Session 2006-07 14 June 2007
Publication of report: Draft Regulatory Reform (Financial Services and Markets Act 2000) Order 2007
In a report published today, the Regulatory Reform Committee unanimously recommends approval of draft legislation that will remove a series of technical burdens and restrictions contained in the Financial Services and Markets Act 2000.
Committee Chairman, Andrew Miller, said:
"The draft Order would remove a number of burdens and restrictions without any loss of necessary protection and should result in a more streamlined approach to regulation."
The draft Order would remove or reduce burdens in the following areas:
authorisation requirements in relation to partnerships whose members change [Article 3]
unnecessary consultation between the FSA and regulators in other countries in the European Economic Area [Article 4]
obligations on the FSA to fulfil a number of procedural requirements associated with discontinuing or suspending the listing of a security [Articles 5-8]
requirement on the FSA to issue a warning notice in cases where the cancellation of a sponsor's approval has been requested by the sponsor himself [Article 9]
the FSA's powers to waive or modify any (as opposed to some) of its rules in respect of authorised and unauthorised persons [Articles 10-12]
obligations of the FSA when consulting on guidance [Article 13] and
power of the FSA board to delegate the issuing of guidance [Article 14]
Andrew Miller added:
"My Committee first scrutinised the Government's proposal for making these amendments to the Financial Services and Markets Act 2000 in March. We recommended that a draft Order in the same form as the proposal be laid. A draft Order was laid on 24 May and my Committee has now completed its scrutiny of the draft Order and recommends its approval unanimously."
The Committee's full report is to be published as its Sixth Report of the 2006-07 Session at 2.00 pm on 14 June 2007. It will be available from all Stationery Office outlets (Ref HC 673).
The text of the report will also be available on the Committee's website from 3.30 pm on the day of publication. (www.parliament.uk/regrefcom)
Notes for Editors
The Financial Services and Markets Act 2000 implemented a new regime for the regulation of financial services and markets, including the establishment of the Financial Services Authority as the sole, independent regulator. In 2003/4, HM Treasury undertook a two year review of the new regime, as a result of which a number of areas in need of reform were identified. The purpose of the proposed Order presented under the Regulatory Reform Act 2001 (RRA) is to reform wholesale and retail financial markets as part of a ten-point action plan of reforms set out in the Government's Pre-Budget Report 2005. The Government intends that the proposed Order will deal with a series of burdens and restrictions contained in the Financial Services and Markets Act 2000, resulting in a more streamlined approach to regulation.
The Regulatory Reform Committee has the task of examining and reporting to the House on every document containing proposals laid before the House under section 6 of the Regulatory Reform Act and every draft order proposed to be made under section 1 of that Act. The Committee also oversees the operation of the regulatory reform procedure.
Since the passage of the Regulatory Reform Act, more than 30 regulatory reform orders have been made. Copies of all proposals and draft Orders are available on the Cabinet Office website at http://www.cabinetoffice.gov.uk/regulation/reform/orders/index.asp
The Members of the Committee are:
Andrew Miller, Labour, Ellesmere Port & Neston (Chairman)
Gordon Banks, Labour, Ochil and South Perthshire
Lorely Burt, Liberal Democrat, Solihull
Mr James Gray, Conservative, North Wiltshire
Stephen Hammond, Conservative, Wimbledon
John Hemming, Liberal Democrat, Birmingham, Yardley
Mrs Sharon Hodgson, Labour, Gateshead East & Washington West
Mr Stewart Jackson, Conservative, Peterborough
Dr Doug Naysmith, Labour Co/op, Bristol North West
Mr Jamie Reed, Labour, Copeland
Alison Seabeck, Labour, Plymouth, Devonport
Mr Andrew Slaughter, Labour, Ealing, Acton & Shepherd's Bush
Ms Angela C Smith, Labour Co/op, Sheffield, Hillsborough
Mr Anthony Steen, Conservative, Totnes
For further information on the work of the Committee, contact Mick Hillyard, Clerk of the Committee (020 7219 2830); or see the Committee's website www.parliament.uk/regrefcom