§ Mr. Rooney
To ask the Chancellor of the Exchequer what discussions he has had on the effectiveness of the self-regulatory organisations set up under the Financial Services Act 1986.
§ Mr. Dorrell
On 9 July this year, following publication of both the summary of conclusions and findings of the Investment Management Regulatory Organisation's review of its regulation of Maxwell companies and the Securities and Investments Board's own assessment, the Chancellor of the Exchequer asked Andrew Large, the SIB's new chairman, to conduct his own review of how the SIB carries out its regulatory responsibilities.
The detailed terms of reference for the review are:To review how SIB carries out its regulatory responsibilities under the Financial Services Act, with particular reference to the way it exercises oversight of the recognised bodies for which it is responsible, to ensure that they meet their obligations on a continuing basis.The review will take full account of SIB's assessment of its own monitoring of IMRO in the Maxwell affair, and any consequent action taken by SIB and IMRO to improve their performance, as well as the general need to strengthen the implementation in practice of regulatory standards.
The review is concentrating on identifying action that might be taken by the SIB and the bodies recognised under the Financial Services Act to improve regulatory performance, including deterring and detecting fraud.
The chairman of the SIB has formed a small team, independent of the SIB, to conduct the review. The review team will be consulting widely. The chairman will submit his report to the Chancellor by the end of March 1993.
After consideration of the chairman's report, the Chancellor will report to the House.