Call for written evidence: Financial Services and Markets Bill

Aims of the Bill

The Bill aims to:

• Implement the outcomes of the Future Regulatory Framework (FRF) Review
• Maintain the UK’s position as an open and global financial hub
• Harness the opportunities of innovative technologies in financial services
• Bolster the competitiveness of UK markets and promote the effective use of capital
• Support the levelling up agenda, promote financial inclusion and consumer protection

The Bill is made up of seven Parts.

Part 1 contains three Chapters:

• Chapter 1 (clauses 1 to 7) would allow for the Treasury to revoke (or amend) hundreds of pieces of retained EU financial services law.
• Chapter 2 (clauses 8 to 23) would then grant additional powers to regulators to, in part, fill gaps in regulation left by the revocation of retained EU law. It would also allow for greater regulation of financial promotions (advertising of certain financial services) and stablecoins (a type of cryptoasset).
• Chapter 3 (clauses 24 to 46) would implement measures intended to ensure appropriate democratic accountability for regulators, considering the significant transfer of powers to them that the Bill facilitates. This would include giving the FCA and PRA new secondary objectives to advance the international competitiveness and medium to long-term growth of the UK economy, and to have regard to the Government’s commitment to reach net zero emissions by 2050. It would also allow greater involvement (but, the Government argues, not direction) by the Treasury in the regulators’ rule-making process, as well as greater involvement by the Treasury Select Committee in FCA and PRA consultations.

Part 2 (clauses 47 and 48) seeks to ensure continued access to cash.

Parts 3 to 5 (clauses 49 to 51) would allow for greater regulation of individuals working in firms that set processes for financial transactions. It would also establish special procedures in the event of insolvency of one such type of firm (central counterparties) and insurers.

Part 6 (clauses 52 to 65) contains several miscellaneous measures. These include a replacement for the Cash Ratio Deposit scheme (the Bank Levy) and enhanced compensation arrangements for victims of advance push payment fraud.

Part 7 (clauses 66 to 73) contains provisions relating to, for example, interpretation, extent and commencement of the Bill.

Follow the progress of the Financial Services and Markets Bill

The Financial Services and Markets Bill was introduced to the House of Commons on 20 July 2022. A debate on Second Reading was held on 7 September 2022.

• Bills before Parliament: Financial Services and Markets Bill
• Read Explanatory Notes: Financial Services and Markets Bill
• House of Commons Library Briefing Paper

Oral evidence sessions are expected to be held on Wednesday 19 October.

Guidance on submitting written evidence

Deadline for written evidence submissions

The Public Bill Committee is now able to receive written evidence. The sooner you send in your submission, the more time the Committee will have to take it into consideration and possibly reflect it in an amendment. The order in which amendments are taken in Committee will be available in due course under Selection of Amendments on the Bill documents pages. Once the Committee has dealt with an amendment it will not revisit it.

The first sitting of the Public Bill Committee is expected to be on Wednesday 19 October and the Committee is scheduled to report by Thursday 3 November. However, please note that when the Committee concludes its consideration of the Bill it is no longer able to receive written evidence and it can conclude earlier than the expected deadline of 5.00pm on Thursday 3 November. You are strongly advised to submit your written evidence as soon as possible.

Your submission should be emailed to scrutiny@parliament.uk

Further guidance on submitting written evidence can be found here.

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