Treasury select committee chair Andrew Tyrie says the Government is legislating too quickly for the upcoming regulatory switch and risks making mistakes as a result.
The TSC is currently running an inquiry into the accountability of the Financial Conduct Authority and is yet to publish a final report. This morning saw the publication of the financial services bill which will set up the FCA and other new regulatory bodies, even though the TSC’s reports are supposed to inform Treasury policy.
Tyrie says: “The fact that the Government has not waited to take account of the committee’s report on FCA highlights concerns that we are legislating too fast. We have to take the time to get this legislation right.”
This is not the first time Tyrie has raised concerns over the speed at which the Government is pushing reforms to the regulatory system through.
In November, Tyrie wrote to Conservative MP and joint committee on draft financial services bill chairman Peter Lilley saying the two committees should co-operate on scrutinising the bill because time pressures made it impossible for each to do it fully on its own. Last March, he said restructuring the regulatory system with “dog-eared amendments” to the Financial Services and Markets Act 2000 instead of starting with a new bill risked failing to fix flaws in the current system.
The Government wants the bill to have passed through Parliament by the end of the year in time for the new regulators to begin operating in early 2013. But, Tyrie says MPs must be given sufficient time to scrutinise the bill.
He says: “This is only the start of the legislative process. Parliament must be given the time to discuss these important issues in detail.”