Financial Services Act 2021

The Financial Services Bill 2019-21 received Royal Assent and became law on 29 April 2021.

The table below shows the date it passed the various parliamentary stages.

The 2019 Queen’s Speech background paper expressed a desire to bring forward, in the upcoming parliamentary session, legislation to:

Ensure that the UK maintains its world-leading regulatory standards and remains open to international markets after we leave the EU.

The Act, Explanatory Notes, Delegated Powers Memorandum, Human Rights Memorandum and Impact Assessment were published on the Bill page.

When introduced to the House of Commons, the Bill’s stated objectives were to:

• enhance the UK’s world-leading prudential standards and promote financial stability;
• promote openness between the UK and international markets; and
• maintain an effective financial services regulatory framework and sound capital markets.

However, the Treasury later added a fourth objective in recognition of amendments made during the Bill’s passage through Parliament, which is to “protect consumers who use a range of financial services”.

The Act introduces reforms in 22 distinct areas (see the “Overview” section for a summary). Most of the reforms are technical and therefore did not attract significant media interest.