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Financial Services and Markets Bill completes passage through Parliament

28 June 2023

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The Financial Services and Markets Bill returned to the Lords for consideration of Commons amendments in ‘ping pong’, on Tuesday 27 June.

Following agreement by both Houses on the text of the bill it received Royal Assent on 29 June. The bill is now an Act of Parliament (law). 

The Financial Services and Markets Bill seeks to make wide-ranging changes to the regulation of financial services in the UK. It would implement the outcomes of the Future Regulatory Framework review and establish a regime to regulate stablecoins, a type of cryptoasset, and protect access to cash.

Consideration of amendments

The bill was considered by the House of Lords between 8 December 2022 and 19 June 2023, before returning to the House of Commons. 

On Tuesday 27 June members of the Lords considered Commons reasons for disagreeing to Lords amendments to the bill, plus some alternative amendments to Lords changes.

The amendments covered subjects including: 

  • UK net zero emissions targets and environmental targets
  • financial inclusion within consumer protection objective
  • review of forest risk commodities.

After a debate on the floor of the House, Lords amendments on zero emissions and financial inclusion were not insisted on and a Commons amendment in lieue of the Lords amendment on forest risk commodities, was agreed to without a division (vote).

How to follow 

Explore further information

Read background on the bill in the House of Lords  Library Financial Services and Markets Bill briefing.

What's happened so far?

Third reading: Monday 19 June

Third reading is a chance for members to ‘tidy up' a bill, making small changes to ensure it is effectual.

No changes to the bill were suggested ahead of third reading. Members discussed the passage of the bill through the House at the conclusion of its Lords stages.    

Catch up

Report stage day three: Tuesday 13 June

Report stage is an extra chance for members to closely scrutinise elements of the bill and make changes.  

On the final day of report stage members put forward changes (PDF) (amendments) on subjects including artificial intelligence, fraud repayments and money laundering.

Lords divisions  

There were three divisions (votes) on proposed changes to the bill:

Forest risk commodities

Members voted on an amendment to place restrictions on commercial activity related to forest risk commodities. 

Members voted 212 in favour and 203 against, so the change was made. 

Pension fund investments

The House voted on a change to insert a new clause to require the Treasury to publish a review on incentivising pension fund schemes to invest in high-growth firms and green infrastructure.

Members voted 192 in favour and 210 against, so the change was not made. 

Protection of banking reform

Lastly, members voted on a change to prevent the government from making substantive changes to the policy on ring-fencing and the Senior Managers and Certification Regime (SMCR) by secondary legislation.

Members voted 184 in favour and 188 against, so the change was not made.

Catch Up

Report stage day two: Thursday 8 June

Members speaking on day two of report stage put forward changes (PDF) (amendments) on subjects including the UK's objectives for competitiveness and growth.

Lords divisions  

There were two divisions (votes) on proposed changes to the bill.

Nature and regulatory principle on net zero emissions

The first vote was on amendment 15, which inserts a clause that adds nature to the new regulatory principle on net zero emissions.

Members voted 193 in favour and 159 against, so the change was made. 

Financial inclusion within consumer protection objective

The second vote was on amendment 18, which inserts a new clause that stipulates the FCA is to have regard to financial inclusion within the consumer protection objective.

Members voted 191 in favour and 154 against, so the change was made. 

Catch Up

Report stage day one: Tuesday 6 June

Members speaking on day one of report stage put forward changes (PDF) (amendments) on subjects including the UK's objectives for competitiveness and growth.

Catch Up

Committee stage day ten: Thursday 23 March

Members speaking on the tenth and final day of committee stage put forward changes (PDF) (amendments) on subjects including:

  • regulating the sale of climate and nature offsets
  • further scrutiny of the regulations after the bill has been passed.

Catch up

Committee stage day nine: Tuesday 21 March

Proposed changes  

Members speaking on day nine of committee stage put forward changes (PDF) (amendments) on subjects including:

  • limiting powers of the Prudential Regulation Authority
  • banking reform
  • safeguards in place for policy holders following failure of an insurance company.

Catch up

Committee stage day eight: Monday 13 March

Proposed changes  

Members speaking on day eight of committee stage put forward changes (PDF) (amendments) on subjects including:

  • interest rates for mortgage prisoners
  • powers of the Financial Ombudsman Service
  • liability for scams and fraudulent transactions.

Catch up

Committee stage day seven: Tuesday 7 March

Proposed changes  

Members speaking on day seven of committee stage put forward changes (PDF) (amendments) on subjects including:

  • capital requirements of banks financing fossil fuel exploration
  • trade of goods originating from tropical forest ecosystems
  • establishing banking hubs.

Catch up

Committee stage day six: Wednesday 1 March

Proposed changes  

Members speaking on day six of committee stage put forward changes (PDF) (amendments) on subjects including:

  • establishing an Office for Financial Regulatory Accountability within 12 months of the Act being passed
  • accounting for risk in financial services 
  • duties of pension providers and investment managers.

Catch up

Committee stage day five: Monday 20 February

Members speaking on day five of committee stage put forward changes (PDF) (amendments) on subjects including:

  • introducing a rolling programme of reviews and annual reporting to Parliament
  • establishing a Financial Services Regulators Committee of Parliament
  • ensuring recommendations of the Cost Benefit Analysis are made available to the public.

Catch up

Committee stage day four: Monday 6 February

Proposed changes  

Members speaking on day four of committee stage put forward changes (PDF) (amendments) on subjects including:

  • duty of the Financial Conduct Authority to report on financial inclusion
  • provision for investors to purchase bonds of £1,000 or less
  • banking services for low income communities.

Catch up

Committee stage day three: Wednesday 1 February.

Proposed changes  

Members speaking on day three of committee stage put forward changes (PDF) (amendments) on subjects including:

  • Financial Conduct Authority measurements of the legislation's impact on growth and competitiveness
  • requiring regulators to publish regular reports to Parliament on their performance
  • establishing regional mutual banks.

Catch up

Committee stage day two: Monday 30 January

Proposed changes  

Members speaking on day two of committee stage put forward changes (PDF) (amendments) on subjects including:

  • Financial Conduct Authority powers to undertake prosecutions for fraud
  • commercial lending to small and medium-sized enterprises
  • regulation of consumer credit.

Catch up

Committee stage day one: Wednesday 25 January

Proposed changes  

Members speaking on day one of committee stage put forward changes (amendments) on subjects including:

  • revoking retained EU law relating to financial services and markets
  • powers of regulators and the Treasury.

Catch up

Second reading: Tuesday 10 January

During second reading, members discussed the main issues in the bill and flagged up any concerns or specific areas where they thought amendments (changes) are needed.

Topics covered during the debate included:

  • financial inclusion and access to currency across the UK
  • responsibilities of financial service regulators
  • competitiveness of UK markets.

Members speaking

Baroness Penn (Conservative), Parliamentary Secretary at the Treasury, opened the debate and responded on behalf of the government.

Members speaking in the debate included:

Lord Ashcombe (Conservative) and Baroness Lawlor (Conservative) made their maiden speeches in the House of Lords during this debate.

Catch up

Find out more about the issues discussed: catch up on Parliament TV or read the Lords Hansard transcript.

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