HISTORIC PRESS RELEASE : Progress towards better Financial Regulation [December 2000]

The press release issued by HM Treasury on 21 December 2000.

Welcoming continuing progress towards implementation of the Financial Services and Markets Act 2000 (FSMA), Economic Secretary Melanie Johnson today said:

“There has been good progress on implementation of the Financial Services and Markets Act since Royal Assent in June. The Treasury has issued thirteen pieces of draft secondary legislation, and the FSA has published large parts of the FSA Handbook in draft. Consultation on the major draft orders published by the Treasury in October has now closed.

“We will now move to incorporate helpful suggestions as quickly as possible. We are grateful for the comments we have received and will be studying them closely.

“It is important that firms and consumers enjoy the full benefits of the new system of financial services regulation as soon as practicable. I want to see all parties involved in the complex and detailed process of implementation working to that end.

“The target I set last July of N2 in about one year remains. It is still too early to be more precise on when the Act will come into force. As soon as I can give a firm date, I will do so. I plan to do so during the Spring. There will be a reasonable time for industry preparations between announcing a firm date and N2.”

Sir Howard Davies, Chairman of the FSA, said:

“We welcome the progress that has been made to date, the Government’s plan to announce a firm date in the Spring, and to provide a reasonable time for industry preparations between announcing a firm date and N2. We look forward to full implementation of the new legislation as soon as the necessary preparations, including industry preparations, have been made.”