Financial Services Bill

John McDonnell Excerpts

Report stage & 3rd reading & 3rd reading: House of Commons & Report stage: House of Commons
Wednesday 13th January 2021 Commons Chamber

[Madam Deputy Speaker (Dame Rosie Winterton)]

Let me just say that after our next speaker, John McDonnell, the time limit will be cut to four minutes.

[John McDonnell (Hayes and Harlington) (Lab)]

From the speeches of the previous two speakers, we can see that there is a thread running through the bulk of the amendments. It is that no matter how significant the contribution of our financial services to our economy, the widespread concerns about the probity of their operations should not be ignored.

New clause 1 standing in my name and the names of other hon. Friends would require the Government to publish a report; to come clean about the standard, conduct and ethics of businesses in the financial services; and to assess publicly the prevalence of unlawful practices such as tax evasion and money laundering and the prevalence of charging excess fees, tax avoidance and providing inadequate advice to consumers. New clause 1 would require the Government to consider and report on the case for a public inquiry and any plans for further reform of regulation.

The FCA plays a core role in the regulatory structure, and in this Bill it is gaining even greater powers. The appointment of the FCA chief is critically important therefore in determining the effectiveness of our whole regulatory system. For that reason, amendment 3 in my name would ensure that before the appointment of a new chief executive, the Treasury would publish a report on the FCA’s effectiveness under the outgoing chief executive. That would allow lessons to be learned. Amendment 4 would give some teeth to parliamentary scrutiny of the FCA by making the appointment of the chief executive subject to approval by the Treasury Committee.