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Financial Services and Markets Act 2000

March 2001


The Transition to the New Compensation Scheme - A Consultation Document

CONTENTS

Preface
Part I	Overview
Part II	Claims
Part III	Funding (including treatment of funds held by former schemes)
Part IV	Information
Part V	Transitional Provisions, Repeals and Savings, Financial Services Compensation Scheme Order
Annex	Sections 426 to 428 of FSMA

Regulatory Impact Assessment

No regulatory impact assessment is provided for in this Order, reflecting its limited role in easing the transition between existing arrangements and the new compensation scheme to be established under Part XV of FSMA (for which a regulatory impact assessment was published during parliamentary passage).

Timing of Consultation

As the Economic Secretary announced on 15 March, the Government's aim is that N2 - the date on which the main provisions of the Financial Services and Markets Act 2000 comes into force - will be no later than end November this year.  Consistent with this aim, and with the need to enable the FSA to make the key provisions of its rule-book no later than the end of July this year, it is necessary to set a consultation period of less than twelve weeks. Accordingly, the Economic Secretary has authorised a departure from the Government's code of practice on written consultations. The deadline set for comments on this document is 25 May 2001. The Treasury will issue a bulletin drawing this consultation document to the attention of those who have previously alerted the Treasury to their interest in secondary legislation made under the Act.

Responses to this document

We would welcome comments on matters addressed in this consultation document. Responses to be sent by 25 May 2001 to:

Bruce Ridewood
Financial Services Regulation Team
HM Treasury
19, Allington Street
London SW1E 5EB

email: compensation@hm-treasury.gov.uk

fax: 020 7451 7611

Respondents should give details of any organisations whose views they represent. It will be assumed, unless indicated to the contrary, that respondents have no objection to their response being made public.

Further copies of this document can be obtained from the Treasury's website (www.hmtreasury.gov.uk/pub/html/index.html). Paper copies are available free of charge. To receive a copy, please telephone 020 7270 1634.