FSA consults on implementation of the E-Commerce Directive

The FSAs Consultation Paper builds on the publication of draft regulations by the Department of Trade and Industry (DTI) and HM Treasury (HMT) on 7 March 2002.

The ECD is an important directive for firms and consumers. It aims to ensure the European Community reaps the full benefits of e-commerce by removing potential restrictions on e-commerce and building consumer confidence in it.

The ECD removes restrictions on the cross-border provision of services by electronic means, by introducing a country of origin approach to regulation. This means that generally the regulatory requirements that apply in a firms country of origin will apply to any cross-border services that it provides electronically.

Notes for editors

1. Copies of the CP and the newsletter which summarises the key provisions of the FSAs approach are available on the FSA website.

2. The consultation period will close on 10 May 2002.

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; securing the appropriate degree of 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.

5. The DTI and HMT draft regulations are available on their websites.