The Financial Services and Markets Bill has been given a kiss of life after the Tories conditionally agreed to it roll it over into the next legislative session.
The Conservatives allowed the bill to go before the house next term only if the Government seriously considers making amendments to curb FSA powers.
They say those charged with serious regulatory offences will not have sufficient scope to defend themselves adequately and believe the FSA will have too much power to scrutinise senior City appointments.
But Tory support for the bill has enraged Justice in Financial Services director Joe Egerton who believes the party is supporting a bill which fails to defend the freedom of individuals.
Egerton says: "We will be looking to appoint a "real Conservative" candidate at the Kensington and Chelsea by-election."