TSC says rapid switch will lead to mistakes

Treasury select committee chair Andrew Tyrie says the Government is legislating too quickly for the regulatory switch and risks making mistakes as a result.

The TSC is running an inquiry into the accountability of the Financial Conduct Authority and is yet to publish a final report. The Financial Services Bill, published last week, will set up the FCA and other new regulatory bodies, even though the TSC’s report is supposed to help inform Treasury policy.

Tyrie says: “The fact that the Government has not waited to take account of the committee’s report on the FCA highlights concerns that we are legislating too fast. We have to take the time to get this legislation right.”

Speaking to Money Marketing, TSC member and Labour MP Andy Love says there is still time for amendments to be tabled, taking account of any TSC recommendations. But he adds: “This report was the final piece of the jigsaw of our review and I am disappointed the Government did not think it sensible to wait for it.”

In November, Tyrie wrote to joint committee on the draft bill chairman Peter Lilley saying the two committees should co-operate on scrutinising the draft bill because time pressures made it impossible for each to do it fully on its own.

The Government wants the bill to pass through Parliament by the end of the year in time for the new regulators to begin operating in early 2013.

A Treasury spokesman says: “We have had three public consultations and six months of pre-legislative scrutiny and think that is enough consultation.”