The Financial Services Act ensures the UK's regulatory framework continues to function effectively following the UK’s withdrawal from the EU. 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 also 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, and includes a number of measures to maintain the effectiveness of the financial services’ regulatory framework and sound capital markets.
