I refer the hon. Lady again to the letter from Martin Wheatley, which states that the FCA
“would be forced to set the cap at a more conservative level (that is, higher) to reflect the inherent legal risks.”
I believe that she has a copy of the letter.
I will finish by answering an important point the shadow Minister made about the possibility that lenders from elsewhere in the European economic area will be able to passport their services and avoid UK legislation. She is entirely right to make that analysis, because that is indeed possible under the EU commerce directive and the single market in financial services. There are mitigations, although the situation is not ideal. Under the EU consumer credit directive, there is not a cap but there are certain rules that all lenders within the EU need to follow. Of course, there is nothing to prevent the UK regulator from contacting the comparable authority in another EU-based country to see whether there is any way in which pressure can be put on indirectly through the two bodies working together.
Lords amendment 63 agreed to.
Lords amendments 1 to 40 agreed to, with Commons financial privileges waived in respect of Lords amendments 35,37 and 40.
Lords amendments 42 to 62 agreed to.
Lords amendments 64 to 154 agreed to, with Commons financial privileges waived in respect of Lords amendments 149 and 150.