Key Facts

• The Government aims to bring certain cryptoassets and distributed ledger technology within regulatory perimeter.
• Clause 21 extends payment system legislation for digital settlement asset payment systems and service providers regulated by the Bank of England and Payment Systems Regulator.
• Secondary legislation under clause 22 will give regulators powers over payment systems and service providers to manage risks and stability issues.
• The Bill starts with regulating stablecoins and those most likely to be used as a means of settlement.
• A consultation will take place before Parliament rises for Christmas.
• Secondary powers in the Bill are subject to the affirmative procedure, allowing the definition to change over time.
• Clause 23 enables changes to domestic regulation through secondary legislation.
• The UK is negotiating its first financial services MRA with Switzerland.
• Parliament will scrutinise MRAs in the usual way before implementing ratified agreements.
• The amendments aim to modify clause 24 in the Financial Services and Markets Bill.
• The change from 'facilitating' to 'promoting' is proposed in amendments 46 and 47.
• London trade bodies suggest that some regulatory costs are up to 14 times higher than in other global markets.
• Clause 24 introduces a competitiveness duty for regulators.
• Singapore has regulations that have attracted more firms compared to UK regulations, resulting in an estimated loss of $700 million.
• TheCityUK calls for the elected Government and parliamentarians to require regulators to report performance against specific criteria.
• Clause 24 introduces new secondary objectives for the FCA and PRA to facilitate growth and competitiveness.
• These objectives are subordinate and secondary to financial stability and prudential objectives.
• Respondents to a future regulatory framework review consultation supported the Government’s proposal.
• The Government remains committed to reaching net zero greenhouse gas emissions by 2050 as set out in section 1 of the Climate Change Act 2008.
• Clause 25 introduces a new regulatory principle for the FCA and PRA, which is to have regard to the need to contribute towards achieving compliance with section 1 of the Climate Change Act 2008.
• Clause 26 requires the FCA and PRA to explain how they advanced the new growth and competitiveness objectives in their annual reports to the Treasury.
• The UK aims to reach net zero by 2050.
• Clause 26 amends FSMA 2000 regarding the content of annual reports.
• Research suggests the UK has half the penetration of green finance as the EU and is lagging behind four years ago's EU levels.
• Hon. Member for Kingston upon Hull West and Hessle raised concerns about nature's role in climate goals.
• Think-tank research found that green finance penetration in the UK is half that of the EU, roughly where the EU was four years ago.
• The MP will write to Tulip Siddiq to set out his case regarding the UK's position on green finance.
• Clause 27 of the Financial Services and Markets Bill introduces new sections in FSMA 2000.
• The FCA and PRA are required to keep their rules under regular review after implementation.
• Public consultations on rule reviews will be conducted by the regulators.
• The Bill provides new powers to UK regulators previously held by Brussels.
• Industry participants consulted widely view the intervention power as proportionate and potentially required.
• The proposed power does not interfere with operational independence of regulators or the scope of the Monetary Policy Committee.