Financial Services and Markets Act 2023

Key Points

• Stronger regulator transparency and parliamentary oversight, including requiring the Bank of England to explain rule changes and regulators to report to Parliament; expanded duties for regulators to share information with committees and to include regulator staff on cost-benefit panels.
• Net-zero and financial inclusion linked to consumer protection, with a new net-zero regulatory principle and a requirement to consider financial inclusion within consumer protection objectives.
• Forest risk commodities ban to prevent UK-regulated activities that support deforestation or forest-risk supply chains.
• Insurer liabilities: clarifications to write-down orders and related protections for policyholders in financial difficulties; clearer rules around compensation and timing.
• Anti-money-laundering and governance: reforms to AML rules, politically exposed persons (PEPs) provisions, and a shift of some appointments and reporting requirements to the Treasury, plus measures to improve regulator scrutiny and reporting.
• Retained EU law and Treasury powers: provisions to extend regulation-making powers and transitional arrangements as the post-Brexit regulatory framework evolves.

Progress

The bill completed its passage and received Royal Assent on 29 June 2023, becoming law after a lengthy series of readings, committee stages, and amendments in both Houses (17 parliamentary stages overall).

Voting

In the Commons, party-line voting reflected the government’s stance: Conservative MPs voted in support across the three Lords-amendment votes, while Labour and most opposition parties largely opposed those amendments. The three votes recorded were 303 Aye/36 No, 303 Aye/201 No, and 301 Aye/48 No, respectively, indicating broad government backing for the more contentious positions and opposition from Labour and other parties on several Lords amendments.