§ Mr. Neil HamiltonTo ask the Chancellor of the Exchequer what progress has been made in establishing the regulatory regime for the wholesale markets under section 3 of the Financial Services Act.
§ Mr. Lilley[pursuant to his reply, 22 July 1987, c. 231–321]The Bank of England has now published a paper setting out in detail how it intends to supervise the wholesale markets in sterling, foreign exchange and bullion, together with a copy of the first list of exempted persons established for the purposes of section 43 of the Financial Services Act. Much of the regime, including the Bank's code of conduct defining best market practice, is now operative, although those aspects directly related to the Financial Services Act will come into effect with that Act on 29 April.
In my written answer of 22 July 1987 to my hon. Friend set out the conditions that the Bank of England intended to impose for admission to its list, and the arrangements for admission to and removal from it, which had been approved by the Treasury. A small number of technical changes have been made to those conditions and arrangements. The revised version of the conditions and arrangements is set out in the Bank's paper; a copy of which has been placed in the Library of the House.