HM Treasury News Release
95/97                                             31 July 1997
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            CHANCELLOR WELCOMES CO-OPERATION TOWARDS
                   SINGLE FINANCIAL REGULATOR

A blueprint for the new single financial regulator, submitted by
the Securities and Investment Board (SIB), was welcomed today by
the Chancellor Gordon Brown.

Writing to Sir Andrew Large, the outgoing Chairman of the SIB,
the Chancellor said:

     "I have been especially impressed by the positive
     contribution which has been made by all the regulatory
     bodies

     "This spirit of co-operation and common purpose will stand
     us in excellent stead as the plans for the single regulator
     are implemented."

The Chancellor said that the plan set out a sound basis for
implementation by the new Chairman, Howard Davies. He also
underlined the importance of maintaining the regulatory standards
during the transition to the new arrangements.

In the letter he also took the opportunity to thank Sir Andrew
Large for his five years of service as the Chairman of the SIB.
The Chancellor said that, since the announcement on 20 May of the
creation of the SIB, enormous progress had already been made.

The Chancellor reiterated his aim of publishing a draft financial
services bill for consultation next Summer.

NOTES TO EDITORS

1.   Copies of the exchange of letters between the Chancellor and
Sir Andrew Large are available from the Treasury Press Office on 0171 270
5185.

2.   The Chancellor announced on the 20 May the creation of a
single financial regulator, combining the supervisory
responsibilities of the SIB, the banking supervision functions
of the Bank of England, and the three self-regulating
organisations (SROs) - the Investment Management Regulatory
Organisation (IMRO), the Personal Investment Authority (PIA) and
the Securities & Futures Authority (SFA). The Bank of England
Bill will include provisions for the transfer to the SIB. Further
legislation to achieve the rest of the merger will be published
in draft in the first half of 1998.


3.   The Department of Trade and Industry announced on the 23
July that the single regulator would also assume supervisory
responsibilities of the Insurance Directorate of DTI, and that
responsibility for insurance matters will be transferred from the
DTI to the Treasury through a transfer of functions order. 

4.   On the 23 July the Treasury also announced that the single
regulator would assume responsibilities of the Building Societies
Commission (BSC), the Friendly Societies Commission (FSC) and the
Registry of Friendly Societies (RFS). These transfers will also
be achieved through the legislation to be published next year. 

5.   Sir Andrew Large steps down today. His successor, Howard
Davies, is deputy Governor of the Bank of England. His
appointment was announced in the Chancellor's statement of 20
May. He takes over from tomorrow.

6.   Copies of the SIB report are available from the SIB Press
Office on 0171 638 1240.