The group will work with the Government to help prepare new secondary legislation for the special resolution regime (SRR), one of the key proposals in the Government's new Banking Bill. The group will also have an ongoing remit to keep SRR powers and regulations under review, as practices in the financial markets develop over time.
Chairing a meeting of key industry representatives to discuss the Banking Bill, he said: "The Treasury has worked closely with business and other groups throughout the process of developing this legislation. We have met with over 100 organisations, published four discussion and consultation papers and run numerous workshops with experts on specific issues.
"I am determined that we continue to work closely with business and other experts on these issues. I am therefore today announcing that we will be setting up a new liaison group. It will bring together experts to advise the Government on keeping our special resolution regime up to date. Its most immediate task will be to work with us to develop the initial secondary legislation required to put the regime, and especially the safeguards which the industry has been calling for, into effect."
The group will include representatives from the banking sector, experts in financial law and insolvency, and members from the Treasury, Bank of England, Financial Services Authority and Financial Services Compensation Scheme.
