Financial Conduct Authority: Financial Inclusion

Lord Holmes of Richmond Excerpts

Tuesday 22nd March 2022 Lords Chamber

Asked by

[Lord Holmes of Richmond]

To ask Her Majesty’s Government what plans they have to require the Financial Conduct Authority to have regard to financial inclusion.

[Baroness Penn (Con)]

Financial inclusion is a priority for this Government. Her Majesty’s Treasury and the Financial Conduct Authority already work closely to meet the Government’s aims on tackling financial exclusion. As outlined in the future regulatory framework review consultation that was published in November 2021, the FCA’s current and ongoing initiatives to improve financial inclusion demonstrate that it can already effectively support the Government’s financial inclusion agenda through its existing operational objectives and regulatory principles.

[Lord Holmes of Richmond (Con)]

My Lords, financial exclusion has dogged this nation for decades. It is a personal tragedy for individuals and holds individuals, communities and businesses back. Does my noble friend not agree that with a concerted effort from HMT, a “have regard” duty for the FCA and the involvement of the Bank of England and all financial services firms, we could truly have an economy and a society that worked for everybody and were truly financially inclusive?

[Baroness Penn (Con)]

As I am sure my noble friend knows, since 2019 the Government have chaired the Financial Inclusion Policy Forum, which brings together the Government, the FCA, industry and consumer groups to deliver on the aims that he has set out. We are aware that there have been responses to the recent future regulatory framework review on the question of a “have regard” duty to financial inclusion. The Government are considering all the responses to that consultation and will set out their response in due course.