The effectiveness and competitiveness of all our industries depends on the availability and efficiency of the increasingly wide array of financial products and services. The standard of living of all of us depends on them, particularly in retirement. Financial services are often complex and long term. Products, markets and advice must therefore be fair, honest, transparent and command confidence. This division is inefficient, confusing for investors and lacks accountability and a clear allocation of responsibilities.
Reform is long overdue to simplify the delivery of financial service regulation.
At the same time, it is important to preserve the beneficial aspects of the current Act, including practitioner involvement and differential levels of regulation for wholesale and retail business. The Government is committed to reform, as promised in its manifesto, to reduce the chance of events such as the mis-selling of personal pensions happening again. It has not been possible to introduce legislation the first Session of Parliament due to the heavy legislative programme announced in the Queen's Speech. But work is to start immediately on the legislation needed to simplify and reform the regulatory system at an early opportunity. The legislation will deliver the Government's manifesto commitment to give the Securities and Investments Board direct responsibility for the regulatory regime covered by the 1986 Act.