City awaits new UK banking laws

[Legal Beagles]

The City is awaiting the latest rules to affect the banking industry, to be unveiled in the Queen's Speech.

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Re: City awaits new UK banking laws

The last line has some relevance although I wouldn't hold my breath.

City awaits new UK banking laws


The new laws, if passed, would apply only to new contracts

The City is awaiting the latest rules to affect the banking industry, to be unveiled in the Queen's Speech.
The speech - setting out the UK government's legislative programme - on Wednesday will include the long-awaited Financial Services Bill.
The bill is likely to give the regulator the power to void employment contracts deemed too risky.
It may also strip the Bank of England of some powers and give them to the Financial Services Authority (FSA).
The measures being outlined this week will apply only to future contracts.
But there is still a question as to whether Parliament will have time to pass the bill.
There is likely to be about 70 days of parliamentary business before the next general election, which must be held by June.
It would depend on whether or not the government considers the bill a priority and fast-tracks it through Parliament.
Bonus restrictions
City Minister Lord Myners said at the weekend that the changes would not involve setting a cap on bankers' bonuses, but that taxpayers must be reassured that they will "never again" bail out the banks.

Lord Myners: We need to take this action to make the banking system more stable

The FSA would get the power to stop "reckless" payments and to cancel any pay packages which appear to reward undue risk-taking, he said.
Reports have also suggested responsibility for "financial stability" in the UK economy will be transferred from the Bank to the FSA.
However, the bill will also include the FSA's new regulations covering banks, which were unveiled in August.
Under the code - due to take effect from January - bonuses should not be guaranteed for more than a year.
Senior employees should have their bonuses spread over three years under the code.
The new rules are aimed at linking pay more closely with the long-term profitability of banks, and address concerns that big bonuses led to excessive risk-taking at banks.
Last month the Centre for Economics and Business Research said City bank bonuses would hit £6bn this year, up from £4bn in 2008, because of rising profits and less competition.
Other FSA provisions will require banks to hold larger capital reserves and to prepare so-called "living wills" to ensure they could be wound up in the case of failure, without putting the entire financial system at risk.
The bill would also bar financial institutions from encouraging customers to borrow more than they can afford by sending out unrequested credit card cheques.
It would enable bank customers to join forces in class actions to demand compensation for excessive bank charges.