Summary and Background Background
3.The Government committed to putting in place a new system for financial regulation in the Government’s publication “The Coalition: our programme for government”:
“We will reform the regulatory system to avoid a repeat of the financial crisis. We will bring forward proposals to give the Bank of England control of macro-prudential regulation and oversight of micro-prudential regulation.”
4.The Government’s proposals were first set out and consulted on in Cm 7874 “A new approach to financial regulation: judgement, focus and stability”. The Government developed its proposals further and set them out for a further period of consultation in Cm 8012 “A new approach to financial regulation: building a stronger system”. In July 2011, the Government published a White Paper “A new approach to financial regulation: the blueprint for reform” setting out further policy detail and some further areas for consultation. The White Paper included a draft Bill. Copies of relevant documents, including these consultation documents are available on the Treasury’s website (www.hm-treasury.gov.uk).
5.A draft Bill was published in July 2011 and was the subject of pre-legislative scrutiny by a Joint Committee of both Houses under the chairmanship of Peter Lilley MP. The Joint Committee published its report on the draft Bill on 19 December 2011. The report is available on the Parliament website (http://www.parliament.uk). The Treasury Committee also published a number of reports on the draft Bill, which are also available from the Parliament website. The Government published its response to the Joint Committee and to the Treasury Committee’s recommendations in Cm 8268, “A new approach to financial regulation: securing stability, protecting consumers”.