The Financial Services & Markets Act 2023 has arrived!

United Kingdom

The Financial Services and Markets Bill has received Royal Assent to become the Financial Services and Markets Act 2023. The Act makes significant reforms to the regulation of financial services in the UK.

The main driver for the Act was to establish HMT’s Future Regulatory Framework by providing the legislative architecture for the transfer of EU retained law to the FCA and PRA rulebooks.

Other key reforms under the Act include:

  • Establishing a framework for the designation of Critical Third Parties;
  • Introducing a ‘regulatory gateway’ for financial promotions;
  • Bringing certain stablecoins within the UK regulatory perimeter;
  • Delivering priority measures identified by the FCA’s Wholesale Markets Review;
  • Establishing a framework for the regulation of Financial Market Infrastructures and extending the application of the SM&CR to Financial Market Infrastructures;
  • Giving the FCA and PRA a new secondary objective to advance long-term growth and competitiveness;
  • Introducing new regimes for central counterparties and insurers in financial difficulties.

Most of the Act’s provisions will come in at later dates to be appointed by HM Treasury in statutory instruments.

If you would like any further information on the new Act, please get in touch with your usual CMS contact or any of the individuals listed here.