Compensation Bill [HL]

I am grateful to the noble Lord for explaining what he seeks to do. I was not aware that I was supposed to identify what happened to the Lord Chancellor between the 21st and 22nd. The noble Lord did not ask so I hope that I have not been remiss in not answering. I interpreted what happened on the 21st as a trailing of what was going to happen on the 22nd, but that may be my interpretation of what was said. From his experience in government, the noble Lord will know that one is mindful of ensuring that announcements are made appropriately. I have not discussed it with my noble and learned friend. If the noble Lord wants to do so, I am sure that my noble and learned friend would be delighted to explain precisely what was happening between one day and the next. As I said, I think that it was pretty well trailed. In Clause 3(2)(b), we have sought to replicate what is good practice in regulation. Those concerned with regulation have invaluable knowledge and expertise of the market and we are not convinced that it is possible to regulate effectively without involving them. For example, the board of the Financial Services Authority, to which the noble Lord, Lord Hunt, referred, includes a number of non-executive members from the industry. The Law Society’s new regulatory board comprises a mixture of solicitors and lay members. Although I completely accept that the regulator should not be influenced by commercial interests, the requirement to avoid conflicts of interest is sufficient to ensure that. The experience of the bodies I have mentioned, along with others, should give people certainty and a sense of confidence that that will again be the case. I have listened with interest to what the noble Lord said and will of course reflect on it, as I do with all comments made in Committee, but we have made this regulatory body reflect good practice elsewhere that has been recognised to be satisfactory. It is partly about transparency and partly about effective regulation that the governing body, the designated regulatory body, should include members of the sector it regulates. It is good practice elsewhere; it has stood us in good stead; that is why we do it. The critical point raised by the noble Lord is that it needs to be transparent. It must be absolutely clear that there is no conflict of commercial interest. I agree wholeheartedly with the sentiment. We have done that in reflecting good practice elsewhere, but I am always happy to discuss it further if the noble Lord wants.