| Link(s): Financial Services Act 2021 (legislation.gov.uk) Milestone for UK financial services as Bill receives Royal Assent – GOV.UK |
Context
The UK has taken an important first step in shaping its own financial services regulation outside the EU with the Financial Services Bill receiving Royal Assent on 29th April 2021.
Key points to note
- The Financial Services Bill has received Royal Assent and is now law.
- It represents a major milestone in shaping a regulatory framework for UK financial services outside of the EU.
- It enhances competitiveness of the sector and ensures it continues to deliver for UK consumers and businesses.
- The new Financial Services Act 2021 will ensure the UK remains an open and dynamic financial centre, with the highest regulatory standards, and will 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 the UK.
- 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 FCA 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 several 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.
Next actions
Firms still considering options for dealing with EU clients post-Brexit may wish to review the content of the guide.