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McFall tells industry “legislation solves nothing”

Treasury select committee chairman John McFall has cautioned that “legislation solves nothing” and called for better self-regulation with industry secondments to the FSA.

Speaking at the Association of Mortgage Intermediaries annual dinner at Drapers’ Hall in London last night, the Labour MP for West Dunbartonshire said the industry should pull together and get ahead of the curve so that good self-regulation could prevent the need for heavy-handed legislation.

He said: “Legislation solves nothing. Legislation is always behind the curve.”

He added: “I would like to see people from the industry on secondment to the FSA, not only at a junior level but at a senior level. The real intelligence of what is going on in the industry is held there.”

McFall said this kind of industry expertise could help the regulator spot business models that are out of kilter as Northern Rock’s was.

McFall reiterated his proposal for a single State bank, arguing that this would have allowed the Government to get credit flowing directly to individuals and small businesses as he said banks face conflicting interests because of their need to preserve capital.

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. Is the FSA open to secondment?
    It must avoid ‘yes men/women’ and engage with those who can see in between the regulatory gaps. I agree, legilsation solves nothing and regulation as we know it is bust, it might hurt the Leviathan to hear these words time and again but these are the facts of the matter.

  2. Julian Stevens 11th June 2009 at 1:41 pm

    McFall tells industry “legislation solves nothing”
    I think I speak for tens of thousands of IFA’s in saying that what we would like to see ~ in fact, what we and the country as a whole desperately need ~ is root and branch reform of the FSA and an end to its relentless and biased persecution of the IFA sector, whilst the banks continue to be given free rein to do pretty much what they like without a whimper from Canary Wharf.

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