FSM Bill: Lords Report stage day 3

Day 3 of the debate on the FSM Bill at Lords Report stage included:

• a debate on forest risk commodities, which was approved on a vote;
• a proposal for a number of amendments relating to liability of PSPs for fraudulent transactions, specifically requiring the PSR to report annually on the impact the reimbursement requirement has had on consumer protection and secondly creating a “league table” so consumers could see how each bank was performing in preventing fraud and reimbursing victims. The amendments were withdrawn after Baroness Penn assured the house of actions the PSR would be taking;
• an agreed change to make the Treasury responsible for the appointment of the Complaints Commissioner;
• the hotly debated proposal on ensuing all UK appointed PEPs should be treated as low risk – the Government had listened and tabled amendments that were welcomed;
• a proposal that banks should be required to inform FCA is they withdraw banking services from a customer or decide not to offer them because of money laundering concerns – this was withdrawn;
• an amendment that would require any decision on a CBDC to be made by Act of Parliament, which was withdrawn after Government reassurances that all relevant issues would be considered at the time a decision is to be taken;
• an amendment to require Treasury to publish a review of how to incentivise pension fund schemes to invest in high-growth firms and green infrastructure – this was rejected on a vote;
• an amendment to prevent the Government making substantive changes to ring-fencing and the SMCR by statutory instrument which was rejected on a narrow vote;
• an amendment to require FCA to introduce a cap on the SVR rates charged to mortgage prisoners and ensure their access to fixed rate deals – this was reluctantly withdrawn;
• a requirement on regulated firms that use AI to have a designated AI officer, which was withdrawn; and
• a proposal to require that the retained EU law that replaced the AIFMD and associated legislation would cease to have effect within 2 months of Royal Assent – unsurprisingly the Government continued not to support this, although all acknowledged the need to address the needs of the fund sector – but without damaging it.

That concluded the debate on Report, and the Third Reading in the Lords has been scheduled for 19 June.