Clause 5
4:30 pm
Ian Pearson (Parliamentary Under-Secretary (Economic and Business), Department for Business, Enterprise & Regulatory Reform; Dudley South, Labour)
It is a pleasure to serve under your chairmanship, Mr. Taylor.
I will respond to amendment 19, which was moved by my hon. Friend the Member for South Thanet. I assure him that we share his concerns that providers of saving gateway accounts should be appropriately regulated. As he and other hon. Members will see from the draft regulations, we intend to make it a condition of approval that account providers fall within the UK or are other European economic area providers and have the appropriate permission to accept deposits under the Financial Services and Markets Act 2000. A non-EEA provider must be authorised to accept deposits through a UK branch.
It is too early in the process to confirm any saving gateway providers. The Government are in discussion with them, though, and wish to see a wide range of choice of providers. My hon. Friend said that the scheme should only be provided through the Post Office and friendly societies. We are keen to encourage the Post Office to consider offering saving gateway accounts. Some friendly societies may like to participate, but their qualifying would depend on their having the appropriate permission to accept deposits.
My hon. Friend asked whether we have the power to ensure that there is appropriate regulation. I refer to clause 4 (1) which stipulates:
“A Saving Gateway account may be held only with a person (an “approved account provider”) who has been approved by the Commissioners in accordance with regulations.”
It will be through regulations that we have that power. It is our view that we should not limit the provision of gateway accounts, and we would like to see some choice in that area.