Institute Submits Comments on Draft U.K. Financial Services and Markets Bill

Washington, December 4, 1998 - On November 25, 1998, the Institute submitted comments to the UK government on the draft United Kingdom Financial Services and Markets Bill. The draft bill is intended to provide the framework to reform the system of financial regulation in the UK for the twenty-first century.

The Institute's comment letter urged the UK to clarify the draft legislation in two respects. First, the Institute stated that the legislation should make clear the circumstances in which the UK would assert jurisdiction over Internet communications. Specifically, the Institute urged the UK to provide an exception to regulation for financial promotion communications that, although available in the UK, are not directed at the UK.

Second, the Institute requested that the bill provide that interpretive guidance issued by the UK Financial Services Authority generally be available to all market participants.