'ABI is keen to work with government'

• It is vital that the Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) do not duplicate each other's activities, adding unnecessary costs to companies and their customers.

• It needs to be very clear who is ultimately responsible for decision-making within the system.

• The proposed timetable is very ambitious, particularly as the financial sector is dealing with a number of other significant regulatory changes simultaneously. There is, therefore, a capacity issue with both firms and regulatory authorities being very stretched.

• The UK authorities need to do more to guide the process of setting EU rules as the European Supervisory Authorities (ESAs) are becoming the main source of detailed regulatory requirements for UK financial services firms. This can be addressed when selecting UK representatives on the ESAs and, more generally, in the recruitment of staff to the UK regulatory bodies and the setting of work priorities and allocation of resources.

In addition, to deliver the best outcomes for consumers, we believe the bill can be strengthened by placing a specific requirement on the FCA to increase access to financial products. This would also include ensuring that regulators are focused on effective, proactive and consistent supervision and enforcement of the existing requirements on firms to treat customers fairly rather than being involved in designing or approving financial products.

The ABI is keen to work with government and parliamentarians to ensure these reforms are implemented as smoothly and effectively as possible.

Throughout recess, ePolitix.com will be focusing on a different policy theme each week. This week we are featuring articles with a focus on business and the economy.