Financial Services Bill completes passage through Parliament

The Financial Services Bill returned to the Lords for consideration of Commons amendments in ‘ping pong’ on Wednesday 28 April.

Members discussed Commons decisions on: the duty of care for financial services providers, Financial Conduct Authority (FCA) rules on care provided to consumers, and interest rates for mortgage prisoners.

Following the debate, motions on the Commons decisions were agreed to.

Catch up on Parliament TV
Read the Lords Hansard transcript
Bills and legislation: Financial Services Bill
Explore the Lords Library briefing
What is consideration of Commons amendments/ping pong?

As both Houses have agreed on the text of the bill it now awaits the final stage of Royal Assent. It will then become an Act of Parliament (law).

Royal Assent is expected to take place on Thursday 29 April.

Report stage day three and third reading: Monday 19 April

Members discussed digital identification, supervision of the Financial Conduct Authority, a new UK Finance Watch body and the response from the regulators to Parliamentary scrutiny.

Third reading, a chance for members to make sure the eventual law is effective, workable and without loopholes, took place immediately afterwards with no debate.

Following completion of third reading, the bill now passes to the Commons for consideration of Lords amendments.

Report stage day two: Wednesday 14 April

Members discussed limiting retention of personal data to five years, regulation of bailiffs and bailiff firms and the contribution of financial services companies to climate change targets.

There were two votes (divisions ) on proposed changes (amendments) to the bill.

Sharia-compliant financial services

The first vote was on amendment 15, which requires the Treasury, within six months of the passing of the Act, to facilitate the availability of Sharia-compliant financial services in the UK, including availability to students eligible for government finance.

Members voted 249 in favour and 279 against, so the change was not made.

Interest rates for mortgage prisoners

The second vote was on amendment 21, which requires the Financial Conduct Authority (FCA) to introduce a cap on the Standard Variable Rates charged to mortgage prisoners and, under specified circumstances, ensure their access to fixed rate interest deals.

Members voted 273 in favour and 235 against, so the change was not made.

Report stage day one: Wednesday 24 March

Members discussed a range of subjects including rules for Gibraltar-based persons operating in the the UK and regulation of bailiffs and bailiff firms, and voted to provide for rules for financial service providers to have a statutory duty of care.

There were two divisions (votes) on proposed changes to the bill.

Duty of care

The first vote was on amendment 1, which seeks to strengthen the Financial Conduct Authority’s (FCA) consumer protection objectives by requiring the FCA to create rules regarding the duty of care for financial service providers.

Members voted 296 in favour and 255 against, so the change was made.

Fossil fuel risks

The second vote was on amendment 3, which requires the Prudential Regulation Authority to review the climate change risks applied to fossil fuel exposures in capital requirements.

The vote was tied, with 276 members in favour and 276 against.

This is known as an Equality of Votes. Under Standing Order 56 of the House of Lords the amendment is therefore disagreed to, so the change was not made.

Committee stage day six: Wednesday 10 March

Members discussed subjects including caps on the Standard Variable Rate for mortgages, impact assessments on the financial sector and designated artificial intelligence officers for financial service companies.

Catch up on Parliament TV
Read the Lords Hansard transcript
Bills and legislation: Financial Services Bill
Explore the Lords Library briefing
What is committee stage?

Committee stage of this bill took place in Grand Committee, away from the chamber. In Grand Committee, any member can take part and decisions on amendments (changes) can be made, but no votes can take place.

Committee stage day five: Monday 8 March

Members discussed a range of topics including criminal financial offences, protecting access to cash and the determination of accounting standards by the Bank of England.

Committee stage day four: Wednesday 3 March

Members discussed a range of topics, including climate-related financial risk, review of supervisory bodies and tax reporting for Gibralter-based persons.

Committee stage day three: Monday 1 March

Members discussed a range of topics, including funding of fossil fuel exploration, taxation reporting for Gibralter-based persons and disclosure of climate-related financial risk.

Committee stage day two: Wednesday 24 February

Members considered a range of topics, including parliamentary approval of powers given to the Financial Conduct Authority (FCA) and climate-related financial risk.

Committee stage day one: Monday 22 February

Members discussed a range of topics, including the duty of care of financial services providers, exploitation of consumers and small businesses, and international competitiveness of financial services.

Second reading: Thursday 28 January

Members discussed a range of subjects highlighted by the bill, including market access between the UK and Gibraltar, powers granted to the Financial Conduct Authority and the economic impact of the COVID-19 pandemic.

Lord Agnew of Oulton (Conserverative), Minister of State in HM Treasury, opened the debate and responded on behalf of the government.

Speakers included a former vice president of Citibank and a member of the Bank of England Enforcement Decision Making Committee.

Lord Hammond of Runnymede (Conservative), former Chancellor of the Exchequer, and Baroness Shafik (Crossbench), board member of the Institute for Fiscal Studies, gave their maiden speeches in the House.