HM Treasury News Release

127/98                                            30 July 1998
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          WORKING TOWARDS A SINGLE FINANCIAL REGULATOR

Further steps towards the full integration of financial services were
announced today by the Chief Secretary, Stephen Byers.

From January 1999 the Financial Services Authority (FSA) will take
responsibility for supporting the Building Societies Commission
(BSC), the Friendly Societies Commission (FSC) and, in relation to
credit unions, the Chief Registrar of Friendly Societies, and for
acting on behalf of the Treasury in the conduct of insurance
supervision under the Insurance Companies Act.

The regulators are already working closely together with the FSA
developing the new regulatory structure and contributing to the draft
Financial Services and Markets Bill published today.

Chief Secretary, Stephen Byers said:

     "This transfer will promote early integration of financial
      regulation and help achieve the benefit of a single regulatory
      culture ahead of the legislation. This transfer in no way
      affects the consultation we have started today on the draft
      Bill."

A Contracting Out Order under the Deregulation and Contracting Out
Act 1994 will pass the functions of the Insurance Directorate to the
FSA. Treasury Ministers will still remain accountable to Parliament
for insurance functions.


NOTES TO EDITORS

1.   The FSA will enter into contracts with the Treasury and with the
     Building Societies Commission, the Friendly Societies Commission
     and the Chief Registrar of Friendly Societies setting out its
     responsibilities in these areas.

2.   If you have access to the Internet, you can find this news
     release and other Treasury material at  
     http://www.hm-treasury.gov.uk.





# = pounds sterling