Orders of the Day — Financial Services and Markets Bill (Suspension)

Part of the debate – in the House of Commons at 5:25 pm on 25 October 1999.

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Photo of Miss Melanie Johnson Miss Melanie Johnson Economic Secretary, HM Treasury 5:25, 25 October 1999

I shall endeavour to stick to your recent injunction, Mr. Deputy Speaker, to keep to the procedural points as closely as I can, rather than stray down the path of dealing with the substance of the Bill.

After this Government came to power, we announced that the existing patchwork of financial regulators—nine in total—would be replaced by a single statutory regulator, subsequently named the Financial Services Authority. This Bill is a prime example of the Government's aim to reform and modernise Britain. It responds to the changing face of the financial services industry, brings a fair deal to both consumers and providers, and reduces the current scope for duplication and inconsistencies.

As many hon. Members have said, the Bill is complex. However, it will bring a range of positive benefits, which are pro market confidence, pro consumer protection, pro consumer awareness and anti financial crime. It will enable the FSA to be tough on City crime, malpractice and abuse, including insider dealing, rogue trading, money laundering and market manipulation, and will give the FSA wide powers to deal with those unacceptable activities. In giving the FSA a coherent set of modern regulatory powers, it constitutes a thorough and necessary overhaul of the relevant part of the statute book. That is a major task, which is why the Bill is so complex. It is a task that this Government have not shirked and on which we have been determined to consult fully. We therefore listened to and responded to the views of many individuals, institutions and groups.

Opposition Members disagree among themselves about what their response should be to the Bill, the City and this carry-over motion. This evening's debate has reflected their disagreement. We have, however, heard some voices of sanity from those who wish to honour their commitment to allow the Bill to proceed through this carry-over motion. They recognise that the Bill is extremely important and will bring substantial benefits to the financial services industry and its regulation in the UK, and therefore to the future of the global industry. It will also bring substantial benefits to consumers.