My Lords, the horses are heading for the stables so I will be brief. I have retabled this amendment, which seeks to update the financial promotion rules to allow the emergence of a class of social investor comprising people who wish to support a particular cause dear to their hearts, or perhaps near to their home, but would like to invest—that is, they might/could get their money back as opposed to giving it irrevocably. My noble friend—and, indeed, the House—has heard me say too often that I consider it counterintuitive that I can give money to a scheme but cannot invest in exactly the same scheme.
Most social investments are quite small in size, suitable for private investment but not suitable for the full panoply of an offer to the public, and are not cost effective. Currently, the financial promotion rules make no distinction to cover the emerging social investment market.
I absolutely accept—I turn to the noble Lord, Lord Cromwell, at this point—the need for the new rules to be carefully drafted. Social investment, as we all agree, is a new and emerging activity. It must not overpromise and individuals need to understand the risks. However, the issue remains—as the noble Baroness, Lady Barker, said at col. 9 of Grand Committee Hansard of 6 July—a “hot potato” being passed between the Treasury and the Cabinet Office.
Those of us who have followed this issue for some time have experienced extreme frustration. Each time a statutory bus comes past, the conductor tells us, “This is not the right one for you, guv, wait for the next one”. We are still waiting at the bus stop. In replying to the debate in Committee, my noble friend said:
“In addition to looking at suggestions, including in this amendment and what has been said in the debate, the Treasury will explore whether there are other non-legislative ways of mitigating burdens or costs to social investment offerings. … as I said, I am meeting my right honourable friend the Economic Secretary to the Treasury to discuss them”.—[Official Report, 6/7/15; col. GC 13.]
I accept that this Bill is focused on improving charity regulation and on social investment, but it is not the right place for an amendment to the financial promotion rules. However, in the light of his comments on 6 July, can my noble friend tell us when our bus might arrive?
8.45 pm