Finance and Insurance Market: Underwriting Fees

Lord Newby Excerpts

Wednesday 12th January 2011 Lords Chamber

[Lord Sassoon]

My Lords, I am happy to acknowledge that the noble Lord also has a distinguished history in this area. As well as being a fund manager, he wrote a report for the DTI in February 2005, so there are lots of poachers turned gamekeepers out there in the jungle. We should wait to see what the OFT recommends. It can recommend a range of actions, which could include matters coming back to government. I and my colleagues in government would then follow them up in the appropriate way.

[Lord Newby]

My Lords, does the Minister agree that the Ferrans report is yet another demonstration of the fact that if bankers are left to their own devices they behave in an uncompetitive way? While certain aspects of the report are being considered and are relevant to the OFT, it makes a number of suggestions about how some EU financial services directives could be strengthened to improve the sector and its competitiveness. Will the Minister give an undertaking that before the OFT reports, and in its ongoing discussions in Brussels, it will take forward the proposals in the Ferrans report to ensure that transparency and competition are promoted?

[Lord Sassoon]

My Lords, as I have already said, it is expected that the Office of Fair Trading will report later this month, so we do not have long to wait. We should consider what the appropriate action is to take after my ministerial colleagues have had a chance to consider the recommendations of the OFT report. However, I hear what my noble friend says.