HM Treasury News Release 95/97 31 July 1997 ________________________________________________________________ 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.