Moved by
Baroness Bennett of Manor Castle
123: After Clause 40, insert the following new Clause—
“Regular impact assessments on the UK financial services sector
(1) Within 12 months of the passing of this Act, and every subsequent five years, the responsible Treasury Minister, Chairs and Chief Executive Officers of the Prudential Regulation Authority and Financial Conduct Authority must each separately provide reports to relevant Committees of the House of Commons and House of Lords.
(2) The reports under subsection (1) must include an assessment and critical analysis of the following—
(a) the costs and benefits of the financial services sector in the United Kingdom;
(b) the impact of the financial services sector on inequality and economic development;
(c) the impact of capital allocation decisions on real economic activity;
(d) net gains or losses to the real economy caused by mergers and acquisitions;
(e) risks to the real economy of write downs in the value of financial assets;
(f) risks inherent in “shadow banking”;
(g) the impacts of money and financial activities being moved to offshore jurisdictions.
(3) In preparing the reports under subsection (1), the responsible person must consult with, and publish any submissions from, the Financial Scrutiny and Oversight Network.
(4) In this section—
“shadow banking” means financial services which are not subject to regulatory oversight, including but not limited to unregulated activities by regulated entities;
“real economy” means the production, distribution and consumption of goods and services.”