On July 20th the UK Government published the Financial Services and Markets Bill (FSMB). The Bill is a major piece of legislation, and the result of several consultations over a lengthy period, and features amendments to both the Financial Services and Markets Act 2000 and the Financial Services Act 2012.
The Bill has been designed to give the UK the chance to create a more competitive financial services sector post Brexit.
Covering a broad range of topics it will revoke many of the existing EU retained laws relating to financial services and markets, and will enable regulators to reform current EU rules.
This does not, of course, mean that the regulations cease to apply, as each of them are already or will be reproduced in PRA and FCA rules.
The Bill is made up of 7 parts and all its measures (with two exceptions relating to Northern Ireland) would apply across the UK.
The keys aims of the Bill are as follows:
implement the outcomes of the Future Regulatory Framework (FRF) Review, which assessed whether the UK financial services regulatory framework is fit for purpose and able to support future growth, in light of Brexit and climate change issues
maintain the UK’s position as a global financial hub
harness the opportunities of innovative technologies in financial services
bolster the competitiveness of UK markets and promote the effective use of capital
support the levelling up agenda, promote financial inclusion and consumer protection and deliver better outcomes for both consumers and businesses
The House of Commons will hold its second reading debate on the Bill on 7 September. The Bill is expected to complete its Parliamentary stages, and receive Royal Assent by late April/early May 2023, before the end of the Parliamentary session.