Parliament has published its proposed amendments to the Bank of England and Financial Services Bill 2015-16.
Some major amendments, which will be introduced in the House of Commons committee stage for the Bill, include:
- Amending the Financial Services and Markets Act 2000 (FSMA) to introduce a new part on illegal money lending at new sections 333S and 333T.
- Under the relevant legislation, “illegal money lending” means entering into a regulated credit agreement as a lender in circumstances that constitute an authorisation offence.
- Section 333S will grant HM Treasury the power to make grants and loans, and provide other financial assistance, in order to take action against illegal money lending.
- Section 333T will grant the FCA the power to collect a levy from consumer credit firms, or a specified class of firms, to recover HM Treasury’s costs relating to illegal money lending.
HM Treasury’s powers would be used to provide financial assistance to National Trading Standard’s illegal money lending teams.
The committee stage of the Bill in the House of Commons will conclude by 23 February 2016.