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Warning FCA’s remit could clash with new guidance body

The Government has expressed concerns that adding “financial inclusion” to the remit of the new single public guidance body could confuse its role with the FCA’s.

A consultation is currently underway to confirm details of the single body which will replace Pension Wise, The Pensions Advisory Service and The Money Advice Service, schedule to come into place in late 2018.

An amendment to the legislation was tabled in the House of Lords in a debate this week to also charge the new body with promoting financial inclusion in the UK.

Liberal Democrat peer Baroness Kramer argued that it would be a “serious lost opportunity” for the body not to concern itself with financial inclusion because “it is in contact with people and is therefore aware of them in a way that, for example, a formal regulator such as the FCA can never be”.

However, Lord Young of Cookham, the Government’s Lords spokesman, said that the move risks “duplication and confusion” with the FCA’s current objectives.

He said: “At the moment the Treasury and the FCA have responsibility and the relevant powers to intervene when the financial services market fails to supply affordable products and services. Against that background, the attempt in the amendments to give the body a remit over financial inclusion risks duplication and confusion.

“I think noble Lords will be aware of the FCA’s work in the area of financial inclusion. It is of the utmost importance that this progress is not impeded by unnecessary confusion over the role of different public bodies.”

The amendment was eventually withdrawn, but Lords said this could be revisited later.

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. A search on the InterNet brings up: Financial inclusion….is the delivery of financial services at affordable costs to sections of disadvantaged and low-income segments of society, in contrast to financial exclusion where those services are not available or affordable.

    For such people, whose affordability threshold is very low, that can only mean at lower than commercially viable rates for those delivering it. This, of course, raises two thorny old question. Firstly, how will the gap between cost and what they can afford to pay be bridged? And secondly, if they have no spare funds to set aside for the future, what’s the point?

  2. Exactamondo,Dude. This may appear wildly over the top, but look into it. It’s just another cog in the long term plan of moving ever more wealth and absolute power into ever fewer and untouchable pairs of hands, whilst continuing to keep the proletariat plebs in debt and on poor wages waiting with baited breath to spend what little they do have on the next entertaining gizmo those in REAL control choose to throw into the lions den for them to occupy themselves with. Meanwhile, said plebs are left to decide which demagogue they are unwittingly going to “elect” next. Bah!

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