Regulatory News
| Published date | 01 February 1998 |
| DOI | https://doi.org/10.1108/eb024967 |
| Date | 01 February 1998 |
| Pages | 171-175 |
| Subject Matter | Accounting & finance |
Journal of Financial Regulation and Compliance Volume 6 Number 2
Regulatory News
HM TREASURY CONSULTATIVE
DOCUMENT ON THE INDIVIDUAL
SAVINGS ACCOUNT
In unveiling its proposals for the tax-
favoured Individual Savings Account (ISA)
in December 1997 the Government has left
regulatory issues alone at this stage saying
that once it has decided on the form of the
ISA, it will then consider the appropriate
regulatory environment for it, and, if
necessary, propose changes to the existing
regulatory framework.
FSA AND PIA TO COMBINE PENSIONS
WORK
On 9th December, 1997 the Financial Ser-
vices Authority (FSA) and Personal Invest-
ment Authority (PIA) Boards announced
that they have agreed to create a single
integrated division responsible for the reg-
ulatory work arising from the misselling of
personal pensions. The new division will
include: the PIA Pensions Unit (responsible
for reviewing potential cases of misselling
by firms no longer authorised); the PIA
pensions review monitoring department
(responsible for monitoring the progress of
authorised firms); and the policy work cur-
rently split between the FSA and PIA.
FSA COMPLAINTS HANDLING AND
COMPENSATION ARRANGEMENTS
On 18th December, 1997 the FSA pub-
lished two consultation papers, on consu-
mer complaints (CP4) and Consumer
Compensation (CP5), setting out proposals
for future complaints handling and com-
pensation arrangements in financial ser-
vices.
Both papers reflect Government
decisions as to how the existing diverse
arrangements should be rationalised. On
complaints handling, ministers have
decided that there will be a single Financial
Services Ombudsman, to which all firms
authorised by the FSA must belong. This
would bring together the existing eight
schemes. The consultation paper sets out
proposals and invites views on a range of
issues, including: which activities should be
covered by the Ombudsman Scheme; how
the scheme should be organised (in terms
of governance and accountability), the
powers the Ombudsman will need and the
procedures he or she might employ.
On compensation, the consultation
paper, 'Consumer Compensation', sets out
ministers' proposals for a single scheme,
run by a single board, to replace the exist-
ing system. The scheme would be a sepa-
rate organisation from, but accountable to
the FSA. The paper asks for views on a
range of topics concerning the scope of,
and eligibility for, compensation, including
proposals that compensation arrangements
should operate in respect of authorisable
activities of authorised firms, and that it
should focus primarily on private consu-
mers.
In addition, the paper discusses the
limits on individual payouts under the
existing compensation arrangements and
funding arrangements. Any changes that
result from the proposals in both these con-
sultation papers will not come into force
until the Financial Regulatory Reform Bill
(which is expected to be introduced in the
next Parliamentary session) comes into
force.
FSA PUBLIC STATEMENT IN RESPECT
OF PRUDENTIAL ASSURANCE
On 16th December, 1997 the Financial Ser-
vices Authority made a public statement of
contravention by the Prudential Assurance
Company Ltd of the FSA Statements of
Journal of Financial Regulation
and Compliance, Vol. 6, No. 2,
1998, pp. 171-175
© Henry Stewart Publications,
1358-1983
Page 171
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