Developments in the UK Market

Structure of Financial Services Regulation

On June 16, 2010, the UK government announced major changes to the UK's financial services regulatory structure that will result in the UK Financial Services Authority (FSA) ceasing to exist in its current form. The government intends to establish the following bodies by the end of 2012:

1. Prudential Regulation Authority.
2. Consumer Protection and Markets Authority.
3. Financial Policy Committee.
4. Serious Economic Crime Agency.

The government will publish a consultation on its proposals before Parliament's summer recess.

Combined Code

On May 28, 2010, the Financial Reporting Council (FRC) published the final version of the UK Corporate Governance Code together with a report on the Code consultation and revisions made to the Code. In the final version of the Code, the FRC has maintained the approach set out in its consultation and focused on changing the Code's "tone" by making limited but significant changes,