Key Takeaways
- The comprehensive bill spans 335 pages and is a robust financial services and markets framework to fortify the UK’s economic systems in the post-European Union era.
- The second chamber has approved the bill of the Houses of Parliament, the House of Lords.
During a meeting held on June 19, the House of Lords in the UK Parliament witnessed widespread support for the passage of the Financial Services and Markets Bill (FSMB). The primary objective of this legislation is to strengthen the country’s financial services industry, ensuring its resilience and competitiveness following the aftermath of Brexit.
Having already received approval from the House of Commons, the bill now advances to the final stages, including consideration of amendments and securing Royal Assent. Emphasizing the significance of the bill, members of the House of Lords expressed their commitment to crafting an effective regulatory framework that caters to the evolving needs of the financial services sector.
The FSMB aligns with the outcomes of the future regulatory framework review, empowering regulators with additional rulemaking responsibilities. The bill also places a strong emphasis on ensuring accountability, democratic input, and transparent oversight to strike a balance between regulatory authority and public interest.
Baroness Joanna Penn, a prominent figure in the House of Lords, remarked, “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.”
Introduced to the UK Parliament in July 2022, the Financial Services and Markets Bill aims to safeguard the country’s position in the global financial landscape after Brexit. The comprehensive bill spans 335 pages and serves as robust financial services and markets framework to fortify the UK’s financial systems in the post-European Union era.
One notable aspect of the bill is its extension of the Banking Act of 2009 and the Financial Services (Banking Reform) Act of 2013, enabling their coverage of “digital settlement assets” (DSAs). As a result, the Treasury gains the authority to regulate DSAs, payments made with DSAs, DSA service providers, and DSA insolvency arrangements.
The recent proceedings on June 19 were part of an ongoing effort to refine the bill and ensure its efficacy in achieving its intended objectives. The House of Commons will have the opportunity to propose amendments to the bill, which will then be reviewed and approved or denied by the House of Lords. This iterative process will continue until both Houses agree on the bill’s final version.
Furthermore, the UK government has expressed its ambition to position the nation as a global hub for crypto asset technology. Andrew Griffith, the Economic Secretary to the Treasury, revealed in April that specific cryptocurrency regulations can be expected within the next 12 months. This proactive stance by the government indicates its commitment to adapting to the evolving financial landscape and embracing innovative technologies.
