UK’s Financial Services Authority Statement On HMT Announcement Regarding Recognised Bodies

The Financial Services Authority (FSA) notes the announcement made by the Economic Secretary to the Treasury of the decision to grant the FSA new powers. The new powers would allow the FSA to veto disproportionate rule changes proposed by recognised bodies.

The FSA has been consulted by HMT, on its plans to make legislative changes, and is supportive of the proposed approach. The new provisions will provide confidence to UK markets and stakeholders that foreign ownership will not undermine the essence of the UK regulatory regime. The FSA remains indifferent to the nationality of the ownership of the entities it regulates.