Financial Services Bill receives Royal Assent

On the 29th April the Financial Services Bill received Royal Assent and has now passed into law. The Financial Services Act 2021 as it is now known, is seen by many as a milestone in the formation of what will become a regulatory framework for UK financial services outside of the European Union.

The Financial Services Act makes various amendments to the current regime such as the introduction of a new prudential regime for credit institutions and investment firms and the implementation of the remaining Basel III standards; the provision of additional powers for the Financial Conduct Authority to ensure a smooth transition away from the LIBOR benchmark, and a simplification of the process enabling overseas investment funds to be marketed in the UK and a commitment to ensure long-term access between the UK and Gibraltar.

The Act also introduces an additional power for HM Treasury to bring “interest-free buy-now pay-later” products within the scope of FCA regulation, amends the Payment Services Regulations to make it easier for retailers of all sizes to offer cashback without a purchase, and extends the maximum sentence for criminal market abuse offences from seven to 10 years’ imprisonment.

To view the Financial Services Act 2021 as enacted, please click here.

“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.”

Economic Secretary to the Treasury, John Glen