Commons Sense

House of Commons · Ministers' Questions

Financial Services Sector: Regulatory Framework

Tuesday 9 May 2023 · 3 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 3 Not answered 0

Key points

  • Government published a call for proposals on metrics for regulator performance measurement to support transparency and appropriate public measures for scrutinizing regulators' work.
  • Government did not specify any concrete key performance indicators or additional measures to the Bill regarding independent scrutiny of regulators.
  • Treasury supports the financial mutual sector through reforms, including Law Commission work to enhance commercial freedom and diversity.

Topics (select to filter)

Questions & Answers

Q1 Bob Blackman Con Harrow East
Context

The Edinburgh reforms aim to maintain the UK's position as a global financial centre while ensuring robustness in face of market shocks.

Question

What steps his Department is taking to improve the regulatory framework of the financial services sector. The culture and performance of regulators are key considerations for firms investing in the UK. What specific steps will he take to introduce KPIs for financial regulators under the Financial Services and Markets Bill? Are there measures being added to strengthen independent scrutiny?

Answer from Andrew Griffith

The Government published a call for proposals on metrics for regulator performance measurement today. They support transparency and appropriate public measures for scrutinizing regulators' work, responding to industry and parliamentary interest. The Government are clear about the need for greater accountability with power.

Partly answered

Not addressed: Specific KPIs and measures under the Financial Services and Markets Bill were not detailed.

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Q2 Bob Blackman Con Harrow East
Economy Business & Trade
Context

The culture and performance of regulators influence firms' investment decisions in the UK. The new growth and competitiveness objective requires clear metrics for scrutiny.

Question

What steps is he going to take to introduce key performance indicators for financial regulators to report on their delivery against the new growth and competitiveness objective? Is he considering adding any measures to the Bill that would strengthen independent scrutiny of regulators?

Answer from Andrew Griffith

The Government published a call for proposals on metrics today, supporting transparency and appropriate public measures for scrutinizing regulators' work. They welcome industry and parliamentary interest in this matter but did not specify any concrete KPIs or additional measures to the Bill.

Partly answered

Not addressed: Did not provide specific KPI details or mention additional measures in the Bill.

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Q3 Gareth Thomas Labour (Co-op) Harrow West
Business & Trade
Context

Permanent mutual shares would provide financial mutuals with a new safe route to access capital needed for expansion without demutualising.

Question

Will the Minister explain why the Treasury is still dragging its feet on introducing permanent mutual shares, which would allow financial mutuals such as Royal London or Liverpool Victoria to expand safely and efficiently?

Answer from Andrew Griffith

The Treasury is not dragging its feet. The sector has been supported through reforms, including Law Commission work to enhance commercial freedom and diversity. The Minister remains open to discussions with representatives from the sector.

Partly answered

Not addressed: Explanation for delay in introducing permanent mutual shares was vague.

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