HM Treasury News Release
109/97                                  17 September 1997
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       RENEWED FINANCIAL REGULATION FOR A RENEWED BRITAIN

A new modernised Financial Services Act for the new millennium
will underpin the Government's approach to financial
regulation, Economic Secretary Helen Liddell said today.

Speaking to a City and Financial Conference in London the
Minister set out the Government's aim to have a more rational,
coherent and accessible regulatory structure.

The Minister said:

     "We are aiming for rationalisation wherever possible,
     with uniform powers and duties which the new regulatory
     body can exercise consistently without constant recourse
     to the lawyers.     

     We will also be aiming where possible to repeal and
     replace rather than amend existing legislation. That in
     itself should create a more coherent body of law."
     

Although it was too early to give detailed content of the
forthcoming Bill, the Minister set out some of the intended
framework and controls.

These would include:

     *    the new regulator having the same legal form and
          status as the current Securities and Investments Board
          (SIB) - a company limited by guarantee;

     *    the board of the new regulator being appointed by
          the Treasury;

     *    the new regulator taking proper account of the views
          and interests of consumers;

     *    practitioner input in fee-setting; and

     *    some consolidation of the various Ombudsman and
          arbitration schemes for consumers that currently
          operate.

The Minister concluded by calling on the audience to encourage
their companies to get involved in the Government's Welfare to
Work policies. She said:

     "Participation of private sector organisations such as
     yourselves are essential to ensure the policies are a
     success.

     "There are benefits for businesses from the Welfare to
     Work policies both  in terms of the private benefits
     them of a well trained workforce and the benefit to society.


Notes to Editors

1.   The full text of the Minister's speech is available from
the Treasury Press Office on 0171 270 5185.

2.   If you have access to the Internet you can find this
information at http://www.hm-treasury.gov.uk.  Material on
other Treasury issues can also be found at this site.