View more on these topics

Treasury announces review of Financial Services and Markets Act 2000

Financial secretary Ruth Kelly has announced a review of the Financial Services and Markets Act 2000 after its first two years of operation.

As part of the review the Office of Fair Trading will carry out an assessment of the impact of the FSMA on competition in financial services. The Financial Services Authority will examine ways to reduce the costs of compliance by making its handbook of rules and its guidance more accessible, and the FSA and Financial Ombudsman Service will consult jointly on when regulatory action by the FSA should replace decisions on individual cases by the Ombudsman and on the possibility of appeals of FOS decisions.

The DTI will consult with relevant trade and consumer bodies on whether the FOS should be the mechanism for resolving disputes about consumer credit.

The Treasury will also propose changes to the boundary of regulation, particularly with regard to capital raising from investors and, where possible, financial advice.

It is expected the whole review will take around one year to complete.

Kelly says: “The UK was the first country with a large financial services industry to set up a single regulator for the whole industry. The regulatory framework established has been a resounding success that has proved to be a model that other countries have followed.

“The review will consider particular components of the existing framework to see if any changes should be made. Whilst there is no intention to change the structure established by the FSMA, the government will consult publicly on any proposals for legislative change.”

Recommended

Education needed, not regulation, say compliance experts

Research says the government, not the Financial Services Authority, should be responsible for financial education Over 70% of financial services compliance experts believe consumer education is more important than tighter regulation when it comes to reducing mis-selling. The findings are based on research by Huntswood Outsourcing Solutions, conducted in conjunction with Financial World, the magazine […]

The key to success is John Prescott

“Key workers, including health workers and teachers are critical to thriving, sustainable communities.” So said deputy prime minister John Prescott last month as he announced a £5bn spending spree to drive forward affordable housing plans to enable those same key workers to own decent homes over the next two years. Key workers are crucial to […]

HBOS won&#39t be &#39tried by TV&#39

HBOS says it will not be rushed in its investigation of three high street branch mortgage advisers accused of encouraging clients to lie about self-certified income. Three Birmingham Midshires Solutions branch staff are accused of encouraging BBC reporters posing as self-certification applicants to lie about their income, but the group says it will not subject […]

FSA will not change rules despite exposé

The Financial Services Authority says it has no plans to change its final rules covering self-cert mortgages following revelations that some brokers are encouraging clients to exaggerate their income. A damning investigation by the BBC&#39s The Money Programme last week revealed advisers – including high street branch staff – encouraging clients to submit vastly inflated […]

Newsletter

News and expert analysis straight to your inbox

Sign up