HISTORIC PRESS RELEASE : Fewer Regulators and Regulations – Greater Accountability says Stephen Byers [November 1998]

The press release issued by HM Treasury on 26 November 1998.

“The Financial Services and Markets Bill will, by creating a single regulator with a single authorisation process, a single compensation scheme, a single ombudsman, and a single appeals tribunal, reduce the amount of regulation whilst at the same time provide for greater accountability, ” Chief Secretary Stephen Byers will say in a speech to City financiers tonight.

Speaking to the Corporation of London Finance Committee Annual Dinner he will stress that the Government is determined to make sure that its plans for reforming the regulatory structure of the financial services industry will be used as an opportunity to reduce the amount of regulation.

He will say:

“Modernisation and reform are the hallmarks of the Government’s new legislative programme set out earlier this week, and our plans to reform the regulation of the financial services industry are a reflection of our modernisation agenda.

Excessive regulation gets in the way of good business and is to no-one’s advantage. I therefore intend that the Bill will provide for the FSA to consult on the costs and benefits arising from regulations that they wish to introduce. In addition, there will be a statutory requirement for regulation to be proportionate.

These measures will ensure that the City can take advantage of the reduction of nine regulators to one by making sure that regulations are only introduced when absolutely necessary.These steps will play an important part in maintaining London’s attractiveness to the world as a place to do business.”