Financial Guidance and Claims Bill [HL]

Explanatory Notes

Financial implications of the Bill

106 A summary of the financial effects of the measures of the Bill is provided below. Further detail is provided in the impact assessments.

Single Financial Guidance Body

107 The creation of the single financial guidance body will have a negligible impact on public expenditure. The transition between three services to the single financial guidance body will create short-term costs, which are provisionally anticipated to total £4.49m, excluding costs arising from digital transition and from redundancy, which have not been estimated.

108 Subject to legislative changes, these transitional costs will be met by the financial services and general levies which currently fund the existing services.

Claims Management Company Regulation

109 The measures effecting the transfer of claims management company regulation to Financial Conduct Authority will have a minimal effect on public expenditure, as it is intended that all costs arising as a result of the transfer will be borne by the claims management company market. The provisions relating to fee restrictions will also result in a cost to industry, however the equivalent benefit will be felt by consumers.

 

Prepared 22nd June 2017