The Financial Services and Markets Act 2023 implements the reviewed outcomes of the Future Regulatory Framework (FRF). This Act revokes EU law relating to financial services and enables HM Treasury to replace it with legislations specially related to the UK market. The Act has updated the objectives for financial service regulators in order to ensure a focus on long term growth and international competitiveness. By undertaking these changes the aim is to secure and enhance the UK's position within the global financial hub by implementing Mutual Recognition Agreements (MRA) and recognising equivalent Simple, Transparent and Standardised (STS) securities issued by entities outside of the UK.
Reforms to the UK's technological financial services will issue the use of stablecoins as a cryptoasset to be recognised as a form of payment allowing for the UK's Financial Market Infrastructure (FMI) to incorporate new technology and provide security in that it could reduce risk of incidents with third party providers.
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 by introducing a regulatory gateway designed to improve the quality of financial promotions; and enhance protection for victims of authorised push payment scams.
