§ Mr. KnapmanTo ask the Chancellor of the Duchy of Lancaster if he will make a statement about progress on recognising self-regulating organisations under the Financial Services Act.
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§ Mr. MaudeThe Financial Services Act provides that the Securities and Investments Board may not recognise a self-regulating organisation without the consent of the Secretary of State. The Act also requires the Secretary of State to refuse his consent if he considers, after receiving and considering a report on the matter from the Director General of Fair Trading, that the rules of the organisation have, or are intended or likely to have, to any significant extent the effect of restricting, distorting or preventing competition or, if they have or are intended or likely to have that effect to any significant extent, the effect is no greater than is necessary for the protection of investors.
I announced that my right hon. and noble Friend had given leave to the board to recognise the Financial Intermediaries, Managers and Brokers Regulatory Association on 14 December. He has now considered the rules submitted by the Association of Futures Brokers and Dealers (AFBD) to the board, and has received and considered a report on it by the Director General of Fair Trading. He has concluded that on the basis of the information presently available to him he does not consider that those rules have, or are intended or likely to have, to any significant extent the effect described above. He has therefore today given his consent to the board for the recognition of AFBD.