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Proceeding contribution from Lord Higgins (Conservative) in the House of Lords on Monday, 26 January 2009. It occurred during Committee of the Whole House (HL) and Debate on bill on Banking Bill.

Banking Bill

There is a general sense that if there is a compliance failure, it is compliance failure as much by the regulator as by the bank committing what is deemed to be an offence. I share my noble friend’s surprise that the penalty is in no way specified. It simply says that the Bank may require payment of a penalty in respect of a compliance failure. However, we have no idea at all, as far as I can see, what the scale of that penalty might be. In almost any penalty imposed by legislation, some limit is set on it. Why have the Government simply given the Bank of England an open cheque to impose penalties on banks or transfer systems, and then have it enforced as a debt payable to the Bank?

Secondary information

Type
Proceeding contribution
Reference
707 c47 
Session
2008-09
Chamber / Committee
House of Lords chamber
Subjects
Disclosure of information Compensation Codes of practice Audit Assets Debts Bank services Banks Delegated legislation Bank of England Bank notes Deposits Credit rating Housing Finance Fees and charges Liability EU law Investment Financial institutions Insolvency European communities Government assistance Financial Services Authority Financial markets Foreign companies Private sector Membership Public expenditure Property Parliamentary scrutiny Loans Post offices Monetary policy Statistics Regulation Stocks and shares Valuation Treasury Financial Services Compensation Scheme National Loans Fund Northern Rock Financial Stability Committee Sunset clauses
Legislation
Banking Bill 2007-08 to 2008-09
Link
View this Proceeding contribution on www.publications.parliament.uk