Treasury Select Committe chairman Andrew Tyrie has expressed concerns that the Government is passing legislation too quickly for the new regulatory switch.
Andrew Tyrie, Treasury Select Committee (TSC) chairman, has expressed further concerns that the Government is passing legislation too quickly for the new regulatory switch due to take place early next year.
The end of last week saw the publication of the Financial Services Bill, which will set up the Financial Conduct Authority (FCA) and new regulatory practices. The publication was released before the TSC had submitted their final report on the enquiry into the accountability of the FCA, even though the TSC’s reports are supposed to inform Treasury policy.
Areas which were to be reviewed before the publication of the bill were the methods which the FOS and FCA will use under the new system to handle complaints, the objectives and role of the FCA and their product intervention powers. Tyrie has stated: “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.”
In November last year, Tyrie had written to Conservative MP and joint committee on draft financial services bill chairman, Peter Lilley, suggesting that both committees should co-operate and scrutinise the bill effectively before it is passed through Parliament. In turn he stressed that attention could be given to the finer details, which would minimise any risks and flaws in the new system.
Tyrie’s stance is that: “This is only the start of the legislative process. Parliament must be given the time to discuss these important issues in detail.”