I am acutely conscious of the need not only to get on to the second group of amendments but to respond to the amendments in the first group. I will do my best to address all of them, and I will give myself five minutes to do so.
I will start with new clause 7 and amendment 34, tabled by the hon. Member for Eastbourne (Stephen Lloyd). The body is already expected to develop a national strategy to improve people’s financial capability, including ensuring that consumers improve their financial resilience, so the Government believe that the amendments are not necessary.
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On amendment 39, tabled by the hon. Member for Airdrie and Shotts (Neil Gray), the Bill already explicitly states that one of the body’s objectives is to support people in vulnerable circumstances when exercising its
functions. That was agreed after discussion in the Lords. The Government think that for the body to have specially trained advisers and guidance risks being too prescriptive on the face of the Bill. Defining “vulnerable circumstances” could narrow the body’s remit and prevent it from addressing other vulnerabilities in the future.
On amendment 40, we believe it is important that people understand the difference between information, advice and guidance, but the improvement of people’s financial capability continues to be a focus of the new body, under its money guidance function.
On amendment 41, tabled by my hon. Friend the Member for Reigate (Crispin Blunt), although the new body will provide general information and guidance to people about the benefits of saving towards a retirement income, it will not provide financial advice, but he makes a compelling case about the opportunities to use equity release products. Consumers considering equity release should seek independent financial advice, and the single financial guidance body’s role in this case will be to signpost to such advisers but not to give advice itself.
On amendment 31, tabled by the hon. Member for Harrow West (Gareth Thomas), the Government have already done a great deal to support credit unions, and I look forward to further discussions with him in Westminster Hall tomorrow, where some linked issues can be raised. I am happy to meet him and the representatives that he suggested. The new body will continue this work by providing information about credit unions’ services through its money guidance function, which means, I believe, that the amendment is unnecessary.
On amendment 42, tabled by the hon. Member for Makerfield (Yvonne Fovargue), we do not expect the standards to be too onerous on delivery partners. In setting its standards, the body and the FCA will ensure that conditions are proportionate with the benefits that they are expected to bring. In addition, the body and the FCA will consider whether the standards sit well with the FCA’s debt advice and authorisation process.
I now turn to the issues of high-cost credit, to which the hon. Member for Walthamstow (Stella Creasy) and the hon. Member for Harrow West drew the House’s attention. I think the hon. Lady knows that there is a great deal of alignment between us on some of these matters. I have written to her and I would invite her to meet me and the FCA to examine her continuing concerns around high-cost credit. There was a two-year study on credit cards, whose outcome I know she is not satisfied with. Another FCA study is to be published next month. The core function of the single financial guidance body is to deliver impartial support on money matters, and we expect its efforts to be focused on delivering to a high quality. I believe the FCA has a role to play in that and I am happy to continue to have a meaningful dialogue with the hon. Lady on that. Moreover, UK Finance already publishes statistics on the geographic distribution of mortgage lending, personal loans and small and medium-sized enterprise lending by major UK lenders. We think, therefore, that placing this issue on the face of the Bill is unnecessary.
On amendment 2, the body and the FCA have different roles and functions, and the FCA’s role is to gather information to fulfil its functions as the regulator. I am very conscious of the need to move on to the next group of amendments. I have not done justice to all the speeches on this group, but I am happy to give way.