The Financial Services and Markets Bill (FSMB) has swiftly obtained Royal Assent, a mere nine days after receiving approval from the upper house (the House of Lords).
With the completion of this process, the bill is now poised to officially become law in the UK, having successfully passed through both houses and received the formal assent of the monarch.
According to the official post on the government website, the recently enacted legislation incorporates new powers made available as a result of Brexit, that will pave the way for reforms to Solvency II. These reforms are anticipated to unlock approximately £100billion, fostering productive investments, stimulating innovation, and contributing to economic growth.
Economic secretary to the Treasury, Andrew Griffith expressed a positive outlook and belief that the year 2023 will be significant for implementing reforms in the financial services sector.
He said: “2023 is proving to be a banner year for reforming our financial services. This landmark piece of legislation gives us control of our financial services rulebook, so it supports UK businesses and consumers and drives growth.
“By repealing old EU laws set in Brussels it will unlock billions in investment – cash that can unlock innovation and grow the economy.”
The new Act brings significant changes to the financial services sector. It enhances scrutiny of regulators, removes unnecessary restrictions on wholesale markets, protects access to cash, regulates crypto-assets, and establishes sandboxes for innovative technologies like blockchain. These measures aim to ensure accountability, foster growth, and promote a secure and dynamic financial environment.
FSMB further strengthens UK position as crypto hub
The set-to-be-passed bill was initially presented to the parliament in July 2022 as a means of tailoring financial services to suit the UK market after departure from the EU. It also aimed to facilitate the implementation of recommendations derived from the Future Regulatory Framework (FRF) review and uphold the UK’s status as a globally accessible and open financial hub.
Following the approval by the upper house of parliament, house member Baroness Joanna Penn highlighted the bill’s objective of achieving a delicate balance of granting regulators greater authority in shaping rules and maintaining their accountability for their decisions.
“This bill delivers the outcomes of the future regulatory framework review, giving the regulators significant new rulemaking responsibilities, whilst balancing that additional responsibility with clear accountability, appropriate democratic input, and transparent oversight,” she said.
The bill’s approval is a further indication of the UK’s efforts to position itself as a favourable destination for blockchain-based businesses. Its efforts are already yielding significant dividends as top companies are making plans to cite their business in the country.
