Financial Services and Markets Act 2023
| Jurisdiction | UK Non-devolved |
| Year | 2023 |
| Citation | 2023 c. 29 |
Financial Services and Markets Act 2023
2023 Chapter 29
An Act to make provision about the regulation of financial services and markets; and for connected purposes.
[29 June 2023]
Be it enacted by the King’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—
PART 1
Regulatory framework
CHAPTER 1
Revocation of retained EU law
1 Revocation of retained EU law relating to financial services and markets
(1) The legislation referred to in Schedule 1 is revoked.
(2) In that Schedule—
(a)
(a) Part 1 refers to retained direct principal EU legislation;
(b)
(b) Part 2 refers to subordinate legislation;
(c)
(c) Part 3 refers to EU tertiary legislation and subordinate legislation made under an instrument referred to in Part 2;
(d)
(d) Part 4 refers to primary legislation;
(e)
(e) Part 5 refers to other EU-derived legislation not covered by Parts 1 to 3.
(3) Any rights, powers, liabilities, obligations, restrictions, remedies and procedures which—
(a)
(a) continue to be recognised and available in domestic law by virtue of section 4 of the European Union (Withdrawal) Act 2018, and
(b)
(b) are derived from any provision of legislation referred to in Schedule 1,
cease to be so recognised and available in domestic law.
(4) The revocation of any legislation in accordance with this section does not affect the continued effect of any amendments to other legislation made by that revoked legislation (as those amendments had effect immediately before the revocation).
(5) The Treasury may by regulations provide for specified subordinate legislation, or for subordinate legislation of a specified description, otherwise falling within Part 5 of Schedule 1, not to fall within that Part.
(6) Regulations under subsection (5) are subject to the negative procedure.
2 Transitional amendments
(1) Schedule 2 amends particular legislation referred to in Schedule 1 in relation to the transitional period.
(2) In this Chapter “”, in relation to any legislation, means the period ending with the revocation of that legislation.
(3) The amendments in Schedule 2 do not restrict the power in section 3 to modify legislation as amended by that Schedule.
3 Power to make further transitional amendments
(1) The Treasury may by regulations modify legislation referred to in Schedule 1 in relation to the transitional period.
(2) The power under subsection (1) is exercisable only by making such modifications as the Treasury consider necessary or desirable for or in connection with one or more of the following purposes—
(a)
(a) protecting and enhancing the integrity or stability of the financial system operating in the United Kingdom;
(b)
(b) promoting the safety and soundness of persons providing financial services;
(c)
(c) promoting effectiveness in the functioning of financial markets;
(d)
(d) promoting effective competition in the interests of consumers in financial services and markets or persons who use, or are likely to use, services provided by payment systems in the course of business carried on by those persons;
(e)
(e) facilitating the international competitiveness of the economy of the United Kingdom and its growth in the medium to long term;
(f)
(f) protecting consumers and those who are, or may become, insurance policyholders;
(g)
(g) providing for efficient and effective arrangements in relation to the exercise of functions under the Banking Act 2009 or Part 4 of this Act;
(h)
(h) protecting public funds;
(i)
(i) implementing, or making changes to reflect, developments in international standards and practices relating to, or applied for the purposes of, the provision of financial services or the operation of financial markets;
(j)
(j) providing for efficient and effective regulatory, enforcement, investigatory and supervisory arrangements in relation to the provision of financial services or the operation of financial markets;
(k)
(k) removing provisions that are yet to be commenced or changing the timing of their commencement.
(3) In subsection (2)—
(a)
(a) the integrity of the financial system operating in the United Kingdom includes the matters listed in section 1D(2) of FSMA 2000;
(b)
(b) references to financial markets include references to financial exchanges;
(c)
(c) “” has the meaning given by section 1G(1) of FSMA 2000;
(d)
(d) “” has the same meaning as in Part 5 of the Financial Services (Banking Reform) Act 2013 (see section 41 of that Act);
(e)
(e) the reference to regulatory arrangements includes (among other things) a reference to arrangements for the making of rules.
(4) In modifying legislation for or in connection with a purpose mentioned in subsection (2) regulations under this section may—
(a)
(a) confer powers on the Treasury or on a regulator;
(b)
(b) authorise the making of subordinate legislation by the Treasury;
(c)
(c) authorise the making of rules or other instruments by a regulator;
(d)
(d) provide for fees to be charged by a regulator in connection with the carrying out of its functions;
(e)
(e) apply (with or without modifications), or make equivalent or similar provision to, provisions made by or under FSMA 2000 (including criminal offences created by that Act).
(5) The power under section 84(2)(c) to make supplementary, incidental, consequential, transitional, transitory or saving provision includes, in relation to regulations under this section, power to restate legislation in a clearer or more accessible way.
(6) Before making regulations under this section the Treasury must consult the regulators.
(7) The duty under subsection (6), so far as relating to the Bank of England or the Payment Systems Regulator, applies only if, and to the extent that, the Treasury think it appropriate to consult that regulator in view of the modifications being made by the regulations.
(8) The power under subsection (1) to modify legislation does not include power to modify—
(a)
(a) primary legislation referred to in Part 4 of Schedule 1;
(b)
(b) technical standards of the kind mentioned in section 138P(2)(a) of FSMA 2000;
(c)
(c) EU tertiary legislation of the kind mentioned in section 138P(2)(b) of FSMA 2000.
(9) Regulations under this section that modify only the following kinds of legislation referred to in Schedule 1 are subject to the negative procedure—
(a)
(a) EU tertiary legislation;
(b)
(b) subordinate legislation that was not subject to affirmative resolution on being made.
(10) Regulations under this section to which subsection (9) does not apply are subject to the affirmative procedure.
4 Power to restate and modify saved legislation
(1) The power under section 86(5) to make saving provision in connection with the revocation of any legislation referred to in Schedule 1 includes power to restate that legislation (as it has effect immediately before its revocation)—
(a)
(a) by amending primary legislation or subordinate legislation, or
(b)
(b) by making new subordinate legislation.
(2) Regulations made by virtue of subsection (1) may make such modifications of the legislation being restated as the Treasury consider necessary or desirable for or in connection with—
(a)
(a) the purpose of making the law clearer or more accessible, or
(b)
(b) any of the purposes mentioned in section 3(2).
(3) Legislation restated by virtue of subsection (1) is not retained EU law.
(4) Where legislation is restated by virtue of subsection (1), the Treasury may by regulations make such further modifications of that legislation as they consider necessary or desirable for or in connection with a purpose referred to in subsection (2)(a) or (b).
(5) Subsection (4) of section 3 applies to regulations made under, or by virtue of, this section as it applies to regulations made under that section.
(6) The power conferred by virtue of subsection (1) to restate legislation may be exercised in relation to the entirety of that legislation or in relation to such parts of it as the Treasury consider appropriate.
(7) The power conferred by virtue of subsection (1) to restate legislation does not include power to restate—
(a)
(a) technical standards of the kind mentioned in section 138P(2)(a) of FSMA 2000, or
(b)
(b) EU tertiary legislation of the kind mentioned in section 138P(2)(b) of FSMA 2000.
(8) Regulations made by virtue of this section that do not amend primary legislation and contain provision restating only the following kinds of legislation referred to in Schedule 1 are subject to the negative procedure—
(a)
(a) EU tertiary legislation;
(b)
(b) subordinate legislation that was not subject to affirmative resolution on being made;
(c)
(c) any other legislation, so far as restated without any modifications made for a purpose mentioned in section 3(2).
(9) Regulations made by virtue of this section to which subsection (8) does not apply are subject to the affirmative procedure.
5 Power to replace references to EU directives
(1) The Treasury may by regulations modify legislation for or in connection with the purpose of replacing any reference (however expressed) to an EU directive referred to in Part 3 of Schedule 1 with such other provision (if any) as the Treasury consider appropriate.
(2) The power under subsection (1) is exercisable only if the Treasury consider it necessary or desirable to replace the reference for or in connection with—
(a)
(a) the purpose of making the law clearer or more accessible, or
(b)
(b) any of the purposes mentioned in section 3(2).
(3) Regulations under this section are subject to the affirmative procedure if they amend primary legislation.
(4) Regulations under this section to which subsection (3) does not apply are subject to the negative...
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