Asked by: Carla Lockhart (Democratic Unionist Party - Upper Bann)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he is taking steps to ensure access to ATMs in rural locations.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
The government recognises that cash continues to be used by millions of people across the UK, including those who may be in vulnerable groups.
The government legislated through the Financial Services and Markets Act 2023 to establish a new legislative framework to protect access to cash. This establishes the Financial Conduct Authority (FCA) as the lead regulator for access to cash and provides it with responsibility and powers to seek to ensure reasonable provision of cash withdrawal and deposit facilities.
Following this, the government published a Cash Access Policy Statement, which the FCA must take into account in exercising its powers. This sets out that the vast majority of people in predominately rural areas of the UK should have access to cash deposit and withdrawal services within a maximum of 3 miles of where they live. The government’s policy statement is available on gov.uk: Cash Access Policy Statement
Regarding ATM provision specifically, LINK (the scheme that runs the UK's largest ATM network) also has commitments to protect the broad geographic spread of free-to-use ATMs. It is held to account against these commitments by the Payment Systems Regulator.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what consideration they have given to approving retail access to cryptocurrency exchange traded products.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
The question of approving exchange traded products (ETPs) that reference specific cryptoassets is a matter for the Financial Conduct Authority (FCA) as the independent regulator, working within its statutory objectives.
The FCA currently considers these products to be ill-suited for retail consumers due to risk of harm arising from the nature of the underlying assets and markets.
The FCA’s prohibition of crypto-referenced ETPs is subject to on-going review.
Asked by: Tanmanjeet Singh Dhesi (Labour - Slough)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what steps her Department has taken to help increase exports to Switzerland since 2022.
Answered by Greg Hands - Minister of State (Department for Business and Trade)
The Government is committed to driving forward export growth and helping UK businesses export to markets across the globe, including Switzerland. In January 2023 the Government extended the Services Mobility Agreement, allowing service suppliers to travel to Switzerland more easily. In December 2023, HM Treasury signed the Berne Financial Services Agreement, providing market access to service suppliers into the Swiss market.
The Government are currently negotiating an enhanced FTA, which aims to provide deeper market access for services suppliers and remove tariff barriers.
Switzerland is the UK’s 7th largest export market. UK businesses can access DBT’s export service support via Great.gov.uk.
Asked by: Tracey Crouch (Conservative - Chatham and Aylesford)
Question to the Home Office:
To ask the Secretary of State for the Home Department, if he will introduce legislation to mandate information sharing between (a) payment service providers, (b) technology companies and (c) telecommunications companies.
Answered by Tom Tugendhat - Minister of State (Home Office) (Security)
Under current regulations, victims of unauthorised bank fraud are automatically entitled to reimbursement in virtually all cases. This is not the case with victims of authorised push payment (APP) fraud – currently ten of the UK’s largest banks are signed up to the voluntary Contingent Reimbursement Model (CRM) Code.
The government have legislated through the Financial Services and Markets Act 2023 to require the Payments System Regulator (PSR) to introduce mandatory reimbursement for APP scams within the Faster Payment System, where 98% of APP fraud takes place.
The PSR have confirmed that mandatory reimbursement will come into force in October 2024.
Asked by: Tracey Crouch (Conservative - Chatham and Aylesford)
Question to the Home Office:
To ask the Secretary of State for the Home Department, whether he has made an assessment of the potential merits of a fair and proportional reimbursement framework for bank fraud.
Answered by Tom Tugendhat - Minister of State (Home Office) (Security)
Under current regulations, victims of unauthorised bank fraud are automatically entitled to reimbursement in virtually all cases. This is not the case with victims of authorised push payment (APP) fraud – currently ten of the UK’s largest banks are signed up to the voluntary Contingent Reimbursement Model (CRM) Code.
The government have legislated through the Financial Services and Markets Act 2023 to require the Payments System Regulator (PSR) to introduce mandatory reimbursement for APP scams within the Faster Payment System, where 98% of APP fraud takes place.
The PSR have confirmed that mandatory reimbursement will come into force in October 2024.
Asked by: Harriett Baldwin (Conservative - West Worcestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the oral contribution of the Economic Secretary during the debate on Financial Advice and Guidance: Consumer Market of 9 January 2024, Official Report, column 32WH, when he plans to provide the hon. Member for West Worcestershire with information on whether a specific vote on primary or secondary legislation is required to deal with the proposals in the joint Government and FCA review of the regulatory boundary between financial advice and guidance.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
The government and Financial Conduct Authority (FCA) are exploring a range of regulatory and legislative options for implementation and there are elements of the package that could require amendment to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 through secondary legislation. We will consider whether any wider changes to the existing regulatory and legislative regime would be required to deliver the proposals successfully within a coherent broader framework.
Asked by: Stephen Timms (Labour - East Ham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will take steps to amend the cooperation agreement between the Society of Lloyds and the Prudential Regulation Authority to place obligations on Lloyds of London to help meet the UK's climate targets.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
The financial regulators’ primary focus must be to ensure the safety, soundness and integrity of the markets they regulate. While the government expects that the regulators will play a crucial role in supporting the achievement of the government’s net zero target, it is not their primary responsibility given many of the levers for change sit outside of financial services regulation.
However, the Financial Services and Markets Act 2023 introduced a new regulatory principle for the Financial Conduct Authority, Bank of England and Payment Systems Regulator to consider in their work. To further strengthen the UK’s regulatory regime relating to climate and the environment, the government has embedded the consideration of the UK’s climate and environmental targets across the full breadth of the regulators’ general functions on a statutory basis.
This regulatory principle seeks to cement the government’s long-term commitment to transform the economy in line with its target to reach net zero by 2050, and to make progress towards the government’s long-term environmental goals, by ensuring the regulators must have regard to the government’s commitment to achieve these targets when discharging their functions.
This principle does not create any specific requirements on firms. Rather, they are expected to inform the future work of the regulators.
Asked by: Stephen Timms (Labour - East Ham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of placing statutory duties on the (a) Financial Conduct Authority and (b) Prudential Regulation Authority to help meet the UK's climate targets.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
The financial regulators’ primary focus must be to ensure the safety, soundness and integrity of the markets they regulate. While the government expects that the regulators will play a crucial role in supporting the achievement of the government’s net zero target, it is not their primary responsibility given many of the levers for change sit outside of financial services regulation.
However, the Financial Services and Markets Act 2023 introduced a new regulatory principle for the Financial Conduct Authority, Bank of England and Payment Systems Regulator to consider in their work. To further strengthen the UK’s regulatory regime relating to climate and the environment, the government has embedded the consideration of the UK’s climate and environmental targets across the full breadth of the regulators’ general functions on a statutory basis.
This regulatory principle seeks to cement the government’s long-term commitment to transform the economy in line with its target to reach net zero by 2050, and to make progress towards the government’s long-term environmental goals, by ensuring the regulators must have regard to the government’s commitment to achieve these targets when discharging their functions.
This principle does not create any specific requirements on firms. Rather, they are expected to inform the future work of the regulators.
Asked by: Tonia Antoniazzi (Labour - Gower)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of reducing the level of ATM interchange fees in the context of trends in the level of the cost of (a) labour and (b) the distribution of non-branch ATMs.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
The government recognises that cash continues to be used by millions of people across the UK, including those who may be in vulnerable groups.
The government legislated through the Financial Services and Markets Act 2023 to establish a new legislative framework to protect access to cash. This establishes the Financial Conduct Authority (FCA) as the lead regulator for access to cash and provides it with responsibility and powers to seek to ensure reasonable provision of cash withdrawal and deposit facilities. The FCA is currently holding a consultation on its proposed regulatory approach: FCA Access to Cash Consultation
Decisions regarding the funding arrangements of an ATM network are taken by the parties involved. LINK (the scheme that runs the UK's largest ATM network) has commitments to protect the broad geographic spread of free-to-use ATMs and is held to account against these commitments by the Payment Systems Regulator.
Asked by: Lord McNicol of West Kilbride (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government whether they consider that the Financial Ombudsman Service and Financial Services Compensation Scheme protections enacted under the Financial Services and Markets Act 2000, which underpin retail investor confidence in the UK financial industry, remain "an expression of UK national policy".
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
The government believes that it is important that consumers of financial services have appropriate routes to seek redress without having to go through the court system. The Financial Services and Markets Act 2000 established both the Financial Ombudsman Service (FOS) and the Financial Services Compensation Scheme (FSCS) for this purpose.
The FOS provides consumers and small businesses with a free, independent service that enables the proportionate, prompt and informal resolution of disputes with financial services firms. It is designed as an alternative to resolution of cases through the courts, which can be expensive for both firms and consumers and delay redress.
The courts also continue to play an important role alongside the FOS in ensuring consumers have access to redress and in some cases may be a more appropriate route to ensuring effective resolution of disputes.
The FSCS is the UK’s compensation scheme of last resort and pays compensation to consumers when authorised financial services firms fail. However, the FSCS does not cover losses that arise purely from investment performance. The UK does not operate a zero-failure regime in financial services and individuals have responsibility for choosing investments that are suitable for their risk profile.