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The Financial Services and Markets Act 2023 aims to implement the outcomes of the UK Government's future regulatory framework (FRF) review and to make other significant changes to the structure and content of UK financial services regulation.
Key measures cover: the revocation of retained EU law; providing HM Treasury with new regulatory powers; changes to the UK regulators' objectives and accountability mechanisms; the implementation of other reviews, including in relation to wholesale markets, financial market infrastructure, digital settlement assets, critical third-party service providers, financial promotions, cash access and wholesale cash industry, and measures for insurers in financial difficulties; allowing HM Treasury to implement mutual recognition arrangements; requiring firms to have specific permission to approve financial promotions; and, extending powers to impose conditions on changes in control of authorised firms.
Regulators have already begun consultation on some of the reforms that will be made by the Act and the Act will trigger an extensive programme of consultation on proposed changes that will be implemented over a period of months and years.
This Topic Guide brings together official materials and Clifford Chance resources relating to the Act.
Status: The Bill originated in the House of Commons and completed its passage through Parliament on 27 June 2023. It received Royal Assent on 29 June 2023 and the Act was published on 7 July 2023. The Explanatory Notes were published on 30 August 2023.
HM Treasury will be able to bring its provisions into force on days to be appointed (to the extent not specified) and the Government and regulators are in the process of adopting and implementing the regulations and rules contemplated by the new law.
On 9 December 2022, the UK Government announced an extensive package of reforms to the UK's regulatory framework for financial services (the Edinburgh Reforms), which seeks to take forward the implementation of a Financial Services and Markets Act 2000 (FSMA) model of regulation through powers established in the Act. See the Edinburgh Reforms section and the Tracking the implementation of the Future Regulatory Framework section in this Topic Guide for further details.
| Caroline Dawson (London) | Christopher Bates (London ) |
| Simon Crown (London) | Diego Ballon Ossio (London) |
| Paul Ellison (London) | Laura Douglas (London) |
| Simon Gleeson (London) | Paul Lenihan (London) |
| Caroline Meinertz (London) | Nancy Li (London) |
| Ashley Prebble (London) | Stephanie Peacock (London) |
| Monica Sah (London) |
Information on the Retained EU Law (Revocation and Reform) Act is available in the Implementing the Future Regulatory Framework section (directly below).
In this section: Revocation, revision and replacement of retained EU law | Retained EU Law (Revocation and Reform) Act | Designated Activities Regime | Changes to regulators' powers
The future regulatory framework review was launched in 2019 to determine the UK's overall, long-term approach to the regulation of financial services to reflect the UK's position outside of the EU.
The outcome of the review broadly seeks to build on the existing approach to UK regulation under the Financial Services and Markets Act 2000 (FSMA) to address:
The Government's final policy to implement the review is currently laid out in Part 1 (Regulatory Framework) of the Act.
The FRF review was carried out in two phases:
Phase II
Phase I
The House of Commons Treasury Committee launched an inquiry into the future of financial services in November 2020, which includes scrutiny of the Government's FRF proposals.
The Act sets out a legislative framework for the revocation of 'EU-derived legislation' relating to financial services, including onshored EU regulations and decisions, secondary UK legislation and some provisions of UK primary legislation (but not regulators' rules) from dates to be appointed by regulation.
Among other things, the Act allows HM Treasury and the UK regulators to incorporate those requirements into UK legislation and the regulators' rulebooks, with or without modification, and the Act will trigger a wide-ranging review of EU-derived legislation which may take some years to complete.
The measures relating to the revocation of retained EU law relating to financial services are currently set out in Chapter 1 of the Act and Schedule 1. (Note that section 1(4) of the Act provides that the revocation of any legislation in accordance with section 1 of the Act will not affect the continued effect of any amendments to other legislation made by that revoked legislation (as those amendments had effect immediately before the revocation).)
The below table sets out a non-exhaustive list of retained EU law that will be repealed under the framework in Schedule 1 to the Act.
As part of the Edinburgh Reforms announced in December 2022, HM Treasury published a policy statement setting out its approach to replacing retained EU law using powers established in the Act and a core list of EU financial services files in scope of the programme, which the Government intends to implement in tranches:
Alongside the policy paper, HM Treasury published example statutory instruments to illustrate how its powers might be used in practice. These have been published for information purposes only and should not be seen as a final product or a draft for consultation.
HM Treasury published a follow up report (21 March 2024) providing an update on the progress made on the Tranche 1 and Tranche 2 of the programme and sets out the Government's plans for Tranche 3.
Alongside this, HMT intends to review the 2019 and 2020 Equivalence Determinations Regulations in order to restate necessary provisions and ensure that onshored equivalence decisions are in scope of the new FSMA 2023 Deference Accountability Mechanism.
For more details, please see Clifford Chance December 2022 document mapping HM Treasury's priority files and the Edinburgh Reforms against HM Treasury's list of "core" financial services files. See also the Tracking the implementation of the Future Regulatory Framework section of this Topic Guide.
Specified 'Level 1' EU regulations |
Provisions made under specified 'Level 1' EU directives |
| Markets | |
Credit rating agencies (1060/2009, 513/2011 and 462/2013) Short selling and credit default swaps (236/2012) European market infrastructure (648/2012) Market abuse (596/2014) Markets in financial instruments (600/2014 and 2016/1033) Central securities depositories (909/2014) Securities financing transactions (2015/2365) Benchmarks (2016/1011) Prospectuses (2017/1129) Securitisation (2017/2402) Sustainability-related disclosures (2019/2088) Sustainable investment framework (2020/852) |
Settlement finality (98/26) Listing (2001/34) Financial collateral (2002/47) Transparency obligations for issuers (2004/109) Criminal sanctions for market abuse (2014/57) Markets in financial instruments (2014/65) |
| Bank and investment firm prudential | |
Capital requirements for credit institutions and investment firms (575/2013, 2017/2401, 2019/630 and 2019/876)
|
Credit institutions winding up (2001/24) Financial conglomerates (2002/87 and 2011/89) Capital requirements for credit institutions and investment firms (2013/36) Deposit guarantee schemes (2014/49) Recovery and resolution of credit institutions and investment firms (2014/59) Prudential supervision of investment firms (2019/2034) |
| Insurance | |
Motor vehicle insurance (2009/103) Solvency II (2009/138) Insurance distribution (2016/97) Institutions for occupational pension provision (2016/2341) |
|
| Payments | |
Cross-border payments (924/2009) Credit transfers and direct debits in euro (260/2012 and 248/2014) Interchange fees for card-based payments (2015/751) |
Electronic money (2009/110) Payment accounts and comparability of fees (2014/92) Payment services (2015/2366) |
| Funds | |
European venture capital funds (345/2013) European social entrepreneurship funds (346/2013) European long-term investment funds (2015/760) Money market funds (2017/1131) |
UCITS (2009/65) Alternative investment fund managers (2011/61) |
| Retail | |
Packaged retail and insurance-based investment products (1286/2014)
|
Distance marketing of consumer financial services (2002/65) Consumer credit (2008/48) Mortgage credit (2014/17) |
| Other | |
Money market statistics (2019/113) Supervisory fees (2019/2155) European supervisory authorities (2019/2175) Reporting of supervisory information (2020/605) |
|
| Other revocations | |
|
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Separately, the UK Government introduced the broader Retained EU Law (Revocation and Reform) Bill (previously known as the 'Brexit Freedoms Bill') to the House of Commons on 22 September 2022. The Retained EU Law (REUL) Act 2023 received Royal Assent on 29 June 2023.
As introduced, the Bill proposed to sunset the majority of retained EU law so that it expired on 31 December 2023. On 10 May 2023, the Government tabled an amendment replacing the broad revocation of EU-derived subordinate legislation and retained direct EU legislation with an express list of pieces of legislation to be set out in a new Schedule to the Bill. In a written ministerial statement, the Government noted that its new approach is intended to reduce legal uncertainty and prioritise meaningful reform. This sunset mechanism does not apply to retained EU law covered by Schedule 1 to the Financial Services and Markets Bill or to rules of the UK financial services regulators.
Any retained EU law that remains in force after end 2023 (including any retained EU law covered by the Financial Services and Markets Bill) will be assimilated in the domestic statute book, by the removal of the special EU law features previously attached to it. This means that the principle of the supremacy of EU law, general principles of EU law, and directly effective EU rights will also end on 31 December 2023.
The REUL Act also gives the Government broad powers to restate and to revoke and replace any secondary retained EU law, i.e., retained EU law that is not primary legislation and any retained EU law that is primary legislation the text of which was inserted by subordinate legislation. These powers will continue to apply to secondary retained EU law remaining in force after end 2023 and assimilated into the domestic statute book and will also apply to secondary retained EU law falling within the scope of the Financial Services and Markets Act 2023 but will expire at the end of 2026.
Background materials
In June 2022, the UK Government also published a Retained EU law dashboard, which allows users to explore and filter identified pieces of Retained EU law (REUL).
A fifth iteration was published on 4 September 2023 and it now contains 5,020 pieces of REUL. The Government has noted that the dashboard is not intended to provide a comprehensive account of REUL in general nor REUL that sits within the competence of the devolved governments.
The Government intends to develop the dashboard and to identify more legislation which can be amended, repealed or replaced, with the dashboard documenting the Government's progress against that aim. The dashboard will be updated on a quarterly basis, as REUL is repealed and replaced, or more REUL is identified.
The Act creates a Designated Activities Regime (DAR) prohibiting persons from carrying on designated activities or from carrying them on otherwise than in accordance with new requirements, which HM Treasury and the Financial Conduct Authority (FCA) are given powers to create.
Initially, it is intended to address the status of the regulation of certain activities covered by retained EU law that are not FSMA regulated activities, and which apply to a broader range of entities than persons, such as: activities related to entering into derivative contracts; holding positions in commodity derivatives; short selling; acting as an originator, sponsor, original lender or securitisation special purpose entity in a securitisation; offering securities to the public; and activities relating to instruments which reference a benchmark. However, the regime may also be used in other cases in future to regulate persons that are not authorised under FSMA.
The measures relating to the DAR are set out section 8 of the Act, which inserts a new Part 5A to FSMA. An illustrative, non-exhaustive list of the activities that HM Treasury may designate is set out in Schedule 3, which will be inserted as Schedule 6B to FSMA.
The Act provides HM Treasury and the regulators with broader rule-making powers to enable the replacement of regulatory requirements relating to EU-derived legislation and in relation to other regimes set out in the Act.
The Act introduces new secondary objectives for both the FCA and Prudential Regulation Authority (PRA). These are to facilitate the medium to long-term growth and competitiveness of the UK economy, including the financial services sector, subject to aligning with relevant international standards. The Bill also requires the PRA to facilitate effective competition in the markets for services provided by PRA-authorised persons in carrying on regulated activities (similar to the FCA's objective for authorised persons generally), and for the Bank of England (BoE) to facilitate innovation in clearing and settlement services provided by central counterparties (CCPs) and central securities depositories (CSDs) with a view to improving the quality, efficiency and economy of the services they provide.
The Act also introduces new regulatory principles for the FCA, PRA and BoE, including to have regard to the UK's net zero emissions target when discharging their functions.
The Act also aims to strengthen the accountability of the regulators and sets out requirements relating to recommendation letters, the rule-making process, regulatory rule reviews, stakeholder panels, cost-benefit analysis (CBA), Parliamentary oversight, powers to grant permissions and co-operation on wider implications.
The measures relating to new regulatory powers and accountability are set out in Chapters 2 and 3 of the Act respectively, as well as throughout the Act in relation to specific regimes.
During the second reading of the Bill on 7 September 2022, the Government expressed the intention (originally mentioned in the 19 July 2022 Mansion House speech delivered immediately before the introduction of the Bill) to introduce an additional 'call-in' power (also known as the public interest intervention power) to the Bill during the legislative process which would allow HM Treasury to intervene in regulation in exceptional cases. In a letter dated 31 October 2022, the Government reiterated its intention while noting that the amendment would not be introduced in time for the deadline for Committee stage. In a letter dated 23 November 2022, the Government stated that it had decided not to bring forward an amendment to introduce an intervention power, although it intends to keep the matter under review.
The below table tracks developments relating to the implementation of the Future Regulatory Framework.
Name of instrument/consultation |
Description |
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(18 March 2025) Government publishes draft Markets in Financial Instruments (Miscellaneous Amendments) Regulations 2025, which would reform the Markets in Financial Instruments Directive Organisation Regulation (MiFID Org Reg).
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The UK Government has published a policy note and near-final draft of the Markets in Financial Instruments (Miscellaneous Amendments) Regulations 2025, which would reform the Markets in Financial Instruments Directive Organisation Regulation (MiFID Org Reg). At Mansion House 2024, the Chancellor announced plans for further technical changes to the wholesale markets framework. This included revoking detailed firm-facing regulations within the MiFID Org Reg and replacing them in the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) rulebooks. To achieve this, HM Treasury intends to:
HM Treasury will do this to align with the FCA and PRA delivering their replacement rules in the second half of 2025. The near-final version of the statutory instrument reflects this approach, maintaining certain sections of the MiFID Org Reg in legislation. The Government has invited technical comments by 14 April 2024. |
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(19 December 2024) FCA launches consultation on a new product information framework for Consumer Composite Investments (CCIs).
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The FCA has launched a consultation (CP24/30) on a new product information framework for Consumer Composite Investments (CCIs). The consultation follows HM Treasury’s action to replace the Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation and the Undertakings for Collective Investment in Transferable Securities (UCITS) disclosure requirements with a new approach governed by the FCA. The Treasury laid the final statutory instrument (SI) to give effect to this on 22 November 2024. Products formerly under the PRIIPs regime and UCITS disclosure requirements, including funds in the Overseas Funds Regime (OFR), will now fall under the umbrella of CCIs. All CCI product information rules will be in the FCA Handbook. Comments are due 20 Match 2025. Published responses: PIMFA | AIC | IA | ICMA | Investment Week: |
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| (25 September 2024) FCA launches consultation on proposed changes to, and ultimately a new, safeguarding regime for payments and e-money firms. | The FCA has launched a consultation CP24/20 (running until 17 December) on proposed changes to, and ultimately a new, safeguarding regime for payments and e-money firms. FCA plans to publish final interim rules with an accompanying policy statement in H1 2025. The FCA plans to implement changes in two phases, which it calls 'interim' and 'end-state' – the CP covers proposals for both phases. FCA will be using its new FSMA 2023 – derived powers under the Electronic Money, Payment Car Interchange Fee and Payment Services (Amendment) Regulations 2023 to make the new rules. |
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| (29 September 2024) Government and FCA announce plans to reform UK retail disclosure rules, and will temporarily exempt investment trusts from assimilated EU law requirements | Webpage | In November 2023, HM Treasury issued draft legislation on the repeal and replacement of the Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation with a new framework for Consumer Composite Investments (CCIs). The Treasury intends to lay legislation in H2 2024 to provide the FCA with the additional powers to deliver this reform. The UK’s new retail disclosure regime is expected to be in place by H1 2025, subject to Parliamentary approval and an FCA consultation process. The FCA intends to consult on proposed rules for the CCI regime this autumn. In response to feedback, the Government has decided to exempt listed investment trusts from the current PRIIPs Regulation and parts of Articles 50 and 51 of the MiFID Org Regulation as an interim measure. The FCA will apply new forbearance measures immediately, ensuring that investment trusts are not subject to current PRIIPs requirements until the new regime takes effect. The Government and the FCA have emphasised that this approach is intended as an interim measure, and that investment trusts will be included within the scope of the future UK retail disclosure framework. |
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| (28 March 2024) Accelerated Settlement Taskforce Report | Webpage | The Accelerated Settlement Taskforce (AST), established in December 2022 as part of the Edinburgh Reforms to explore the potential for faster settlement of securities trades in the UK, recommends that:
The Government accepted all of the AST's recommendations and Andrew Douglas was appointed to chair the technical group. |
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| (21 March 2024) HM Treasury policy paper on the Smarter Regulatory Framework (SRF) | Webpage | The report provides an update on the progress made on the programme so far and sets out the Government's plans for Tranche 3, including prioritising reviews of the following legislation:
HM Treasury also intends to review the 2019 and 2020 Equivalence Determinations Regulations in order to restate necessary provisions and ensure that onshored equivalence decisions are in scope of the new FSMA 2023 Deference Accountability Mechanism. |
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| (6 March 2024) Chancellor's Spring Budget 2024 | Press release | Speech | Alongside the Budget, the UK Government:
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| (13 December 2023) Financial Services and Markets Act 2023 (Commencement No. 4 and Transitional and Saving Provisions (Amendment) Regulations 2023 (SI 2023/1382) made | SI 2023/1382 phases in various measures and revokes the equivalent EU measure (on a range of specified dates being 14 December, 26 December 2023 or 1 January, 5 April, 30 June 2024). | ||
| (8 December 2023) Government response to HM Treasury call for proposals on measuring regulators' new objectives | Webpage | The Government's response sets out the additional metrics the FCA and PRA should publish in relation to their new secondary growth and competitiveness objectives. These metrics will be incorporated into the FCA's existing quarterly operating service metrics reporting and its Outcomes and Metrics Framework, which sets out how the FCA is measuring progress against the outcomes it seeks to achieve for consumers and market participants. | ||
| (8 December 2023) PRA consultation (CP27/23) on its approach to policy - closes 8 April 2024 | CP27/23 sets out the PRA's proposed approach to policymaking under the regulatory framework as amended by FSMA 2023. | ||
| (8 December 2023) House of Commons Treasury Select Committee report, 'Edinburgh Reforms One Year On: Has Anything Changed?' | The report assesses the impact of the Edinburgh Reforms, one year after they were proposed. The report highlights key conclusions and concerns, emphasising the need for a balanced approach that promotes economic growth while maintaining robust regulatory standards. | ||
| (7 December 2023) BoE, PRA and FCA consultation paper on proposed requirements and expectations for critical third parties (CTPs) (PRA CP26/23) | Press release | FCA webpage - comments due 15 March 2023 | The proposals, which build on the July 2022 discussion paper (DP3/22), are intended to manage the potentials risks posed by a failure in, or disruption to, services provided by CTPs to firms and financial market infrastructure entities (FMIs) and cover, among other things: identifying potential CTPs and recommending them for designation by HM Treasury; definitions of key terms; fundamental rules for CTPs; operational risk and resilience requirements; information-gathering and testing requirements; notification requirements; and record keeping. The proposals also include preventing a CTP from unduly using its designation for marketing purposes, and the requirement for a non-UK CTP to nominate a legal person with authority to receive documents and notices from the regulators. |
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| (6 December 2023) Draft Money Market Funds Regulations 2024 | Policy note | Webpage | The draft SI sets out the Government's approach to establishing a new legislative framework for MMFs, and is intended to facilitate the delivery of new FCA rules to replace detailed requirements for MMFs. The Government welcomes any technical comments on the draft SI (Deadline for comments: 24 January 2024.) | ||
| (6 December 2023) FCA consultation (CP23/28) on updating the regime for Money Market Funds | Webpage - closes 8 March 2024 | CP23/28 sets out the FCA's proposals to enhance the resilience of MMFs based in the UK. | ||
| (5 December 2023) Illustrative draft FSMA 2000 (The Ombudsman Scheme) Regulations 2024 | Policy note | Webpage | The illustrative draft SI allow the Financial Ombudsman Service (FOS) to charge case fees to claims management companies and other professional representatives who bring cases to the FOS on behalf of complainants. The FOS is currently consulting on its approach to fee charging as part of its Plans and Budget for 2024-25. This draft SI is intended to support that consultation. The government plans to finalise the draft regulations and introduce them in Parliament after the consultation period for the FOS Plans and Budget 2024-25 ends. More information about the draft SI and the consultation process can be found in the policy note. |
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| (27 November 2023) Draft Public Offers and Admissions to Trading Regulations 2023 laid before Parliament | Draft Explanatory Memorandum | The draft SI creates a new framework for the offering of securities to the public in the UK that will replace the UK Prospectus Regulation, which is to be revoked by FSMA 2023. Among other things, it: creates a general prohibition on public offers of securities, followed by a series of exceptions from this prohibition; establishes a new regime for securities ‘admitted to trading’ on a regulated market or multilateral trading facility (MTF); and creates a new regulated activity of operating an electronic system for public offers of certain securities. |
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| (27 November 2023) Draft Securitisation Regulations 2023 laid before Parliament | Draft Explanatory Memorandum | The draft SI creates a new regulatory framework that will replace REUL in relation to securitisation. Among other things, it: specifies certain securitisation activities as designated activities for the purposes of FSMA 2000; confers powers on the regulators to make rules in relation to these activities; and restates into domestic legislation certain provisions of REUL that are to be revoked under FSMA 2023. |
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| (22 November 2023) UK Retail Disclosure Framework Policy note | Draft Consumer Composite Investments (Designated Activities) Regulations 2024 | Webpage - technical comments due 10 January 2024 | Autumn Statement 2023 webpage | Near-final version of the statutory instrument (SI) to replace the EU Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation and create a new UK retail disclosure framework for Consumer Composite Investments (CCIs), setting out the scope, key definitions, FCA rule-making powers and specific supervision and enforcement provisions. The policy note includes an intention to publish for technical comment in early 2024 a draft SI regulating certain common aspects of designated activities (DAR SI) intended to consolidate legislation and reduce complexity. |
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| (22 November 2023) Government response to consultation on aspects of the SSR related to sovereign debt and CDS | Webpage | Draft Short Selling Regulations 2024 webpage and policy note - technical comments due 10 January 2024 | Autumn Statement 2023 webpage | The Government's response to its July 2023 consultation on aspects of the Short Selling Regulation (SSR) includes removing requirements placed on investors when taking out short positions in sovereign debt or sovereign credit default swaps (CDS), and the related reporting requirements under the UK’s new short selling regime, while retaining sovereign debt and CDS in scope of the FCA's emergency intervention powers. A draft statutory instrument published in parallel to the response is intended to illustrate the new features of the UK's new short selling regime as a whole. |
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| (22 November 2023) Letter from the Government to the FCA on pensions investment reforms | Webpage | Autumn Statement 2023 webpage | As part of the Autumn Statement 2023 and following on from reforms set out at Mansion House in July 2023, the Government announced a new package of pension reforms, including implementation of a pensions dashboard, exploring a lifetime provider model, consolidating the market and encouraging diversification. | ||
| (22 November 2023) Government response to Digital Securities Sandbox consultation | Webpage | Autumn Statement 2023 webpage | The Government's response to its July 2023 consultation on the Digital Securities Sandbox (DDS) setting out a summay of the feedback received and the Government's final approach to implementing the DSS, which is intended to facilitate the use of digital assets in financial markets. The Government intends to lay legislation implementing the DSS in due course. | ||
| (22 November 2023) Future of Payments Review 2023 | Webpage | Autumn Statement 2023 webpage | Published as part of the Autumn Statement 2023, the final report follows a review of the UK payments landscape launched at Mansion House in July 2023 and sets out recommendations including that the Government develop a national payments vision and strategy with the primary aim of simplying the environment. | ||
| (7 November 2023) Draft Financial Services and Markets Act 2023 (Consequential Amendments) Regulations 2023 laid before Parliament | Draft Explanatory Memorandum | The draft SI makes consequential amendments in connection with the revocations and repeals of: Article 92b of Regulation (EU) No 575/2013 (CRR) and amending Regulation (EU) No 648/2012 (EMIR); legislation relating to long-term investment funds (LTIFs); Part 2, Schedule 1 and Schedule 2 to the Payment Accounts Regulations 2015 (SI 2015/2038); and legislation containing certain restrictions on powers of the FCA to make rules that modify, amend or revoke retained direct EU legislation. Among other things, the SI also amends: section 50(12) of FSMA 2023 in consequence of section 21(4)(b), to provide that the required content of the Bank of England’s annual report on its regulation of financial market infrastructure is consistent with its regulatory obligations; the Payment Card Interchange Fee Regulations 2015 (SI 2015/1911), in consequence of the amendments made by regulation 3 of the Electronic Money, Payment Card Interchange and Payment Services (Amendment) Regulations 2023 (SI 2023/790); and Regulation (EU) No 600/2014 on markets in financial instruments and amending Regulation (EU) No 648/2012 (MiFIR) to remove the volume cap mechanism that applies to the trading of equity instruments. Subject to parliamentary approval, the SI is expected to come into force on 1 January 2024. |
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| (7 November 2023) HM Treasury policy paper on extending the transition period for third country benchmarks regime | Draft Financial Services and Markets Act 2023 (Benchmarks and Capital Requirements) (Amendment) Regulations 2023 | Draft Explanatory Memorandum | The policy paper explains the Government’s rationale for extending the transitional period from 31 December 2025 to 31 December 2030, namely to use the time provided by the extension to consider where reforms are needed to the third country benchmarks regime, and to make these changes as part of the implementation of the Smarter Regulatory Framework programme. The draft Regulations extend the transitional period for third country benchmarks to 31 December 2030 by amending Article 51(5) of the UK Benchmarks Regulation. HM Treasury intends for the statutory instrument to come into force on 1 January 2024. |
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| (16 October 2023) Draft Resolution of Central Counterparties (Modified Application of Corporate Law and Consequential Amendments) Regulations 2023 laid before Parliament | Draft Explanatory Memorandum | The draft Regulations amend corporate law and make consequential amendments to ensure that the CCP resolution regime introduced in Schedule 11 to FSMA 2023 functions as intended. | ||
| (6 October 2023) Chancellor provides update on delivery of Edinburgh Reforms | Letter from the Chancellor | Letter from the Treasury Committee | The Chair of the House of Commons Treasury Committee had written to the Chancellor requesting a complete list of policies considered to be a strand of the Edinburgh Reforms, what progress has been made on each, and a timescale of when each reform will have been implemented. The Chancellor's response includes a table setting out a list of policy commitments and the estimated dates by which regulations will be made. | ||
| (14 September 2023) FCA blog post on its post-Brexit Handbook | Overview of the FCA's approach to the replacement of REUL with regulatory rules under the enhanced framework introduced by the FSMA 2023. | ||
| (22 August 2023) Financial Services and Markets Act 2023 (Commencement No. 2 and Transitional Provisions) Regulations 2023 (SI 2023/936) made | SI 2023/936 broadly concerns changes introduced by the Financial Services and Markets Act 2023 relating to the regulatory gateway for financial promotions and regulator accountability and objectives. In relation to the financial promotion regulatory gateway, which authorised firms must pass through before being able to approve the financial promotions of unauthorised firms unless an exemption applies, SI 2023/936 brings into force: certain provisions on 6 September 2023 for the purpose of enabling the FCA to give directions and guidance and make rules; certain provisions on 6 November 2023 that begin the period for the FCA to receive applications for permission to approve financial promotions; and, other provisions on 7 February 2024, so far as not already commenced. In relation to regulators, SI 2023/936, disapplies: new accountability requirements and procedural mechanisms that would other otherwise apply to draft rules consulted on by the PRA in its November 2022 consultation paper on the implementation of Basel 3.1 (CP16/22), and other certain rules relating to capital requirements; and, in relation to any applications received before 29 August 2023, the power of regulators to place conditions on an acquisition or increase in control where it is desirable to do so in order to advance that regulator's objectives. |
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| (18 August 2023) HM Treasury, BoE and FCA announce access to cash policy | Press release | HM Treasury policy statement | FCA statement | BoE statement of policy | The documents follow amendments relating to access to cash introduced by the Financial Services and Markets Act 2023 (FSMA 2023), which include allowing HM Treasury to designate firms to be subject to FCA oversight for the purpose of ensuring the continued provision of cash access services, and BoE powers to oversee the wholesale cash industry. | ||
| (7 August 2023) HM Treasury response to July 2022 consultation on payments regulation and the systemic perimeter | Webpage | In relation to payments regulation, the response provides an update on recent developments, including secondary legislation to provide the FCA and PSR with relevant powers over retained EU law for payment services (see SI 2023/790), an intention to publish a response later in 2023 to its call for evidence on replacing the Payment Services Regulations 2017 (SI 2017/752) and Electronic Money Regulations 2011 (SI 2011/99), and an intention to set out next steps following the review of the SM&CR in due course. The response also sets out the Government's intention to expand the BoE's systemic payments perimeter to cover payment providers that pose systemic risks in their own right. The Government intends to issue a further public statement setting out its legislative approach to enacting the reforms and, once legislation is published, for the BoE to set out its approach to its expanded remit. |
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| (7 August 2023) FCA consultation (CP23/17) on rules relating to securitisation | Webpage - closes 30 October 2023 | CP23/17 sets out the FCA's proposed rules to replace the firm-facing provisions from the UK Securitisation Regulation which are being transferred into the FCA Handbook, and contains the proposed legal instrument and all related technical standards and their annexes. The PRA launched a consultation (CP15/23) on its proposed rules on 27 July 2023 (See below). The PRA's proposals in CP15/23 and the FCA's proposals in CP23/17 are together intended to create a coherent framework for regulating securitisation in the UK. The proposed implementation date for the changes resulting from CP23/17 is Q2 2024, subject to the progress of the draft Securitisation Regulations 2023. The FCA plans to hold a second consultation on proposed changes to the reporting regime at a later stage. |
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| (2 August 2023) UK Government publishes webpage on UK Sustainability Disclosure Standards | The Government intends to assess the suitability of the International Sustainability Standards Board’s (ISSB) sustainability disclosure standards (IFRS S1 and S2) for endorsement and to use those standards as a baseline for UK Sustainability Disclosure Standards (SDS). Following endorsement, the UK SDS may be referenced in legal or regulatory requirements for UK entities. The UK Government will set requirements for UK registered companies and limited liability partnerships, while the Financial Conduct Authority (FCA) will set requirements for UK listed companies. The Government intends to make endorsement decisions and create UK SDS by July 2024. |
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| (31 July 2023) PRA publishes updated approach documents on its supervision of the banking and insurance sectors | Both supervision approach documents have been updated to reflect, among other things, the expansion of the PRA's rulemaking role and its new secondary competitiveness and growth objective under FSMA 2023. | ||
| (27 July 2023) PRA consultation (CP15/23) on general requirements relating to securitisation - closes 30 October 2023 | CP15/23 sets out the PRA’s proposed rules to replace retained EU law requirements on PRA-authorised persons in: provisions of the UK Securitisation Regulation for which the PRA has supervisory responsibility; the related Risk Retention Technical Standards; and, the related Disclosure Technical Standards. CP15/23 also covers: adjustments to the scope of PRA supervisory statement 'Securitisation: General requirements and capital framework' (SS10/18); and, the circumstances in which the PRA envisages using a new power under section 138BA of the Financial Services and Markets Act 2000 for disapplying or modifying proposed rules on the use of resecuritisations. The proposed implementation date for the changes resulting from CP15/23 is Q2 2024, subject to the progress of the draft Securitisation Regulations 2023. |
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| (18 July 2023) Co-chairs of the Financial Services Regulatory Initiatives Forum published an update on the Regulatory Initiatives Grid following Royal Assent of the Financial Services and Markets Act 2023 | The update notes the significance of the Act for the financial services regulatory landscape and provides an overview of the most significant developments since the publication of the latest version of the Grid in February 2023. A full update of the Grid is planned for Q4 2023. |
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| (14 July 2023) FCA webpage on repeal and replacement of retained EU law | The webpage sets out overarching principles for the replacement of REUL in the FCA Handbook as well as key documents, current status and next steps for the following files: UK Insurance Distribution Directive (IDD); UK MiFID and MiFIR, and the Wholesale Markets Review (WMR) reforms; UK Money Market Funds Regulation (MMFR); UK PRIIPs Regulation; Payment Accounts Regulations 2015 (SI 2015/2038) (PARs); UK Revised Payment Services Directive (PSD2) and Electronic Money Directive (EMD) and regulations; the prospectus regime; UK Securitisation Regulation, including an intention to publish a consultation in Q3 2023; UK Short-Selling Regulation (SSR); and, UK European Long-Term Investment Fund Regulation (ELTIF). | ||
| (14 July 2023) FCA published draft Rule Review Framework - feedback due 15 September 2023 | The draft Rule Review Framework sets out how the FCA intends to monitor and review whether rules are meeting intended outcomes, including a summary of its approach to new and existing rules, three types of review (evidence assessment, post implementation review and ex post impact evaluations), available actions following review, as well as its approach to reporting and Government-directed reviews. The FCA's immediate priorities for review will be considered in the context of the forthcoming Consumer Duty and the repeal and replacement of REUL. |
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| (14 July 2023) FCA statement on the secondary international competitiveness and growth objective | The statement introduces the secondary objective and sets out the FCA's approach to 'key drivers' of productivity, reporting outcomes and metrics, and updating key processes and documents. | ||
(13 July 2023) FCA publishes further engagement papers on a new public offers and admission to trading regime - responses due 29 September 2023 | Webpage
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These papers follow the publication of Papers 1-4 in May 2023 and form part of the FCA's engagement and dialogue process. The FCA intends to consult on specific rules in 2024. | ||
| (12 July 2023) Electronic Money, Payment Card Interchange Fee and Payment Services (Amendment) Regulations 2023 (SI 2023/790) made and laid before Parliament | Explanatory memorandum | SI 2023/790 is intended to ensure that the Financial Conduct Authority (FCA) has sufficient rulemaking powers, and that the Payment Systems Regulator (PSR) has sufficient powers of direction, in relation to their respective areas of retained EU payments legislation so that they are able to replace retained EU law in line with their respective responsibilities. In particular, SI 2023/790 amends:
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| (11 July 2023) HM Treasury published a suite of policy papers and statutory instruments (SIs) setting out how it intends to take forward the implementation of the new 'Smarter Regulatory Framework' (SRF) following the enactment of the Financial Services and Markets Act 2023, which repeals retained EU law (REUL) for financial services. | HM Treasury published:
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| (11 July 2023) HM Treasury launched a consultation document on the Digital Securities Sandbox (DSS) | Consultation page | HM Treasury launched a consultation on the Digital Securities Sandbox (DSS), which is intended to enable digital securities to be tested and ultimately adopted across financial markets. The consultation sets out the Treasury’s proposed approach to delivering the DSS, which will be the first financial market infrastructure sandbox delivered under the powers granted as part of the Financial Services and Markets Act 2023. |
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| (10 July 2023) The Financial Services and Markets Act 2023 (Commencement No. 1) Regulations 2023 (SI 2023/779) have been made. | These are the first commencement regulations made under the Financial Services and Markets Act (FSMA) 2023. |
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| (10 July 2023) Investment Research Review Report published | The outcome of the independent Investment Research Review, first announced as part of the Edinburgh Reforms, makes a series of recommendations to the Government, FCA and industry, including to: introduce a Research Platform to help generate research; allow additional optionality for paying for investment research; allow greater access to investment research for retail investors; involve academic institutions in supporting investment research initiatives; support issuer-sponsored research by implementing a code of conduct; clarify aspects of the UK regulatory regime for investment research and consider introducing a bespoke regime; and, review the rules relating to investment research in the context of IPOs. The Chancellor has welcomed the report and accepted all recommendations made to Government. The FCA has also published a statement welcoming the report. Background materials: Investment Research Review call for evidence | Review webpage |
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| (5 July 2023) The FCA consultation (CP23/15) on a proposed framework for a UK consolidated tape and acompanying policy statement. | The Financial Conduct Authority (FCA) has launched a consultation (CP23/15) on a proposed framework for a UK consolidated tape, a policy statement (PS23/11) with guidance on the trading venue perimeter, and a wholesale markets pre-application support service (PASS). | PASS webpage | ||
| (30 June 2023) PRA consultation paper on the PRA's proposed approach to reviewing its rules (CP11/23) - closes 29 September 2023 | The PRA already reviews existing rules to assess if they are operating effectively and delivering their intended impact. The PRA aims to use the consultation to gather responses from all stakeholders on how it can enhance its approach to rule review. | ||
| (22 June 2023, draft SIs dated 20 June 2023) HM Treasury, Draft Insurance and Reinsurance Undertakings (Prudential Requirements) Regulations | Draft Insurance and Reinsurance Undertakings (Prudential Requirements) (No. 2) Regulations | Webpage | The draft statutory instruments (SIs), which have been published for the purpose of early engagement and are subject to change, seek to give effect to Solvency II reforms announced in the Government's November 2022 Consultation Response. The Government intends to lay final SIs after the Financial Services and Markets Bill (FSMB) receives Royal Assent. Royal Assent was received 29 June 2023. |
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(18 May 2023) FCA engagement papers on a new public offers and admission to trading regime - responses due 29 September 2023
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The engagement papers are based on a draft statutory instrument (see also policy note), published as part of the Edinburgh Reforms, which seeks to illustrate how implementation powers under the Financial Services and Markets Bill (FSMB) might be used to replace the current prospectus regime. The papers form part of the FCA's engagement and dialogue process. The FCA intends to consult on specific rules in 2024. |
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| (17 May 2023) Financial Services and Markets Act 2000 (Commodity Derivatives and Emission Allowances) Order 2023 (SI 2023/548) | Explanatory memorandum - comes into force 1 January 2025 | The Order amends the FSMA (Regulated Activities) Order 2001 (RAO) and FSMA (Markets in Financial Instruments) Regulations 2017 (SI 2017/701) to remove the obligation on firms trading in commodity derivatives or emission allowances as an ancillary activity to annually notify the FCA when making use of the exemption from authorisation (the ancillary activities exemption). The Order, which forms part of the Wholesale Markets Review (WMR), was announced as part of the Edinburgh Reforms and was made in anticipation of changes being made using powers under the Act, including the revocation of UK RTS 20 and the establishment of a new exemption by the FCA. Background materials: HMT webpage | Ministerial statement |
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| (9 May 2023) HM Treasury call for proposals on measuring regulators' new objectives | Webpage - closed 4 July 2023 | Comments are sought on: the Government's approach to the exercise of its new power under the Bill to direct the FCA and PRA to publish information; and, what specific, additional metrics the FCA and PRA should publish in relation to their new secondary growth and competitiveness objectives. | ||
| (11 April 2023) BoE, PRA and FCA survey on possible critical third party regime | Press release - closed 17 May 2023 | The survey relates to proposals set out in the July 2022 discussion paper on CTP operational resilience (DP3/22) and seeks information from service providers to the UK financial sector on the estimated additional cost of applying the proposed resilience standards and testing requirements to their existing operational resilience activities. | ||
(3 April 2023) HM Treasury, Investment Research Review call for evidence | Review webpage - closed 24 April 2023 NB. |
The call for evidence seeks views on general questions, such as the importance of investment research to the attractiveness of UK public markets to listed companies and those looking to list, as well as more specific regulatory questions, such as the impact of MiFID2 unbundling rules. | ||
| (30 March 2023) HM Treasury consultation on a future regulatory regime for ESG ratings providers | Webpage - closes 30 June 2023 | The consultation, announced as part of the Edinburgh Reforms, sets out initial policy proposals on the scope of a potential regulatory regime for ESG ratings providers, covering: the description of ESG ratings and their provision; exclusions; territorial scope; and, proportionality. | ||
| (30 March 2023) UK Government, Mobilising green investment: 2023 green finance strategy | Webpage | Regulators' statement | The 2023 Strategy, which follows the 2019 Strategy and was announced as part of the Edinburgh Reforms, covers the UK's approach to green finance and how it intends to align the regulatory framework with its climate and environmental goals and create green investment opportunities. It also sets out the Government's commitments over the next year, such as: consulting on a UK Green Taxonomy; launching a formal mechanism for assessing UK adoption of the forthcoming disclosure requirements being developed by the International Sustainability Standards Board (ISSB); providing further detail on the Sustainability Disclosure Requirements (SDR) implementation timeline to reflect international standards; launching a call for evidence on scope 3 emissions reporting; consulting on introducing a requirement for large private companies to disclose transition plans; and, reviewing the regulatory framework for effective stewardship, including the operation of the Stewardship Code. | ||
| (30 March 2023) Senior Managers and Certification Regime (SM&CR) review: HM Treasury call for evidence | Webpage - closes 1 June 2023 | PRA and FCA discussion paper (DP1/23) - closed 1 June 2023 | The SM&CR review was announced as part of the Edinburgh Reforms and concerns the performance, effectiveness and scope of the regime, with HM Treasury conducting a review of the legislative aspects and the regulators (the PRA and FCA) conducting a review of the operational aspects. | ||
| (2 March 2023) HM Treasury call for evidence on aligning the ring-fencing and resolution regimes | Webpage - closed 7 May 2023 | The call for evidence was announced as part of the Edinburgh Reforms and is the first stage in the Government's response to the Skeoch Review recommendation to review the ring-fencing and resolution regimes, covering: future benefits of the ring-fencing regime; the costs of the ring-fencing regime; and, long-term options for aligning the ring-fencing and resolution regimes. | ||
| (20 February 2023) FCA discussion paper on updating and improving the UK asset management regulatory regime (DP23/2) | Webpage | Press release - closed 22 May 2023 | DP23/2 seeks views on how the asset management regime might be modernised when the FCA becomes responsible for moving relevant retained EU law into its rulebook, as proposed under the Bill. It covers the following areas: simplifying or restructuring the rules for asset managers; the retail funds regime; the professional fund managers regime; rules for authorised fund managers (AFMs), depositories and funds; technology in fund operations; fund tokenisation; and, improving investor engagement through technology. | ||
| (13 January 2023) HM Treasury review of the Payment Services Regulations 2017 (PSRs) and call for evidence on how UK payments regulation should evolve | Webpage - closed 7 April 2023 | The document fulfils the Government's obligation to review the PSRs under Regulation 158 and seeks views on how UK payments regulation should evolve to continue to meet the Government’s aims and address the specific challenges highlighted in the review (which also covers the Electronic Money Regulations and the Cross-border Payments Regulations). | ||
| (13 December 2022) FCA discussion paper on the future disclosure framework for retail investments (DP22/6) | Webpage | Press release – closed 7 March 2023 | DP22/6 follows the publication of HM Treasury's Edinburgh Reforms consultation paper on revoking PRIIPs and UCITS disclosure requirements and seeks views on the delivery, presentation and content of retail disclosure. |
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| (9 December 2022) FCA document outlining its proposed future approach to the implementation of the FRF | Webpage | The document sets out the FCA's current approach and proposed next steps in relation to: its objectives and regulatory principles; accountability, scrutiny and stakeholder engagement, including an intention to consult on a rule review framework; and the transfer to the FCA of responsibility for firm-facing requirements currently set out in retained EU law. | ||
| (9 December 2022) Markets in Financial Instruments (Investor Reporting) (Amendment) Regulations 2022 (SI 2022/1297) made and laid before Parliament | Explanatory memorandum | Ministerial statement | The purpose of the SI is to implement changes to the investor reporting as part of the Wholesale Markets Review. In particular, SI 2022/1297 amends the UK MiFID Org Regulation (2017/565) to extend the following changes made by SI 2021/774 in respect of professional or sophisticated clients to retail clients: makes electronic communications the default method for investment firms when communicating with their clients; and removes obligations for investment firms providing portfolio management services to a retail client to inform the client when the overall value of the portfolio depreciates. |
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| (9 December 2022) HM Treasury call for evidence on its review of the Short Selling Regulation (SSR) | Webpage | Press release – closed 5 March 2023 | Sets out the Government's plans to revoke the UK SSR and seeks views on a new framework for the regulation of short selling. |
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| (9 December 2022) HM Treasury consultation paper on PRIIPs and UK Retail Disclosure | Webpage | Press release – closed 3 March 2023 | Sets out the Government’s plans to revoke the UK PRIIPs Regulation and seeks views on a proposed alternative framework for retail disclosure. |
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(9 December 2022) Illustrative statutory instruments on:
These were published alongside the policy statement directly below. |
These example SIs seek to illustrate how HM Treasury might use its implementation powers under the Bill. These have been published for information purposes only and should not be seen as a final product or a draft for consultation. | ||
| (9 December 2022) HM Treasury Policy Statement – Building a smarter financial services framework for the UK | Webpage | Press release | Sets out the Government's approach to its implementation programme, including underpinning principles and a proposed phased approach to retained EU law policy areas. A core list of EU financial services files in scope of the implementation programme is set out in an annex to the policy statement. | ||
| (2 October 2022) UK Government press release on widening exemptions for SMEs from future and reviewed regulations | Press release on a change to the Government's starting assumption when developing policy by amending the UK SME definition to raise the threshold from 250 to 500 employees. The Government intends to apply the new threshold from 3 October 2022 to all new regulations under development as well as those under current and future review, including retained EU law, and to consult in the future on potentially extending the threshold to 1000 employees. |
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| (22 September 2022) FCA consultation paper on new guidance on the regulatory perimeter for trading venues (CP22/18) | Webpage | Press release - closed 11 November 2022 | Consultation as part of the Wholesale Markets Review (WMR) on new FCA Handbook guidance seeking to clarify the concept of a multilateral system and how this should be applied to specific types of arrangements in financial markets. Views are also sought on whether the trading venue regime can be made more proportionate for smaller firms. | ||
| (8 September 2022) PRA discussion paper on its approach to policy (DP4/22) | Webpage | Press release - closes 8 December 2022 | Discussion paper on the PRA's proposed approach to expanded policy and rule-making responsibilities under the Bill. Responses are intended to inform a future consultation on the PRA's approach to policy, which the PRA expects to publish after the Bill receives Royal Assent. |
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| (21 July 2022) BoE, PRA and FCA joint discussion paper on assessing and strengthening the resilience of services provided by critical third parties (CTPs) (DP3/22) | Press release | FCA webpage - closed 23 December 2022 | Discussion paper sets out potential measures the supervisory authorities could introduce using their proposed powers in the Bill, including: a framework for identifying potential CTPs and recommending their designation to HM Treasury based on the proposed designation criteria in the FSM Bill; minimum resilience standards that CTPs could be required to meet in respect of material services they provide to firms and financial market infrastructure firms (FMIs); and, resilience testing of CTPs set by the supervisory authorities and focused on the material services provided to firms and FMIs. | ||
| (5 July 2022) FCA consultation paper on improving equity secondary markets (CP 22/12) | Webpage – closed 16 September 2022 | Consultation paper on proposals to improve how UK-based equity markets operate. The proposed reforms concern parts of the regime that are already set out in regulatory rules and are therefore not contingent on the changes that would be implemented via the Bill. |
The Act implements outcomes of the Wholesale Markets Review, which was launched in July 2021, with the aim of improving the competitiveness and increasing the flexibility of wholesale capital markets regulation by making the following nine changes to the UK MiFID2 framework:
The above changes are set out in Schedule 2 to the Act, which makes amendments to UK MiFIR, UK EMIR and the MiFI Regulations (SI 2017/701).
See the Implementation of the Framework section of Implementing the Future Regulatory Framework (above) for further developments relating to the implementation of the Wholesale Markets Review.
Background materials
More information is available on the MiFID2 and MiFIR Topic Guide and the EMIR Topic Guide.
The Act establishes a FSMA model for the regulation of financial market infrastructure (FMI) to replace frameworks that currently sit in retained EU law by making the following changes:
The measures relating to FMI are set out in Chapter 2 of Part 1, Part 3 and Part 4 of the Act.
In this section: Mutual recognition | Simple, Transparent and Standardised (STS) Securitisations | Critical third parties | Digital settlement assets | Access to cash | Cash ratio deposits | Insurers in financial difficulties | Authorised push payment (APP) scams | Financial promotions | Change in control
The Act provides for HM Treasury to make changes to domestic legislation necessary to implement the UK's mutual recognition agreements providing for the mutual recognition of the equivalence of rules and practices of the UK and other jurisdictions in relation to financial services. This includes the ability to grant any additional powers to the regulators that are required to give effect to such agreements.
The measures relating to mutual recognition are set out in section of the Act.
The Act creates a framework under which HM Treasury can designate other jurisdictions as having an STS securitisation framework equivalent to that of the UK.
The measures relating to the equivalence framework for STS securitisations are set out in Schedule 2, Part 3 to the Act, which amend the UK Securitisation Regulation (EU) 2017/2402.
More information is available on the STS Framework Topic Guide.
The Act enables HM Treasury to designate certain third parties providing services to regulated firms and FMIs as 'critical' on the basis of the following criteria: the materiality of the services provided; and the number and type of firms which use a third party.
The Act also gives the BoE, PRA and FCA the powers to make rules, gather information and take limited enforcement actions in respect of the services provided by designated critical third parties.
The amendments to FSMA relating to critical third parties are set out in sections 18 and 19, and Part 6 of Schedule 2 to the Act.
The Act brings activities facilitating the use of certain stablecoins, where used as a means of payment, into the UK regulatory perimeter primarily by amending the existing electronic money and payment system regulatory frameworks to:
The amendments relating to digital settlement assets are set out in sections 22 and 23, and Schedule 6 to the Act.
During its passage through Parliament, a new clause 65 has been added to the Bill to allow HM Treasury to expand the UK's regulated activities framework to encompass cryptoasset related activities. To this end, the Government has published discussion papers and consultations on its regulatory approach to wider cryptoassets (beyond stablecoins used for payments), which are intended to complement the digital settlement assets amendments set out in the Act.
The Government is taking a phased approach to regulating cryptoassets:
Phase II (cryptoassets)
Phase I (digital settlement assets)
More information is available on the Fintech Topic Guide.
The Act allows HM Treasury to designate firms to be subject to FCA oversight for the purpose of ensuring the continued provision of cash access services (both for withdrawals and deposits) across the UK.
The Act also gives the BoE powers to oversee the wholesale cash industry, including powers to oversee and regulate the market activities of the industry and to prudentially regulate systemic entities in the market (should any emerge in the future).
The amendments relating to access to cash are set out in Schedules 8 and 9 to the Act.
The Act replaces the cash ratio deposit scheme, under which banks currently fund the BoE's monetary policy and financial stability functions, with a new levy scheme.
The amendments introducing the new scheme are set out in clauses 62 and 63 of the Act.
The Bill makes targeted amendments to the existing insolvency arrangements for insurers to:
The amendments relating to insurers in financial difficulties are set out in section 58 of and Schedules 12 and 13 to the Act.
The Act amends the Payment Services Regulations 2017 to clarify that the PSR can use its regulatory powers (whether in relation to payment system operators, payment service providers, or in combination) to require mandatory reimbursement by payment service providers in cases of APP scams.
The amendments relating to APP scams are set out in section 72 of the Bill.
The Act establishes a 'regulatory gateway' requiring authorised firms to obtain a specific permission from the FCA to approve the financial promotions of unauthorised firms.
The Act also provides HM Treasury with a power to specify the relevant exemptions from the requirement for FCA permission to approve promotions.
The amendments relating to financial promotions are set out in section 20 of and Schedule 5 to the Act.
The Act broadens the range of circumstances in which the regulators can impose conditions on an approval for a change in control of an authorised firm to enable the regulators to impose conditions to new controllers where it is appropriate to do so in order to advance the regulators' objectives.
The amendments relating to change in control are set out in section 61 of the Act.
On 9 December 2022, the UK Government announced a package of reforms to the UK's regulatory framework for financial services aimed at maintaining and building the competitiveness of the UK as a global financial centre.
The package, which builds on the 2021 Chancellor's Mansion House speech, seeks to take forward the implementation of a Financial Services and Markets Act 2000 (FSMA) model of regulation through powers established in the Bill.
Measures set out in the package include:
The Government also announced intentions to:
HM Treasury also published a policy statement setting out its approach to replacing retained EU law using powers established in the Bill and a core list of EU financial services files in scope of the programme, as well as draft statutory instruments intended to illustrate how HM Treasury intends to use its powers.
For more information, see the Revocation, revision and replacement of retained EU law section and Tracking the implementation of the Future Regulatory Framework section of this Topic Guide.
Background materials
