Banking: Financial Crime

Lord Sharkey Excerpts

Wednesday 2nd December 2015 Lords Chamber

Asked by

[Lord Sharkey]

To ask Her Majesty’s Government whether they expect senior managers to be held to account following the imposition of a £72 million fine on Barclays Bank for failing to minimise the risk that funds might be used to facilitate financial crime.

[The Parliamentary Secretary, Cabinet Office (Lord Bridges of Headley) (Con)]

My Lords, the Financial Services and Markets Act 2000 prescribes the regulatory framework under which action can be taken by the regulators against firms and individuals. Under this framework, decisions on whether to take enforcement action are for the regulators, and it is entirely right that they should be independent of government.

[Lord Sharkey (LD)]

The fact is that so far we have not managed to hold any senior managers to account. That is because the regulatory regime does not work, and it is precisely why we were due to replace it next April with a tougher regime. However, the Government are about to scrap the new regime before it starts and to go back to a lighter-touch regime. Can the Minister explain how the lighter-touch regime can do what the current regime cannot?