- the Financial Services Bill has received Royal Assent and is now law
- represents major milestone in shaping a regulatory framework for UK financial services outside of the EU
- enhances competitiveness of the sector and ensures it continues to deliver for UK consumers and businesses
The Bill - which is now an Act - will ensure the UK remains an open and dynamic financial centre, with the highest regulatory standards, and protect people across the UK as they use financial services.
It represents a further step in delivering the Government's vision for a more open, technologically advanced and greener industry that serves the communities and people of this country.
John Glen, Economic Secretary to the Treasury, said:
For the first time in decades, the UK has full control of its own financial services regulation. This Act will protect people who rely on financial services day-to-day and boost the competitiveness of our dynamic global financial centre. It marks a major milestone in our plans to develop a regulatory regime that works for the UK and helps us seize new opportunities in the global economy.
Measures in the Act will:
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enhance the UK's world-leading prudential standards and promote financial stability by enabling the implementation of the remaining Basel III standards and a new prudential regime for investment firms, and giving the Financial Conduct Authority the powers it needs to oversee an orderly transition away from the LIBOR benchmark
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promote openness between the UK and international markets by simplifying the process to market overseas investment funds in the UK and delivering a Ministerial commitment to provide long-term access between the UK and Gibraltar for financial services firms
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maintain an effective financial services regulatory framework and sound capital markets with a number of smaller measures, including measures to improve the functioning of the Packaged Retail and Insurance-based Investment Products Regulation and increase penalties for market abuse
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protect consumers who use a range of financial services, by bringing interest-free buy-now-pay-later products into regulation, and improving access to cash by making it easier for retailers of all sizes to offer cashback without a purchase
Notes
- the Financial Services Act can be read in full here
