Financial Guidance and Claims Bill
The Financial Guidance and Claims Bill has been introduced in the House of Lords. The bill aims to make provision for establishing a new financial guidance body; funding of debt advice in Scotland, Wales and Northern Ireland; and the regulation of claims management services. Chris spoke in the second reading on Wednesday July 5th where he welcomed the appointment of a Minister for Financial Inclusion (who had come to the House of Lords to listen to the debate!) This is the first time a Minister has been granted this specific responsibility and an important demonstration of leadership on the significant problem of financial exclusion. Turning specifically to the bill, Chris asked the government for more detail about how the new finance guidance body would be funded and how it would maintain it’s independence, including how it will exercise any public policy role, and also whether the bill was an opportunity to look again at addressing the problem of cold calling and scams. A particular area of concern for Chris is how financial institutions treat vulnerable customers. Using an illustration from a recent report into banking services for people with cancer, Chris described the problem people faced trying to get practical financial support from their banks following a cancer diagnosis. Chris asked the government to consider whether adding a statutory ‘duty of care’ responsibility to financial institutions would help address the problem. Read the full speech here.