The Financial Services and Markets Act 2023 has received Royal Assent, signifying a pivotal moment in reclaiming control over the UK’s financial services rulebook. This legislation is at the core of the government’s vision to cultivate an open, sustainable, and technologically advanced financial services sector.
Tailoring Financial Services Regulation to UK Markets
The Act capitalizes on the opportunities presented by Brexit by customizing financial services regulation to suit the unique characteristics of UK markets. By doing so, it reinforces the competitiveness of the UK as a global financial center, benefiting both consumers and businesses.
Unlocking Investment Opportunities and Fostering Innovation
One of the key provisions of the Act is the introduction of new powers made available due to Brexit. These powers pave the way for reforms to Solvency II, a regulatory framework for insurance companies. Unlocking approximately £100 billion for productive investment, these reforms aim to stimulate innovation, foster economic growth, and ensure the UK remains at the forefront of financial services.
Enhancing Objectives and Accountability of Regulatory Authorities
The Act also introduces new secondary objectives for the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA). These objectives are focused on facilitating the growth and international competitiveness of the UK economy. Additionally, the Act includes measures to enhance the scrutiny and accountability of the regulators, such as regular reporting and a greater emphasis on cost-benefit analyses.
Andrew Griffith’s Perspective: Driving Reform and Economic Growth
Economic Secretary to the Treasury, Andrew Griffith, emphasizes the significance of the legislation in reforming the financial services sector. He highlights the Act’s role in regaining control of the financial services rulebook, supporting UK businesses, and fostering economic growth. By repealing outdated EU laws, the Act unlocks substantial investments, fueling innovation and stimulating the economy.
Enabling Key Reforms and Enhancing Competitiveness
The changes brought about by the Act paved the way for implementing crucial reforms, including the Edinburgh Reforms. These reforms position the UK as a dynamic and highly competitive financial services hub. Notably, they enable the implementation of Lord Hill’s UK Listing Review, simplifying the UK prospectus regime and making the UK an even more favorable destination for companies seeking to undergo an initial public offering (IPO).
Source: Gov[Dot]UK
