Milestone for UK financial services as Bill receives Royal Assent

29 Apr 2021 10:06 PM

The UK has taken an important first step in shaping its own financial services regulation outside the EU as the Financial Services Bill received Royal Assent yesterday (29 April 2021).

• 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, yesterday 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:

• 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
• 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
• 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
• 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 to Editors

• the Financial Services Act can be read in full here