Will the new financial services bill protect against crisis?

21 July 2011

A Joint Committee of MPs and Peers has been appointed to begin work on scrutinising the draft Financial Services Bill. The Committee has called on individual organisations and individuals to submit evidence as part of its inquiry.

The Committee will meet regularly on Tuesday afternoons and Thursday mornings. The next meeting of the Committee, on Tuesday 6 September, will be a private deliberative meeting. A schedule of oral evidence sessions will be confirmed in September. 

The Committee is interested in whether the proposed legislation would better equip the UK to prevent or handle a financial crisis, and how it would deal with bank failure and protect the public purse.

Questions that the Joint Committee are asking of the draft Bill include:

  • Is it appropriate to make such major changes to the regulatory system by amending legislation or should the Government be starting afresh?
  • How satisfactory are the accountability and governance arrangements for the Bank of England, FPC, PRA and FCA?
  • What can we learn from how other countries have approached financial sector regulation?
  • What risks does the Government’s proposed ‘judgement-based’ regulation carry?

Committee Chairman, Peter Lilley MP, said, “The recent crisis and ongoing issues within the financial services sector mean that it is important that the Financial Services Bill is scrutinised and considered very carefully. We will do this over the coming months, by receiving evidence and questioning witnesses, to ensure that the draft Bill addresses the problems that have affected this country so that we can protect our economy as best as possible”.

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