The FSMB sets out the financial regulatory framework to help build a more competitive financial services sector post-Brexit. It also draws on delivering better outcomes for consumers and businesses in the UK by addressing issues such as fraud and access to cash.

FSMB, Expected for some time, FSMB is designed to enact the findings from HM Treasury’s Future Regulatory Framework (FRF) Review which launched in response to Brexit.

Key Reforms in the Financial Services & Markets Bill:

Revoking retained EU law on financial services and replacing it with an approach to regulation designed for the UK –building on the existing model established by the Financial Services and Markets Act 2000 (FSMA 2000).
A new growth and international competitiveness secondary objective for the PRA and FCA, more rule making powers for the FCA and PRA –and more reporting and transparency obligations.
Reforming the UK’s rules on markets to promote investment. This means tweaking EU-derived rules currently applied to UK markets in favour of the needs of UK market participants and bringing some digital assets into the regulatory perimeter.

New Measures in the Financial Services & Markets Bill:

Ensure that people across the UK can access their cash with ease
Introduce additional protections for those investing or using financial products
Make it safer and support victims of scams
Reform Solvency II and establish a Solvency UK regime
Providing an opportunity for amending the regulatory framework for the safe adoption of cryptoassets

The UK’s regulatory framework is key to the competitiveness and global attraction of the financial services sector, and crucially investment in the wider UK economy. Securing the UK’s position as a global centre of financial services therefore heavily relies on the FSMB's ability to deliver world-leading, high-quality regulation.

For those in financial services, we are now at a critical point.

Next Steps for the Financial Services & Markets Bill:

More details on the timing of specific regulatory initiatives will follow in the autumn, as the Bill starts its legislative passage through Parliament, providing the opportunity for businesses to influence the process. Second Reading of the Bill (where MPs debate its main principles) is due to commence on Wednesday 07 September 2022, and if the bill follows conventional parliamentary procedure, we can expect the bill to receive Royal Assent by Q2 2023. The Government have committed to expanding on measures such as cryptoassets in consultations that are expected later this year.

This year’s Party Conference Season too will provide a platform for which organisations will build relations with key stakeholders involved in the passage of the Bill – taking a hand in shaping the UK’s financial services regulatory framework.