The Financial Services Bill is currently going through line by line scrutiny in the Committee stage in the House of Lords. Among the changes for debate are:
- an requirement for a member of the FCA governing body to have responsibility for climate change and an obligation on PRA to report on climate risk and imposition of various requirements on consideration of sustainability;
- a requirement on Treasury to lay before Parliament regulations requiring FCA to regulate BNPL services and “other lending services that have non-interest-bearing elements” – and to lay the Regulations within 3 months of the Bill becoming law, and for FCA’s duty to take effect no later than 6 April 2022;
- to create the much called-for offence of failure to prevent an economic crime, which would apply to a wide variety of offences including under the Theft and Fraud Acts, the various misleading statements offences under FSMA and the FSA 2012, and the predicate money laundering offences under POCA. There would be a “reasonable procedures” defence and an obligation on the Chancellor and Secretary of State to publish guidance. Alternatively, this clause might define the relevant offences by reference to the Crime and Courts Act 2013 with or without additional offences. A further alternative crafts the offence as “commission or facilitation of financial crime”;
- new requirements for Parliamentary oversight of PRA and FCA’s delegated powers;
- changes to give small businesses greater protection against mis-selling;
- new clauses on whistleblowing, including the creation of an official Office of Financial Services Whistleblower;
- caps on standard variable rate changes for mortgage prisoners;
- requirements on Treasury on updating on, and determining, equivalence; and
- regulation of lead generators for debt advice and debt solution services;