The Financial Services and Markets Bill is set to unlock £100 billion in the UK economy after receiving the Royal Assent, according to HM Treasury.
The Financial Services and Markets Act 2023 will serve as the central driver of the UK’s ‘open, sustainable, and technologically advanced,’ financial services sector, tailoring post-Brexit regulations for UK markets to boost outcomes for consumers and businesses.
The Act capitalises on Brexit freedoms that set a pathway for reforms to Solvency II, increasing the UK’s competitiveness as a global financial services hub by unlocking £100 billion for investment and innovation to grow the economy.
As part of the Act, the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) have been tasked with contributing to international growth plans.
Wayne Johnson, CEO of Encompass Corporation, said: “With the Financial Services and Markets Act 2023, there is a continued focus on economic growth and developing a financial services sector with technology at its core.
“It is certainly encouraging to see this commitment to making real progress, by enabling the delivery of Edinburgh Reforms, for example, which are aimed at supporting businesses, allowing innovation to thrive, and cementing the UK’s place as one of the world’s most dynamic and competitive financial services hubs.
“The development and implementation of technology-driven processes and solutions, in particular, has a central role to play in the growth of the industry and it is important that all parties – including businesses, the Government and the regulator – work together to meet goals. It is by doing so that we will see full potential unlocked, and the UK continuing to be regarded as a prime location to do business within and with.”
In response to the Act, the FCA is set to embrace the new opportunities to grow the UK economy through the implementation of ‘innovative regulatory approaches’ to support international competitiveness but cautioned that growth must not harm the wider economy or customers.
Neh Thaker, co-founder of HedgeFlows, added: “Creating a more open, sustainable and technologically-advanced financial services sector will help UK businesses of all sizes thrive in the current times of economic uncertainty and improve confidence across the board.”
“SMEs play a crucial part in the UK economy and the introduction of the new secondary objectives for the Financial Conduct Authority and the Prudential Regulation Authority will empower SMEs where they have struggled before, bettering support to help them operate internationally and grow their businesses, and in turn drive UK PLC forward.”
Economic Secretary to the Treasury, Andrew Griffith, hailed the ‘landmark’ Financial Services and Markets Bill, labelling 2023 as the ‘banner year for reforming our financial services.’