HISTORIC PRESS RELEASE : Working Towards a Single Financial Regulator [July 1998]

The press release issued by HM Treasury on 30 July 1998.

Further steps towards the full integration of financial services were announced today by the Chief Secretary, Stephen Byers.

From January 1999 the Financial Services Authority (FSA) will take responsibility for supporting the Building Societies Commission (BSC), the Friendly Societies Commission (FSC) and, in relation to credit unions, the Chief Registrar of Friendly Societies, and for acting on behalf of the Treasury in the conduct of insurance supervision under the Insurance Companies Act.

The regulators are already working closely together with the FSA developing the new regulatory structure and contributing to the draft Financial Services and Markets Bill published today.

Chief Secretary, Stephen Byers said:

“This transfer will promote early integration of financial regulation and help achieve the benefit of a single regulatory culture ahead of the legislation. This transfer in no way affects the consultation we have started today on the draft Bill.”

A Contracting Out Order under the Deregulation and Contracting Out Act 1994 will pass the functions of the Insurance Directorate to the FSA. Treasury Ministers will still remain accountable to Parliament for insurance functions.