The Financial Services and Markets Act 2023 (Commencement No. 9) Regulations 2025
These regulations, made under the Financial Services and Markets Act 2023, establish commencement dates for various provisions within the Act.
Some provisions, including aspects of the revocation of assimilated law related to financial services and markets along with the repeal of certain sections of the Financial Services and Markets Act 2000, come into force the day after the regulations are made.
Other provisions, notably the revocation of the Capital Requirements (Capital Buffers and Macro-prudential Measures) Regulations 2014, will commence on July 31, 2025.
The regulations apply across England, Wales, Scotland, and Northern Ireland.
Arguments For
Streamlined Financial Regulation: The phased commencement allows for a more manageable and effective implementation of the Financial Services and Markets Act 2023, minimizing disruption to the financial sector.
Targeted Approach: The staggered commencement dates allow for prioritizing specific provisions based on their urgency and potential impact, ensuring a more focused regulatory approach.
Improved Regulatory Oversight: The specified commencement dates enable better coordination between different parts of the government, creating better collaboration and regulatory efficiency within the financial industry.
Legal Certainty: Clearly defined commencement dates for relevant provisions within the Act provide clear legal certainty for businesses and organizations operating under its requirements.
Arguments Against
Uncertainties for Businesses: Phased implementation can lead to extended periods of uncertainty for businesses and stakeholders until particular sections are finally enforced.
Complexity and Administrative Burden: Managing different commencement dates for various provisions increases the complexity and requires substantial administrative efforts, both for the regulatory bodies and for financial service providers.
Potential for Regulatory Gaps: A phased approach might create temporary regulatory gaps or inconsistencies during the transition between commencement phases, potentially resulting in unintended loopholes or risks.
Delayed Benefits: Staged implementation might postpone the delivery of intended advantages of the reform, and delay benefits for consumers or market efficiency.
- Citation and extent (1) These Regulations may be cited as the Financial Services and Markets Act 2023 (Commencement No. 9) Regulations 2025. (2) These Regulations extend to England and Wales, Scotland and Northern Ireland.
This section provides the official title of the regulations as the "Financial Services and Markets Act 2023 (Commencement No. 9) Regulations 2025" and confirms their geographical scope covering the entire UK.
- Provisions coming into force on the day after these Regulations are made The following provisions of the Financial Services and Markets Act 2023 come into force on the day after the day on which these Regulations are made— (a) section 1(1) (revocation of assimilated law relating to financial services and markets), so far as it relates to the provisions in paragraphs (b), (c) and (d) of this regulation; (b) in Part 3 (EU tertiary legislation etc.) of Schedule 1 (revocation of assimilated law relating to financial services), the revocation of Commission Delegated Regulation (EU) 2017/583 of 14 July 2016 supplementing Regulation (EU) No 600/2014 of the European Parliament and of the Council on markets in financial instruments with regard to regulatory technical standards on transparency requirements for trading venues and investment firms in respect of bonds, structured finance products, emission allowances and derivatives; (c) in Part 4 (primary legislation) of Schedule 1, the repeal of the following provisions of the Financial Services and Markets Act 2000— (i) section 55J(7A) to (7C); (ii) section 55KA; (iii) section 367(3)(za); (d) in Part 5 (other EU-derived legislation) of Schedule 1, the revocation of the Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2003.
This section specifies that certain provisions of the Financial Services and Markets Act 2023 will take effect immediately.
These include section 1(1) (partially), revoking specific EU regulations concerning financial markets (paragraph (b)), repealing certain sections of the Financial Services and Markets Act 2000 (paragraph (c)), and revoking a 2003 order under the 2000 Act concerning regulated activities (paragraph (d)).
- Provisions coming into force on 31st July 2025 The following provisions of the Financial Services and Markets Act 2023 come into force on 31st July 2025— (a) section 1(1), so far as it relates to the provision in paragraph (b) of this regulation; (b) in Part 2 (subordinate legislation) of Schedule 1, the revocation of the Capital Requirements (Capital Buffers and Macro-prudential Measures) Regulations 2014.
This section outlines the later commencement date of July 31, 2025, for additional provisions within the 2023 Act.
This notably includes a further part of section 1(1) and the revocation of the 2014 Capital Requirements Regulations regarding capital buffers and macro-prudential measures.
This phased approach implies a considered strategy for implementing various regulatory changes.
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