FSA will be a reforming regulator

Speaking at the Foreign Banks and Securities Houses Association annual conference in London, Mr Davies said:

At midnight tomorrow the Financial Services Authority finally comes into its own as the UKs single financial services regulator. At last, that mythical date N2 is upon us.

For a change which has been so long coming, it is tempting to see N2 as a destination. But it would be wrong to do so. Tomorrow is not a destination, but a starting point for the development of financial regulation in the UK.

In setting out some of the reforms going forward, he said:

I hope it gives you an idea of our forward agenda. And I hope it persuades you that we intend to be a reforming authority, constantly on the lookout for changes which will reinforce the statutory objectives handed down to us by Parliament.

Our aim is to maintain a proportionate approach, while ensuring that London maintains a reputation for being a well regulated financial centre, in which market participants have confidence in the rules themselves, and believe that they will be obeyed by their counterparties. That, you tell me, is what most financial institutions want. Our aim is to supply it, at as low a cost as we can sensibly manage.

Notes for editors

1. The text of Mr. Davies speech can be found on the FSA website at http://www.fsa.gov.uk/Pages/Library/Communication/Speeches/2001/index.shtml

2. At midnight on 30 November (a date known as "N2"), the FSA assumes its powers and responsibilities under the Financial Services and Markets Act 2000. It assumes the powers and responsibilities of ten predecessor bodies.

3. The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; the protection of consumers; and fighting financial crime.

4. The FSA aims to maintain efficient, orderly and clean financial markets and help retail consumers achieve a fair deal.