Professional Qualifications Bill [HL]

Lord Davies of Brixton Excerpts

2nd reading
Tuesday 25th May 2021 Lords Chamber

[Lord Davies of Brixton (Lab) [V]]

My Lords, I declare my interest in the register as a fellow of the Institute and Faculty of Actuaries.

I thank my noble friend Lady Blake of Leeds for her introductory speech, which set out many of the points of real concern. I agree with what she said about the Bill. I wish to raise three points of concern, then a more general issue.

First, we are told that the Bill will replace existing EU law in this area. It will create a number of regulation-making powers designed to implement what is described as a new framework—that is, a new framework for the recognition of overseas professional qualifications in the UK and the authorisation of regulators in the UK to enter into recognition agreements with regulators overseas. I see that as the crux of the Bill.

However, we do not yet know how these powers will be exercised. We are provided with some general principles. Thus the Government emphasise in today’s speeches and the supporting documentation that they wish to adopt a permissive approach. They also refer to having a flexible approach. They declare their objective to complement existing provisions. There is also reference to the need to recognise their “global Britain” ambitions. Those principles are all well and good, but they are also vague and aspirational. We have no real guidance on what they mean in practice, and we have no real assurance that the wide-ranging powers in the Bill will be exercised only in accordance with these aspirations. The Bill itself provides no guarantees. Other speakers have dealt with this at length; I certainly share their concerns. We need greater clarity, presumably in Committee, on what the Government mean when they say that the Bill establishes “a new framework”. What is new, other than removing the links with the European Union?

One thing that might help to clarify what is in the Government’s mind in what they admit is a complex regulatory landscape is where they tell us that

“there are over 160 professions … regulated by legislation across more than 50 regulators”.

When we had a conversation with the Minister, I asked for a list. I very much hope that we get it by Committee. Seeing the breadth of what is involved would be useful for all of us. Also, some precise examples would be really useful. Where will these powers be exercised and how do the Government anticipate them being exercised?

Secondly, there is the issue of trade agreements, touched on by a number of speakers. Whether the Government like it or not, there is a widespread lack of trust. Given their approach and the way in which trade agreements have become trophies that they are all too desperate to declare, there is an inevitable fear that powers for professional recognition will be exercised for the wrong reasons.

My third concern, which goes into more detail, is what is meant in Clause 16(3) by a profession that is

“regulated by law … by reason of legislation”.

I fear that this definition is far too wide and unclear. I can claim detailed expertise only in my own narrow area, but I am aware of many references to actuaries in legislation that might be caught by such a definition. In some cases, for example, an actuary is anyone recognised as such by the Secretary of State. Clearly such a case is a regulation by law by reason of legislation, but it would be unreasonable to include those with what the Government have in mind. I am sure we will pursue those three points of concern in Committee.

Finally, I make no apology for mentioning some thoughts for the Government that have been expressed by my own profession and which I share. There is a concern that, historically, Governments have not always fully appreciated the value of professional bodies to the economy and social fabric of the UK, as well as the role that they play in the international trade in services that is so crucial to the UK’s economic future.

The Institute and Faculty of Actuaries is an exemplar of a professional body that is an exporter in its own right for its international membership. Many actuaries across the world, not just in the UK, regard membership of the UK’s professional body for actuaries as important in its own right, even when they do not practise in the UK and have no intention of doing so—it is often, increasingly, alongside a local qualification. This benefits everyone. The individuals concerned and the profession as a whole benefit from the training and examining that is provided to those from abroad who achieve UK qualification and registration. There is also considerable mutual benefit from the accreditation of foreign universities, training organisations, the publications that are produced and the specialised projects, including professional regulatory standards.

We want the Government to recognise that not just actuaries but other professional bodies have this important role through their global membership and we hope that, in introducing this legislation, that has been taken into account so that it does not interfere with this important role. Will the Minister commit the Government to championing the UK professional standards offered by UK-based professionals, particularly as global standard setters?