DELIVERING FINANCIAL SERVICES REGULATION

Further consultation on secondary legislation to bring the benefits of the Financial Services and Markets Act 2000 into effect was launched by the Treasury today.

Welcoming publication of six consultation documents, Economic Secretary Melanie Johnson said:

"This is a further demonstration of our commitment to delivery of the secondary legislation required to implement the Financial Services and Markets Act.

"We wish to ensure that there is full and open consultation with the financial services industry, consumer groups and other interested parties on these important issues before the legislation is considered by Parliament "

The secondary legislation covered by these consultation documents include provisions relating to:

transition from the nine existing regulatory bodies to the new FSA single regulator
disclosure of information to the FSA, eg by an FSA-appointed expert
markets and investments covered by new provisions to tackle market abuse
recognition requirements for investment exchanges and clearing houses
action available in cases of loss following a breach of an FSA requirement or rule
service of notices under the FSMA , eg methods by which a document must be given to the FSA.

Today's consultation documents will continue the process underway since publication of two earlier consultation documents on 26 October.

NOTES FOR EDITORS

The Financial Services and Markets Act 2000 (FSMA) received Royal Assent on 14 June 2000. The Act, together with detailed explanatory notes, is available from the Stationery Office (FSMA, ISBN 0-10-540800-X, price £ ?21.70 and explanatory notes, ISBN 0-10-560800-9, price £ 14.50).

The consultation documents published today relate to the following sections of the FSMA :

Redress for contravention of an FSA requirement or rule (sections 20, 71, 150 and 202 of FSMA refer);
Disclosure of information (section 353);
Service of notices under FSMA (section 414);
Recognition requirements for investment exchanges and clearing houses (section 286);
Markets and investments prescribed for market abuse (section 118);
Transitional provisions (section 426).

Responses are sought to these consultation documents by 2 February 2001.

The consultation documents are available by clicking on the link below. Printed copies are also available from Tima Musa on 020 7270 1634.

Internal links

Index of consultations

The Treasury has been consulting since 26 October on:

a) A draft of the Regulated Activities Order, together with draft orders on:

when regulated activities are and are not being carried on by way of business (section 419);

persons who will be exempt from the requirement for FSA authorisation (section 38);

the exemption of appointed representatives of authorised persons (section 39); and

activities which will not be exempt regulated activities under Part XX of FSMA (section 327)

b) Draft orders on financial promotion (section 21) and on the promotion of collective investment schemes (section 238).

Responses to these documents are sought by 20 December.

Media enquiries should be addressed to Charles Keseru at the Treasury press office on 020 7270 5188.