Asked by: Mark Garnier (Conservative - Wyre Forest)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what steps he is taking to ensure the consultation entitled Discussion paper on key elements of the Scale Policy has regard to clause (a) 40, sub-section 28L and (b) 45 of the Pension Schemes Act.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
The ‘Discussion Paper on the key elements of the Scale Policy’ was published in July and seeks industry views on how scale can be demonstrated, as well as greater detail on the current operation of default arrangements and investment strategies in multi-employer defined contribution (DC) schemes. These responses, along with further targeted stakeholder engagement, will support the development of detailed regulations for the scale policy, which we will consult on in 2027.
As part of the detailed policy design, the Government is committed to balance the desired outcomes across innovation, competition, scale, scheme governance and of course the vital objective of better member outcomes.
Asked by: Mark Garnier (Conservative - Wyre Forest)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential impact of the Financial Conduct Authority's proposed added value test in the Cryptoasset Permitter Guidance on the development of UK decentralised finance infrastructure.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Government's objective is to deliver a UK cryptoasset regime that appropriately balances the protection of consumers from detriment with a regulatory environment that supports innovation and growth. The Government continues its close engagement with the Financial Conduct Authority to that end.
Asked by: Mark Garnier (Conservative - Wyre Forest)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to update the Financial Collateral Arrangements (No. 2) Regulations 2003 to ensure that tokenised assets receive the same legal treatment as traditional counterparts.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
It is important that our legal framework supports digital innovation. As set out in the Wholesale Financial Markets Digital Strategy, the government is committed to providing legal clarity where it is needed.
We are engaging with the sector to understand what barriers to tokenisation exist in law. The regulators are also seeking to provide clarity to support the equivalent treatment of tokenised and non-tokenised assets, both prudentially and as eligible collateral where risks are comparable.
Asked by: Mark Garnier (Conservative - Wyre Forest)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to ensure that the Financial Conduct Authority's proposed perimeter guidance on cryptoassets does not treat developers and maintainers of decentralised finance protocols as regulated financial intermediaries.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Government's objective is to deliver a UK cryptoasset regime that appropriately balances the protection of consumers from detriment with a regulatory environment that supports innovation and growth. The Government continues its close engagement with the Financial Conduct Authority to that end.
Asked by: Mark Garnier (Conservative - Wyre Forest)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he is working with the Financial Conduct Authority to ensure that its proposed approach to decentralised finance does not reduce innovation by restricting access to DeFi protocols.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Government's objective is to deliver a UK cryptoasset regime that appropriately balances the protection of consumers from detriment with a regulatory environment that supports innovation and growth. The Government continues its close engagement with the Financial Conduct Authority to that end.
Asked by: Mark Garnier (Conservative - Wyre Forest)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when he expects to review the proposed 40% prudential risk weighting for cryptoassets, including non-UK stablecoins; and what international (a) regulatory developments and (b) market conditions would trigger such a review.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Government's objective is to deliver a UK cryptoasset regime that appropriately balances the protection of consumers from detriment with a regulatory environment that supports innovation and growth.
The Financial Conduct Authority (FCA), as the independent expert regulator, is responsible for setting the prudential regime for regulated cryptoasset firms and ensuring firms hold appropriate financial resources and manage risks effectively.
The Government continues to maintain close dialogue with the FCA, including on international regulatory and market developments.
Asked by: Mark Garnier (Conservative - Wyre Forest)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the Government plans to use the powers in the Financial Services and Markets Bill 2026 to establish a mutual recognition framework for digital assets, including stablecoins, to support the UK's competitiveness as a global financial centre.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Government acknowledges the potential benefits of recognising compatible jurisdictions’ regulatory regimes, including promoting growth and competitiveness by supporting cross-border activity.
The Financial Services and Markets Bill will enable HM Treasury to establish bespoke Overseas Recognition Regimes, where doing so will benefit the UK. The Government will consider using these powers for digital assets, where appropriate, subject to an assessment of the compatibility of the relevant jurisdiction’s regulatory and supervisory framework.
Asked by: Mark Garnier (Conservative - Wyre Forest)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate his Department has made of the cost savings which will result from ending the retirement savings function of the Lifetime ISA under the new First-Time Buyer ISA.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Government recognises that the Lifetime ISA (LISA) is not working for everyone and that its dual purpose of supporting both home ownership and retirement saving can create complexity for savers. The Government is therefore consulting on a new FTB ISA product, setting out options for a simpler product focused on supporting first-time buyers.
The Government is carefully considering responses to the FTB ISA consultation, including the fiscal impact of different design. Any decisions on the detailed design of the product, including matters affecting Exchequer costs, will be taken in the round and announced in the usual way.
The published FTB ISA consultation confirmed that until the new product is offered it will be possible to open a LISA. After the new product is introduced, it will not be possible to open a LISA, but existing LISA holders, including those currently using the LISA for retirement, will continue to be able to use their accounts in line with the existing rules. More information can be found here First Time Buyer ISA consultation - GOV.UK.
Asked by: Mark Garnier (Conservative - Wyre Forest)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment has been made of the potential impact on peoples' retirement savings of replacing the Lifetime ISA with the proposed First-Time Buyer ISA.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Government recognises that the Lifetime ISA (LISA) is not working for everyone and that its dual purpose of supporting both home ownership and retirement saving can create complexity for savers. The Government is therefore consulting on a new FTB ISA product, setting out options for a simpler product focused on supporting first-time buyers.
The Government is carefully considering responses to the FTB ISA consultation, including the fiscal impact of different design. Any decisions on the detailed design of the product, including matters affecting Exchequer costs, will be taken in the round and announced in the usual way.
The published FTB ISA consultation confirmed that until the new product is offered it will be possible to open a LISA. After the new product is introduced, it will not be possible to open a LISA, but existing LISA holders, including those currently using the LISA for retirement, will continue to be able to use their accounts in line with the existing rules. More information can be found here First Time Buyer ISA consultation - GOV.UK.
Asked by: Mark Garnier (Conservative - Wyre Forest)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will publish an economic impact assessment comparing the proposed First-Time Buyer ISA with the Lifetime ISA.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Government recognises that the Lifetime ISA (LISA) is not working for everyone and that its dual purpose of supporting both home ownership and retirement saving can create complexity for savers. The Government is therefore consulting on a new FTB ISA product, setting out options for a simpler product focused on supporting first-time buyers.
The Government is carefully considering responses to the FTB ISA consultation, including the fiscal impact of different design. Any decisions on the detailed design of the product, including matters affecting Exchequer costs, will be taken in the round and announced in the usual way.
The published FTB ISA consultation confirmed that until the new product is offered it will be possible to open a LISA. After the new product is introduced, it will not be possible to open a LISA, but existing LISA holders, including those currently using the LISA for retirement, will continue to be able to use their accounts in line with the existing rules. More information can be found here First Time Buyer ISA consultation - GOV.UK.