Chris Bryant MP: speeches

Speeches

• 4 Mar 2025 · Data (Use and Access) Bill [ Lords ] (First sitting) · Hansard source

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  The purpose of the clause is to allow the Government to provide financial assistance where it is appropriate to do so. Although the Government expect schemes to be self-financing, as I have referred to, it is important to have statutory spending authority as a backstop where needed, and that is precisely what clause 13 provides. Question put and agreed to. C lause 1 3 accordingly ordered to stand part of the Bill. Clause 14 The FCA and financial services interfaces

• 4 Mar 2025 · Data (Use and Access) Bill [ Lords ] (First sitting) · Hansard source

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  We are already committed to a strategy; I am not sure whether we need a road map for the strategy, and I would prefer us not to have such a thing in the Bill. It would also be slightly limiting, as the new clause effectively gives a list of priority areas. We want to explore quite a lot of other sectors; for instance, we might make a radical difference to the gig economy if we were to look at that sector. The hon. Lady made a good point about telecoms, although it might be specifically about smart meters. If we could turn a smart meter into an actually smart meter, which would require some telecoms work, smart data might be able to deliver cheaper bills for people. Notwithstanding the fact that I like the sentiment behind the new clause, I would resist it, so I hope the hon. Lady will not push it to a Division. Question put and agreed to. Clause 1 accordingly ordered to stand part of the Bill. Clause 2 Power to make provision in connection with customer data Question proposed, That the clause stand part of the Bill.

• 4 Mar 2025 · Data (Use and Access) Bill [ Lords ] (First sitting) · Hansard source

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  I note the comments from the shadow Minister, and I am grateful for them. There is a fundamental flaw in the argument from the hon. Member for North Norfolk that this new clause was tabled in the House of Lords, because what he means is that it was lost in the House of Lords—the House of Lords did not bring it to us. There is a second flaw in the argument, which is that it seems to presume that people will be required to use a digital verification service. That is not true. People will be able to use non-digital systems if they want to in every circumstance. That is an essential part of being able to take forward digital verification services. It may be that a growing number of people begin to find them more useful, reliable and trustworthy than carrying around a set of papers. I am sure that many of us have gone through the tedious process of renting a car—having to turn up with copies of the previous three months of bills sent to your house, and all that. They have to be printed out, of course, and not provided in digital form, and so on. In the end, therefore, this measure will be transformational for the vast majority of people, but that does not mean that we should exclude people. Where the hon. Member for North Norfolk is absolutely right is that there are many different patterns of digital exclusion. One, which I am very conscious of from my own constituency in south Wales, is physical digital exclusion. Many people in the south Wales valleys simply do not have the physical digital connections, a mobile phone or whatever it may be, to be able to transact their business. The second is the simple issue of poverty. Social tariffs do not even touch the edge for lots of families, because it is yet another bill. Even another £10 or £15 bill a month is one that has to compete with whether they have fresh food on the table for the kids. Another level where people might be excluded relates to age, at the top end and at the bottom end. The hon. Member mentioned nonagenarians, but he could go down to 60-year-olds and find people who simply do not want to use open banking or any kind of digital system, do not have a smartphone and have absolutely no intention of getting one, or, for that matter, do not have any kind of broadband connection to their home. I understand that fully, and that is why the Bill is written as it is, so that it is permissive and not mandatory. That is an important reason why—although I have listened to the arguments that the hon. Member for North Norfolk has repeated from Big Brother Watch—I am determined to do everything we possibly can to tackle each and every one of the issues of digital exclusion. I have not even referred to skills—people might have some form of disability, might have simply never acquired or wanted to acquire digital skills, or might find using a screen particularly difficult for whatever set of reasons. We want to tackle every single form of digital exclusion, but I do not think that this is the place to do so. We will not be able to tackle digital exclusion by putting an additional measure in the Bill, and that is why, if the hon. Member wants to push this to a vote, I will still resist his new clause. I commend the clause as drafted to the Committee.

• 4 Mar 2025 · Data (Use and Access) Bill [ Lords ] (First sitting) · Hansard source

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  The clause will ensure that public authorities given powers under part 1 are not liable in damages for their acts or omissions in exercising their functions. That mirrors the exemption from liability for the Financial Conduct Authority under the Financial Services and Markets Act 2000, and allows public authorities to carry out their functions effectively. However, regulations cannot remove liability for things done in bad faith or which are unlawful under the Human Rights Act 1998. Question put and agreed to. Clause 18 accordingly ordered to stand part of the Bill. Clause 19 Duty to review regulations Question proposed, That the clause stand part of the Bill.

• 4 Mar 2025 · Data (Use and Access) Bill [ Lords ] (First sitting) · Hansard source

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  I think that I will have to write to the hon. Gentleman. We have agreed the amendment, so that is slightly rehashing the debate. I am happy to write to him and he will have that before we come back for Thursday’s Committee sitting. Question put and agreed to. Clause 45, as amended, accordingly ordered to stand part of the Bill. Clause 46 Information disclosed by the Revenue and Customs Question proposed, That the clause stand part of the Bill.

• 4 Mar 2025 · Data (Use and Access) Bill [ Lords ] (First sitting) · Hansard source

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  Clause 40 requires the Secretary of State to remove a digital verification service provider from the digital verification service register in the following circumstances: when that provider asks to be removed; if it stops providing all services for which it is registered; or if it no longer holds a certificate for at least one of these services. This duty ensures that the Secretary of State acts to uphold the digital verification service register in these circumstances to uphold trust and confidence in it. Clause 41 allows the Secretary of State to remove a digital verification service provider from the digital verification service register if it is not compliant with the trust framework or a supplementary code; if it fails to provide information in response to a clause 51 written notice; or if removal is necessary in the interests of national security. Before removal, the Secretary of State must provide written notice informing the provider of reasons for removal and the opportunity to make representations. Reasons need not be given where this would be contrary to national security interests. These powers will help ensure that the register lists only certified services and that the Secretary of State can act to remove services where necessary, providing confidence in its accuracy. Clause 42 requires the Secretary of State to remove a service from the digital verification service register if the digital verification service provider requests removal; if it ceases to provide one or more of those services, but not all of them; or if it no longer holds a certificate for all those services. Similar to clause 41, these duties provide confidence to people and businesses that the digital verification service register can be trusted as an accurate source of information. Whereas clauses 40 and 41 cover removal of a digital verification service provider as a whole, the clause 42 duty enables the Secretary of State to remove one or more services, should a digital verification service provider have more than one service registered and one or more, but not all, those services no longer meet the digital verification service register’s conditions. Clause 43 requires the Secretary of State to remove a supplementary note from the digital verification service register if the digital verification service provider requests its removal; if it ceases to provide all the services to which the note relates; if it no longer holds a certificate for at least one of those services; or if the supplementary code to which the note relates has been withdrawn. This is a technical requirement to ensure that changes in certification and provision of multiple services in accordance with supplementary codes are accurately reflected for digital verification service providers, upholding confidence that the digital verification service register can be trusted as an accurate source of information.

• 4 Mar 2025 · Data (Use and Access) Bill [ Lords ] (First sitting) · Hansard source

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  It might more sense, in explaining the amendment, if I speak about the clause first, even though we would normally take the amendment first. The clause provides safeguards on the use of financial penalties. Except where clause 16 provides otherwise for the Financial Conduct Authority, the amount of the penalty must be specified in, or determined in accordance with, the regulations. If the regulations allow an enforcer any discretion in that determination, the enforcer must publish, and have regard to, guidance. Other safeguards include an opportunity for representations before penalties are imposed, and rights of appeal to a court or tribunal. Regulations may provide for increase of the penalty in the case of late payment. Government amendment 6, which is minor and technical for some of the same reasons I adverted to earlier, enables regulations to make provision about what is to be done with any amounts that are paid as part of clause 10. That is consistent with provisions on fee and levy receipts in clauses 11 and 12. This is another bit of tidying up of the previous version of the Bill. Amendment 6 agreed to. Clause 10, as amended, ordered to stand part of the Bill. Clause 11 Fees Question proposed, That the clause stand part of the Bill.

• 4 Mar 2025 · Data (Use and Access) Bill [ Lords ] (First sitting) · Hansard source

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  I beg to move amendment 1, in clause 8, page 12, line 18, leave out “imposed by a decision-maker” and insert “(referred to in sections 3(2) and 5(3))”. This amendment amends a reference to conditions for authorisation or approval to receive customer data or business data so as to reflect the fact that conditions will not necessarily be imposed by decision-makers.

• 4 Mar 2025 · Data (Use and Access) Bill [ Lords ] (First sitting) · Hansard source

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  I am sure Members were wondering when we were going to get to a code of practice, and this is the clause that introduces it. Clause 49 requires the Secretary of State to prepare and publish a code of practice for the disclosure of information under the information gateway created in clause 45. The code of practice will provide guidance and best practice for such disclosure, including what information should be shared, who it should be shared with and how to share it securely. In preparing and revising the code, the Secretary of State must consult with the Information Commissioner, devolved Governments and other appropriate persons. The code will be laid before Parliament before it is finalised. The first version of the code will be subject to the affirmative procedure and subsequent versions to the negative procedure, allowing proper parliamentary scrutiny.

• 4 Mar 2025 · Data (Use and Access) Bill [ Lords ] (First sitting) · Hansard source

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  Now we are on a winning streak. Clause 2 provides the principal authority for the relevant Secretary of State or the Treasury to establish smart data schemes in relation to customer data. The Government envisage that most smart data schemes will involve providing access to customer data. Clause 3 provides a non-exhaustive list of supplementary provisions that may be contained in regulations relating to customer data under clause 2. These include important matters such as requirements for data holders and/or third-party recipients to use specified facilities or services to ensure that smart data schemes can run effectively. Question put and agreed to. Clause 2 accordingly ordered to stand part of the Bill. Clause 3 ordered to stand part of the Bill. Clause 4 Power to make provision in connection with business data Question proposed, That the clause stand part of the Bill.

• 4 Mar 2025 · Data (Use and Access) Bill [ Lords ] (First sitting) · Hansard source

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  To quote Richard II, methinks I am a prophet new inspired. Yes, this is all based on a consultation with the FCA. The FCA is content with us proceeding in this direction. I hope that, on that basis, the shadow Minister—I am trying to differentiate between his not opposing and supporting, but I think on the whole in Parliament, if you are not against us, you are for us. I think in this measure he is for us.

• 4 Mar 2025 · Data (Use and Access) Bill [ Lords ] (First sitting) · Hansard source

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  I beg to move amendment 7, in clause 14, page 19, line 3, at end insert— “(ba) requiring section 2(4) actors described in the regulations to use a prescribed interface, comply with prescribed interface standards or participate in prescribed interface arrangements when taking, facilitating or doing other things in connection with relevant financial services action;”. This amendment provides that the Treasury’s powers to confer rule-making powers on the Financial Conduct Authority in connection with the use of interfaces include powers relating to the use of interfaces when taking action described in clause 2(4) of the Bill (persons authorised to receive customer data taking action on behalf of customers). See also Amendment 9.

• 4 Mar 2025 · Data (Use and Access) Bill [ Lords ] (First sitting) · Hansard source

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  Clause 20 allows regulations to provide that the processing of information they require does not breach obligations of confidence or other restrictions on processing information. However, regulations cannot compel businesses to breach data protection legislation. This mirrors the approach taken towards pensions dashboards in the Pensions Act 2004. Clause 21 outlines further provisions that regulations may contain. Those include references to published standards and technical requirements, and the conferral of functions. The clause allows the part 1 powers to be used flexibly and tailored for their purpose. It also prevents regulations from enabling a person to set the maximum amounts of fines, financial penalties or fees, which adds to the safeguards in clauses 10 and 11. Finally, the clause stipulates when regulations can amend primary legislation to support consumer redress. Clause 22 ensures that the regulations are properly scrutinised and requires that certain regulations be subject to affirmative parliamentary scrutiny. Those include regulations that introduce smart data schemes or make them more onerous, contain enforcement provisions and impose fees or a levy, as well as regulations under the financial services sector clauses. The clause also requires appropriate consultation before the regulations are made. Clause 23 clarifies that part 1 powers may be used to amend existing subordinate legislation dealing with equivalent subject matter, rather than creating stand-alone regulations. This provision could be used to amend existing data-sharing requirements such as open banking provisions in the Payment Services Regulations 2017. Clause 24 repeals sections 89 to 91 of the Enterprise and Regulatory Reform Act 2013, which part 1 of the Bill replaces. The powers in the 2013 Act are no longer adequate to enable the introduction of effective smart data schemes. That was recognised in the previous iterations of this Bill under a previous Government, and we agree. Question put and agreed to . Clause 20 accordingly ordered to stand part of the Bill . Clauses 21 to 24 ordered to stand part of the Bill. Clause 25 Other defined terms Question proposed, That the clause stand part of the Bill.

• 4 Mar 2025 · Data (Use and Access) Bill [ Lords ] (First sitting) · Hansard source

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  Government amendment 1 amends clause 8(5) to reflect that the conditions relating to authorisation or approval of third-party recipients will not necessarily be imposed by the decision makers who carry out the authorisation or approval. Government amendments 2, 3 and 5 amend clause 8(10) to require or allow enforcers to publish or provide documents as well as information, ensuring consistency with the powers of decision makers and interface bodies. Government amendment 4 removes unnecessary wording in subsection (10) to ensure consistency with equivalent clauses elsewhere. I commend these minor and technical amendments to the Committee. Clause 8 enables regulations to confer powers on public bodies, known as enforcers, to monitor and enforce compliance with smart data schemes. Monitoring powers include requiring information and powers of inspection. Enforcement powers include issuing notices requiring compliance, naming and shaming non-compliance, and imposing financial penalties. Regulations may create criminal offences for falsification or similar conduct. To ensure accountability and transparency, regulations may provide for reviews of enforcers’ decisions, appeal rights, and complaint procedures.

• 4 Mar 2025 · Data (Use and Access) Bill [ Lords ] (First sitting) · Hansard source

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  It is simply that there is no requirement for people to use a digital verification service to be able to secure the service that they want. Obviously, that is a key part of how local government or Government have to deliver their services. They have to think not only about the people who can use digital services, but about those who cannot, for all the reasons that we have laid out. The hon. Member for Harpenden and Berkhamsted is absolutely right about banks, and it is not just in Harpenden; I do not have a bank in my constituency. I have seen them go one after another after another. We have a banking hub, but even it has had to move. That provides all sorts of difficulties for people who do not want to do their banking in any way other than physically going into a bank. That is why both our Government many years ago, then the Conservative Government for years, were trying to encourage people to use the post office as an alternative means of doing their banking. That is the pattern that we will have to adopt. Government will always have to be aware. While we may want all the productivity gains and the added security that digital verification services can provide, none the less we need to ensure that others are provided for. That is all provided for in the Bill, and I would say adequately, although the hon. Member may disagree with me. Yet again, I am still resisting any amendment and urge that the clause stand part of the Bill.

• 4 Mar 2025 · Data (Use and Access) Bill [ Lords ] (First sitting) · Hansard source

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  Strictly speaking, it is a misnomer to say that we do the Bill line by line; we do it clause by clause, or grouping by grouping. The first grouping contains clause 1 and new clause 15, which was tabled by the Liberal Democrat spokesperson, the hon. Member for Harpenden and Berkhamsted. Clauses 1 to 26 establish regulation-making powers to implement smart data schemes. I think this part of the Bill is universally accepted, or it was in a previous version of the Bill—this is at least the third version of the Bill that a House of Commons Committee has considered line by line, clause by clause or grouping by grouping. These clauses were part 3 of the old Bill, but it is none the less important that we go through each of the clauses segment by segment, because this is a newly constituted House of Commons, with different Members and political parties, and therefore we have to consider them fully. As many hon. Members will know, smart data involves traders securely sharing data with the customer or authorised third parties at the customer’s request. Those third parties may use the data to provide the customer with innovative services, including account management services or price comparisons. This has already been spectacularly successful in open banking. Clause 1 defines the key terms and scope of part 1, which covers clauses 1 to 26. Subsection (2) defines the kinds of data to which part 1 applies: “customer data”, which is information specific to a customer of a trader, and “business data”, which is generic data relating to the goods, services or digital content provided by that trader. It also defines “data holder” and “trader” to clarify who may be required to provide data. That covers persons providing the goods, services or digital content, whether they are doing so themselves or through others, or processing related data. Subsections (3) to (5) set out who is a customer of a trader. Customers can include both consumers and businesses such as companies. Subsection (6) recognises that regulations may provide for data access rather than transfer. I commend clause 1 to the Committee and urge hon. Members to resist the temptations offered by the hon. Member for Harpenden and Berkhamsted, who tabled new clause 15. I thank her for her interest in smart data. We had a very good conversation a week ago. I am glad to be able to confirm that, following some pressure from the Liberal Democrats in the other place, the Government announced that the Department for Business and Trade intends to publish a strategy document later this year on future uses of those powers. Since the hon. Member’s new clause asks for a road map and we are saying that there will be a strategy, the difference between us may just be semantic. The strategy document will lay out the Government’s plans to consult or conduct calls for evidence in a number of sectors. It is important that we implement those powers only after having properly spoken with relevant parties such as consumer groups and industry bodies in the sector. Clause 22 also requires consultation before commencement in any sector. As such, we think the best approach is to use powers in part 1 of the Bill to implement smart data schemes that fit the identified needs of the relevant sector. The strategy document will set out the Government’s plans for doing so. For that reason, I ask the hon. Lady to withdraw her new clause.

• 4 Mar 2025 · Data (Use and Access) Bill [ Lords ] (First sitting) · Hansard source

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  Clause 51 enables the Secretary of State to issue written notices to accredited conformity assessment bodies and registered digital verification service providers, requesting information that he may reasonably require to exercise his functions under part 2 of the Bill. That could include information on inclusion, fraud or other statistical information to assist the Secretary of State in carrying out his duties under this part of the Bill. The notice must state why the information is required and may specify or describe particular information, together with the form in which it must be provided, the time within which it must be provided and where it must be provided. The clause also sets out circumstances where disclosure would not be required—for example, where it would contravene the data protection legislation. Non-compliance with the clause by registered providers may result in removal from the digital verification services register. Question put and agreed to. Clause 51 accordingly ordered to stand part of the Bill. Clause 52 Arrangements for third party to exercise functions Question proposed, That the clause stand part of the Bill.

• 4 Mar 2025 · Data (Use and Access) Bill [ Lords ] (First sitting) · Hansard source

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  I am conscious that we are steaming towards the end of part 2 of the Bill. It is 11.10 am, and we could go on until 11.30 am, but it might be convenient for Members if we were to end a little earlier and then move on to parts 3 and 4 this afternoon. That would be a matter for the Whips, and I do not like to tell a Whip what to do. Clause 52 allows the Secretary of State to make regulations for his functions to be exercised by a third party. Such delegation may be made for any function of the Secretary of State under part 2 of the Bill, except for his regulation-making powers. The delegation may also provide for payments to be made and received from the third party to whom functions are delegated. This clause gives the Secretary of State the flexibility to adapt to the governance needs of the digital identity market as it grows. Governance functions will initially sit within the Department for Science, Innovation and Technology, and future plans to delegate any function in part 2 of the Bill will be carefully considered and subject to parliamentary scrutiny under the affirmative procedure. Clause 53 requires the Secretary of State to prepare and publish reports on the operation of part 2 of the Bill at least every 12 months, with the first report due 12 months after the commencement of clause 28, which concerns the publication of the digital verification services trust framework. These reports will be published on gov.uk. This publication will strengthen transparency in the Government’s digital identity programme and boost trust in the market. Clause 54 is an index of terms defined or explained in part 2 of the Bill. It sets out the subsection numbers where definitions and explanations can be found. Ordered, That the debate be now adjourned.— (Kate Dearden.)

• 4 Mar 2025 · Data (Use and Access) Bill [ Lords ] (First sitting) · Hansard source

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  I know all Members of the Committee were wondering, “When are we going to review all of these provisions?” Fortunately, we have reached a clause that requires review of the regulations at least at five-yearly intervals. The Government recognise the importance of ongoing scrutiny of regulations. As part of a review, the regulation maker must consider whether the regulations remain appropriate—which seems rather basic, but anyway. The findings of the review will be published in a report laid before Parliament. This will uphold our commitment to transparency in the creation and maintenance of future regulations. Question put and agreed to. Clause 19 accordingly ordered to stand part of the Bill. Clause 20 Restrictions on processing and data protection Question proposed, That the clause stand part of the Bill.

• 4 Mar 2025 · Data (Use and Access) Bill [ Lords ] (First sitting) · Hansard source

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  We will be talking about clauses 28 to 31, but now I will speak to Government amendment 10 to clause 28, along with Government amendment 11. Several Members may wish to speak to this issue. Government amendment 10 removes subsections (3) and (4) of clause 28, which were added on Report in the House of Lords. The subsections require the Secretary of State, when preparing the digital verification service trust framework, to assess whether certain listed public authorities reliably verify personal data. This seems very dry, but it is a clear and specific issue. The trust framework provides rules for digital verification services, not rules for how public authorities process data. Data protection legislation already requires public authorities to ensure that any personal data they process is accurate and, where necessary, kept up to date. As such, the Government cannot proceed with the change introduced in the Lords as it would duplicate existing legislation and bring in matters that are out of scope of the trust framework.

• 4 Mar 2025 · Data (Use and Access) Bill [ Lords ] (First sitting) · Hansard source

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  Clause 28 requires the Secretary of State to prepare and publish the digital verification service framework, which will set out rules for the provision of digital verification services for providers that want to be certified and appear on a Government register. The rules will draw on existing technical requirements, standards and best practice, and guidance and legislation. They will help organisations to provide services in a trusted and consistent way, and enable inter-operability and increasing public confidence. The clause allows the Secretary of State to revise and republish the trust framework as the market evolves. The requirement to consult the Information Commissioner and others whom the Secretary of State considers appropriate will ensure the trust framework’s development is informed by industry expertise and the wider regulatory environment. Clause 29 allows the Secretary of State to prepare and publish supplementary codes. The codes will be relevant to sectors that require rules to cater for their specific requirements around identity checks, supplementary to those in the DVS trust framework. For example, additional rules are needed when proving someone’s right to work in the UK. By working with those operating in such sectors, the Secretary of State can identify market and user needs for these codes, and that will help to encourage digital identity adoption across the wider economy. The requirement for the Secretary of State to consult the Information Commissioner and others as appropriate when preparing a supplementary code should also ensure that those needs are taken into account in its development. Clause 30 allows the Secretary of State to withdraw a published supplementary code if, for example, it is no longer required or is outdated. The Secretary of State will need to publish his determination to withdraw a supplementary code and allow at least 28 days before its withdrawal. Clause 31 requires the Secretary of State to carry out a review of the digital verification service trust framework and any published supplementary code at least every 12 months. When doing so, the Secretary of State should consult the Information Commissioner and anyone he or she considers appropriate. This review will ensure that the body of rules governing digital verification services keeps up to date with the digital identity market, and is fit for purpose as that market evolves. Question put and agreed to. Clause 28, as amended, accordingly ordered to stand part of the Bill. Clauses 29 to 31 ordered to stand part of the Bill. Clause 32 DVS register Question proposed , That the clause stand part of the Bill.

• 4 Mar 2025 · Data (Use and Access) Bill [ Lords ] (First sitting) · Hansard source

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  Again, it might be more convenient if I speak to the clauses first and come back to the amendments, because then it is more self-explanatory, but I may need to speak at greater length here. Open banking has revolutionised the UK retail banking sector by enhancing competition and introducing innovative services. Establishing a long-term regulatory framework for open banking will pave the way for its future growth, and this framework will rely on the FCA having the powers necessary for effective regulation and oversight. Clause 14 therefore empowers the Treasury to enable or require the FCA to set rules for interface bodies and participants in smart data schemes, ensuring compliance with essential standards. Clause 15 sets out further detail about the regulation-making powers conferred on the Treasury by clause 14. These provisions create a clear framework for delegating rule-making powers, ensuring effective regulation, proper funding and mechanisms to address misconduct by scheme participants, with clear objectives for the FCA’s oversight of smart data schemes. Regulations may enable or require the FCA to impose interface requirements relating to an interface body, as set out for the smart data powers more broadly in clause 7, and to require fees to be paid by financial services providers to cover interface body costs. Clause 15 further provides that such regulations must impose certain requirements upon the FCA, including a requirement, so far as is reasonably possible, to exercise functions conferred by the regulations in line with specified purposes, and a requirement that the FCA must have regard to specified matters when exercising such functions. Additionally, regulations under clause 15 may empower or require the FCA to impose requirements on individuals or organisations to review their conduct, to take corrective action and to make redress for loss or damage suffered by others as a result of their conduct. Clause 16 covers the Treasury’s ability to make regulations enabling the FCA to impose financial penalties and levies. The regulations may require or enable the FCA to set the amount or method for calculating penalties for breaches of FCA interface rules. The regulations must require the FCA to set out its penalties policy, and may specify matters that such a policy must include. Additionally, the Treasury may impose itself, or provide for the FCA to impose, a levy on data holders or third-party recipients of financial services data under the scheme to cover its regulatory costs, with the funds being used as specified in the regulations. Only those capable of being directly impacted should be subject to the levy. Penalties and levies are a necessary part of smart data schemes, including in financial services, to allow the FCA to penalise non-compliance and recover the costs of its regulatory activities. The clause ensures that any penalties or levies are subject to proportionate controls. Clause 17 gives the Treasury the power to amend section 98 of the Financial Services (Banking Reform) Act 2013 through regulations. This will allow the Treasury to update the definitions of the FCA’s responsibilities and objectives in that section, so they can include new functions or objectives given to the FCA by regulations made under part 1 of this Bill. That will ensure that the FCA’s new duties fit into the existing system for co-ordinating payment system regulators, helping maintain a consistent approach across the financial sector. Regulations made under the clause will be subject to the affirmative procedure. We have tabled Government amendments 7 to 9 to ensure that the Treasury may delegate to the FCA powers to set rules for action initiation, as well as data sharing. We think this is vital to ensure that open banking continues to work properly and is in line with the policy as set out elsewhere.

• 4 Mar 2025 · Data (Use and Access) Bill [ Lords ] (First sitting) · Hansard source

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  These clauses are all about the digital verification service register. Clause 32 requires the Secretary of State to establish and maintain a publicly available register of digital verification service providers, which is called the digital verification service register. This duty will ensure that people can look up which digital verification service providers have met the requirements to join the register, making it easier for people to know which providers can be trusted and to realise the benefits of this technology with confidence. Subject to limited powers of refusal in clause 34, clause 33 requires the Secretary of State to register a digital verification service provider if it applies to appear on the register and if it holds a certificate from an accredited conformity assessment body confirming its digital verification service is compliant with the digital verification service trust framework. In practice, this means that in applying to join the register, a provider must have its service certified against the trust framework by a body that has been independently accredited by the UK Accreditation Service. The digital verification service provider must also have made an application in accordance with requirements made by determination under clause 39 and paid any relevant fee, as set out in clause 39. This provides confidence to users and businesses that only those digital verification services that meet these conditions will appear on the digital verification service register. Clause 34 grants the Secretary of State the power to refuse applications to the digital verification service register in two circumstances: first, where he considers it necessary to do so in the interests of national security or, secondly, where he is satisfied that the provider is not compliant with the trust framework. Before a refusal, he must provide written notice of his intention, informing the provider of his reasons and of the opportunity to make representations. He need not share reasons on national security grounds where to do so would be contrary to those interests. Those powers will act as a backstop, allowing the Secretary of State to stop bad actors—I always worry about that term, thinking about actors who have appeared in movies that I have not liked—entering the system in circumstances where, for example, he has intelligence that conformity assessment bodies do not. That should increase confidence that registered DVS providers are trustworthy and secure. Clause 35 allows registered digital verification service providers to have multiple certified services listed in the digital verification services register. The provider must apply for the Secretary of State to amend its register entry to accommodate this. This is largely a technical provision to ensure that the register can operate appropriately and seamlessly when providers offer more than one service that is certified against the trust framework. Clause 36 provides for a registered provider to apply to the Secretary of State to add a supplementary note to their entry in the register if its service is certified against the supplementary code, its application complies with any requirements set out in a determination under clause 38, and it has paid any required fee. Supplementary notes will make it easy for people and businesses to see which registered digital verification services are certified against the rules of the supplementary code, so that they can find a trusted service that meets their needs. In the same way that clause 35 allows registered digital verification service providers to have multiple certified services listed in the register, clause 37 allows providers with multiple services certified against the supplementary code to have that information suitably noted in the register. The digital verification service provider must apply to the Secretary of State to have its supplementary note amended to accommodate this. This technical requirement ensures that the register can operate appropriately and seamlessly when DVS providers offer more than one service that is certified against both the trust framework and a supplementary code. Finally, clause 38 makes provision for the Secretary of State to determine the form of applications to the register and supplementary notes, the information that needs to be contained in the application, the documents to be provided and the manner in which is to be submitted. He must publish this determination, which will ensure that the requirements are clear for digital verification service providers who wish to make an application. For the same reason, if he revises the determination at a later time, this must also be published. Question put and agreed to. Clause 32 accordingly ordered to stand part of the Bill. Clauses 33 to 38 ordered to stand part of the Bill. Clause 39 Fees for applications for registration, supplementary notes, etc Question proposed, That the clause stand part of the Bill.

• 4 Mar 2025 · Data (Use and Access) Bill [ Lords ] (First sitting) · Hansard source

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  The thing is, it is already enshrined in law under the Equality Act 2010. That is perfectly adequate for the purposes of the Bill—it protects all the characteristics that the hon. Gentleman referred to, including age—so I urge him not to pursue his new clause. Question put and agreed to. Clause 27 accordingly ordered to stand part of the Bill. Clause 28 DVS trust framework

• 4 Mar 2025 · Data (Use and Access) Bill [ Lords ] (First sitting) · Hansard source

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  I am not sure whether we have specifically—I am looking to my left for inspiration. I am getting vague inspiration, although it is remarkably non-productive. If the hon. Member would like to intervene for a little longer, perhaps I will be able to be more inspired.