Clause 16 - Listing rules: disciplinary powers in relation to sponsors

Part of Financial Services Bill – in a Public Bill Committee at 9:30 am on 8 March 2012.

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Photo of Chris Leslie Chris Leslie Shadow Minister (Treasury) 9:30, 8 March 2012

It will not be a surprise to the Committee that the amendments relate to our general concerns about the need to improve parliamentary accountability and scrutiny of the new institutions, their reports and the functions that they fulfil. The three amendments hopefully represent an opportunity to embed those principles when it comes to the issuing of statements by the FCA. In our view, it is not enough to charge the FCA or the Treasury with publishing statements or directions simply as a way of appearing best calculated to draw it to the attention of the public. It seems rather odd in this instance for the regulator to publish a document for the benefit of the public, but not lay it before the public’s elected representatives in Parliament.

We do not want the FCA or the Prudential Regulation Authority simply to become creatures of Her Majesty’s Treasury. There is general anxiety about the Bill in that respect, so the amendments would balance the procedure in favour of a parliamentary interest and not only a Treasury interest. I have explained the rationale behind our amendments, and we hope that the Minister will understand the logic of such provisions.