Overview

This bill allows the UK Treasury to adapt and implement certain EU financial services laws into UK law after Brexit. It permits adjustments to reflect the UK's new position outside the EU, but these changes must not significantly alter the original intent of the legislation.

Description

The Financial Services (Implementation of Legislation) Bill grants the Treasury the power to create regulations mirroring or similar to specific pre-Brexit EU financial services laws. These include parts of regulations on central securities depositories, market instruments, prospectuses, securities financing transactions, and other related areas (detailed in the Schedule). The Treasury can make "adjustments" to these regulations to address deficiencies caused by Brexit or to reflect the UK's new status outside the EU. However, significant changes to the original intent of the legislation are prohibited. The bill requires a draft of any new regulations to be approved by both Houses of Parliament and mandates the publication of reports every 6 months on progress.

Specific Regulations Included:

• Parts of the Central Securities Depositories Regulation
• The Delegated Cash Penalties Regulation
• Parts of the Markets in Financial Instruments Regulation
• Relevant sections of the Prospectus Regulation and its delegated acts
• Part of the Securities Financing Transactions Regulation
• EU Directives and Regulations proposed before or within two years of Brexit listed in the Schedule

Government Spending

The bill doesn't directly specify government spending figures. The cost will depend on the resources needed by the Treasury and relevant authorities to create and implement the new regulations, and monitor their effects. Any additional administrative costs associated with reporting requirements are also not detailed.

Groups Affected

• Financial institutions: Banks, investment firms, and other financial service providers will be directly affected by the new regulations, needing to adapt their operations accordingly.
• The Treasury: Will have a significant role in drafting, implementing, and monitoring the new regulations.
• Parliament: Will need to review and approve draft regulations.
• Regulators (Bank of England, Prudential Regulation Authority, Financial Conduct Authority): Will be responsible for enforcing the new regulations.
• Investors and consumers: May experience changes in financial products and services due to regulatory adjustments.

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