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Lord Vaux of Harrowden (CB)

Speaking in the House of Lords on 9 September 2026

Debate

Financial Services and Markets Bill [HL]

Contribution

My Lords, while they do not go quite as far as I would have preferred, I welcome the Government’s amendments that will bring the essential regulatory principle of proportionality back into the discharge of the regulators’ general functions. I think it is a reasonable compromise to have met. I have added my name to Amendment 62, tabled by the noble Baroness, Lady Neville-Rolfe, which emphasises the particular importance of proportionality to small and medium-sized enterprises, on which the regulatory burden can have a much greater impact than on large companies with dedicated compliance departments. I raised this on Monday in relation to the concern that the transfer of AML supervision to the FCA might disproportionately impact smaller firms. I very much hope that the Minister can say something that will give us comfort that the regulators will take size, as well as other factors, into consideration when deciding what is proportionate regulation and supervision.

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