Meg Hillier, chair of the Treasury select committee, argues the UK Chancellor must clarify the government's tolerance for financial deregulation to balance growth with system stability. Nikhil Rathi of the FCA has emphasized the need for clear guidance on market integrity risk. The Financial Services and Markets Bill moving through parliament aims to modernize regulation and support growth while maintaining standards.
A key concern is the move to place the Financial Ombudsman Service (FOS) closer to the FCA, which Hillier fears could weaken the body's independence. She advocates for a parliamentary lock, granting the Treasury select committee a legally binding veto over FOS Chair appointments, similar to the Office for Budget Responsibility, to protect consumers from undue government influence. More must be done to tackle financial exclusion, as voluntary measures are insufficient.
Hillier concludes the bill represents a pendulum swing toward deregulation away from consumer protection, urging the Treasury to define its red lines clearly.
Source: Financial Times Markets · Summarized by HeadlinesBriefing