UK: the draft Financial Services Bill - Parliamentary Committee report published

The Joint Parliamentary Committee formed to conduct pre-legislative scrutiny of the draft Financial Services Bill published its report today: see here or here (pdf). An executive summary is available here. The Committee makes many recommendations; the Government and regulators are asked, for example, to consider increasing the share of executive remuneration that is deferred and conditional on medium term outcomes. The Committee also suggests that further consideration be given to the introduction of a strict liability regime for executives and directors in respect of the adverse consequences of poor decisions. Elsewhere in the report, recommendations are made regarding the governance of the Bank of England and the objectives of the new Prudential Regulation Authority.