Liberal Democrat Treasury spokesman Lord Newby has joined the Treasury select committee and Labour MPs in calling for the Government to rewrite rather than amend the Financial Services and Markets Act.
In June, the Treasury published its draft bill which will amend the Financial Services and Markets Act 2000 and split the FSA into the Prudential Regulation Authority and the Financial Conduct Authority.
In March, Treasury select committee chairman Andrew Tyrie said amending the FSMA could leave “operational flaws” in place.
In May, Labour Shadow Treasury financial secretary Chris Leslie said this approach would make it more difficult for people to follow the scrutiny of fundamental changes through Parliament.
Speaking to Money Marketing, Newby said: “In an ideal world, there would be a new bill. These are technical issues and there is a danger if you have an original text that is amended that it can be difficult for practitioners to find their way through it.”
The Treasury says writing a new bill would be more time-consuming and disruptive and costly to firms.