An Overview of the Financial Services Act 2010
Mondaq Business Briefing › United Kingdom Law Articles in English (2010)
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An Overview of the Financial Services Act 2010
The Financial Services Bill ("the FS Bill") was introduced into Parliament in November 2009 and had its second reading on 30 November 2009. It was then committed to a Public Bill Committee, which sat on 8, 10 and 15 December 2009, and on 5, 7, 12 and 14 January 2010. The Report and third reading stages took place on 25 January 2010. The FS Bill received its first and second readings in the House of Lords on 26 January 2010 and 23 February 2010 respectively, and the House of Lords Committee stage commenced on 10 March 2010. The Report and third reading stages took place on 8 April 2010 and the amendments made by the House of Lords were accepted by the House of Commons on the same day. The FS Bill received Royal Assent at the parliamentary prorogation ceremony on 8 April 2010, following the Government's removal of some of the Bill's more controversial provisions to ensure its survival in the "wash-up" process, the scramble to pass ongoing legislation which takes place in the interval between the announcement of the General Election date and the dissolution of Parliament.
The Bill makes a number of significant changes to the current regulatory regime. Media attention has focused mainly on the provisions which would prohibit (and override contractual rights to) bonus arrangements which do not comply with the FSA's remuneration code and require authorised firms to prepare "living wills" (recovery and resolution plans). The measures, which will involve more substantial costs to the regulated community, are the establishment of the consumer finance education body and money guidance service, the new consumer redress mechanisms, and the transfer of the costs of funding the exercise of the special resolution regime powers to Financial Services Compensation Scheme levy payers. The Bill also gave the FSA new objectives, duties and a range of new powers, in terms of rule-making, supervision and enfor...See the full content of this document
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