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Financial Services and Markets Act 2000 (Contribution to Costs of Special Resolution Regime) Regulations 2010

My Lords, I am grateful to the Minister for his clear exposition of the implications of the regulations and for bringing to our deliberations a new term, FSMA. We struggled in the past with the Financial Services and Markets Act, using the full phraseology until we were breathless and even blue in the face. I am sure that the noble Lord, Lord Newby, who participated in many of those debates will join me in appreciating the fact that we now have a short official term for referring to the Act. At least we will delight in that. I reassure the Minister that, whereas we might have had a little Sturm und Drang over the previous measure, on this one all is sweetness and light, largely because the Minister is describing the implications of the regime set up under the banking legislation that the previous Administration introduced and the crucial question with regard to the costs of the special resolution regime. I noted carefully, as I know the Minister and his officials will have done, the returns from the consultation. It must always be manna from heaven for the Minister when the consultation indicates that there is no consensus among those who have been consulted on some important items, because that gives maximum freedom to act. I would only say that, where the Government have acted in those terms, we are content with the position that has been broadly identified. We appreciate that we live in an age of openness and accountability. We accept the point that is indicated in the Minister’s speech and the Explanatory Notes that the question of audit with regard to the Bank of England and its role is very limited, for all the reasons that we know. However, we appreciate that it is important that all those involved with this situation are satisfied that value for money is achieved. The Government have indicated that that is their objective and the Opposition are scarcely going to deny the validity of that position. I emphasise the obvious fact that the calculation relating to the costs that would have been involved if there had been a bailout, in the event that the institution had actually folded, is difficult. There will always be more than a little quibbling about that situation but, as the Minister will know, we are fully in approval of the broad principles behind these regulations and I am happy to support the Government.