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FINANCIAL SERVICES AND MARKETS ACT 2000:
RECENT DEVELOPMENTS

Bulletin number seven from HM Treasury

This is the seventh bulletin covering developments on the Financial Services and Markets Act 2000 (FSMA). It includes a summary of progress to date, towards implementing FSMA.


Consultation closed

Consultation on the following closed on 25 May:

• Disclosure of Confidential Information Regulations
• Mutual Societies
• Communications by Auditors
• Control of Business Transfers (Requirements on Applicants)
• Transitional Provisions, Repeals and Savings (Financial Services Compensation Scheme)
• Transitional Provisions (Ombudsman Scheme and Complaints Scheme)
  

Work is now underway to complete and make the relevant orders and regulations.


Financial Services and Markets Tribunal - Legal Assistance Scheme

Sections 134 and 135 of the Financial Services and Markets Act 2000 allow a scheme for the provision of legal assistance when a person refers to the Tribunal a decision by the FSA to impose a penalty for market abuse. The Lord Chancellor's Department is seeking the views of the relevant professional sector on the legal assistance scheme. The document is available on request from:

David Stobie
Public Legal Services Division
Room 3.04
Selborne House
54/60 Victoria Street
London
SW1E 6QW

Tel: 020 7210 8686
e-mail: david.stobie@lcdhq.gsi.gov.uk

Implementation of FSMA

We have made the following progress in implementing FSMA. Further information and the wording of individual orders is available at (http://www.hm-treasury.gov.uk/fsma/orders/index.html).

We have secured the approval of both Houses to, and made, 7 Affirmative Resolution Orders as follows:

(i) SI 2001 No 1335: The Financial Services and Markets Act 2000 (Financial Promotions) Order 2001.

(ii) SI 2001 No 1228: The Open-Ended Investment Companies Regulations 2001.

(iii) SI 2001 No 1227: The Financial Services and Markets Act 2000 (Professions) (Non-Exempt Activities) Order 2001.

(iv) SI 2001 No 1226: The Financial Services and Markets Act 2000 (Designated Professional Bodies) Order 2001.

(v) SI 2001 No 1201: The Financial Services and Markets Act 2000 (Exemption) Order 2001.

(vi) SI 2001 No 1177: The Financial Services and Markets Act 2000 (Carrying on Regulated Activities by Way of Business) Order 2001.

(vii) SI 2001 No 544: The Financial Services and Markets Act 2000 (Regulated Activities) Order 2001.

We have made, and laid before Parliament, 19 Negative Resolution Orders as follows:

Making provisions under the Act

(i) SI 2001 No 1858: The Financial Services and Markets Act 2000 (Competition Information)(Specification of Enactment etc) Order 2001.

(ii) SI 2001 No 1857: The Financial Services and Markets Act 2000 (Disclosure of Information by Prescribed Persons) Regulations 2001.

(iii) SI 2001 No 1821: The Financial Services and Markets Act 2000 (Consequential and Transitional Provisions) (Miscellaneous) Order 2001.

(iv) SI 2001 No 1819: The Financial Services and Markets Act 2000 (Regulations Relating to Money Laundering) Regulations 2001.

(v) SI 2001 No 1783: The Financial Services and Markets Act 2000 (Compensation Scheme: Electing Participants) Regulations 2001.

(vi) SI 2001 No 1534: The Financial Services and Markets Act 2000 (Transitional Provisions and Savings)(Rules) Order 2001.

(vii) SI 2001 No 1420: The Financial Services and Markets Act 2000 (Service of Notices) Regulations 2001.

(viii) SI 2001 No 1283: The Financial Services and Markets Act 2000 (Dissolution of the Insurance Brokers Registration Council) (Consequential Provisions) Order 2001.

(ix) SI 2001 No 1217: The Financial Services and Markets Act 2000 (Appointed Representatives) Regulations 2001.

(x) SI 2001 No 1062: The Financial Services and Markets Act 2000 (Collective Investment Schemes) Order 2001.

(xi) SI 2001 No 1060: The Financial Services and Markets Act 2000 (Promotion of Collective Investment Schemes) (Exemptions) Order 2001.

(xii) SI 2001 No 996: The Financial Services and Markets Act 2000 (Prescribed Markets and Qualifying Investments) Order 2001.

(xiii) SI 2001 No 995: The Financial Services and Markets Act 2000 (Recognition Requirements for Investment Exchanges and Clearing Houses) Regulations 2001.

(xiv) SI 2000 No 1734: The Financial Services and Markets (Transitional Provisions) (Designated Date for Certain Self-Regulating Organisations) Order 2000.

Commencing the Act

(xv) SI 2001 No 1820: The Financial Services and Markets Act 2000 (Commencement No 3) Order 2001.

(xvi) SI 2001 No 1282: The Financial Services and Markets Act 2000 (Commencement No 2) Order 2001.

(xvii) SI 2001 No 516: The Financial Services and Markets Act 2000 (Commencement Order No 1) Order 2001.

Amending the Act

(xviii) SI 2001 No 1376: The Financial Services (EEA Passport Rights) Regulations 2001 - article 2 amends FSMA.

(xix) SI 2000 No 2952: The Banking Consolidation Directive (Consequential Amendments) Regulations 2000 - article 8 amends FSMA.

N2 and after

On 15 March, the Economic Secretary, Melanie Johnson MP, announced the target of commencing the key provisions of the Financial Services and Markets Act 2000, known as N2, no later than the end of November. The press release can be found on the Treasury's website (www.hm-treasury.gov.uk), The regulation of funeral plan contracts will come into force on 1 January 2002 regulation of deposit taking by credit unions will take place from 1 July 2002, and the regulation by the FSA of mortgages will begin nine months after N2.

Address

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
11 June 2001