(Alliance News) - Ministers are to be given powers to overturn decisions by financial regulators, the government has said, in a move backed by former chancellor Rishi Sunak.
Treasury minister Richard Fuller said the policy will enable the government to intervene where there are "matters of significant public interest".
MPs heard new Chancellor Kwasi Kwarteng will take a final decision on how the powers will work later in the year, with an amendment to be tabled to the Financial Services and Markets Bill.
Sunak, making his first speech in the House of Commons chamber since losing the Tory leadership contest to Liz Truss, urged ministers to work urgently to bring forward the "call-in" powers.
Reports have suggested the powers could cause tensions between the government and the Bank of England.
The bill as it stands allows the Treasury to revoke or amend hundreds of pieces of retained EU financial services law and grant additional powers to regulators to fill in the post-Brexit gaps.
Fuller, speaking at second reading, told MPs: "Following the repeal of retained EU law, the government will have no formal mechanism to bring public policy considerations directly into rule-making.
"It is right for the democratically-elected government of the day to be able to intervene in a matter of matter of financial services regulation where there are matters of significant public interest.
"The government's intention is therefore to bring forward an intervention power that will enable Her Majesty's Treasury to direct a regulator to make, amend or revoke rules where there are matters of significant public interest.
"The chancellor will take a final decision on the precise mechanics of the power and the government will table an amendment during the committee stage of the bill."
Conservative MP Sunak offered his support to the bill, noting: "This bill appropriately seizes the opportunities of Brexit to scrap retained EU law and to move to an agile system of regulation that is tailor-made for the UK.
"Secondly, the bill reforregulations to make sure that we support economic competitiveness, and lastly it keeps the UK at the forefront of harnessing innovative technologies and make sure we keep pace in a fast-moving sector."
Sunak urged the government to quickly bring forward the means for the power to "call-in" decisions made by financial regulators when it disagrees with them.
He added: "It is the right thing to do, we talked about accountability earlier in this debate and it must be right for a democratically-elected government – with the consent of this House, on an exceptional basis – to intervene on financial regulation in the public interest and I hope the government will follow through with those plans."
Fuller earlier said the bill will also give the Financial Conduct Authority responsibility to ensure "reasonable access" to cash across the UK.
Conservative former minister Paul Maynard, intervening, asked: "Can he just confirm when he says access to cash, what he actually means is free access to cash and not paid-for ATMs?"
Fuller replied: "When I say access to cash, I mean access to cash.
"(Maynard) raises the question as to whether that access should be free and I think that will be a matter we return to when we go to committee stage, but I cannot give him that assurance at this stage of our proceedings."
Shadow Treasury minister Tulip Siddiq said Labour "broadly supports" the bill but expressed concerns about "serious gaps" in the legislation.
She said the bill "does nothing to protect essential face-to-face banking services", adding the most vulnerable people in society depend on these.
The bill received an unopposed second reading, and it will now face further scrutiny in the Commons.
By Richard Wheeler and Ben Hatton, PA Political Staff
source: PA
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