The Financial Services and Markets Act 2000 (Amendments to Part 18A etc.) Regulations 2010 were laid before
Parliament on April 7 and come into force today. A copy of Regulations is available
here (
html) and
here (
pdf). In the accompanying explanatory memorandum - available
here (
pdf) - the purpose of the Regulations is explained as follows:
The Markets in Financial Instruments Directive (MiFID) required competent authorities to be given powers to suspend trading in a financial instrument. The FSA was given these powers under [the Financial Services and Markets Act 2000 (FSMA)] as the competent authority in the UK. The FSA is currently required to give written notice individually to each institution on whom it proposes to impose a requirement to suspend or remove a financial instrument (such as the shares of a particular firm) from trading. The FSA does not find this procedure practical or efficient as they would have to identify and write to the thousands of firms who trade bilaterally (known as ‘over-the-counter’ or OTC trading). As a result, the FSA is not able to impose a trading suspension with immediate effect ...
The purpose of these Regulations is to amend Part 18A of the FSMA to permit the FSA to suspend trading in a financial instrument or class of financial instrument by notice to the market without the need for separate written notice to the institutions concerned".
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