HM Treasury News Release
201/98 26 November 1998
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FEWER REGULATORS AND REGULATIONS - GREATER
ACCOUNTABILITY, SAYS STEPHEN BYERS
"The Financial Services and Markets Bill will, by creating a
single regulator with a single authorisation process, a single
compensation scheme, a single ombudsman, and a single appeals
tribunal, reduce the amount of regulation whilst at the same
time provide for greater accountability, " Chief Secretary
Stephen Byers will say in a speech to City financiers tonight.
Speaking to the Corporation of London Finance Committee Annual
Dinner he will stress that the Government is determined to
make sure that its plans for reforming the regulatory
structure of the financial services industry will be used as
an opportunity to reduce the amount of regulation.
He will say:
"Modernisation and reform are the hallmarks of the
Government's new legislative programme set out earlier this
week, and our plans to reform the regulation of the financial
services industry are a reflection of our modernisation
agenda.
Excessive regulation gets in the way of good business and is
to no-one's advantage. I therefore intend that the Bill will
provide for the FSA to consult on the costs and benefits
arising from regulations that they wish to introduce. In
addition, there will be a statutory requirement for regulation
to be proportionate.
These measures will ensure that the City can take advantage of
the reduction of nine regulators to one by making sure that
regulations are only introduced when absolutely necessary.
These steps will play an important part in maintaining
London's attractiveness to the world as a place to do
business."
NOTES TO EDITORS
1.A draft Financial Services and Markets Bill was published on
30 July 1998. Consultation ended on 30 October 1998.
2. New plans for joint scrutiny of the Bill and its proposed
timetable were announced by the Chief Secretary on Tuesday 24
November 1998 (HMT Press Release 199/98).
# = pounds sterling