EXECUTRY SERVICES BY RECOGNISED FINANCIAL INSTITUTIONS (Hansard, 16 October 1990)

§ Lord James Douglas-Hamilton
I beg to move amendment No. 40, in page 24, line 1, at beginning insert 'Subject to subsection (2A) below,'.

§ Mr. Deputy Speaker
With this it will be convenient to discuss Government amendments Nos. 41, 42, 124 and 141.

§ Lord James Douglas-Hamilton
The most important of these amendments is No. 41 which is again designed to meet the concerns expressed in Committee by the hon. Member for Glasgow, Garscadden (Mr. Dewar) relating to the competence of a recognised financial institution wishing to offer executory services. The amendment requires such an institution to notify the board that it complies with certain standards about the educational qualifications and practical training of its executory staff, which will be prescribed in regulations made by the Secretary of State. The provision ensures that financial institutions recognised under clause 17 employ adequately trained staff for the purposes of offering executory services. I am happy to accept amendment No. 141 in the name of the hon. Member for Garscadden. It should not be confused with amendment No. 41, which is also in this group. That provides that the regulations will be subject to affirmative resolution.
Amendments Nos. 40 and 42 deal with the possibility that an institution might, for whatever reason, fail to maintain a suitable complaints mechanism or suitable standards of training for its staff, notwithstanding the fact that it was fully up to standard at the time when it notified the board of its intention to offer executory services. In 1113 such circumstances, the institution is required by the amendment to stop providing executory services and to notify the board that it is doing so.
The amendments go a long way towards meeting the concerns expressed in Committee. Amendment No. 124 is technical and clarifies clause 17 in relation to the Insurance Companies Act 1982. Section 16 of that Act specifies the areas of business which, under statute, insurance companies are permitted to undertake. The amendment makes it clear that clause 17 does not extend that area of business. The amendments will introduce additional consumer safeguards for the provision of executory services.

§ Mr. Dewar
I thank the Minister for the amendments. As he said, they are in response to worries expressed by me and other hon. Members in Committee. I had better mention other hon. Members in case I stand on the distinguished and learned toes of the hon. and learned Member for Perth and Kinross (Sir N. Fairbairn). I am prepared to share the technicality of this matter with him.
It is important that financial institutions such as banks and building societies which are already offering executry services to the public should not, because they are already in the field, be exempt from providing qualifications in training and education for those dispensing the service. It would have been an anomaly if anyone registering as an executry practitioner now had to meet certain standards, while the big boys who were in the area earlier were exempt from the same requirement. Amendment No. 41 seems to meet that point. I shall not even complain about my amendment (a) not appearing on the order paper. The main purpose of the Committee has been met.
7 pm
I am glad that the Minister has accepted amendment No. 141, which means that regulations laid under clause 17(1) will be subject to positive resolution by the House. That is consistent with what we decided earlier this evening, and it is appropriate. I thank the Minister.