Financial Services and Markets Appendices to the Minutes of Evidence


Memorandum by the Institutional Fund Managers' Association


  We urge that the Joint Committee be reconvened, not later than September this year, to hear further representations on the revised Bill and further FSA consultation papers.


  A mechanism should be put in place whereby the FSA can be challenged about their proposed allocation of costs and consideration should be given to the principles for allocation being enshrined in primary legislation.

  The Government should be prepared to pay for costs incurred in the educational programme for meeting the objective of public awareness.


    (a)  European Convention on Human Rights

      It is important for the credibility of FSA that the enforcement regime should not fall foul of ECHR the first time a decision of the FSA is challenged in Court. Accordingly, the Government must be asked to demonstrate (not simply aver) that the proposed regime will meet the requirement of ECHR.

    (b)  Role of the Enforcement Committee

      We strongly believe that there should be practitioners and public interest representatives on the Committee and that such representatives should be able to vote to ensure the independence of the Committee. Consideration should be given to the Chairman and Secretary of the Committee being appointed by the Lord Chancellor or some other external party.

    (c)  Award of Costs Against Individuals and the FSA

      The Bill should be amended so that individuals may not have costs awarded against them (save in egregious cases) or a limit (say £5,000) should be placed on the amount of costs that can be recovered.

      We also strongly recommend that costs should be recoverable against the FSA if an individual (or firm) is successful at the Appeal Tribunal.


  We believe the FSA should be obliged to provide in a timely manner interpretative guidance applying to a particular factual situation and to provide guidance on its rules which is disseminated to authorised persons in a timely manner.

31 March 1999

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