An introduction to the Financial Services and Markets Act 2000

One of the most complicated pieces of legislation introduced by the present Government, the Financial Services and Markets Act 2000, finally became law on 14 June 2000. More than three years have passed since the reforms to the UK financial services regulatory regime were first announced and the Act, the culmination of those reforms, ended up being the most amended piece of legislation in history as it passed through Parliament. The Act will probably not be brought into force until Spring/Summer 2001. Given that it has more than 430 sections and some 22 schedules, and still needs over 50 pieces of secondary legislation before it can be put into effect, the aim of this article by Stephen Fletcher of Linklaters & Alliance is to provide brief introduction to what the new Act was designed to achieve and the main areas that it covers.

Stephen Fletcher Linklaters & Alliance

The aim

The current UK financial services regulatory regime is actually a patchwork of different and distinct regimes. Different pieces of legislation regulate, for example, buying and selling securities, deposit-taking and insurance business. There are different regulators for each area and different conduct of business rules for those carrying on the activities regulated. There are separate licensing rules and requirements for those engaging in the activities regulated, separate rules about who can and cannot advertise the various types of financial service and product, and different compensation schemes and ombudsmen arrangements.