Queen’s Speech Announces Financials Services Bill
In her speech yesterday (18th November), Her Majesty, the Queen announced the introduction of the newly proposed Financial Services Bill, which is intended to tighten regulation in the financial services sector, in particular with regard to loans and other lending such as credit cards and offer a higher degree of protection for consumers.
The bill will also limit the amount of money which Bankers will be able to pay themselves as bonuses, forcing them instead to offer business loans to small companies who need the money in order to survive. The bill will introduce a national money guidance service, which will be available to consumers who require free, impartial help and advice with regard to financial matters and also give borrowers the right to take legal action against banks with regard to irresponsible lending on personal loans.
Despite the positive message given out yesterday, with regard to financial reform and an increased level of protection for loan customers, many critics view the proposals as merely an electioneering campaign by the Government, which is unlikely to ever become legislation, whilst others believe that the bill will be rejected in the House of Lords, thereby having the same effect.
The Federation of small Businesses (FSB) said that the proposals must become law, to help small businesses obtain the business loans and financial help they need. John Walker of the FSB said “It has been a tough year for small businesses, with shoppers spending less, larger companies paying their small suppliers later and banks only just starting to lend again, although often at high rates. Many are starting to feel confident about their future prospects and it is important that any legislation in the next few months, particularly on the banking sector, helps to develop the good feeling rather than being used to divide up the political ground ahead of the General Election.”
