THE TREASURY will try to win around critics of its flagship Financial Services bill today by inserting a new “proportionality” test for all new regulations on the City.
In a last-ditch effort to stem a tide of criticism, City A.M. understands that the new version of the bill will force regulators to consider if the costs of new rules are in “proportion” to their benefits. It aims to allay worries that new regulators could ignore the “international competitiveness” of the City when imposing new rules.
But it might not placate critics: LSE’s Tracey Pierce said she hoped the bill would be “enshrining competitiveness in our regulatory framework”.
