Banking Bill

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Mr. Hoban: We shall have time later on for the Minister to continue his speech. Does he not have a view on these issues? Yes, it is for the compensation scheme and the FSA to come up with the rules, but surely the Government have a view—they will end up picking up the pieces if the scheme rules are wrong.
Ian Pearson: When a consultation takes place, it is right for us to listen to what the consultees say before we come to a conclusion. The FSA will come up with a view on these matters. Obviously, the Government will have their own view, but it is right and proper to listen to what people say. This is a matter for the FSA under the powers provided in FSMA—the Financial Services and Markets Act 2000.
The hon. Member for Fareham also raised the issue of gross payment. Obviously, that can facilitate faster payout and help ensure that depositors with large mortgages always have access to cash. However, it may require some amendments to the insolvency rules for the bank insolvency procedure, to ensure a fair result for customers, other bank creditors and the FSCS. We will be considering that.
The hon. Gentleman was also concerned about consumers being left in the dark about the Financial Services Compensation Scheme. I want to be clear that the FSA and the FSCS are conscious of the importance of consumer awareness. As part of that, the FSA is considering whether to back up industry initiatives with further rule changes in the future.
It being twenty-five minutes past Ten o’clock, the Chairman adjourned the Committee without Question put, pursuant to the Standing Order.
Adjourned till this day at One o’clock.
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