The fourth day of debate on the Financial Services and Markets Bill took place on 1 July. The main topics of discussion were international rules and growth and competitiveness.
Key points made included:
- the need for a distinction between “aligning” with international standards and considering them – the point being that while international standards do matter, the opportunity of the post-Brexit UK regulatory framework was to be able to put in place rules that work for the UK. The Government was unwilling to accept this amendment.
- time limits for regulatory improvements, and the proposal to hardwire into legislation that Treasury could only reduce these and not lengthen them, and a discussion on the frustrations that the current ability for the regulator to stop the clock create. They also mooted a streamlined process for individuals with significant and substantial regulatory histories. The Government, while agreeing with the principles, declined to make any changes to the draft legislation;
- introducing a statutory threshold for the use of s166 reviews, given how prevalent they have become – yet again, the Government agreed the tool should be used proportionately but declined to make the amendment;
- controlling cumulative cost burdens;
- how to set bank capital for the most benefit;
- independent reviews of regulators by a new statutory body – an amendment withdrawn reluctantly; and
- whether new provisions in the Bill would help the creation of an open finance regime.