Labour will today push for a series of amendments to the Banking Reform Bill, including the introduction of a licensing regime with an annual “health check” for senior bankers.

The party has tabled amendments to the Banking Reform Bill, which will be debated in the House of Lords today (Tues) and tomorrow (Weds).

One of Labour’s main amendments calls for a licensing regime with “an annual validation of competence”. The amendment also says there would need to be “minimum thresholds of competence including integrity, professional qualifications, continuous professional development and adherence to a recognised code of conduct.”

Labour first demanded this measure through an amendment to the Financial Services Bill in March 2012. But Treasury Ministers have resisted Labour’s calls on three separate occasions over the last two years.

Other amendments tabled by Labour include:

• A backstop power allowing for full separation of all the banks, not just one, in case ring-fencing proves ineffective and in order to help engender cultural change across the banking sector.
• Placing a duty of care on the banks and the financial services sector as a whole, to mandate that customer interests are taken into account when designing and selling products, and offering advice.

Cathy Jamieson MP, Labour’s Shadow Financial Secretary to the Treasury, said:

“After this week’s u-turn by George Osborne on capping the cost of credit from payday lenders, it’s time for another climbdown.

“Ministers have repeatedly resisted our calls for a tough licensing regime for senior bankers, which would have to be renewed each year.

“But they should think again because, as the revelations of the last week show, an annual health check like this could help to spot problems and ring alarm bells.

“The Co-op Bank got into trouble on this Government’s watch and there are now mounting questions for Ministers to answer about how this happened. George Osborne and his Ministers cannot continue to duck them.”