§ Mr. Stephen TimmsTo ask the Chancellor of the Exchequer if he will make a statement on his proposals for reform of financial services regulation. [13096]
§ Mr. DarlingMy right hon. Friend the Chancellor of the Exchequer has decided that the new single regulatory organisation is to be called the Financial Services Authority. This name has been adopted by the body formerly known as the Securities and Investments Board.
The draft legislation to be published next summer will include draft statutory objectives for the Financial Services Authority. These are expected to include objectives in the following areas:
the promotion and maintenance of confidence in the UK financial sector and markets;protecting consumers by ensuring that firms are competent and financially sound and give their customers confidence in their integrity, while recognising customers' own responsibility for their financial decisions;promoting the improvement of public understanding of the benefits and risks associated with financial products through the improvement of information and advice;monitoring, detecting and preventing financial crime.We also intend to set some objectives to condition how the Financial Services Authority goes about its job. We want it to:
be efficient and economic, ensuring that costs and restrictions on firms are proportionate to the benefits of regulation;facilitate innovation in financial services;take account of the international nature of financial regulation and financial services business.The Financial Services Authority has today published a launch document with more details of the preparations for the new regulatory structure. Copies have been placed in the Library of the House.
The Financial Services Authority has also published today consultation documents on practitioner and consumer involvement and the basis for charging for banking supervision. The details of the new regulatory structure and the Government's intentions for the draft legislation will be subject to further consultation.