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Labour: ‘We will fix flawed reg bill no matter how long it takes’

Labour has committed to “devoting as long as it takes” to addressing the “serious failings” in the Financial Services Bill pointed out by the Treasury select committee.

Last week, the TSC published a report detailing criticisms of the bill, including concerns over the governance and accountability of the Bank of England and the objectives and accountability of the Financial Conduct Authority.

It also criticised the fact parts of the bill and significant amendments to it went undebated in the House of Commons because of time limits or did not receive detailed responses from Treasury financial secretary Mark Hoban. However, in the Lords there are no time limits.

Speaking during the first debate on the bill in the House of Lords yesterday, Labour’s Treasury spokesman in the upper chamber Lord Eatwell said it is vital the new legislation is effective, adding the committee’s recommendations do not go far enough.

He said: “Last week, noble Lords were no doubt surprised to receive a passionate entreaty from the Treasury committee insisting the bill had been cobbled together with undue haste and had not received adequate consideration [and] in the case of some clauses, no consideration at all, and providing a checklist of serious failings in the legislation as currently drafted. From these benches, I can assure the Treasury committee its despairing plea will not go unanswered.

“We intend to devote just as long as it takes to sort out this flawed Bill and thank goodness that the procedures of this House will allow us to do so.”

He said Labour would bring forward proposals for significant changes to the bill during the committee stage set to get under way later this month.

In a signal of feeling in the Lords over the issue, peers reacted angrily when the Government whip Baroness Garden tried to hurry Lord Lamont during his comments. Lord Lucas said whips had “no business telling us what to do”.



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There are 6 comments at the moment, we would love to hear your opinion too.

  1. Oh Lord! Are they really meticulously reviewing the act, or just doing a patch work driven by political interests? No wonder that whatever the outcome it will be as with most acts: an abominable monster.

  2. At least someone is doing something, the lame brain numpties at the FSA who dreamed up this flawed abomination seem to be unable to see the wood for the trees. You could not make this stuff up, a Financial Conduct Authority without accountability, nah, who would have thought it ?

  3. Aren’t Labour forgetting that for 10 years they allowed the biggest mess of all, the FSA to get us in this state in the first place ??

  4. We need to recall the other recommendation of the TSC – to postpone RDR! At no time has there ever been any evidence of a rational enquiry into how the commission and extra allocation system works to encourage competition among product providers for the ultimate benefit of the consumer. Commission ensures IFAs get paid by product providers for marketing and distributing their products, and extra allocations gives money to consumers that would otherwise be spent on marketing. All we have ever had year in year out is tub thumping financial journalists denouncing commission. Never any evidence of rational thought.

  5. As Ned says, at least someone’s trying to put the brakes on the indecent haste with which the government is trying to hustle these amendments through, even if it is the very party that spawned the FSA in the first place. The major hurdle though is that the government has already declared that the FCA, like the FSA before it, will be accountable only to its own board.

    Hoban is obviously very much in accord with this stance, though on quite what basis he should consider such a lack of accountability to be in any way healthy is hard to fathom. Isn’t today’s favourite buzz word accountability? Not, it seems, when it comes to regulators, only the regulated. A very devious and unpleasant man.

  6. Financial services, like education and the NHS, is just a political ‘football’. Even before the new structure is in place the Labour party are talking about making sweeping changes. Continuous tinkering and meddling, never-ending uncertainty, escalating implementation costs, further tiers of compliance to ill-thought through regulations, micro-management of the sector by numpties all lining their own pockets, and still the banks are ripping off the general public – where will it all end ?!!!

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