MPs unimpressed with proposed regulatory reform

by Gill Montia

Story link: MPs unimpressed with proposed regulatory reform

The Treasury Select Committee is less than impressed with the Government’s plans to reform regulation of the UK’s financial institutions.

After examining the proposed post credit-crisis system, involving the Treasury, Bank of England and Financial Services Authority, MPs concluded that changes were “cosmetic” and that the system remains “a muddle”.

Incredibly, the Committee found that the Governor of the Bank of England, Mervyn King, had been “kept in the dark” about the reforms until they were were unveiled early last month.

Referring to the proposed Council for Financial Stability, committee members seemed doubtful that it would be more effective than the current Tripartite Standing Committee.

Parliament is expected to start working on draft legislation after the summer recess and the new rules should be in place in the early part of 2010.