On 29 June 2023, UK Treasury said law provides UK's post-Brexit framework.
- UK Treasury announced Financial Services and Markets Act 2023 received royal assent.
- Royal assent secures passage into law of the overhaul of financial services regulation.
- Follows Treasury July 2022 introduced Financial services and markets bill.
- Follows UKP March 2023 issued details of Lords examination of FSMA bill.
FCA Powers re Designated Activities
- FSMA Act new Designated activities regime (DAR) extends UK FCA rulemaking powers.
- FCA powers are extended to activities connected to UK’s financial markets or exchanges, or to financial instruments, products or investments with a UK connection.
- In event products are issued by/sold to or by person in the UK - or are proposed to be.
- DAR regulates activity itself, enables FCA to make rules re how it is being carried on.
- Under the DAR the effect is that, unless the activity is prohibited or an exemption applies, the rules on conducting the activity apply to person undertaking that activity.
- The activities in the DAR, irrespective of whether or not they are carried on by authorized persons, currently include entering into derivatives contracts.
- Holding position in commodity derivatives; short selling specified financial instruments.
- Acting as a party to a securitization transaction; offering securities to public/applying for securities to be admitted to trading; and using or contributing to a benchmark.
- DAR shows UK GVT planning-ahead for developments in financial services markets, as DAR extends to financial products, instruments, investments that include cryptoassets.
- Power is also given to UK Treasury to designate additional relevant activities.