However, with the economy and the financial services one of the biggest issues on voters’ minds, the big three have already set out many of their aims for this vital sector.
Here are some of the key pledges being made to the financial services sector in the run up to this year’s election.
Stephen Timms, Labour:
“Our priority is to secure the recovery, learn lessons from the crisis and build a more resilient financial system for the future. Properly supervised and regulated, an effective financial system remains the best mechanism for generating and sustaining wealth, jobs and prosperity.
“Labour’s Banking Act will enable authorities to deal with failing banks and protect consumers in the future. It will also implement G20 proposals on governance. By breaking-up the rescued banks we will also create three new banks. This will increase competition, delivering better rates and services.
“The Financial Services Act will protect consumers and help rebuild trust. It will strengthen regulation, create a new body to manage risk and give the FSA powers on banking remuneration.
“So Labour will continue to support this industry and all UK business. That’s why we’ve cut regulatory burdens by 25% by May 2010 (worth £3.3bn) and extend this through 2010-2015 (a further £6.5bn of savings). I also reaffirm our commitment to maintain the most competitive Corporation Tax rate among the G7 economies.”
Mark Hoban, Conservative:
“We need to make sure there is very clear responsibility and that the right people have the right power to tackle issues as they emerge and ensure there is a focus on that issue. It seems right, on that basis, to give the Bank of England responsibility for macro and micro prudential supervision so it can focus on those prudential risks.
“Then we are creating a new consumer protection body, the Consumer Protection Agency (CPA), which will deal with conduct risks. So, we won’t go back to this same situation again.
“We need to make sure there are dedicated resources to the supervision of insurers and that those resources are not just for day-to-day supervision but also policy, so that we continue the debates around Solvency II.
“There should be a proper partnership between the insurance sector and government and, as part of that partnership, there needs to be proper dialogue. We would welcome ideas from the insurance sector about what reforms should be put in place – whether it is about tax systems, regulatory issues or around products.”
Vince Cable, Liberal Democrat:
“What is needed is a fresh mandate for the nationalised and semi nationalised banks which are failing to fulfil their legally binding lending obligations at present. This would be my day one, hour one objective as Chancellor. I would insist that the banks support the economic recovery by ensuring that viable businesses are not starved of capital.
“The Liberal Democrats believe that the FSA should make publicly available the outcome of assessments made of banks’ remuneration policies. Increasing capital requirements could be one tool to enforce this but a fine would send a more powerful message and would provide greater transparency. It should start with the big institutions, which incubate systemic risk, not the small fry.
“The financial services industry is an important feature of the UK economy. The City is at the heart of it. But the financial crisis must make us look critically at its contribution. There are considerable benefits, but, as we have now discovered, major systemic risks which can spill over into the rest of the economy. It is the job of policy makers, and specifically regulation, to cut the risks relative to the benefits. And the Liberal Democrats are committed to doing so.”
