FSMB second day of Lords’ Committee hearing

The second day of debate in the Lords’ Grand Committee consisted of a lively debate on several proposed amendments, none of which have been taken forward.  Topics debated were:

  • creating offences for abuse of power: Lady Bowles had brought the amendment forwards, saying there are many examples of where individuals who clearly abused their power had not been subject to any action.  The Government response was to commit to action, but to say these issues will be discussed in the upcoming fraud report. Lady Bowles withdrew the amendment, asking for the report to be published very soon, and saying she would raise the issue again at Report stage;
  • the proposed amendment to ensure businesses carrying on a mix of regulated and unregulated activities make it clear which parts of their business are unregulated was not moved;
  • the proposed amendment to regulated SME lending and enable SMEs to take action where they suffer losses was also withdrawn but will be brought back on Report. The Government’s position noted that many SMEs can complain to FOS and the BBRS and said that many banks offer voluntary protections to SMEs;
  • a proposed amendment to require investment managers to disclose how they have voted on behalf of customers was withdrawn;
  • a UK Finance backed proposal to introduce greater powers that will enable any action that may result from the CCA review was withdrawn after the Government stances was that the CCA review is a complex review and appropriate decisions will be taken at a later stage – and the Government committed “shortly” to publish secondary legislation on BNPL, with further Government and FCA consultations to follow; and
  • the proposed amendment requiring FCA’s secondary objective on climate change to align with other legislation was withdrawn, again with a promise to revisit at Report stage,

The next sitting of the Committee is on 1 February.

Emma Radmore