Draft Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2024

Tulip Siddiq Excerpts

Monday 29th January 2024 General Committees

[Tulip Siddiq (Hampstead and Kilburn) (Lab)]

It is a pleasure to serve under you, Mr Twigg. I support the order, which designates the operation of a pensions dashboard as a regulated service; it must therefore be regulated by the FCA. The Opposition support any initiative that helps people to manage their finances and save for later life. The changes being debated are long overdue. Even though I support them, the Minister will not be surprised to know that I have some questions. International evidence and the DWP’s own impact assessment show that to reach their potential to help millions of people, dashboards must be incorporated into services that people already use, so how will the Government encourage firms to come forward to offer dashboards and ensure that they are regulated safely? When will the FCA publish its final rules? Does it expect commercial dashboards and the Money and Pension Service’s dashboard to be available at the same time?

Pension dashboards have already faced delays, as the Minister will know, and the Association of British Insurers has warned that the industry needs confidence that the existing timetable will stick to ensure effective delivery of this initiative. To what extent will pension dashboards rely on other parts of the Government? For example, will they rely on the Government’s One Login service and how will that affect the market for pension dashboards?

Some dashboards will present other financial data alongside pensions. That is one of the main benefits to consumers: to see all their finances in one place. As such, this statutory instrument is relevant to the Data Protection and Digital Information Bill as the smart data proposals in the Bill will enable the Government to create a framework for open finance and the digital verification proposals will make it easier for consumers to prove who they are online. Could the Minister reassure me that these related initiatives will not be considered in isolation and that he will take a holistic view of the legislation?