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FSA's plans for offshore firms 'cautiously welcomed'
05/04/2007
The Financial Services Consumer Panel has welcomed the Financial Services Authority's (FSA's) plans for listing rules regarding offshore firms.
But it is cautious that the time between now and when the regulations are implemented still means that offshore companies can list under chapter 14 of the rules with lighter obligations than their UK-based counterparts.
One single regime for the listing of investment entities will be created from the first quarter of 2008, which leaves ten to 12 months of the same practice, the panel warns.
John Howard, chairman of the Financial Services Consumer Panel, remarked: "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."
He added that the announcement that the FSA will insist on clear labelling to warn investors about Chapter 14 is pleasing.
But it is cautious that the time between now and when the regulations are implemented still means that offshore companies can list under chapter 14 of the rules with lighter obligations than their UK-based counterparts.
One single regime for the listing of investment entities will be created from the first quarter of 2008, which leaves ten to 12 months of the same practice, the panel warns.
John Howard, chairman of the Financial Services Consumer Panel, remarked: "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."
He added that the announcement that the FSA will insist on clear labelling to warn investors about Chapter 14 is pleasing.