The UK government has announced that a new law aimed at reforming the financial services sector has received Royal Approval, that is, passed into law.
The Financial Services and Markets Act 2023 aims to create an open, sustainable and technologically advanced financial services sector that can compete globally and support the UK economy.
The act gives the UK more control over financial services regulation previously set by the EU. It also introduces new powers to amend Solvency II rules, which could free up around £100 billion for productive investment and innovation.
The Act also sets new targets for financial regulators to facilitate growth and international competitiveness of the UK economy, and aims to increase their oversight and accountability.
One of the key features of the law is that it allows the regulation of crypto assets such as cryptocurrencies and stablecoins to support their safe adoption in the UK. The law also creates ‘sandboxes’ that could allow the use of new technologies such as blockchain in financial markets.
Andrew Griffith, the country’s Treasury Economy Secretary, said the law is landmark legislation that will pave the way for billions of dollars in investment and make the UK a better place for companies to go public. Griffith stated that 2023 will be an important year for reforming the UK’s financial services.