Overview

This bill allows the UK Treasury to adapt and implement existing EU financial services laws into UK law after Brexit. It ensures continuity by mirroring relevant EU legislation, while permitting necessary adjustments to account for the UK's new status outside the EU.

Description

The Financial Services (Implementation of Legislation) Bill grants the Treasury the power to create regulations that either match or closely resemble specific pieces of EU financial services legislation. This legislation includes elements of regulations concerning central securities depositories, cash penalties for settlement failures, market instruments, prospectuses, securities financing transactions, and various other directives and regulations listed in the schedule.

The bill allows for “adjustments” to this replicated legislation. These adjustments can be made to fix problems created by Brexit or to reflect the UK's new position outside the EU. However, these changes cannot fundamentally alter the original law's intent.

The Treasury must follow a specific procedure: they must publish a document detailing proposed regulations, any exclusions, and any planned adjustments, at least one month before submitting a draft of the regulations to Parliament for approval. The Treasury is also required to produce reports every six months detailing the exercise of their powers under this act.

Government Spending

The bill doesn't directly specify any increase or decrease in government spending. The cost will depend on the resources needed to implement and enforce the new regulations created under the bill's authority. No figures are provided in the bill itself.

Groups Affected

This bill will affect various groups within the UK financial services sector, including:

• Financial institutions: Banks, investment firms, and other financial institutions will be subject to the adapted regulations, potentially impacting their operations and compliance costs.
• Regulators: The Bank of England, Prudential Regulation Authority, and Financial Conduct Authority will be involved in enforcing the new regulations.
• Investors: The changes to regulations could affect the way investments are structured and managed.
• Consumers: Depending on the specific regulations adopted and adapted under the bill, consumers may see changes to the services they receive from financial institutions.

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