(June 6 – 16:50 ET) – The British government is being accused of ramming through its Financial Services and Markets Bill, giving broad new powers to Britain’s single regulator, the Financial Services Authority.
The bill is important not only to British companies, but also to the world as Britain is one of the most powerful and influential countries in the global financial market. Proposed amendments to the bill from the House of Lords would clearly distinguish the powers of the FSA from the Takeover Panel, which rules on the permissibility of mergers, and is admired for its expediency. Critics say the government is unwilling to temper the FSA’s power, and that the dual authorities could bog down proposed mergers in red tape. Yesterday Britain’s Labour government restricted debate of the amendments to get the massive piece of legislation through.
With the Department of Finance poised to table what promises to be Canada’s largest bill ever in the form of the financial services reform legislation, the government should be mindful of the British experience.
It is expected that the finance minister will maintain final approval over Canadian financial industry mergers. This result should not be as controversial as it is in Britain as Canada’s own version of the Takeover Panel, the Competition Bureau, has recently been criticized as inefficient. Once the new legislation is passed Canada’s banks are expected to begin flirting with mergers again, with smaller players, Laurentian Bank and National Bank, tipped as possible targets.
-James Langton