I beg to move, That the clause be read a Second time.

I beg to move, That the clause be read a Second time.

What is important is that the PRA establishes its process for consultation with regulated firms. It is required to set out in its annual report its process of consultation. In conclusion, this is an important part of the legislation, and I am very disappointed that the hon. Member for Nottingham...

What is important is that the PRA establishes its process for consultation with regulated firms. It is required to set out in its annual report its process of consultation. In conclusion, this is an important part of the legislation, and I am very disappointed that the hon. Member for Nottingham...

May I make it clear that the FPC has ruled out intervening on loan-to-value ratios? It is important that we do not let this hare continue to run much longer.

May I make it clear that the FPC has ruled out intervening on loan-to-value ratios? It is important that we do not let this hare continue to run much longer.

This has been a thoughtful and helpful debate, which has raised a number of issues. The hon. Member for Nottingham East (Chris Leslie), who is not in the Chamber now, asked what would happen next. The powers to transfer consumer credit regulation can be used only when the Bill has...

This has been a thoughtful and helpful debate, which has raised a number of issues. The hon. Member for Nottingham East (Chris Leslie), who is not in the Chamber now, asked what would happen next. The powers to transfer consumer credit regulation can be used only when the Bill has...

The hon. Lady makes an important point. It is my understanding that some of these prepayment schemes get their income from being able to negotiate a discount with the supplier of the goods, as well as, perhaps, from the interest they earn on the prepayments. The question then arises whether...

The hon. Lady makes an important point. It is my understanding that some of these prepayment schemes get their income from being able to negotiate a discount with the supplier of the goods, as well as, perhaps, from the interest they earn on the prepayments. The question then arises whether...

I think that there is adequate provision in the Bill on consumer credit; the FCA has the powers to tackle that issue and I am confident that it will be able to make appropriate use of the remedies available to it. A different issue about pre-payment schemes has been raised,...

I think that there is adequate provision in the Bill on consumer credit; the FCA has the powers to tackle that issue and I am confident that it will be able to make appropriate use of the remedies available to it. A different issue about pre-payment schemes has been raised,...

I am certain that the FCA's broad range of powers will enable it to do that. It can use its powers in pursuit of its consumer protection objectives. However, those are not the only powers that are available. The hon. Member for Makerfield (Yvonne Fovargue) asked whether the FCA would...

I am certain that the FCA's broad range of powers will enable it to do that. It can use its powers in pursuit of its consumer protection objectives. However, those are not the only powers that are available. The hon. Member for Makerfield (Yvonne Fovargue) asked whether the FCA would...

I do not think this needs regulatory action. I think it is in the interests of lenders to provide the right information to their borrowers to enable them to plan ahead, however, because it is not in the interests of lenders for borrowers to fall into arrears as a consequence...

I do not think this needs regulatory action. I think it is in the interests of lenders to provide the right information to their borrowers to enable them to plan ahead, however, because it is not in the interests of lenders for borrowers to fall into arrears as a consequence...

Part of the challenge is that such schemes are part of a subset of advanced payment schemes that are not necessarily covered by the Bill. These issues are consumer issues and I shall certainly raise with my hon. Friend the Minister with responsibility for consumer affairs where he feels that...

Part of the challenge is that such schemes are part of a subset of advanced payment schemes that are not necessarily covered by the Bill. These issues are consumer issues and I shall certainly raise with my hon. Friend the Minister with responsibility for consumer affairs where he feels that...

I do not have that information on me, but I will endeavour to have it by the time I wind up the debate. It is important that there is evidence, that we do not respond on a knee-jerk basis and that we ensure that we protect vulnerable consumers. That includes...

I do not have that information on me, but I will endeavour to have it by the time I wind up the debate. It is important that there is evidence, that we do not respond on a knee-jerk basis and that we ensure that we protect vulnerable consumers. That includes...

New clause 4, which is the most significant of the Government new clauses and amendments in the group, provides a framework for implementation of the Government's proposal to retain the important rights and protections of the Consumer Credit Act 1974 to ensure that consumers do not lose out as a...

New clause 4, which is the most significant of the Government new clauses and amendments in the group, provides a framework for implementation of the Government's proposal to retain the important rights and protections of the Consumer Credit Act 1974 to ensure that consumers do not lose out as a...

My hon. Friend makes an important point, as we face a challenge in that respect. First, we believe that the FCA has the powers it needs to tackle payday lending. That could include some form of price intervention—

My hon. Friend makes an important point, as we face a challenge in that respect. First, we believe that the FCA has the powers it needs to tackle payday lending. That could include some form of price intervention—

The hon. Member for Nottingham East (Chris Leslie) protests too much about this matter. Those of us who are veterans of the Bill and those who occasionally came to watch our proceedings will know why 20 clauses went undebated, as is clear from the Committee Hansard. The Opposition agreed on...

The hon. Member for Nottingham East (Chris Leslie) protests too much about this matter. Those of us who are veterans of the Bill and those who occasionally came to watch our proceedings will know why 20 clauses went undebated, as is clear from the Committee Hansard. The Opposition agreed on...

I ask the hon. Lady just to hold her horses for a moment. This is about the third time we have discussed this matter and she may want to engage in the debate later, but we need to understand the function of the market. The previous Government—[Interruption.] The hon. Member...

I ask the hon. Lady just to hold her horses for a moment. This is about the third time we have discussed this matter and she may want to engage in the debate later, but we need to understand the function of the market. The previous Government—[Interruption.] The hon. Member...

We have spent a lot of time discussing the issue. Does the hon. Gentleman not remember that the power to grant macro-prudential tools is subject to the affirmative procedure? There is a role for Parliament to play. My right hon. Friend the Chancellor said on Second Reading that he hoped...

We have spent a lot of time discussing the issue. Does the hon. Gentleman not remember that the power to grant macro-prudential tools is subject to the affirmative procedure? There is a role for Parliament to play. My right hon. Friend the Chancellor said on Second Reading that he hoped...

Does the hon. Gentleman believe that Parliament should override the detailed rules of regulators?

Does the hon. Gentleman believe that Parliament should override the detailed rules of regulators?

I think that it is important that the court's non-executives perform a full role in scrutinising the Bank's activities. They need to be able to look at the output of those reviews, consider them and express their views on them. On the issue of minutes, I will not say that...

I think that it is important that the court's non-executives perform a full role in scrutinising the Bank's activities. They need to be able to look at the output of those reviews, consider them and express their views on them. On the issue of minutes, I will not say that...

We are clear that we want to see the court's minutes published, which I think is absolutely vital, and that we want to see those retrospective reviews in place. The questions my hon. Friend the Member for Chichester has asked are whether we have gone far enough, whether the proposals...

We are clear that we want to see the court's minutes published, which I think is absolutely vital, and that we want to see those retrospective reviews in place. The questions my hon. Friend the Member for Chichester has asked are whether we have gone far enough, whether the proposals...

My hon. Friend makes an important point. We need to ensure that the right scrutiny arrangements are in place, but we also need to recognise that the super-affirmative procedure can create delays, because there are times when if the House is in recess the clock stops, so there is a...

My hon. Friend makes an important point. We need to ensure that the right scrutiny arrangements are in place, but we also need to recognise that the super-affirmative procedure can create delays, because there are times when if the House is in recess the clock stops, so there is a...

This has been a thoughtful and constructive debate covering the wide range of issues in this group of amendments. I shall organise my remarks in two parts. I shall deal first with issues relating to the Bank of England and the Financial Policy Committee, and secondly with the Prudential Regulation...

This has been a thoughtful and constructive debate covering the wide range of issues in this group of amendments. I shall organise my remarks in two parts. I shall deal first with issues relating to the Bank of England and the Financial Policy Committee, and secondly with the Prudential Regulation...

Statement on the Government's plans to reform the institutional framework for financial regulation.

Statement on the Government's plans to reform the institutional framework for financial regulation.

I do not agree with the hon. Lady. The package of reforms makes a significant improvement to the regulatory architecture in the UK, and there is further work that we can do at the European and the global level to make it more effective. She is right, in part, to...

I do not agree with the hon. Lady. The package of reforms makes a significant improvement to the regulatory architecture in the UK, and there is further work that we can do at the European and the global level to make it more effective. She is right, in part, to...

The hon. Gentleman makes an important point about the qualifications of non-executive directors. That is why the FSA has already instituted a process of interviewing senior members of staff and directors, before their appointment to boards or positions of responsibility, to ensure that the qualifications and experience that they bring...

The hon. Gentleman makes an important point about the qualifications of non-executive directors. That is why the FSA has already instituted a process of interviewing senior members of staff and directors, before their appointment to boards or positions of responsibility, to ensure that the qualifications and experience that they bring...

I hope that the Opposition will welcome the measures, but their views were not very clear from what the shadow Treasury spokesman said. In the past three or four years, when we have debated the reform of parts of the banking regulation sector, the problem has been that the then...

I hope that the Opposition will welcome the measures, but their views were not very clear from what the shadow Treasury spokesman said. In the past three or four years, when we have debated the reform of parts of the banking regulation sector, the problem has been that the then...

It is important to make sure that debates on regulation are co-ordinated at the global level, and my right hon. Friends the Chancellor of the Exchequer and the Prime Minister take an active role in those debates in the G20. I have recently taken part in ECOFIN's summit, at which...

It is important to make sure that debates on regulation are co-ordinated at the global level, and my right hon. Friends the Chancellor of the Exchequer and the Prime Minister take an active role in those debates in the G20. I have recently taken part in ECOFIN's summit, at which...

The board and management of RBS are responsible for its day-to-day commercial activities.

The board and management of RBS are responsible for its day-to-day commercial activities.

It is clear that if the Bank of England had not lost its power to monitor and act upon the level of debt in the economy, it might have been in a position to consider what was happening in the housing market, to consider the role that Northern Rock played...

It is clear that if the Bank of England had not lost its power to monitor and act upon the level of debt in the economy, it might have been in a position to consider what was happening in the housing market, to consider the role that Northern Rock played...

My hon. Friend makes a good point about who takes control in a crisis. My right hon. Friend the Chancellor was very clear yesterday that, given his responsibilities in respect of public finances, he will ultimately be in charge in such situations.

My hon. Friend makes a good point about who takes control in a crisis. My right hon. Friend the Chancellor was very clear yesterday that, given his responsibilities in respect of public finances, he will ultimately be in charge in such situations.

I am grateful to the right hon. Gentleman for his comments. He takes a close interest in these matters. Of course, he will remember that in 2006 the right hon. Member for Morley and Outwood (Ed Balls) praised the system of "increasingly light-touch" regulation and claimed that he had""resisted pressures...

I am grateful to the right hon. Gentleman for his comments. He takes a close interest in these matters. Of course, he will remember that in 2006 the right hon. Member for Morley and Outwood (Ed Balls) praised the system of "increasingly light-touch" regulation and claimed that he had""resisted pressures...

It is important that the Financial Policy Committee is transparent in its dealings. It is a great strength of the Monetary Policy Committee that it is transparent and that it can be held to account by the public for its decisions. We need to ensure that similar arrangements are put...

It is important that the Financial Policy Committee is transparent in its dealings. It is a great strength of the Monetary Policy Committee that it is transparent and that it can be held to account by the public for its decisions. We need to ensure that similar arrangements are put...

One of the roles of the Financial Policy Committee is to identify threats to financial stability as they emerge. I would expect the FPC, in its work of looking at overall trends in the economy, to identify that sort of risk and to make it known not just to the...

One of the roles of the Financial Policy Committee is to identify threats to financial stability as they emerge. I would expect the FPC, in its work of looking at overall trends in the economy, to identify that sort of risk and to make it known not just to the...

The hon. Gentleman is right to pick up on this issue. One of the big challenges is ensuring that consumers are properly equipped to understand their borrowing and saving needs, and the Consumer Financial Education Body has a key role to play in improving financial capability in order to help...

The hon. Gentleman is right to pick up on this issue. One of the big challenges is ensuring that consumers are properly equipped to understand their borrowing and saving needs, and the Consumer Financial Education Body has a key role to play in improving financial capability in order to help...

There is an issue about pay levels, which we will need to look at. I am intrigued by the hon. Gentleman's suggestion that there should be a greater variable element in relation to performance, given that a critique of many is that an excessive bonus culture in the City contributed...

There is an issue about pay levels, which we will need to look at. I am intrigued by the hon. Gentleman's suggestion that there should be a greater variable element in relation to performance, given that a critique of many is that an excessive bonus culture in the City contributed...

The package that we have set out today, which was greeted with a great deal of support last night when the Chancellor outlined it to the City, ends any uncertainty. The transition process that we have outlined today in relation to legislation, and the team led by Hector Sants, the...

The package that we have set out today, which was greeted with a great deal of support last night when the Chancellor outlined it to the City, ends any uncertainty. The transition process that we have outlined today in relation to legislation, and the team led by Hector Sants, the...

I am grateful to the hon. Gentleman for that question. He has been a distinguished member of the Select Committee on the Treasury and has taken part in many discussions in that Committee and in Public Bill Committees when we have explored some of these issues. I sense that he...

I am grateful to the hon. Gentleman for that question. He has been a distinguished member of the Select Committee on the Treasury and has taken part in many discussions in that Committee and in Public Bill Committees when we have explored some of these issues. I sense that he...

I am grateful to my hon. Friend. There have been a number of conversations with other colleagues globally about the lessons to be learned from the financial crisis and from the regulatory structures. It is interesting to talk to people in other jurisdictions about their views. Christian Noyer, the governor...

I am grateful to my hon. Friend. There have been a number of conversations with other colleagues globally about the lessons to be learned from the financial crisis and from the regulatory structures. It is interesting to talk to people in other jurisdictions about their views. Christian Noyer, the governor...

I am grateful for my hon. Friend's question. It is important to ensure that businesses have confidence that where macro-prudential threats arise in future, action will be taken to resolve them. They did not have that confidence in the previous regime and I hope that they will have that confidence...

I am grateful for my hon. Friend's question. It is important to ensure that businesses have confidence that where macro-prudential threats arise in future, action will be taken to resolve them. They did not have that confidence in the previous regime and I hope that they will have that confidence...

I must say that I think that some humility should be shown by the Opposition Front Benchers for landing this country with a system that led to the longest and deepest recession since the 1930s.

I must say that I think that some humility should be shown by the Opposition Front Benchers for landing this country with a system that led to the longest and deepest recession since the 1930s.

My hon. Friend makes a good point about the role of insurance. In this crisis, we must ensure that we distinguish between what has happened to the banking sector and the relative success of the insurance sector in withstanding the storms of this crisis. It is an important sector to...

My hon. Friend makes a good point about the role of insurance. In this crisis, we must ensure that we distinguish between what has happened to the banking sector and the relative success of the insurance sector in withstanding the storms of this crisis. It is an important sector to...

With permission, Mr Speaker, I shall make a statement about the Government's plans to reform the institutional framework for financial regulation. The tripartite system of financial regulation failed spectacularly in its mission to ensure financial stability, and that failure cost the economy billions. The British people rightly ask how this...

With permission, Mr Speaker, I shall make a statement about the Government's plans to reform the institutional framework for financial regulation. The tripartite system of financial regulation failed spectacularly in its mission to ensure financial stability, and that failure cost the economy billions. The British people rightly ask how this...

I welcome the hon. Gentleman to his new role and I am grateful to him for his welcome to me. Although I listened very carefully to his remarks, I am not quite sure whether the Opposition accept our proposals or whether they are stuck in the past defending to the...

I welcome the hon. Gentleman to his new role and I am grateful to him for his welcome to me. Although I listened very carefully to his remarks, I am not quite sure whether the Opposition accept our proposals or whether they are stuck in the past defending to the...

My hon. Friend makes an important point. We will tease out the detail of the measure in Committee—whether it is retrospective, for what period people will be liable, and so on. On the issue of materiality, let me put a scenario to the Financial Secretary. I do not know what...

My hon. Friend makes an important point. We will tease out the detail of the measure in Committee—whether it is retrospective, for what period people will be liable, and so on. On the issue of materiality, let me put a scenario to the Financial Secretary. I do not know what...

The hon. Gentleman makes an important point, but as we discussed in yesterday's debate on corporation tax, businesses are angry and frustrated about the lack of consultation before measures are announced, and that is one of the factors that makes Britain a difficult place in which to do business. They...

The hon. Gentleman makes an important point, but as we discussed in yesterday's debate on corporation tax, businesses are angry and frustrated about the lack of consultation before measures are announced, and that is one of the factors that makes Britain a difficult place in which to do business. They...

I beg to move amendment 4, page 45, line 18, after 'after', insert 'the first anniversary of'. The amendment refers to clause 92, which imposes additional duties on senior accounting officers of large companies. The Financial Secretary can be assured that schedule 46 will be discussed in some detail in...

I beg to move amendment 4, page 45, line 18, after 'after', insert 'the first anniversary of'. The amendment refers to clause 92, which imposes additional duties on senior accounting officers of large companies. The Financial Secretary can be assured that schedule 46 will be discussed in some detail in...

The right hon. Gentleman and his hon. Friend the Member for Wolverhampton, South-West are trying valiantly to justify the measure, but I am not persuaded. There are already checks and balances in place to ensure that. If there was feedback from HMRC's risk assessment that directors were not taking their...

The right hon. Gentleman and his hon. Friend the Member for Wolverhampton, South-West are trying valiantly to justify the measure, but I am not persuaded. There are already checks and balances in place to ensure that. If there was feedback from HMRC's risk assessment that directors were not taking their...

I am still not persuaded. That is why I look forward to the Financial Secretary's reply, in which I hope he will lay out explicitly, for the first time in public, what the rationale is for the measure. On Second Reading there was not much reference to it.

I am still not persuaded. That is why I look forward to the Financial Secretary's reply, in which I hope he will lay out explicitly, for the first time in public, what the rationale is for the measure. On Second Reading there was not much reference to it.

That is fine, but there is already an obligation on directors to maintain proper books of records. They already have to sign off the accounts. If there was no responsibility anywhere in the business for signing off the books and records or for signing off the accounts, that would be...

That is fine, but there is already an obligation on directors to maintain proper books of records. They already have to sign off the accounts. If there was no responsibility anywhere in the business for signing off the books and records or for signing off the accounts, that would be...

My hon. Friend makes an important point. That is part of the challenge. The case has not been made, which is why people outside are perplexed about the need for the measure. I have touched on materiality and talked about normal accounting systems. "Tax accounting arrangements" is a vague term....

My hon. Friend makes an important point. That is part of the challenge. The case has not been made, which is why people outside are perplexed about the need for the measure. I have touched on materiality and talked about normal accounting systems. "Tax accounting arrangements" is a vague term....

I have great deal of respect for the right hon. Gentleman's business experience. He comes to the House with some knowledge of large companies, but I am not yet persuaded. The case has not been made. It goes back to the point that I made at the start, which he...

I have great deal of respect for the right hon. Gentleman's business experience. He comes to the House with some knowledge of large companies, but I am not yet persuaded. The case has not been made. It goes back to the point that I made at the start, which he...

I do not agree with the hon. Gentleman. Consultation should have taken place before the Bill was introduced, but now we have the Bill, we need to consider what to do with it. The thrust of my amendment is that we need to get the proposals right, and we need...

I do not agree with the hon. Gentleman. Consultation should have taken place before the Bill was introduced, but now we have the Bill, we need to consider what to do with it. The thrust of my amendment is that we need to get the proposals right, and we need...

My hon. Friend is absolutely right. We have talked about large companies, and there is also the issue of limited liability partnerships. We think private companies are included as well as public companies. It is not clear who the senior accounting officer should be. Should it be the finance director,...

My hon. Friend is absolutely right. We have talked about large companies, and there is also the issue of limited liability partnerships. We think private companies are included as well as public companies. It is not clear who the senior accounting officer should be. Should it be the finance director,...

Indeed, and the hon. Gentleman makes an important point about those powers. Perhaps when the Financial Secretary responds, he could say whether he expects draft regulations to have been published by the time we debate schedule 46. It would be helpful if that did happen, because given the nature of...

Indeed, and the hon. Gentleman makes an important point about those powers. Perhaps when the Financial Secretary responds, he could say whether he expects draft regulations to have been published by the time we debate schedule 46. It would be helpful if that did happen, because given the nature of...

The hon. Gentleman makes a point about enforceability and about which person should be under an obligation, but of course a senior accounting officer will already have to sign off the tax returns when they are filed, a finance director will have to sign off the accounts, which include a...

The hon. Gentleman makes a point about enforceability and about which person should be under an obligation, but of course a senior accounting officer will already have to sign off the tax returns when they are filed, a finance director will have to sign off the accounts, which include a...

I am not convinced by the Financial Secretary's response to the debate. He talks about what we are considering being an appropriate measure of fiscal consolidation that will raise £40 million in the first year. This is in the context, of course, of a budget deficit of £175 billion. I...

I am not convinced by the Financial Secretary's response to the debate. He talks about what we are considering being an appropriate measure of fiscal consolidation that will raise £40 million in the first year. This is in the context, of course, of a budget deficit of £175 billion. I...

The hon. Gentleman is making an important point about how people could use the year's delay. He will know from reading the Bill that there are two certificates involved: a type A certificate and a type B certificate. Certificate B is used when a company cannot sign off using certificate...

The hon. Gentleman is making an important point about how people could use the year's delay. He will know from reading the Bill that there are two certificates involved: a type A certificate and a type B certificate. Certificate B is used when a company cannot sign off using certificate...

Join us in the Lobby.

Join us in the Lobby.

In a way, that goes back to risk and materiality. [Interruption.] The hon. Member for Wolverhampton, South-West said from a sedentary position, "The Bermudan subsidiary." That is not a reflection on the company for which the hon. Member for Dundee, East (Stewart Hosie) worked. It is interesting to ascertain what...

In a way, that goes back to risk and materiality. [Interruption.] The hon. Member for Wolverhampton, South-West said from a sedentary position, "The Bermudan subsidiary." That is not a reflection on the company for which the hon. Member for Dundee, East (Stewart Hosie) worked. It is interesting to ascertain what...

I am pleased that we seem to have forced a concession from the Financial Secretary. Again, it illustrates the point about ill-thought-through measures and lack of consultation. If the Government had thought matters through properly, the regulatory impact assessment would be better defined than it was when the Financial Secretary...

I am pleased that we seem to have forced a concession from the Financial Secretary. Again, it illustrates the point about ill-thought-through measures and lack of consultation. If the Government had thought matters through properly, the regulatory impact assessment would be better defined than it was when the Financial Secretary...

The measure could be expensive, and that is part of the problem. No one knows quite how expensive it will be, because no one knows the detail of a measure that was published without consultation. We would have had a better idea of the cost if someone had bothered to...

The measure could be expensive, and that is part of the problem. No one knows quite how expensive it will be, because no one knows the detail of a measure that was published without consultation. We would have had a better idea of the cost if someone had bothered to...

The hon. Gentleman makes an important point about whom we are targeting and the level of control. I remember that the changes that corporate governance control measures introduced got people to examine some of their businesses in more detail. I am conscious of his point about the very largest companies,...

The hon. Gentleman makes an important point about whom we are targeting and the level of control. I remember that the changes that corporate governance control measures introduced got people to examine some of their businesses in more detail. I am conscious of his point about the very largest companies,...

The hon. Gentleman looks like he is about to make a point, but I know from my experience of working with multinationals that an organisation's control over, and knowledge of what is happening with, small overseas subsidiaries can be quite limited. It is down to risk and judgment.

The hon. Gentleman looks like he is about to make a point, but I know from my experience of working with multinationals that an organisation's control over, and knowledge of what is happening with, small overseas subsidiaries can be quite limited. It is down to risk and judgment.

There may be a systemic problem in a system that means that the calculation of tax on each transaction is out by as little as a penny or as much as a pound, and clearly those different amounts will have a different impact on the tax liability. How precise does...

There may be a systemic problem in a system that means that the calculation of tax on each transaction is out by as little as a penny or as much as a pound, and clearly those different amounts will have a different impact on the tax liability. How precise does...

The right hon. Gentleman gave an example earlier involving a company that was systemically under-reporting tax due from year to year. How much is involved in that case?

The right hon. Gentleman gave an example earlier involving a company that was systemically under-reporting tax due from year to year. How much is involved in that case?

Will the right hon. Gentleman comment on the issue of materiality? We discussed this point earlier in the context of the materiality that auditors use to sign off accounts. What level of materiality will HMRC employ when looking at the appropriateness of tax accounting systems and the accuracy of returns?

Will the right hon. Gentleman comment on the issue of materiality? We discussed this point earlier in the context of the materiality that auditors use to sign off accounts. What level of materiality will HMRC employ when looking at the appropriateness of tax accounting systems and the accuracy of returns?

If the weaknesses in the system were so great, would not the Minister have expected those companies' accounts to have been qualified?

If the weaknesses in the system were so great, would not the Minister have expected those companies' accounts to have been qualified?