To ask the Chancellor of the Duchy of Lancaster when he next expects that the FIMBRA organisation, established under the Financial Services Act, will be formally incorporated by the Securities and Investments Board, and if he will make a statement.
The 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, then the effect is no greater than is necessary for the protection of investors.My right hon. and noble Friend has considered the rules submitted by FIMBRA to the board, and has received and considered a report on them 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 the 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 FIMBRA.
To ask the Chancellor of the Duchy of Lancaster how many applications for membership have been made to the FIMBRA organisation, established under the Financial Services Act; how many have been approved; how many have been rejected; and how many are still being processed.
That is a matter for FIMBRA.
To ask the Chancellor of the Duchy of Lancaster if he intends to extend the final date for application to join the FIMBRA organisation, established under the Financial Services Act; and what provision he will make for firms which have been unable to apply before the current final date for application through circumstances beyond their control.
I have today made an order specifying 27 February 1988 as the day appointed for the purposes of paragraph 1(1) of schedule 15 to the Financial Services Act. This has the effect that any person who has applied for membership of a recognised self-regulating organisation or for authorisation by the Securities and Investments Board by that date, and whose application has not been determined before the date on which section 3 of the Act comes into force, will until such time as his application is determined be treated as though authorised by the board. A person who applies for membership of a recognised self-regulating organisation after this date will receive authorisation only when he is admitted to membership of the authorisation. I have no powers under the Act to provide additional transitional provisions for late applicants, but the Department will be continuing its campaign to alert all involved in good time to the requirement to be authorised.