PARLIAMENTARY EARLY DAY MOTION
FAILURE OF SELF-REGULATION OF FINANCIAL SERVICES (8 February 1993)

That this House notes the increasing importance of the provision of financial services and that substantial sums are at risk; believes that the self-regulatory regime set up under the Financial Services Act 1986 has failed and is in need of complete overhaul; believes that this is not a matter for the industry or the Securities and Investment Board alone and therefore insists that a proper and effective regime is put in place without further delay; believes that the regulatory regime should be supervised by a majority of those representing the public interest and not by a convention of vested interests of the industry: notes the failure of the Securities and Investment Board to put in place the Personal Investment Authority or similar body, and that no adequate regulatory regime is likely to be in place before 1994; believes that any regulatory regime must have sufficient power and resources to regulate sale of financial products, and that the public interest would be best served by a complete overhaul of the current legislation which would provide for a regulatory regime that would be good for the public, efficient for the industry and command the confidence it is manifestly lacking at the moment; and believes that the Government's failure to take any interest in this matter illustrates that it has chosen to side with the vested interests of the industry rather than the interests of the public.

Sponsored by:
Lord Darling of Roulanish (Labour)