Financial Conduct Authority: Financial Inclusion

Lord Sikka Excerpts

Tuesday 22nd March 2022 Lords Chamber

[Baroness Penn (Con)]

The noble Baroness is right to raise the issue. The Government are taking a number of actions in this area. I previously referred to the pilot of a no-interest loan provision which the Government are supporting. They are also putting record financing into consumer debt advice to ensure that if people are in trouble, they get access to the help which they need.

[Lord Sikka (Lab)]

My Lords, I have a letter here written by the FCA chief executive to the Financial Services Consumer Panel, dated 20 October 2021. In it, the FCA chief executive associates financial inclusion with the expectation that

“Firms must pay due regard to the interests of its customers and treat them fairly.”


Given that almost every financial product has been mis-sold, and given that many banks have been engaged in money laundering, tax dodging and sanction busting, so that it is hard to find a pristine bank, how are the Government going to deliver fair treatment of customers, when the FCA’s fines are puny, and they have so far not secured better practice or behaviour.

[Baroness Penn (Con)]

I do not recognise the picture which the noble Lord paints. Our banks and financial services provide an essential service to people up and down the country. They were one of our essential partners in distributing the support we provided to businesses through bounce-back loans and other support packages throughout the pandemic. Yes, there have been certain problems in certain areas, which is why the Government are taking action—for example, on anti-money laundering legislation and counterterrorist financing legislation. I am afraid to say that I just do not agree with the noble Lord.