Overview

On Thursday 8 April 2010, the UK Parliament enacted the Financial Services Bill as part of the "wash-up" process prior to it being dissolved on Monday 12 April 2010.

The driving force behind the 2010 Financial Services Act was the perceived need to strengthen the system of financial regulation following the credit crises which exposed a number of weaknesses in the current system of regulation. In order to increase the Bill's chances of being enacted as part of the wash-up process, the Government made a number of significant last-minute amendments, including dropping the proposed Council for Financial Stability, the proposed FSA duty to promote international regulation and supervision and the provisions granting the courts the ability to authorise collective proceedings for financial services claims.

The Act alters the FSA's objectives to include financial stability, establishes a new consumer financial education body, addresses remuneration, gives the FSA power to require certain authorized entities to prepare recovery plans and living wills and also allows the FSA to deal with short-selling.

This briefing will provide a high-level overview of the changes to the UK's regulatory regime brought about by the Act.

Please click to read more.