Consumer Panel gives cautious welcome to FSA revision of plans for listing rules for offshore firms

4 April

The Consumer Panel has given a cautious welcome to today’s FSA announcement that it is to consult on proposals to create a single regime for the listing of investment entities from the first quarter of 2008.

However, the Panel is concerned that in the meantime – for the next 10 to 12 months – it seems that overseas investment companies will still be able to list under Chapter 14, with lighter obligations than UK based companies listing under Chapter 15. This may yet cause problems as many UK investors may not realise about the different regimes.

John Howard, Chairman of the Financial Services Consumer Panel said:

"We are pleased that the FSA has listened to the Panel, and others, and will now not take forward its proposals to create a two tier listing regime for investment companies. However, we await the detailed proposals to ensure that the overall protection for UK investors is not diluted. We are pleased that the FSA has said that in the interim they will insist on clear labelling to warn investors about Chapter 14 and look forward to seeing that operating in the meantime."

Notes to editors

1. The FSA established the independent Financial Services Consumer Panel in December 1998 to advise its Board on the interests and concerns of consumers and to report on the FSA’s performance in meeting its objectives. The Consumer Panel has statutory status.
   

2. The emphasis of the Panel’s work is on activities that are regulated by the FSA, although it may also look at the impact on consumers of activities outside but related to the FSA’s remit. More information about the Panel's work is available on this website.
   

3. The Consumer Panel brings together a wide range of relevant experience. This includes financial services regulation, working with vulnerable consumers, consumer protection, consumer education, front-line money advice, legal expertise, competition policy, public policy analysis, market research and media.
   

4. There are currently twelve members of the Panel as listed below.

   John Howard (Chairman)
   Adam Phillips (Vice Chairman)
   Kay Blair
   Michael Chapman
   Stephen Crampton
   Caroline Gardner

   Jenny Hamilton
   Tony Hetherington
   Nick Lord
   David Metz
   Lindsey Rogerson
   Carol Stewart