UK: the Financial Services Act 2010 (Commencement No. 1 and Transitional Provision) Order 2010

The Financial Services Act 2010 (Commencement No. 1 and Transitional Provision) Order 2010 was made on Monday. A copy was published yesterday on the Legislation website: see here (pdf, also including an explanatory note).

The Order brought into force yesterday various provisions of the Financial Services Act (2010), including sections 2(2) to (4), the effect of which is to remove public awareness from the list of statutory objectives given to the Financial Services Authority by section 2 of the Financial Services and Markets Act (2000). The FSA will, however, be required to take into account the desirability of enhancing the understanding and knowledge of members of the public of financial matters (including the UK financial system) in discharging its general functions.

UK: implementing aspects of the Financial Services Act 2010

The Financial Services Authority has published a consultation paper in which it reports, in respect of the earlier consultation paper CP10/11, on the feedback received and sets out its policy response: see here (pdf). The consultation paper contains new rules dealing with, amongst other things, short selling disclosure and the FSA's powers of enforcement.

UK: Financial Services Act 2010 - explanatory notes published

Explanatory notes for the Financial Services Act (2010) have been published today on the OPSI website: see here (html) or here (pdf).

Notes:

[a] Section 4 of the Act provides that HM Treasury "may make provision by regulations about the preparation, approval and disclosure of executives’ remuneration reports". An executive remuneration report is defined as one "containing information about (a) the remuneration of relevant executives of an authorised person, or (b) anything connected with the remuneration of relevant executives of an authorised person". The directors of a company authorised by the Financial Services Authority fall within the definition of relevant executives.

[b] Section 6 of the Act inserts a new section (139A) into the Financial Services and Markets Act (2000), which imposes a duty on the FSA to make rules requiring persons authorised under the FSMA, or a class of authorised persons identified in FSA rules, to have and implement a remuneration policy.

UK: the Financial Services Act 2010 - FSA implementation

The Financial Services Authority has published a consultation paper in which it sets out proposals concerning some of it new powers and duties under the Financial Services Act (2010): see here (pdf). The consultation paper focuses on short-selling rules, enforcement powers and the new financial stability information-gathering power.

With regard to short-selling, the FSA notes in the paper (para. 2.8):

We consider that the present scope of the disclosure obligations affecting net short positions held in UK financial sector companies remains appropriate. At this stage we do not want to extend the scope of the disclosure obligations before finalising a comprehensive regime at international level. Accordingly, we propose that holders of significant net short positions in UK banks, UK insurers and the UK-incorporated parent undertakings of UK banks and UK insurers, as defined in the Glossary to the FSA Handbook, should be required to disclose those positions".

UK: the Financial Services Act 2010

A copy of the Financial Services Act 2010 is available here (html) and here (pdf). The Financial Services Authority has provided a very short overview of the changes brought about by the Act with regard to its objectives, powers and duties: see here. Some of the provisions came into force yesterday. See Section 26 of the Act for further information about commencement dates.

UK: the Financial Services Act 2010

The Financial Services Bill received Royal Assent yesterday and becomes known as the Financial Services Act 2010. Missing from the Act - following the wash-up negotiations - are provisions that would have created a Financial Stability Council, imposed a statutory obligation on the Financial Services Authority to promote international regulation and supervision, and introduced a mechanism for collective action in financial services claim. In due course a copy of the Act will be available here.

Update: a copy of the Act is available here (pdf).