On 8 April 2010 the Financial Services Bill received Royal Assent, marking the end of its passage through the legislative process. The Financial Services Act 2010 delivers significant reforms which aim to bolster financial regulation, making a number of significant changes to the current regulatory regime.
A number of significant provisions were removed from the Bill with a view to passing the remainder of the provisions before the dissolution of Parliament. This approach was agreed as part of the “wash up” procedure, which typically involves particularly contentious or complicated parts of legislation being removed following negotiations between ministers, shadow ministers and party whips.
The key provisions which were withdrawn related to:
- Collective proceedings for financial services claims
- The Council for Financial Stability – a proposed body responsible for reviewing matters affecting the stability of the UK financial system
- A new duty for the FSA to promote international regulation and supervision.
A clause concerning the disclosure by HM Treasury of financial assistance given to the Bank of England, which was proposed in the House of Lords on 15 March 2010, has also been removed.
Our briefing on the key provisions of the Act and their commencement dates can be accessed at http:// www.herbertsmith.com/NR/rdonlyres/50239C2A-636C-4113-AB37-3EE08867DF28/14892/FinancialServicesAct2010April2010.html.