Treasury Committee publishes report on the Financial Services Bill

Published on Friday, 08 June 2012 14:55
Posted by Scott Buckler

With the Financial Services Bill about to undergo detailed scrutiny in the House of Lords, the Treasury Select Committee today publishes a further report setting out its main outstanding concerns and some proposed remedies

In response to pressure from the Treasury Committee and the Joint Committee, among others, some recommendations for improvement have been accepted, in whole or in part.

Commenting on the publication of the report, the Chair of the Treasury Select Committee, Andrew Tyrie MP, said:

    "The Financial Services Bill is the most important overhaul of financial regulation ever undertaken in this country. 

    It is crucial that we get it right. This Bill will transform the regulation of Britain’s leading global industry.

The work of the Treasury Committee and the Joint Committee has secured improvements in some areas.  We also forced a commitment from the Government, at Report Stage in the Commons, to look again at the Bank of England’s current antiquated corporate governance, and its accountability to Parliament.  This now needs to be given effect in the Lords.

The Bank must not be permitted to carry on with an outdated Court. We must ensure that the Court can operate, as far as possible, according to corporate governance best practice.

Instead of drafting a fresh Bill, the Government has presented Parliament with multiple amendments to the already extremely complex Financial Services and Markets Act. The proposed legislation is therefore much more complicated than it need have been.

No explanation has been given for the rush to produce the Bill and place it on the Statute Book by the end of the year. Better to take a little more time, and get it right, than rush it.

Much remains to be done. I hope our report will be of use to all those with an interest in securing further improvements to the Bill."

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