|
FINANCIAL SERVICES AND
MARKETS ACT 2000: RECENT DEVELOPMENTS
Bulletin
number four from HM Treasury
This
is the fourth bulletin covering developments
on the Financial Services and Markets Act
2000 (FSMA).
Laying of secondary legislation under the
FSMA
It
has been a busy couple of weeks for the
FSMA implementation team! The Treasury laid
the following seven statutory instruments
in draft before Parliament on 27 February.
(1)
The Financial Services and Markets Act 2000
(Financial Promotion) Order 2001
Section 21 of the Act restricts the promotion
of financial services in the course of business
unless made, or approved by, an FSA-authorised
person. The order sets out the activities
and investments to which the restriction
applies, and exemptions to the restrictions.
(2)
The Financial Services and Markets Act 2000
(Regulated Activities) Order 2001
Which specifies the activities and investments
which, for the purposes of FSMA, are regulated
activities. In accordance with the provisions
of FSMA the Regulated Activities Order was
made before being laid..
(3)
The Financial Services and Markets Act 2000
(Exemption) Order 2001
Exemptions are provided to named persons
for whom regulation by the FSA would be
inappropriate or unnecessary. Exempt persons
include supranational bodies and bodies
which carry on regulated activities in the
context of a public policy function.
(4)
The Financial Services and Markets Act 2000
(Designated Professional Bodies) Order 2001
If a member of one of the professional bodies
designated in the Order satisfies certain
conditions, the general prohibition does
not apply to the carrying on of those regulated
activities by that member.
(5)
The Financial Services and Markets Act 2000
(Professions) (Non-Exempt Activities) Order
2001
The Order specifies those regulated activities
for which regulation by a designated professional
body would be inappropriate; should a professional
wish to carry on these activities, he will
have to seek permission from the FSA.
(6) The Open-Ended Investment Companies
Regulations 2001
Provides for the establishment and regulation
of OEICS and makes provision for facilitating
the carrying on of collective investment
by way of an open-ended investment company.
(7)
The Financial Services and Markets Act 2000
(Carrying on Regulated Activities by Way
of Business) Order 2001
Which makes provision as to the circumstances
in which a person is or is not to be regarded
as carrying on a regulated activity by way
of business, when he might otherwise be
regarded as doing so or not doing so.
We
will create a hyperlink from the Treasury's
website (www.hm-treasury.gov.uk) to the
draft instruments. At the time of writing
it had not been possible to establish this
link as the instruments were not yet on
HMSO's website. We hope to create the link
shortly.
We
expect to lay shortly the market abuse and
recognition requirements, as well as the
orders setting out when arrangements do
and do not amount to a collective investment
scheme, the order setting out exemptions
to the restriction on authorised persons
promoting unauthorised collective investments
schemes and the regulations on appointed
representatives of authorised persons. The
last three orders were the subject of earlier
consultation.
Consultation
We are currently reviewing the responses
to the most recent round of consultation,
which closed on 2 February.
The six pieces of legislation in question
are:-
- Rights
of Action Regulations 2001
- Disclosure
of Information by Prescribed Persons Regulations
2001
- Service
of Notices Regulations 2001
- Market
Abuse: Prescribed Markets and Qualifying
Investment Order 2001
- Recognition
Requirements for Investment Exchanges
and Clearing Houses Regulations 2001
- Repeals,
Transitional Provisions and Savings (Rules)
Order 2001
Consultation
by the Lord Chancellor's Department, on
the rules of the Financial Services and
Markets Tribunal, closes on 30 March.
If your address has changed or if you no
longer require this bulletin please contact
Deirdre.Barrie@hm-treasury.gov.uk.
In particular we would be pleased to send
future issues of the bulletin to you by
E-mail.
HM
Treasury
March 2001
|
