127/03
3 December 2003
THE FINANCIAL SYSTEM AND MAJOR OPERATIONAL DISRUPTION
The Task Force considering major operational disruption in the financial system has concluded that no new legislation is needed to cater for disruption in the financial sector.
The Task Force chaired by Sir Andrew Large, Deputy Governor of the Bank of England, today announced a number of recommendations for further improvements to preparations in other areas such as private contracts and the rules of market infrastructures, such as clearing-houses and stock exchanges, while also recommending further contingency planning work by the financial authorities (the Treasury, Bank of England and Financial Services Authority).
Financial Secretary Ruth Kelly:
“I support the Task Force conclusion that no new legislation is needed and accept those recommendations which apply to the financial authorities and support those which are for others to implement.
“I am pleased that the Task Force involved a wide range of people whose work would be affected by major disruption. Membership of the Task Force and its associated working groups was drawn from market practitioners, the legal community, the Bank of England, the FSA and the Treasury. I am grateful to all those who contributed and to Sir Andrew and the staff of the Bank of England for producing the report.”
NOTES FOR EDITORS
1. The Task Force Report is accessible alongside this press release through the Treasury website. It is also available with a press release from the Task Force on the Bank of England website at www.bankofengland.co.uk, and on the UK financial sector continuity website www.financialsectorcontinuity.gov.uk.
2. The Green Paper, The Financial System and Major Operational Disruption, was published on 25 February 2003 (Treasury press release 26/03).
3. In the light of response to the Green Paper, Chief Secretary Paul Boateng asked Sir Andrew Large on 19 June 2003 to establish the Task Force to see whether further statutory powers were needed in the event of major operational disruption (Treasury press release 75/03). It had been intended that the final version of the report be published in February 2004. In the event agreement was reached sufficiently quickly that publication could be brought forward.
4. Media enquiries about the Treasury response to the Task Force Report should be addressed to Simon Moyse at the Treasury press office on 020 7270 4420. Non-media enquiries should be addressed to the Treasury Public Enquiry Unit on 020 7270 4558.
5. Other media enquiries about the Task Force Report should be addressed to the Bank of England press office on 020 7601 4411.
6. This press release and other Treasury publications and information are available on the Treasury website at www.hm-treasury.gov.uk. If you would like Treasury press releases to be sent to you automatically by e-mail you can subscribe to this service from the press release site on the website.