SUMMARY OF THE REGULATORY APPRAISAL

715.     A regulatory impact assessment giving details of the likely costs of the proposed new regime is attached. In summary, the creation of a single statutory regulator is expected to lead to a reduction in the recurrent regulatory compliance costs of financial services firms, particularly firms which are currently regulated by more than one regulatory body. There will however be transitional costs in moving to the new arrangements under the Bill. There are also new costs of funding the Tribunal and legal assistance for some cases referred to it under the new arrangements for penalties for market abuse. Overall the discounted expected reductions in compliance costs are expected to be more significant than the transitional and new costs, and the Bill should therefore result in cost savings for businesses and consumers.

EUROPEAN CONVENTION ON HUMAN RIGHTS

716.     Section 19 of the Human Rights Act 1998 requires the Minister in charge of a Bill in either House of Parliament to make a statement, before second reading, about the compatibility of the Bill with the Convention rights (as defined in section 1 of that Act). The Chancellor of the Exchequer has made the following statement:

In my view the provisions of the Financial Services and Markets Bill are compatible with the Convention rights.

COMMENCEMENT

717.     Certain provisions in Part XXVIII (Supplemental) of the Bill will commence at Royal Assent. It is anticipated that all other provisions would be brought into force shortly thereafter