Key Facts

• The UK's financial services industry drives growth and generates millions of jobs.
• The Bill sets out three objectives: enhancing prudential standards for financial stability, promoting openness between the UK and international markets, and maintaining an effective regulatory framework.
• Clauses in the Bill require the Financial Conduct Authority to create a tailored prudential regime for investment firms.
• The Bill aligns with global Basel banking standards endorsed by the G20.
• The world was shocked by the LIBOR scandal eight years ago.
• Significant improvements have been made since then but continued use of LIBOR poses a serious source of systemic risk.
• Clauses 8 to 19 give the FCA powers to oversee the orderly wind-down of critical benchmarks including LIBOR.
• Clause 20 extends the transitional period for non-UK benchmark administrators until the end of 2025.
• Clauses 22 and 23 establish a framework for long-term market access between the UK and Gibraltar.
• 90% of business written by Gibraltarian insurers comes to the UK.
• Over 9,000 funds passport into the UK from the EU under the current system.
• The Financial Services Bill includes 17 measures.
• Clause 28 introduces a streamlined process for the FCA to remove inactive firms from its public register.
• Clause 30 increases maximum sentences for financial market abuse from seven to ten years in prison.
• Clause 32 strengthens the breathing space scheme supporting individuals with problem debt.
• The Ministry of Justice is conducting a consultation on introducing a corporate offence for failure to prevent economic crime.
• Clause 33 provides an eight-week moratorium for consumers to negotiate new repayment terms.
• The Help to Save scheme supports low-income individuals in building savings.
• Concerns have been raised about the PRIIPs regulation misleading consumers.
• Clause 37 establishes a fixed five-year term appointment for the FCA chief executive.
• A call for evidence was launched to address access to cash issues.
• The statement discusses the onshoring of European directives through the Financial Services Bill.
• Concerns are raised about the Basel III regulations not solving the 'too big to fail' issue.
• There is a risk that parts of the financial services sector may seek regulatory changes for increased competitiveness.
• The Financial Services Bill includes new prudential regulation requirements, implementation of Basel rules, and an accountability framework.
• The FCA estimates that total pillar 1 capital requirements will decrease by 5%.
• Clauses 24 to 26 establish the overseas fund regime and extend time periods for funds to trade.
• The speaker highlights concerns about maintaining high standards on transparency, money laundering, and corruption.
• Cash use has declined due to online shopping and card-only payments.
• Most of the population might require less or no cash, but vulnerable groups on low incomes rely on cash budgeting.
• The Government have stated their commitment to ensuring access to cash.
• The Financial Services Bill aims to enhance prudential standards, promote financial stability, and maintain an effective regulatory framework.
• CityUK and Barclays have expressed concerns about handing powers back to the PRA and FCA without sufficient safeguards.
• The ABI is concerned about Gibraltar authorisation regime and overseas funds regime.
• Clause 31 amends SAML schedule 2 to ensure regulations can be made in respect of trustees with links to the UK.
• Over 222,000 people have opened Help to Save accounts with £85 million deposited.
• The UK's financial services sector is its biggest export sector.
• It pays £75 billion a year in taxes.
• The Chancellor announced three key areas: global openness, technological innovation, and issuance of green gilts.
• Edinburgh has the second-largest financial sector in the United Kingdom.
• More than £1 trillion of assets have moved from the UK's financial sector to the EU.
• Germany pledged €9 billion and France will spend €8 billion on green economy initiatives.
• Small and medium-sized enterprises should be allowed rights of action for FCA handbook breaches.
• The Business Banking Resolution Service will handle businesses with turnover between £6.5 million and £10 million at no cost.
• The Serious Fraud Office has faced challenges in prosecuting corporate fraud due to the lack of a directing mind principle.
• Northern Rock mortgage books were sold to Cerberus, leading to higher interest rates for individuals.
• Between 2008 and 2013, UK SME lending decreased by 25%, while German SME lending increased by 20%.
• Google's international turnover is £137 billion with net income of £31 billion, but UK tax paid is only £67 million.
• The Bill's clause 31 is seen as self-congratulatory but fails to address money laundering risks in Scottish limited partnerships.
• Clause 32 aims to empower the Government to make regulations compelling creditors to accept amended repayment terms.
• The ABI has expressed concerns about potential political misuse of equivalence criteria.
• The City of London accounts for just under a third of all capital market activity across Europe.
• LIBOR is used as a reference in hundreds of trillions of pounds-worth of financial contracts.
• The FCA will no longer persuade or compel banks to submit data for calculating LIBOR after 2021, causing concern about its continuation.
• Clauses 8 to 19 grant the FCA greater powers to manage the transition away from LIBOR and other benchmarks.
• The Government has made a commitment to Gibraltar regarding the transition from LIBOR.
• Shannon highlights money laundering concerns in Northern Ireland involving paramilitary groups.
• Clause 32 will amend the Financial Guidance and Claims Act 2018 to empower the Government to make regulations for debt respite schemes.
• The Financial Services Bill aims to ensure a strong regulatory framework at the end of the Brexit transition period.
• The Bill includes provisions on prudential regulation of investment firms, which has been welcomed by the industry but raises concerns about clarity in implementation.
• The temporary permissions regime for overseas funds is unclear and needs further clarification according to the MP.
• Financial and professional services industry contributes more than 60,000 companies providing 2.3 million jobs and 10% of the UK’s overall gross value added.
• The City of London alone contributes approximately 25% of the sector’s GVA.
• Businesses support the Bill's objective to enhance prudential standards but seek further guidance on how the UK regime may differ from EU regulations under Basel III implementation and LIBOR wind-down.
• Government is asked to provide assurances that it will continue to improve the UK’s global competitiveness in financial services.
• The Financial Services Bill aims to streamline regulation post-financial crisis and Brexit.
• There is concern about the effectiveness of criminal sanctions in financial services.
• The speaker highlights the importance of defining the role of the financial services sector as world-leading while contributing to the broader economy.
• The Bill empowers the FCA to impose obligations directly on certain parent undertakings of MiFID investment firms.
• Proposed new clause 143B covers any entity regulated by the FCA, affecting nearly 60,000 firms in total.
• Exempt CAD firms have a capital requirement of €50,000 and could see significant increases under the Bill's default position.
• John Glen acknowledges the right hon. Member for Wolverhampton South East's concerns about regulatory challenges.
• The Government is committed to an outcome-based approach to equivalence assessments.
• Clause 31 addresses proportionate and effective action against the misuse of overseas trusts.
• A new register will be implemented for beneficial owners of overseas entities owning or buying land in the UK.
• The Financial Services Bill aims to implement remaining Basel standards.
• It introduces an enhanced accountability framework for regulators.
• A consultation on broader reforms to the regulatory framework, known as the future regulatory framework review, has been issued recently.