Lord Holmes Oral Question on “FCA must have regards duty for financial inclusion”
I fully support the UK Financial Inclusion Commission & Fair By Design's campaign to introduce a "must have regard" to financial inclusion duty to the Financial Conduct Authority.
Everybody should have access to financial products and services that meet their needs over the course of their lifetime. For this to happen the market needs to be able to accommodate the specific needs of people on low incomes and with certain characteristics, such as those with a physical disability or experiencing poor mental health – regularly referred to as consumer vulnerabilities. Currently the market is not delivering for all.
The Financial Conduct Authority (FCA) has a range of powers and tools that it uses to regulate the market which include its statutory objectives as well as the Treating Customers Fairly outcomes and its Public Sector Equality Duty. Yet, there is NO clear duty to tackle financial inclusion. This results in many consumers falling through the cracks with regulator and government often pointing to each other for action.
The new FCA Consumer Duty will not address the issue.
The solution proposed through the 'must have regard' to financial inclusion duty for the FCA will ensure greater clarity and understanding of the issues and best interventions to ensure financial inclusion.
The HMT 's Future Regulatory Framework Review provides a perfect opportunity to help create a UK where everyone is financially included.
Financial Exclusion remains a pernicious problem, with many of the issues we investigated in our Lords Select Committee on Financial Exclusion still to be addressed: the poverty premium, mortgage prisoners, fair and affordable credit, access to cash, fairer finance, fintech, cdfis.
I'm committed to ensuring cash is preserved for those who want and need to use it - which is why I added an amendment to the Financial Services Bill, now Act, to enable cashback without purchase but I am equally committed to fighting to make sure digital payments are accessible to all. Financial services must be accessible and enabling.
“The future is digital but that future must be accessible, not as a ‘nice to have’, but an essential for every citizen to be financially and digitally included.”
There is still much to be done!!
Author: Lord Chris Holmes
