HISTORIC PRESS RELEASE : The Financial System and Major Operational Disruption [December 2003]

The press release issued by HM Treasury on 3 December 2003.

The Task Force considering major operational disruption in the financial system has concluded that no new legislation is needed to cater for disruption in the financial sector.

The Task Force chaired by Sir Andrew Large, Deputy Governor of the Bank of England, today announced a number of recommendations for further improvements to preparations in other areas such as private contracts and the rules of market infrastructures, such as clearing-houses and stock exchanges, while also recommending further contingency planning work by the financial authorities (the Treasury, Bank of England and Financial Services Authority).

Financial Secretary Ruth Kelly:

“I support the Task Force conclusion that no new legislation is needed and accept those recommendations which apply to the financial authorities and support those which are for others to implement.

“I am pleased that the Task Force involved a wide range of people whose work would be affected by major disruption. Membership of the Task Force and its associated working groups was drawn from market practitioners, the legal community, the Bank of England, the FSA and the Treasury.  I am grateful to all those who contributed and to Sir Andrew and the staff of the Bank of England for producing the report.”