Treasury financial secretary Mark Hoban has dismissed Treasury select committee concerns that Government plans to amend the Financial Services and Markets Act rather than rewrite it could leave flaws in the new regulatory structure.
The TSC’s February report on the new regulatory framework called for the FSMA 2000 legislation to be revisited in its entirety to ensure the change is “right, not rushed”.
The Treasury has since decided to instead amend the existing FSMA legislation.
Speaking at Cicero Consulting’s Treasury ministers’ question time event in London this week, Hoban said the plans have been developed with extensive collaboration and scrutiny.
He said: “We have had two consultation documents, there will be pre-legislative scrutiny, which Labour called for and we acceded to, then there will be line-by-line scrutiny at the committee stage. This is one of the best thought-through and consensual pieces of legislation relating to financial services in recent years.”
Speaking at the same event, shadow Treasury financial secretary Chris Leslie said: “This approach will make it more difficult for people to follow the scrutiny of some fundamental changes through Parliament.”
Facts and Figures managing director Simon Webster says the FSMA should be rewritten from scratch.
He says: “The Government is reorganising the whole structure at great cost but this hotchpotch approach is not the right way to do it.”