The Government’s new Financial Services Bill will maintain the UK’s “world-leading regulatory standards and openness to international markets”, it has been announced.
It comes just eight weeks ahead of the end of the Brexit transition period, after which the UK will be free to implement its own financial services rules and regulations.
However, the Bill must pass through Parliament and be subject to the usual processes of legislative scrutiny in both the House of Commons and the House of Lords before it can become law.
According to the Government, the new Financial Services Bill will:
- “Enhance the UK’s world-leading prudential standards and promote financial stability”
By “enabling the implementation of the remaining Basel III standards and a new prudential regime for investment firms, and giving the Financial Conduct Authority the powers it needs to oversee an orderly transition away from the LIBOR benchmark”.
- “Promote openness between the UK and international markets”
By “simplifying the process to market overseas investment funds in the UK and delivering a Ministerial commitment to provide long-term access between the UK and Gibraltar for financial services firms”.
- And “Maintain an effective financial services regulatory framework”
By “including measures to improve the functioning of the Packaged Retail and Insurance-based Investment Products Regulation and increase penalties for market abuse”.
Introducing the Bill, John Glen, Economic Secretary to the Treasury, said: “Now the UK has left the EU, we must ensure we have a regulatory regime that works for the UK and allows us to seize new opportunities in the global economy.
“Following the work we’ve done to prepare for EU exit and ensure a smooth transition to a UK rule book, this Bill is the next step in delivering a regulatory framework that boosts the competitiveness of our world-leading financial services sector and ensures that UK consumers are properly protected.”
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