HISTORIC PRESS RELEASE : Consultation on scope of financial services legislation [February 1999]

The press release issued by HM Treasury on 25 February 1999.

A consultation document on the scope of regulated activities under the Financial Services and Markets Bill is published by HM Treasury today.

Announcing publication, Economic Secretary Patricia Hewitt said

“We are meeting our commitment to consult well in advance on key secondary legislation under the bill, so we have time to get it right.  We will take careful note of responses to this draft”.

The draft bill, published for consultation last year, proposes a single regulatory system in place of the existing separate arrangements for different sectors.  The Government does not intend to make major changes to the overall scope of regulation, although where there are good reasons for change, the Government will act, as with Lloyd’s.

Ms Hewitt added:

“Our objective has been to produce a single set of definitions and in doing so we have sought to make the law as clear as possible.  In particular, we are proposing a number of changes to deal with unnecessary authorisation by members of the professions.

“We are also anxious to anticipate the rapidly evolving nature of the financial services industry and setting out the scope of the bill in secondary legislation will allow us to keep up to date with market developments”.

Initial comments on the consultation document are sought by 30 April, although there will be opportunities to take account of subsequent comments before the statutory instruments become law.

The announcement was in response to a Parliamentary Question from Jackie Lawrence (Preseli Pembrokeshire).