The Financial Services Bill does not give clear legal backing to the regulators’ new judgement-based approach, according to Conservative MP Peter Lilley, who chaired the joint committee scrutinising the draft bill.
Speaking in a debate on the bill in the House of Commons this week, Lilley called on the Chancellor to deal with his committee’s concerns.
He said: “We found it hard to see where in the Bill the app-roach was given legal backing, especially for the Prudential Regulation Authority. I hope the Chancellor is confident that regulators will be fully empowered under the legislation to behave in that way.”
In its final report, published in December, the committee said the approach was not defined within the draft bill.
The report says: “The new judgement-led term is not referred to or defined in the legislation and no specific powers are given.”