: Karen Bradley (Conservative - Staffordshire Moorlands)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department has taken to help protect UK-based challenger banks and other financial institutions from the potential future collapse of a payment processor company.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The German merchant acquirer Wirecard AG entered administration in June. It has a UK subsidiary, Wirecard UK, which is authorised and regulated by the Financial Conduct Authority (FCA). The FCA ensures that payments firms make suitable safeguarding arrangements in compliance with the regulatory requirements as a condition of firms receiving FCA authorisation, protecting client money.
Shortly after the entry into administration of Wirecard AG, the FCA temporarily blocked the distribution of funds from the UK subsidiary, Wirecard UK, to ensure client monies were properly safeguarded. Wirecard UK is being wound down but the business will continue to trade while alternative arrangements are being made with its card providers.
Payments in the UK have seen rapid change over recent years, including the growth of firms like Wirecard UK. These changes offer exciting opportunities for UK businesses and consumers, with many making payments faster and cheaper. However, and as will always be the case with a rapidly changing technological landscape, they also present new challenges and risks.
Given the pace of change, a HM Treasury led review of the payments landscape was announced in June 2019. A Call for Evidence is the first stage in this review, open until 20 October.
The Government recognises the crucial role of challenger banks in providing customers with more choice and is committed to maintaining competition in financial services. We recognise the COVID-19 crisis has been difficult for many firms, including challenger banks, and we continue to engage regularly with the sector to understand how firms are being impacted.
Asked by: Karen Bradley (Conservative - Staffordshire Moorlands)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans he has to make it easier for UK-based financial institutions to work with multiple payment processors.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The German merchant acquirer Wirecard AG entered administration in June. It has a UK subsidiary, Wirecard UK, which is authorised and regulated by the Financial Conduct Authority (FCA). The FCA ensures that payments firms make suitable safeguarding arrangements in compliance with the regulatory requirements as a condition of firms receiving FCA authorisation, protecting client money.
Shortly after the entry into administration of Wirecard AG, the FCA temporarily blocked the distribution of funds from the UK subsidiary, Wirecard UK, to ensure client monies were properly safeguarded. Wirecard UK is being wound down but the business will continue to trade while alternative arrangements are being made with its card providers.
Payments in the UK have seen rapid change over recent years, including the growth of firms like Wirecard UK. These changes offer exciting opportunities for UK businesses and consumers, with many making payments faster and cheaper. However, and as will always be the case with a rapidly changing technological landscape, they also present new challenges and risks.
Given the pace of change, a HM Treasury led review of the payments landscape was announced in June 2019. A Call for Evidence is the first stage in this review, open until 20 October.
The Government recognises the crucial role of challenger banks in providing customers with more choice and is committed to maintaining competition in financial services. We recognise the COVID-19 crisis has been difficult for many firms, including challenger banks, and we continue to engage regularly with the sector to understand how firms are being impacted.
Asked by: Karen Bradley (Conservative - Staffordshire Moorlands)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the effect of the covid-19 pandemic on the UK challenger banks sector; and if he will make a statement.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The German merchant acquirer Wirecard AG entered administration in June. It has a UK subsidiary, Wirecard UK, which is authorised and regulated by the Financial Conduct Authority (FCA). The FCA ensures that payments firms make suitable safeguarding arrangements in compliance with the regulatory requirements as a condition of firms receiving FCA authorisation, protecting client money.
Shortly after the entry into administration of Wirecard AG, the FCA temporarily blocked the distribution of funds from the UK subsidiary, Wirecard UK, to ensure client monies were properly safeguarded. Wirecard UK is being wound down but the business will continue to trade while alternative arrangements are being made with its card providers.
Payments in the UK have seen rapid change over recent years, including the growth of firms like Wirecard UK. These changes offer exciting opportunities for UK businesses and consumers, with many making payments faster and cheaper. However, and as will always be the case with a rapidly changing technological landscape, they also present new challenges and risks.
Given the pace of change, a HM Treasury led review of the payments landscape was announced in June 2019. A Call for Evidence is the first stage in this review, open until 20 October.
The Government recognises the crucial role of challenger banks in providing customers with more choice and is committed to maintaining competition in financial services. We recognise the COVID-19 crisis has been difficult for many firms, including challenger banks, and we continue to engage regularly with the sector to understand how firms are being impacted.
Asked by: Karen Bradley (Conservative - Staffordshire Moorlands)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the report entitled Coronavirus Survey Report, published by the APPG on Challenger Banks and Building Societies, if he will make an assessment of the potential merits of the recommendations in that report; and if he will make a statement.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government recognises the crucial role of challenger banks and building societies in providing customers with more choice on the high street and is committed to maintaining competition in financial services.
HM Treasury officials have consistently engaged with regulators and representatives from the building society and challenger bank sectors on issues related to the COVID-19 pandemic. I have regularly engaged with representatives from the building society sector through the Consumer Finance Forum and Financial Inclusion Policy Forum, which are bringing financial services and consumer group representatives together to discuss how to best support people through this period.
The Government recognises that the COVID-19 crisis has been difficult for many organisations, including challenger banks and building societies.
That is why in April 2020, I wrote to thank frontline staff for their efforts to continue to provide essential services to their members.
We have considered the Coronavirus Survey Report produced by the APPG on Challenger Banks and Building Societies and thank the APPG for taking the time to produce the report. The Government remains committed to ensuring that challenger institutions have an appropriate environment to grow and offer more robust competition to the established players. The government will continue working with the regulators to ensure the UK has a highly competitive banking sector, working in the interests of all consumers and businesses right across the country. We will continue to work closely with challenger institutions and building societies as we consider the next steps in our economic recovery
Asked by: Karen Bradley (Conservative - Staffordshire Moorlands)
Question to the Home Office:
To ask the Secretary of State for the Home Department, what training requirements her Department plans to include in outsourcing contracts for people undertaking asylum interviews to identify cases of human trafficking and modern-day slavery.
Answered by Chris Philp - Minister of State (Home Office)
Asylum Operations are exploring many options to reduce the number of outstanding asylum claims. Alongside seeking temporary resource from within the Home Office and other government departments, we are also exploring with third-party suppliers to test the viability of whether they can deliver the support required as a temporary, short term measure. Asylum interviews have not been outsourced, and at this stage we are only exploring the potential feasibility.
Third party interviewing officers will complete a bespoke training package, delivered by the qualified asylum operations training team, that has been designed specifically to meet their needs. The course will include training specifically about modern slavery and safeguarding awareness. Anyone who conducts asylum interviews receives thorough training to ensure they are fully equipped for the role.
To guarantee governance and accountability, mechanisms are in place to provide oversight of third-party interviews, the department has a quality assurance process which assesses the quality of decisions, interviews and the application of Home Office policy. This will include those interviews conducted by third party interviewing officers