Overview of the Act
The Financial Services and Markets Act 2023 makes important updates to the UK’s regulatory framework for financial services.
	The Act implements the outcomes of the Future Regulatory Framework (FRF) Review. The Act therefore revokes retained EU law relating to financial services and enables HM Treasury and the financial services regulators to replace it with legislation designed specifically for UK markets, in a way that builds on the UK’s existing approach to financial services regulation.
	The Act also enhances the UK’s existing regulatory regime by updating the objectives of the financial services regulators to ensure a greater focus on long-term growth and international competitiveness.
	The Act also seeks to secure and enhance the UK’s position as an open and global financial hub by providing for the implementation of mutual recognition agreements (MRAs) with the UK’s global partners, and for the UK to recognise equivalent Simple, Transparent and Standardised (STS) securitisations issued by entities outside of the UK.
	The Act brings stablecoins, a type of cryptoasset, into the scope of regulation when used as a form of payment, paving their way for use in the UK as a recognised form of payment. It also enables technological innovation in financial services by allowing financial market infrastructure (FMI) firms to explore new technologies in temporary pilot schemes and reduces the risk of an incident at a third-party provider which has a systemic impact on the UK financial services sector.
	The Act maintains the UK’s position as a competitive marketplace with robust regulatory standards by reforming the UK’s wholesale capital markets regime; giving the Bank of England new tools to mitigate the risks of failure of critical financial institutions; enhancing the UK’s insolvency arrangements for insurers to help authorities to better manage insurers in financial distress; and creating a senior managers and certification regime for a number of types of systemically important firms, similar to the existing regime for bank, insurers and other financial services firms.
	Finally, the Act introduces measures that support financial inclusion by ensuring people across the UK can continue to access cash with ease; enabling credit unions to offer more products; introducing a regulatory gateway designed to improve the quality of financial promotions; and enhancing protection for victims of authorised push payment scams.