Legislation – Financial Services and Markets Act 2023

PART 1
Regulatory framework

CHAPTER 1 Revocation of assimilated law

1 Revocation of assimilated law relating to financial services and markets

2 Transitional amendments

3 Power to make further transitional amendments

4 Power to restate and modify saved legislation

5 Power to replace references to EU directives

6 Restatement in rules: exemption from consultation requirements etc

7 Interpretation of Chapter

CHAPTER 2 New regulatory powers

Designated activities regime

8 Designated activities

Financial market infrastructure: general rules and requirements

9 Rules relating to central counterparties and central securities depositories

10 Central counterparties and central securities depositories: other requirements

11 Rules relating to investment exchanges and data reporting service providers

12 Treasury directions to Bank of England: restrictions

Financial market infrastructure: piloting powers

13 Testing of FMI technologies or practices

14 Reports on FMI sandboxes

15 Permanent implementation of arrangements tested under an FMI sandbox

17 Interpretation

Powers in relation to critical third parties

18 Critical third parties: designation and powers

19 Critical third parties: related amendments

Financial promotion

20 Financial promotion

Sustainability disclosure requirements

21 Sustainability disclosure requirements

Digital settlement assets

22 Digital settlement assets

23 Digital settlement assets: power to make regulations

Mutual recognition

24 Implementation of mutual recognition agreements

CHAPTER 3 Accountability of regulators

39 Reporting requirements

FCA and PRA objectives and regulatory principles

25 Competitiveness and growth objective

26 Competitiveness and growth objective: reporting requirements

27 Regulatory principles

28 Sections 25 and 27: consequential amendments

FCA and PRA powers to make rules etc

29 Review of rules

30 Treasury power in relation to rules

31 Matters to consider when making rules

32 Effect of rules etc on deference decisions

33 Effect of rules etc on international trade obligations

34 Power to disapply or modify rules

FCA and PRA engagement

35 Responses to recommendations of the Treasury

36 Public consultation requirements

37 Engagement with statutory panels

38 Engagement with Parliamentary Committees

Co-operation of FCA and others

40 Duty to co-operate and consult in exercising functions

Panels and policy statements

41 Listing Authority Advisory Panel

42 Insurance Practitioner Panel

43 Cost Benefit Analysis Panels

44 Statement of policy on cost benefit analyses

45 Statement of policy on panel appointments

46 Composition of panels

47 Panel reports

Bank of England regulatory powers

48 Exercise of FMI regulatory powers

49 Bank of England: rule-making powers

50 Application of FSMA 2000 to FMI functions

Payment Systems Regulator

51 Payment Systems Regulator

52 Chair of the Payment Systems Regulator as member of FCA Board

Consultation on rules

53 Consultation on rules

PART 2
Access to cash

54 Cash access services

55 Wholesale cash distribution

PART 3
Performance of functions relating to financial market infrastructure

56 Recognised bodies: senior managers and certification

PART 4
Central counterparties in financial difficulties

57 Central counterparties in financial difficulties

PART 5
Insurers in financial difficulties

58 Insurers in financial difficulties

PART 6
Miscellaneous

59 Application of provisions to regulatory functions under this Act

60 Formerly authorised persons

61 Control over authorised persons

62 Financial services compensation scheme

63 The Ombudsman scheme

64 Unauthorised co-ownership AIFs

65 Power to amend enactments in consequence of rules

66 Ambulatory references

67 Power to amend or repeal certain provisions of FSMA 2000

68 Power under FSMA 2000 to make transitional provisions

69 Cryptoassets

70 Bank of England levy

71 Bank of England levy: consequential amendments

72 Liability of payment service providers for fraudulent transactions

73 Credit unions

74 Reinsurance for acts of terrorism

75 Banking Act 2009: miscellaneous amendments

76 Arrangements for the investigation of complaints

77 Politically exposed persons: money laundering and terrorist financing

78 Politically exposed persons: review of guidance

79 Forest risk commodities: review

PART 7
General

80 Interpretation

81 Pre-commencement consultation

82 Financial provision

83 Power to make consequential provision

86 Commencement

SCHEDULES

SCHEDULE 1 Revocation of assimilated law relating to financial services

SCHEDULE 2 Transitional amendments

SCHEDULE 3 New Schedule 6B to FSMA 2000

SCHEDULE 4 FMI Sandboxes

SCHEDULE 5 Financial promotion: related amendments

SCHEDULE 6 Digital settlement assets

SCHEDULE 7 Accountability of the Payment Systems Regulator

SCHEDULE 8 Cash access services

SCHEDULE 9 Wholesale cash distribution

SCHEDULE 10 Performance of functions relating to financial market infrastructure

SCHEDULE 11 Central counterparties

SCHEDULE 12 Write-down orders

SCHEDULE 13 Insurers in financial difficulties: enforcement of contracts

SCHEDULE 14 Credit unions

Which version?
Latest available (Revised)
Original (As enacted)

Changes to legislation:

There are currently no known outstanding effects for the Financial Services and Markets Act 2023, Section 52.

Changes to Legislation

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PART 1Regulatory framework

CHAPTER 3Accountability of regulators

Payment Systems Regulator

52Chair of the Payment Systems Regulator as member of FCA Board

(1)

FSMA 2000 is amended as follows.

(2)

In section 417(1) (definitions), at the appropriate place insert—

““the Payment Systems Regulator” means the body established under section 40(1) of the Financial Services (Banking Reform) Act 2013;”.

(3)

Schedule 1ZA (FCA: constitution etc) is amended as follows.

(4)

In paragraph 2—

(a)

in sub-paragraph (2), after paragraph (c) insert—

“(ca)

the Chair of the Payment Systems Regulator,”;

(b)

in sub-paragraph (3), after “(c)” insert “, (ca)”.

(5)

In paragraph 3—

(a)

in sub-paragraph (6) after “PRA” insert “or of the Payment Systems Regulator”;

(b)

in sub-paragraph (7) for “the Bank’s Deputy Governor for prudential regulation” substitute “a person holding an office mentioned in paragraph 2(2)(c) or (ca)”.

(6)

In paragraph 5(a) for “or (c)” substitute “, (c) or (ca)”.

(7)

After paragraph 6 insert—

“6A

(1)

The Chair of the Payment Systems Regulator must not take part in any discussion by or decision of the FCA which relates to—

(a)

the exercise of the FCA’s functions in relation to a particular person, or

(b)

a decision not to exercise those functions.

(2)

Sub-paragraph (1) does not apply at any time when the person who is the Chair of the Payment Systems Regulator also holds the office mentioned in paragraph 2(2)(a).”