Lords examines Financial Guidance and Claims Bill

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01 November 2017

The Financial Guidance and Claims Bill completed its report stage, a further chance to examine the bill and make changes, in the Lords on Tuesday 31 October.

Members discussed pensions information and guidance, claims management services and a debt respite scheme.

There was one division (vote).

Members discussed changing the bill to require the Financial Conduct Authority (FCA) to check the recipient of pensions had received financial information and guidance to which they were entitled. If the recipient had not, the change would then allow the FCA to require a manager to provide access to the guidance before proceeding.

In the vote, 283 members were in favour of the change with 201 against. This meant the change was made.

Third reading, a chance to 'tidy up' the bill and make changes, has yet to be scheduled.

Lords report stage day one: Tuesday 24 October

Members discussed subjects including consumer protection, scam awareness and cold-calling.

There were three votes (divisions).

Members discussed a change (amendment) to a definition in the draft law (bill) adding consumer protection to the list of functions of  the single financial guidance body. Members discussed the possible results of the change and the current situation regarding consumer protection. There was a vote with 263 members in favour of the change and 208 against. This meant the change was made.

Members discussed a change (amendment) to a definition in the draft law (bill) to ensure the single financial guidance body considers the effect of cold calling and to ban it in certain circumstances. Members discussed the possible results of the change and the current situation regarding unsolicited telephone and text messages for financial products. There was a vote with 253 members in favour of the change and 205 against. This meant the change was made.

Members discussed a final change (amendment) to a definition in the draft law (bill) adding the awareness of scams and frauds relating to financial products to the national strategy. There was a vote with 80 members in favour of the change and 167 against. This meant the change was not made.

Lords committee stage day four: Wednesday 13 September

Members discussed subjects including the regulation of claims management services, banning unsolicited approaches by phone or email and the provision of replacement motor vehicles.

Lords committee stage day three: Monday 11 September

Members discussed subjects including the standards set by the single financial guidance body and the funding of debt advice in Scotland, Wales and Northern Ireland.

Lords committee stage day two: Wednesday 6 September

Members discussed subjects including pensions guidance, banning unsolicited communications and improving the ability of individuals to plan for sudden income variations.

Lords committee stage day one: Wednesday 19 July

Members discussed subjects including the function and sufficiency of debt advice services, creating a breathing space scheme, increased financial inclusion and the duties of the proposed single financial guidance body.

Lords second reading: Wednesday 5 July

Members discussed the two key purposes of the bill, namely the merger of three financial advice and guidance services and the transfer of claims management regulation from the Ministry of Justice (MoJ) to the Financial Conduct Authority (FCA).

The debate covered financial education in the context of financial exclusion, coverage of the legislation in devolved nations and funding of the proposed single financial service.

Financial Guidance and Claims Bill

This bill will aim to:

  • create a single financial guidance body by merging three existing government-sponsored financial and pension guidance services
  • provide for funding of debt advice in Scotland, Wales and Northern Ireland
  • transfer claims management regulation from the Claims Management Regulation Unit of the Ministry of Justice to the Financial Conduct Authority

Further information

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