# = pounds sterling
HM Treasury News Release
22/99 2 February 1999
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FINANCIAL SERVICES AND MARKETS BILL
CONSULTATION ON RECOGNITION REQUIREMENTS
A consultation document on new recognition requirements for
exchanges and clearing houses is published by HM Treasury today.
Announcing publication, Economic Secretary Patricia Hewitt said:
"We have said that we will publish the key secondary
legislation to be made under the Financial Services and
Markets Bill for consultation. We are consulting on these
regulations well in advance so that we have time to get
them right."
The Financial Services and Markets Bill, published for
consultation last summer, broadly carries forward the main
features of the existing recognition and exemption regime for
exchanges and clearing houses. To be recognised, an investment
exchange or clearing house has to meet certain requirements. In
future these will be contained in secondary legislation rather
than on the face of the Act.
Ms Hewitt added:
"It is a key feature of the new legislation that it should
be able to keep up with the fast changing financial
markets. Putting the recognition requirements in secondary
legislation will make it easier for us to respond to any
market developments in this area."
The deadline for comments on the consultation document published
today is 30 April.
NOTES TO EDITORS
1. Current requirements and regulatory criteria for
recognition and exemptions for investment exchanges and
clearing houses are set out in the Financial Services Act
1986 and the Companies Act 1989.
2. If you have access to the Internet, the consultation
document and other Treasury material can be found at
http://www.hm-treasury.gov.uk, or by telephoning 0171 270
4848.