Financial Services and
Markets Bill
“New legislation will strengthen the United Kingdom’s financial
services industry, ensuring that it continues to act in the
interest of all people and communities”.
The purpose of the Bill is to:
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● Maintain and enhance the UK’s position as a global
leader in financial services, ensuring the sector continues
to deliver for individuals and businesses across the country.
This will promote a competitive marketplace for the effective
use of capital, supporting economic growth.
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● Seize the benefits of Brexit, by establishing a
coherent, agile and internationally- respected approach to
financial services regulation that best suits the interests
of the UK.
The main benefits of the Bill would be:
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● Cutting red tape in the financial sector to make the
UK an even more attractive place to invest and do business,
while making sure that high standards are maintained.
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● Harnessing the opportunities of innovative
technologies in financial services, including supporting the
safe adoption of cryptocurrencies and resilient outsourcing
to technology providers.
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● Supporting individuals’ confidence in financial
services by ensuring continued access to cash across the UK
and protecting people from scams.
The main elements of the Bill are:
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● Revoking retained EU law on financial services and
replacing it with an approach to regulation that is designed
for the UK.
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● Updating the objectives of the financial services
regulators to ensure a greater focus on growth and
international competitiveness.
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● Reforming the rules that regulate the UK’s capital
markets to promote investment.
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● Ensuring that people across the UK continue to be
able to access their own cash with ease.
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● Introducing additional protections for those
investing or using financial products, to make it safer and
support the victims of scams.
Territorial extent and application
● The Bill will extend and apply across the UK.
Key facts
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● Financial and related professional services are vital
to the UK economy, employing more than 2.3 million people
across the UK, and contributing more than £193 billion
(including £75 billion in tax) to the economy.
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● Since the Chancellor’s speech at Mansion House in
July 2021, we have made significant progress delivering the
Government’s ambitious vision for the financial services
sector to ensure it acts in the interests of communities and
citizens, creating jobs, supporting businesses, and powering
growth across all parts of the UK. The Government has:
o continued to negotiate a ground-breaking Mutual Recognition
Agreement with Switzerland, incorporated financial services
provisions in trade deals with Australia and New Zealand, and
reached agreement in principle on a Digital Economy Agreement
with Singapore; and
o continued to take forward measures in response to the Kalifa
Review of UK Fintech, such as securing funding to establish the
Centre of Finance, Innovation and Technology, to ensure the UK
remains a world-leader in fintech.
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● Removing restrictions on trading in wholesale markets
will benefit around 3,200 investment firms in the UK who are
currently prevented from getting the best price for
investors.
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● Cash remains an important payment method for millions
of people across the UK, particularly those in vulnerable
groups. Cash is the second most frequently used method of
payment in the UK, and around 5.4 million adults (ten per
cent) rely on cash to a very great or great extent in their
daily lives.
