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Newsroom & speeches
80/01
12 July 2001
Economic Secretary Ruth Kelly today announced that the Financial Services Authority (FSA) will become the statutory regulator under the Financial Services and Markets Act 2000 (FSMA) with effect from midnight 30 November 2001.
Speaking at a business breakfast this morning with FSA Chairman Sir Howard Davies and key industry and consumer players Ruth Kelly said:
"My predecessor made a commitment that N2 - the date for the commencement of the main provisions of the Financial Services and Markets Act 2000 - would be no later than the end of November 2001. I am delighted to honour that commitment today.
"FSMA will, for the first time, unite a wide array of legislation and supervisory bodies under one statutory regulator. The FSA will be a single point of contact for firms. Alongside this will operate the Financial Ombudsman Service to deal with customer complaints. This will bring much needed clarity, certainty and transparency to the industry and consumers alike."
The Treasury will shortly be making the statutory instrument which allows firms? authority under old law to do financial services business to be "grandfathered" across into permissions to do equivalent business once FSMA commences. Ruth Kelly said:
"FSA powers to consider applications from financial services firms to modify their grandfathered permissions; grant new permissions; and other matters including waivers from the new FSA rules, will commence on Monday 3 September."
Sir Howard Davies , welcoming these announcements, said:
"N2 has been a long time coming. But the advantage is that there has been time to prepare properly. We will be ready to switch on the new regime at the end of November, thanks in large part to the invaluable co-operation and patience of firms, their trade associations and consumer groups."
The Financial Services and Markets Act 2000 (FSMA) received Royal Assent on Wednesday 14 June 2000. Copies of both the Act itself, and of the detailed Explanatory Notes, are available from the Stationery Office (FSMA, ISBN 0-10-540800-X, £21.70; Exp Notes, ISBN 0-10-560800-9, £14.50).
Ruth Kelly and Sir Howard Davies hosted a business breakfast at Lancaster House today.
The date for N2 will be specified in a Commencement Order in due course. For legal reasons, that date will be 1 December. Bringing the main provisions of FSMA into force after close of business for the week and month will help financial service's firms to make their final adjustments.
Media enquiries should be addressed to Simon Moyse at the Treasury press office on 0207 270 4420 or 07713 260987.
