Treasury White Paper: reforming financial markets

Professor G A Walker, Centre for Commercial Law Studies, London

The Treasury released its long-awaited and slightly overdue White Paper on Reforming Financial Markets on [9 July 2009][1]. This was an important policy document in setting out the Government’s thinking on regulatory reform following the crisis and discussions. While the Bank of England had not been consulted separately with the Governor only being provided with a copy just before release, many of the key reform ideas highlighted by the Bank are taken forward. The White Paper is generally based on strengthened regulation and bank resolution with enhanced systemic risk oversight principally under the Financial Stability Council to be created. The Paper also includes important sections on consumer protection and competition and predictably EU and international cooperation. As with the Turner Review, large parts of the report simply restate initiatives being taken forward by other bodies with much if not almost of the detailed content of the reform package being postponed for subsequent agreement or distillation. The document is nevertheless of importance in clarifying the considerably more moderate, balanced and nuanced sentiment of the Government in the new post-crisis environment.