FSA gears up for new regime
The Financial Services Authority is this week gearing up to take on supervision of accountancy firms that provide investment business.
The Financial Services and Markets Act 2000 will replace the Financial Services Act 1986 on 1 December. The FSA will then become the UK’s single statutory regulator of financial services business.
Firms’ current authorisation will automatically lapse on 30 November unless firms sign up to the FSA’s opt-in clause.
Accountancy bodies such as the ICAEW, ICAS and ICAI have traditionally authorised and regulated firms offering investment business advice. Under the new act that power has now been taken away from these bodies.
To ease the transistion and to avoid an arduous authorisation process, firms can apply through the opt-in clause to obtain continued authorisation by the FSA.
The deadline to submit the forms to the FSA is 31 October 2001.Many firms, however, will be exempt from the FSA authorisation process due to the change in the scope of activities regulated under the new legislation.