Clause 11 - Prohibition Orders

Part of Financial Services Bill – in a Public Bill Committee at 7:30 pm on 6th March 2012.

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Photo of Matthew Hancock Matthew Hancock Conservative, West Suffolk 7:30 pm, 6th March 2012

It is a pleasure to follow the Opposition Whip, who has made concise and interesting speeches. Long may they continue.

Amendment 145 seeks to change the clause on prohibition orders. I do not support the amendment, because writing the need to publish on a website into law seems to have the problems that we discussed earlier. However, the principle that prohibition orders on people who are not fit and proper persons should be published is crucial. The clause is very important. Prohibition must not only be a sanction for past irresponsible behaviour, but a deterrent for future irresponsible behaviour. That change in behaviour, by ensuring that sanctions are strong enough to change the culture within finance, is written deeply within the Bill and is extremely important. It is one of the key lessons from the financial crisis.

I hope that the Minister will reiterate that the point of prohibition is not only specifically to stop the actions of those who have already committed acts that make them not fit and proper, but to demonstrate the bounds of behaviour that are deemed responsible and reasonable within authorised firms.