Financial Services and Markets Bill

Financial Services and Markets Bill

“New legislation will strengthen the United Kingdom’s financial services industry, ensuring that it continues to act in the interest of all people and communities”.

The purpose of the Bill is to:

● Maintain and enhance the UK’s position as a global leader in financial services, ensuring the sector continues to deliver for individuals and businesses across the country. This will promote a competitive marketplace for the effective use of capital, supporting economic growth.

● Seize the benefits of Brexit, by establishing a coherent, agile and internationallyrespected approach to financial services regulation that best suits the interests of the UK.

The main benefits of the Bill would be:

● Cutting red tape in the financial sector to make the UK an even more attractive place to invest and do business, while making sure that high standards are maintained.

● Harnessing the opportunities of innovative technologies in financial services, including supporting the safe adoption of cryptocurrencies and resilient outsourcing to technology providers.

● Supporting individuals’ confidence in financial services by ensuring continued access to cash across the UK and protecting people from scams.

The main elements of the Bill are:

● Revoking retained EU law on financial services and replacing it with an approach to regulation that is designed for the UK.

● Updating the objectives of the financial services regulators to ensure a greater focus on growth and international competitiveness.

● Reforming the rules that regulate the UK’s capital markets to promote investment.

● Ensuring that people across the UK continue to be able to access their own cash with ease.

● Introducing additional protections for those investing or using financial products, to make it safer and support the victims of scams.

Territorial extent and application

● The Bill will extend and apply across the UK.

Key facts

● Financial and related professional services are vital to the UK economy, employing more than 2.3 million people across the UK, and contributing more than £193 billion (including £75 billion in tax) to the economy.

● Since the Chancellor’s speech at Mansion House in July 2021, we have made significant progress delivering the Government’s ambitious vision for the financial services sector to ensure it acts in the interests of communities and citizens, creating jobs, supporting businesses, and powering growth across all parts of the

UK. The Government has:

o continued to negotiate a ground-breaking Mutual Recognition Agreement with Switzerland, incorporated financial services provisions in trade deals with Australia and New Zealand, and reached agreement in principle on a

Digital Economy Agreement with Singapore; and

o continued to take forward measures in response to the Kalifa Review of UK

Fintech, such as securing funding to establish the Centre of Finance,

Innovation and Technology, to ensure the UK remains a world-leader in fintech.

● Removing restrictions on trading in wholesale markets will benefit around 3,200 investment firms in the UK who are currently prevented from getting the best price for investors.

● Cash remains an important payment method for millions of people across the UK, particularly those in vulnerable groups. Cash is the second most frequently used method of payment in the UK, and around 5.4 million adults (ten per cent) rely on cash to a very great or great extent in their daily lives.