Financial Services Act 2021

Overview of the Act

Reproduced verbatim from the Explanatory Notes published with the Act on legislation.gov.uk (Crown Copyright, Open Government Licence v3.0). Explanatory Notes are prepared by the responsible government department and are not part of the Act.

The Financial Services Act ensures the UK's regulatory framework continues to function effectively following the UK’s withdrawal from the EU, and makes important updates to the regulatory framework.

The Act enhances the UK’s world-leading prudential standards and promote financial stability by enabling the implementation of the full set of Basel III standards, a new prudential regime for investment firms, and giving the Financial Conduct Authority (FCA) the powers it needs to oversee an orderly transition away from the LIBOR benchmark.

The Act promotes openness between the UK and international markets by introducing a new mechanism to simplify the process whereby overseas investment funds can be marketed in the UK and delivers a ministerial commitment to provide long-term access between the UK and Gibraltar for financial services firms.

Finally, the Act includes a number of measures to maintain the effectiveness of the financial services’ regulatory framework and sound capital markets.