Looks at the provisions of the Financial Guidance and Claims Act 2018 and the debates on it when the legislation was before ParliamentJump to full report >>
The Financial Claims and Guidance Bill [HL] 2017-19 was introduced in the House of Lords on 22 June 2017 and completed its passage though that House on 21 November 2017. It was introduced to the House of Commons on 22 November 2017 as Bill 131 and had its Second Reading on 22 January 2018. The Commons Committee had three sittings and ended on 6 February 2018. Report Stage and Third Reading were on 12 March and 24 April 2018. The Financial Guidance and Claims Act 2018 received Royal Assent on 10 May 2018. The Act has two parts:
House of Lords stages
The Bill was amended in the House of the Lords. Most of the amendments were to Part 1. These included opposition amendments to enable the Secretary of State to introduce a ban on pension cold-calling and to increase take up of Pension Wise. Both were replaced with government amendments with the same aim.
The Government amended the Bill at Third Reading to enable the introduction of a ‘debt respite scheme’ in England, Wales and/or Northern Ireland. This would be designed to protect individuals in debt from further interest, charges and enforcement action for a set period and enable a realistic repayment plan to be put in place. The issue had been raised previously by many Peers, who pointed to the experience of such arrangements in Scotland. Other government amendments to Part One were to:
Government amendments to Part 2 enable the introduction of an interim fee cap in relation to PPI claims and provide for FCA regulation of CMCs to extend to Scotland.
House of Commons stages
The main changes to the Bill at Commons Committee stage were government amendments to:
Report stage amendments
Government amendments at Commons Report Stage related to cold calling for pensions and other financial products (now s21 and 22) and to the take-up of pensions guidance (now s18 and19) – see sections 3.12 and 3.13 below.
The Government made a statement on pensions cold calling on 12 July 2018 and launched a consultation on draft regulations on 20 July 2018. Once it has considered the responses, in the Autumn it intends to lay regulations under the affirmative procedure and, subject to parliamentary approval, bring the regulations into force as soon as possible thereafter.
Commons Briefing papers CBP-8033
Authors: Tim Edmonds; Djuna Thurley; Daniel Harari; Richard Keen