§ Mr. Tim Smithasked the Chancellor of the Duchy of Lancaster if he will make a statement about the implementation of the Financial Services Act; and, in particular, when he expects to exercise the functions of sections 119 and 120 of the Act.
§ Mr. MaudeFollowing transfer of the relevant powers, the SIB has received two applications, from the Financial Intermediaries, Managers and Brokers Regulatory Association and the Investment Management Regulatory Organisation, for recognition under section 9 of the Act. The SIB is in discussions with other potential applicants and further applications are expected shortly. Copies of the rules and supporting material submitted by FIMBRA and IMRO have been sent to my right hon. Friend the Secretary of State for Trade and Industry and forwarded to the Director General of Fair Trading. My right hon. Friend will consider whether to give leave under section 120 for the recognition of these SROs when he has received a request to do so from the SIB and the report on their rules from the Director General. Now that the power to grant recognition has been transferred to the SIB my right hon. Friend has no powers exerciseable under section 119 in advance of a recognition order being made.