HISTORIC PRESS RELEASE : Another Step Towards a Single Regulator for Financial Services [July 2000]

The press release issued by HM Treasury on 4 July 2000.

The Treasury today exercised its powers under the Financial Services and Markets Act 2000 (the Act) for the first time.

An order has been laid before Parliament specifying that Schedule 21 to the Act, which amends the application of parts of the Financial Services Act 1986 to self-regulating organisations recognised under Chapter III of Part I of, and Schedule 11 to the 1986 Act, will apply in relation to the Personal Investment Authority (PIA) and Investment Management Regulatory Organisation (IMRO) from 25 July 2000.

Economic Secretary Melanie Johnson said:

“This order will allow the new single regulator for financial services, the Financial Services Authority (FSA), and the PIA and IMRO to take practical steps to prepare for the bringing into force of the Financial Services and Markets Act.

“By ending the power of the FSA to make compliance orders or revoke recognition, it will allow the boards of PIA and IMRO, companies limited by guarantee, to bring into force amendments to their constitutions to make them subsidiaries of the FSA. This means that from 25 July 2000 the power of appointments to the Boards can be passed to the FSA, and the FSA can be admitted as a member so as to facilitate winding up of the companies in due course.

“The moves are fully supported by both PIA and IMRO, with the backing of their members. This is a small but important development that will enable further integration to take place between the regulators concerned. It is a mark of our shared commitment to deliver the wide ranging benefits provided under the FSMA 2000 as early as practicable.”