New developments in the changing structure of financial regulation
| DOI | https://doi.org/10.1108/eb024961 |
| Pages | 84-85 |
| Published date | 01 January 1998 |
| Date | 01 January 1998 |
| Author | Joanna Gray |
| Subject Matter | Accounting & finance |
Journal of Financial Regulation and Compliance Volume 6 Number 1
New developments in the changing structure
of financial regulation
FINANCIAL SERVICES AUTHORITY
LAUNCHED
On 28th October, the SIB changed its
name to the Financial Services Authority
(FSA).
The FSA will exercise all the func-
tions which the SIB had under the Finan-
cial Services Act 1986 and continues to be
the designated agency under the Act. The
name change of itself does not alter the
supervision of recognised bodies, nor the
regulation of directly regulated firms, col-
lective investment schemes or service com-
panies. Over the next two years the FSA
will acquire its full range of powers in two
further stages. First, the Bank of England
Bill will transfer from the Bank to the FSA
responsibility for supervising banks, whole-
sale money market institutions and ECHO,
the foreign exchange clearing house.
Second, the proposed financial regulatory
reform Bill will create a new statutory
regime under which the FSA will acquire
regulatory and registration functions cur-
rently exercised by the outstanding regula-
tory bodies.
On its very first day in existence the
FSA published three separate consultation
documents. Consultation paper 1 on consu-
mer involvement outlines the FSA's plans
for consumer involvement in its work. It
seeks views on the planned establishment
of a consumer panel to advise FSA on
policy affecting consumers and the effec-
tiveness of the FSA from a consumer's per-
spective, in particular on the panel's remit,
role and powers.
Consultation Paper 2 on practitioner
involvement discusses the FSA's general
approach to involving practitioners in its
activities and options for implementation
and invites views on specific issues such as
whether a high level advisory practitioner
group should be set up; the desirability of
separate advisory practitioner groups for
wholesale and retail markets; whether prac-
titioners should be included in authorisa-
tion and enforcement matters and, if so,
how.
Consultation Paper 3 on paying for
banking supervision outlines proposals for
the interim funding arrangements for
supervision of banks, and of entities listed
under the wholesale money market regime
for the next two years.
It is imperative for firms to play the full-
est role possible in the consultation process
as the FSA gears up for the new integrated
system of financial regulation.
NEW SIB RULES
The Financial Services (Change of Name
of Designated Agency) Rules 1997,
Effective from 28th October, 1997
This Rule permits authorised persons to
refer to the SIB or the FSA on their sta-
tionery or any other document.
BANK OF ENGLAND BILL PUBLISHED
On 28th October, 1997 the Bank of Eng-
land Bill was published which (inter alia)
transfers to the FSA the Bank's functions
under the Banking Act 1987 and the Bank-
ing Coordination (Second Council Direc-
tive) Regulations 1992, together with its
functions under s.43 of the Financial Ser-
vices Act 1986, the Investment Services
Regulations 1995 and s.171 of the Compa-
nies Act 1989. The Bill should receive
Royal Assent early in 1998.
Journal of Financial Regulations
and Compliance, Vol. 6, No. 1,
1998,
pp. 84-85
© Henry Stewart Publications,
1358-1988
Page 84
To continue reading
Request your trial