On 20th July, the UK Government released the Financial Services and Markets Bill, intended to update the UK’s financial services regulatory framework. Alongside the Bill the Government also published its response to an earlier consultation which can be found here. Key provisions in the Bill include:

• The introduction of new secondary growth and competitiveness objectives for the PRA and FCA
• A requirement for regulators to have regard to the Government’s commitment to achieve a net zero economy by 2050
• New powers for HMT to require FCA and PRA to review specified rules
• A Designated Activities Regime (DAR) to bring activities related to financial markets within a comprehensive FSMA framework
• The revocation of over 200 laws and subordinate legislation inherited from EU such as the Prospectus Regulation and Solvency II;
• Expanding the regulator’s authority over stablecoins;
• Introduction of a Financial Market Infrastructure (FMI) Sandbox run by the Bank of England and the FCA to test innovative approaches within a bespoke regulatory framework.

The new regulations will be debated in Parliament, likely after the summer, with MPs able to table amendments during the Bill’s passage.

For further information please contact Nicholas Smith ([email protected])