Financial Services Act 2010

The third piece of financial services legislation since 2007 to respond to the banking and financial crisis. It includes measures designed to improve the position of financial services’ customers.

Key areas:

• creates a Council for Financial Stability to co-ordinate the responsibilities and action of the Bank of England, Financial Services Authority and Treasury with respect to financial stability matters;
• places a duty on the Financial Services Authority to make rules;
• requiring financial institutions to create and maintain recovery and resolution plans in the event that they become financially vulnerable;
• requires the Financial Services Authority to make general rules about remuneration policies of regulated firms.

Royal Assent : 8 April