§ Ms LawrenceTo ask the Chancellor of the Exchequer if he will make a statement on the future recognition requirements for recognised investment exchanges and clearing houses under the Financial Services and Markets Bill. [69148]
§ Ms HewittThe new Financial Services and Markets Bill carries forward the main features of the existing recognition and exemption regime for investment exchanges and clearing houses, which has worked well. In order to become recognised, such bodies must fulfil certain regulatory criteria. These are currently contained in the Financial Services Act 1986 and the Companies Act 1989. Under the new Bill the requirements will be set out in secondary legislation. Putting the recognition requirements in secondary legislation will make it easier to respond to any market developments in this area.
The Treasury has today issued a consultation document on the new draft recognition requirements. Copies have been placed in the Libraries of the House. The deadline for comments is 30 April. We are consulting on these regulations well in advance so that we have the longest possible time to get them right.