Financial Services Bill receives Royal Assent

clock

The Financial Services Bill, which will deliver fundamental reform of financial regulation in the UK, has received Royal Assent.

The Bill, which has now become an Act of Parliament, will be known as the Financial Services Act and sets out a clear and coherent regulatory framework, replacing the uncertainty and inadequacy of the failed Tripartite system.

The Act, which comes into force from 1 April next year, will:

• give the Bank of England responsibility for protecting and enhancing financial stability, bringing together macro and micro prudential regulation;

• abolish the Financial Services Authority (FSA) and create a strengthened regulatory architecture consisting of the Financial Policy Committee, the Prudential Regulation Authority and the Financial Conduct Authority; and

• empower authorities to look beyond ‘tick-box' compliance and foster a regulatory culture of judgment, expertise and proactive supervision.

Greg Clark, financial secretary to the Treasury, said: "I am delighted that the Financial Services Bill has received Royal Assent today.

"The Financial Services Act replaces a regulatory structure which palpably failed when tested by crisis. It sets out a comprehensive regulatory framework designed to enhance financial stability in the future and protect consumers.

"It takes important steps to focus the regulators on rebuilding competition in a banking sector that has become too concentrated.

"It is important that the reputation of the UK as a global financial centre is underpinned by a regulatory environment in which the world's investors, as well as British taxpayers, can have confidence. These reforms - as well as those in the forthcoming Banking Reform Bill - can help rebuild confidence and trust."

More on Regulation

IPT receipts hit £1.2bn in November

IPT receipts hit £1.2bn in November

£6.65bn for the year

Cameron Roberts
clock 20 December 2024 • 2 min read
Firms using GDPR as scapegoat for Consumer Duty failures: MorganAsh

Firms using GDPR as scapegoat for Consumer Duty failures: MorganAsh

Risking regulatory action

Cameron Roberts
clock 17 December 2024 • 2 min read
FCA releases best practices for Consumer Duty board reports

FCA releases best practices for Consumer Duty board reports

Focus on data quality

Cameron Roberts
clock 12 December 2024 • 2 min read

Highlights

COVER Survey: Advisers damning of protection insurer service levels

COVER Survey: Advisers damning of protection insurer service levels

"It takes longer than ever to get underwriting terms"

John Brazier
clock 12 October 2023 • 5 min read
Online reviews trump price for young people selecting life and health cover

Online reviews trump price for young people selecting life and health cover

According to latest ReMark report

John Brazier
clock 11 October 2023 • 2 min read
ABI members with staff neurodiversity policy nearly doubles

ABI members with staff neurodiversity policy nearly doubles

Women within executive teams have grown to 32%

Jaskeet Briah
clock 10 October 2023 • 3 min read