The Chief Secretary to the Treasury Alan Milburn has published a progress report on the Financial Services and Markets Bill.
Milburn says that the Government will guided by the principle of a light touch wherever possible.
It also says that the bill has been significantly improved since it was first drafted, with a framework for fair and transparent disciplinary procedures, a requirement for the Financial Services Authority to consult on costs and mechanisms to ensure FSA accountability.
Milburn says: "Overburdensome regulation would stifle innovation and increase consumer costs. The bill will enhance the competitiveness of the industry while ensuring better protection for financial services customers."