A motion to appoint six MPs to a scrutiny committee for the Government’s proposed changes to the regulatory structure has been rejected by Parliament.
Members put forward included Labour MP for Leeds East George Mudie and Conservative MP for Bury St Edmunds David Ruffley, who are both members of the Treasury select committee. LibDem MP for Yeovil David Laws, Labour MP for Newcastle upon Tyne East Nick Brown, Conservative MP for Warrington South David Mowat and Conservative MP for Hitchin and Harpenden Peter Lilley were also proposed.
In Parliament this week, a number of MPs objected to the motion. It will now be put to the house again and if there are further objections, the motion will be debated in the Commons.
In February, the Treasury said it wants the draft Financial Services Bill to go through 12 weeks of pre-legislative scrutiny by a committee made up of Lords and MPs, starting before the summer recess next week. This delay, as well as the fact the House of Lords has yet to decide on its members, makes that unlikely.
Ruffley says if he gets on to the committee he will focus on the potential for duplicate regulation between the Prudential Regulation Authority and the Financial Conduct Authority. Speaking to Money Marketing, he said: “There are clearer lines of responsibility in the twin peaks approach but I have concerns about where the FCA ends and the PRA begins.”
Mudie says: “We are giving more and more powers away to regulators and the lack of democratic accountability will be a key question.”