50/98
9 April 1998
THE CLEARING OF OVER THE COUNTER INVESTMENT TRANSACTIONS
Proposals to extend the modifications to insolvency law contained in Part vii of the Companies Act 1989 to clearing of "over the counter" business carried out by recognised clearing houses and recognised investment exchanges were announced today by the Treasury.
Changes to the Companies Act are also proposed which will enable the Financial Services Authority to ensure that the "default rules" of clearing houses or exchanges have all the necessary and appropriate procedures and safeguards in place, and that they comply with statutory requirements.
These changes would be made by means of secondary legislation under the Companies Act 1989.
The Government believes that the proposed change will encourage the orderly development of the UK's clearing services industry and will in turn help safeguard the operation of the financial markets and welcomes comments from interested parties on any aspects of the proposal.
NOTES TO EDITORS
1.Media copies of the consultation document are available from the Treasury Press Office on 0207 270 5185.
2.Non-media copies of the report are available from the Treasury Public Enquiry Unit on 0207 270 4558.