Regulatory Reform (Financial Services and Markets Act 2000) Order 2007

I am grateful to Members of the Committee for their contributions. I did not doubt that the noble Baroness, Lady Noakes, would take the full opportunity that this modest measure offers to talk further about reducing the burdens of regulation. I thank the noble Lord, Lord Newby, for his kind words. It is an absolute delight for us to be engaged in our usual places with regard to this order and, I imagine, on more substantial matters in the months to come. As the Committee will recognise, I canvassed vigorously for our relationship to remain as it has been over the past year or eighteen months. I shall be working hard at the next election to make sure that our arrangements remain exactly the same. The noble Baroness asked about one or two issues. The FSA is still obliged to consult, but, attached to that, a cost-benefit analysis on the matter is removed from the consultation, which makes the issue that much more intensive. We are seeking to reduce the levels of consultation. I bear in mind what the noble Lord, Lord Newby, said on consultation. Of course, the Government will keep under review the working of the FSA with regard to consultation. The noble Lord said that businesses worry least about that element of regulation. I am not sure that that is altogether true. We have all heard complaints from time to time about the excessive amount of material that descends on companies to which they are expected to make some response. But I hear what he says and I assure him that we dropped the proposals because it was clear at that time that what was being identified did not meet the response of the stakeholders. That is why we have taken that position. The noble Lord will recognise that this measure is a product of the very exemplar that he is enjoining me and the Government to follow with regard to necessary consultation. The noble Baroness was perhaps a little less generous than is her wont on occasions. She is right that the main proposals reduce the procedural obligations on the FSA. I think that, wearing another hat and on other occasions, she is often quite enthusiastic that the problems of bureaucracy should be reduced. Therefore, she should welcome this measure, which seeks to streamline the work of the FSA and make it more the owners and stakeholders with whom it has relationships. Some of the proposals will benefit firms directly and indirectly. They will remove administrative inconvenience and the time taken to apply for reauthorisation if a partnership or unincorporated association is dissolved. They will also benefit from the FSA being able to produce guidance in a somewhat more flexible manner. I recognise that the noble Lord, Lord Newby, is hinting, but the trouble with flexibility is that it may not meet everyone’s requirements. It is helpful that we seek to build on good practice and see the FSA relating to its stakeholders effectively. The proof of this pudding will be in the eating. There are also cost savings. The Government anticipate that the total administrative saving for firms is likely to be between £7.5 million and £9.3 million. The total administrative saving for the FSA, which the noble Lord contended would be the chief beneficiary from these proposals, is perhaps less: we can see savings of between £50,000 and £115,000 for the FSA. So there are direct benefits for firms and the FSA on which we can put figures. The noble Baroness always questions me about reductions in the rule book and in the weight of legislation. I am never able to respond to her as accurately as I would like because they are very difficult questions, such as how many pages we have effectively reduced the book by. We are making a dent in the rule book with this issue. We are concerned to reduce the rule book. The work we are doing to reduce the book with regard to money laundering is evidence of the Government’s intention. However, the noble Baroness makes an entirely proper point, and I always sound a little less forthright than I would wish because I am never able to answer her. One day I will be able to count not the pages but perhaps the lines that we have withdrawn on some very small measure—I imagine it will be a microscopic measure, if I am ever given that opportunity. I look forward to that day hugely. On Question, Motion agreed to.