11 November 2003
FINANCIAL SERVICES AND MARKETS ACT 2000: RECENT DEVELOPMENTS
Bulletin Number 36 From HM Treasury
This is the thirty sixth bulletin covering developments on the Financial Services and Markets Act 2000 (FSMA).
Statutory Instrument to come into force to amend Regulated Activities Order
The consultation period for ‘Treasury Shares: A consultation on the proposed changes to the Regulated Activities Order’ (including a draft Statutory Instrument) closed on 27 October 2003. The Government proposed to provide UK companies with an exemption from FSA authorisation when they buy-back their own shares and hold them in treasury for future resale.
Three responses were received which supported the Government’s proposals.
One potentially valid concern was raised, notably, that the DTI regulations and proposed amendment to the Regulated Activities Order only apply to UK companies. Overseas companies might in theory also benefit from the exemption from FSA authorisation which the S.I will permit.
This situation facing overseas companies has existed since the Regulated Activities Order came into force on December 2001. We are not aware of any situations which have arisen since then when overseas companies might have benefited from such an exemption. We intend to monitor whether this changes but are not proposing to amend the draft Statutory Instrument at present to provide an exemption for overseas companies.
The draft Statutory Instrument proposed in the consultation document was laid before Parliament on the 7 November 2003 and is due to come into force on 1 December 2003.
Future Bulletins
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Eve Engledow
Financial Stability and Regulatory Policy
HM Treasury
Room 4/24
1 Horse Guards Road
London
SW1A 2HQ
Telephone: 0207 270 4381
Email: eve.engledow@hm-treasury.x.gsi.gov.uk
HM Treasury
11 November 2003