Arch Cru Compensation Scheme

Debate between Tom Greatrex and Fiona O'Donnell

Wednesday 19th October 2011 Westminster Hall

[Tom Greatrex]

I thank the right hon. Gentleman for his intervention. When I spent some time with representatives of the FSA, they showed me a diagram of the structure of the fund and it was amazing to see quite how labyrinthine it was and is. The right hon. Gentleman is right to say that that is the root of part of the problems. At the same time, seeking to say, “Well, that’s the responsibility of the Guernsey regulator. That’s the responsibility of someone else,” does not deal with the central issue. That is the lesson for the future that we need to be conscious of.

[Fiona O’Donnell (East Lothian) (Lab)]

My hon. Friend is being extremely generous in giving way. Although it is welcome to see cross-party support today for the investors who are innocent victims of absolutely disgraceful behaviour by Capita, will my hon. Friend seek an assurance from the Government that their red tape challenge will not get in the way of effective regulation of this sector to prevent other people from losing out in the way in which the Arch Cru investors have?

[Tom Greatrex]

I thank my hon. Friend for her intervention. I am sure that the Minister heard her entreaty. I agree with her that in seeking to ensure that the regulation is right, there is a great danger in looking to light-touch regulation. The consequence of that could well be the position that we find ourselves debating this morning. I am sure that the Minister will take that warning on board.

The third issue is the payment scheme negotiated by the FSA from Capita, HSBC and BNY Mellon. As everyone knows, they are careful to say that that deal is not an admission of liability. The FSA says and has said to investors that it is a “reasonable outcome” for them. It says that it saves time, given that a breach does not have to be proved in what the background note describes as a very complex case, involving multiple parties with different responsibilities. It says that it considered that it was appropriate to align the Financial Ombudsman Service decision making with the payment scheme rules.

Scotland Bill

Debate between Tom Greatrex and Fiona O'Donnell

Tuesday 15th March 2011 Commons Chamber

[Tom Greatrex]

I beg to move, That the clause be read a Second time.

I hesitate to introduce an element of gravity to the proceedings, given some of the entertainment that has featured so far. Over the past few hours, however, there has been much debate on issues that did not feature in the Calman report. This issue was dealt with in the report, but it does not feature in the Bill. It featured in the previous Government’s White Paper and is referred to in the Command Paper that accompanies the Bill, but it is one of the issues that appear to have fallen off the edge of the Calman process.

During this Committee stage the Government have produced explanations, some convincing and others less so, for the fact that they are not implementing some of Calman’s recommendations. Part of the purpose of the new clause is to give them an opportunity to explain why they are not implementing one particular recommendation. I note that the Scottish Parliament legislative consent memorandum Committee, in one of its conclusions, suggested that the Government provide a fuller explanation. As I am sure that its members read the Command Paper before reaching that conclusion, I suspect that merely repeating the terms of the Command Paper will not serve to provide the explanation sought by the Committee.

[Fiona O’Donnell]

Will my hon. Friend press the Minister to tell us what representations the Government have received from either the retail or the manufacturing sector in support of their action?