Financial Services (Banking Reform) Bill: Lords stages

The original Bill practically trebled in size following the introduction of a very large number of government amendments made during this stage. These amendments reflected, in part, the recommendations of the Parliamentary Commission on Banking Standards which had published its final Report – Changing banking for good – in June 2013.

The majority of these amendments were not fully discussed at during either the committee or Report stages.

Most of the debate was over opposition amendments. Most of these covered issues where the Government disagreed with the Commission or where they thought the Government had not gone far enough in implementing them.

The Government was defeated on one issue when an opposition amendment to introduce tougher ‘licensing’ and qualification requirements for bank employees however, it subsequently introduced its own measures.

Government changes to the Bill included:

• Powers to enforce the ring fence (‘electrification’)

• Criminal sanctions for reckless conduct

• Regulation of payment services

• Regulators given competition objectives

• Bringing forward of the review of the ring fence to two years after completion;

• Review of proprietary trading