Financial Services Act 2021
The Financial Services Act 2021 was introduced in the House of Commons on 21 October 2020 and received Royal Assent on 29 April 2021. It is the first financial services primary legislation passed by the UK Parliament since the UK left the European single market, making reforms in 22 distinct areas.
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.
Stage
Date
House of Commons
First Reading
21 October 2020
Second Reading
9 November 2020
Committee Stage
17 November, 19 November, 24 November, 26 November, 1 December and 3 December 2020
Report Stage
13 January 2021
Third Reading
13 January 2021
House of Lords
First Reading
14 January 2021
Second Reading
28 January 2021
Committee Stage
22 February, 24 February, 1 March, 3 March, 8 March and 10 March 2021
Report Stage
24 March, 14 April and 19 April 2021
Third Reading
19 April 2021
Ping-pong
Commons consideration of Lords amendments
26 April 2021
Lords consideration of Commons amendments
28 April 2021
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.