HC Deb 26 October 2000 vol 355 c198W
Barbara Follett

To ask the Chancellor of the Exchequer what recent developments there have been in the regulation of financial services. [135644]

Miss Melanie Johnson

The Financial Services and Markets Act 2000, which received Royal Assent on 14 June, provides a framework for the completion of the modernisation of financial services regulation announced by the Chancellor of the Exchequer in May 1997.

Parliament will be asked to approve secondary legislation under the Act. The Treasury has today issued two consultation documents: on the scope of FSA regulation; and on the framework for the promotion of financial services. In the document on scope there are draft Orders on regulated activities; when regulated activities are and are not being carried on by way of business; persons who will be exempt from the requirement for FSA authorisation; the exemption of appointed representatives of an authorised person; and activities which will not be exempt regulated activities under Part XX of the Act. In the document on the framework for promotion of financial services there are draft Orders on financial promotion and on the promotion of collective investment scheme.

The Government have previously announced a number of areas which it proposes should be subject to FSA regulation, in order to strike a better balance between the interests of providers and consumers of financial services. The principal change is the regulation of mortgage lending, on which the Treasury has today issued a further consultation document. Other areas which the Government propose be brought into the scope of FSA regulation are pre-paid funeral plans, deposit taking by credit unions and Lloyd's insurance.

Copies of all three consultation documents have been placed in the Libraries of both Houses. Further copies are available from the Treasury, and can also be accessed via the Treasury's website (www.hm-treasury.gov.uk).