Financial Services Being Reformed Too Fast

According to Andrew Tyrie, Chairman of the Treasury Select Committee, reform of the financial services industry is being rushed through too fast and could end up creating a “lawyers’ charter”.

Mr Tyrie believes that the amendments to the Financial Services Bill are being rushed through Parliament too quickly, which means that his committee and the Commission on Banking Standards, which he chairs, will not have enough time to examine the changes thoroughly.

The Bill, which was considered in a Public Bill Committee earlier this year, will amend the Bank of England Act 1998, the Financial Services and Markets Act 2000 and the Banking Act 2009 to make provisions about financial services and markets.

It will also exercise certain statutory functions relating to building societies and other mutual societies and will amend section 785 of the Companies Act 2006, enabling the Director of Savings to provide services to other public bodies.

If all the Lords amendments are agreed to, the Bill will be sent back to the House of Lords to await Royal Assent. If the Commons disagree to the Lords amendments, the Bill will be sent back to the House of Lords for further consideration.

However, Mr Tyrie thinks that the Government would do better to bring the legislation through as a new Bill instead of as amendments to the Acts mentioned.

He is supported in this by the current Governor of the Bank of England, Sir Mervyn King, who would like to see a requirement for the central bank to produce reviews of its own performance and for the first time publish records of meetings of its Court of Directors.

As an accountant, Sarah Jenkins, specialises in management accounting, business development and financial reporting.

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