Financial Guidance and Claims Act 2018

Key Points

• Creation of a single financial guidance body whose job is to help the public make informed financial decisions, with a focus on free and impartial information.
• New consumer protection measures, including offences for false claims about providing information or guidance, rules to pass on relevant casework to the FCA, and attention to practices like cold-calling.
• Regulatory alignment and information rules, such as requiring the guidance body to follow FCA general rules and to disclose the availability of pensions guidance.
• Powers and procedures for dissolution and ongoing oversight, including a mechanism for draft regulations and a statutory path to dissolve the body, plus recognition of Great Britain and devolved authorities in the governance framework.
• Geographical and governance changes, with a shift to Great Britain scope and explicit involvement of devolved administrations, plus amendments to pensions guidance governance and related schedules.

Progress

The bill originated in the Lords, was debated across all stages in both Houses, and received Royal Assent on 10 May 2018. Amendments proposed to strengthen consumer protections and governance were debated and, in many cases, reflected cross-party support in the Lords, shaping the final form of the act.

Voting

Two report-stage amendments were considered in the Lords, drawing a party-line divide in recorded votes, with opposition parties generally supporting the changes and the government-side MPs opposing in those votes. The amendments were nonetheless agreed in the Lords, reflecting cross-party backing for stronger safeguards and governance, and the bill proceeded to Royal Assent.