Oral Answers to Questions

Mark Menzies Excerpts

Tuesday 8th February 2011 Commons Chamber

[Mr Hoban]

The Government take the issue of financial advice very seriously. That is why we have supported the establishment of CFEB, which will be funded through a levy raised on the financial services sector, which is very important. It is also important that CFEB takes forward its work and considers how to reach out to some of the most vulnerable people in society.

[Mark Menzies (Fylde) (Con)]

18. What recent steps he has taken to implement the Basel III framework; and if he will make a statement.

[The Financial Secretary to the Treasury (Mr Mark Hoban)]

The Government are taking forward work on the implementation of Basel III. The agreement will be implemented on an EU-wide basis through revisions to the capital requirements directive. Legislative proposals known as CRD 4 are expected from the European Commission before the summer. The Commission is working towards the implementation of CRD 4 in member states including the UK on 1 January 2013, with the majority of measures to be phased in by 1 January 2018.

[Mark Menzies]

Does my hon. Friend agree that the Government’s willingness to consider capital control and liquidity reform vastly contrasts with what took place under previous Governments?

[Mr Hoban]

My hon. Friend makes an important point. Of course, part of the problem was that the light-touch regime introduced by the previous Government for the regulation of the financial services sector meant that, when losses rose, banks did not have sufficient capital to absorb them. The Basel III reforms will tackle that challenge, and I hope that we will see a stronger and more sustainable financial sector.