2 The report on the proposal
5. In our first stage report, we considered the proposal
against the criteria set out in paragraph (6) of Standing Order
No. 141 and concluded that a draft Order in the same form as the
proposal should be laid before the House. In that report, we also
commented on the proposal to delegate the issue of guidance to
a committee or sub-committee of the board of the FSA; specifically
we underlined the importance of the FSA to issue a policy statement,
which would explain the operation of the new arrangements and,
in particular, how consistency, quality and publication of guidelines
would be assured. HM Treasury has given us the assurance we requested
and a policy statement would be made by the FSA.
The Department's response
6. The draft Order is substantially in the form of
its proposal, except for the inclusion of some consequential amendments
to subsections (4) and (5) of section 250 of the 2000 Act and
paragraphs (3) and (4) of regulation 7 of the Open-Ended Investment
Companies Regulations 2001, which the Department states are necessary
in the wake of amendments to section 148 (modification or waiver
of rules).
7. We are satisfied that the Minister for the Cabinet
Office has had due regard to our previous report on the proposal
for this draft Order.
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