View more on these topics

Too early to say if finance bill will be a vehicle for bank reform, claims Cable

Business Secretary Vince Cable says it is too early to say how much of the legislation that brings in the Independent Commission on Banking’s recommendations will be included in the Financial Services Bill.

Earlier this month, Chancellor George Osborne told Parliament that the bill “might well” be a vehicle for the reforms but that some changes may need a new bill. He said this is partly because of the need to get the Financial Services Bill through the house quickly so the new regulators are up and running by 2013.

Shadow Chancellor Ed Balls challenged him, saying the Financial Services Bill should include “as much of the changes as possible”.
In a speech at the Liberal Democrat conference in Birmingham last week, Cable reiterated that legislation will be in place by 2015.
Speaking to Money Marketing after his speech, Cable said the Government is united in getting the legislative groundwork done in this Parliament.

He said: “It is absolutely clear, the Chancellor and I have said the necessary legislation will be done in this Parliament. It would be sensible to use the Financial Services Bill for some of what is required but it is too early to talk about the precise mechanics.”

LibDem Treasury spokesman in the Lords and member of the Parliamentary committee scrutinising the draft Financial Services Bill Dick Newby says the ICB’s proposals for structural reforms of banks should be in the bill.

But he adds that rules to push ringfenced retail banks to hold more capital and dramatically increase loss-absorbing capacity should be implemented separately.

He says: “On capital adequacy rules, the situation is more complicated because there is parallel EU legislation that it needs to be in synch with.”

Treasury select committee member Lord Thurso says: “I am convinced that most bankers would like to see these proposals disappear and so it is vital this does not become a good idea that bleeds away into the sand with the passage of time.”


Business Profile: Canada Life

Up until 1995, Canada Life acquired Manulife’s UK business followed by MetLife’s UK business, Albany Life, in 1997. Individual business manager John Occleshaw says: “We have grown rapidly since the mid-1990s through either new business or acquisitions. “In 2002, we made a big strategic decision. We had a pretty full product range and distributed through […]

Retirement Partnership’s Lewis joins LV= in distribution role

LV= has appointed The Retirement Partnership founder and managing director Steve Lewis as head of distribution for its retirement solutions business. Lewis will step down as managing director of The Retirement Partnership, but will become chairman of the support services firm. He will be replaced by Annuity Clearing House chairman Peter Quinton, who has been […]


MM Leader: Omo so near and yet so far

The ABI’s new mandatory code of conduct around the open market option is a step in the right direction but more needs to be done to ensure consumers make the most of their pension pots. The code, due to be introduced early next year, will force providers to remove the annuity application form from communications […]

Abbey launches three-year fix for existing home movers

Abbey for Intermediaries has today launched a new loyal mover mortgage for existing borrowers who are moving home. The three-year fix has a rate of 4.09 per cent and no fee, and is available up to 85 per cent LTV. The product comes with Abbey’s homebuyer solution, which offers a free standard valuation and £250 […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm