Clause 224
Banking Bill
3:00 pm
Angela Eagle (Parliamentary Secretary, HM Treasury; Wallasey, Labour)
Obviously, it is in the UK’s interest that there is full international co-operation on financial stability, and I suspect that we are just at the beginning of a process that will strengthen arrangements globally to ensure that that happens, particularly when a firm of systemic importance to the UK is internationally interconnected.
It is important for us to be able to inform overseas partners so that regulators can co-operate in managing the difficulties associated with the firm in question. It is desirable that other regulators and central banks reciprocate. The UK authorities maintain excellent relationships with key counterparts overseas. The colleges of regulators, which the hon. Gentleman mentioned, are an evolving example of the strengthening of that reciprocal relationship.
The hon. Gentleman asked whether the FSA can share information. Yes, the Financial Services and Markets Act 2000 includes the power for the FSA to share information with overseas regulators within limits set by the Treasury. That all helps to enable regulators to pick up systemic problems, particularly in firms that are globally present, interconnected and of systemic importance in the UK or elsewhere.