Financial Services and Markets Act 2023

Key Points

• Adds a new regulatory principle to consider financial inclusion within the consumer protection objective.
• Introduces a prohibition on regulated activities that could directly or indirectly support deforestation linked to forest-risk commodities.
• Requires the Bank of England to publish explanations when making material rule changes and to ensure these changes align with its regulatory duties.
• Grants the Treasury new powers to shape regulation related to retained EU law and introduces transitional provisions for these changes.
• Boosts regulatory oversight and accountability with new cost-benefit analysis panels for the PRA and FCA, plus duties for regulators to report to Parliament and clarifications on insurer write-downs and policyholder protections.

Progress

The bill completed its passage and received Royal Assent on 29 June 2023, becoming law. It was amended in the Lords and Commons to introduce climate, inclusion and oversight provisions.