New laws beefing up the powers of the City watchdog as part of moves to reform and strengthen the financial services industry have completed their Commons stages.
The Financial Services Bill, which also creates a new body to improve co-ordination in the banking sector, was given an unopposed third reading and now heads to the Lords for consideration.
The Bill gives the Financial Services Authority (FSA) powers to make tough new rules about bankers' pay and bonuses and creates a new high-powered Council for Financial Stability bringing together the Bank of England, Treasury and FSA.
It also widens the scope of the FSA's financial stability remit to cover any firm deemed to be systemically important, such as foreign firms not regulated on these shores.
Troubled banks will be required to have "living wills" to ensure they have contingency plans in place for an orderly wind-up should they fail.
The Bill also strengthens the rights of consumers, enabling them to band together to bring class actions against financial firms, and includes moves to improve financial education.
Treasury economic secretary Ian Pearson described the measures as a "considered response" by the Government to some of the "key lessons" learned from the banking crisis.
"This is a vital piece of legislation that will help to build a new environment where a financial services industry based on both stability and prosperity can thrive," he told MPs. "It entrenches a new strategy to ensure the protection of financial stability and wide-ranging reforms to the financial services industry."
The Tories and Liberal Democrats welcomed much of the Bill, though shadow Treasury minister Mark Hoban said some measures such as the Council for Financial Stability were "cosmetic" and "misconceived".