The FSM Bill becomes the FSM Act

On 29 June 2023, the Financial Services and Markets Bill 2022-23 (the Bill) received Royal Assent following the House of Lords accepting final amendments made by the House of Commons on 27 June 2023. The Financial Services and Markets Act 2023 can be found here.

(See here for more details about the Bill.)

On 19 June 2023, the Bill completed its report stage and third reading in the House of Lords. The House of Commons then held a debate on the amendments proposed by the House of Lords.

What was agreed by the House of Commons?

The amendments proposed by the House of Lords that were approved by the House of Commons are as follows:

• Sustainability disclosure requirements (new clause 21)
• Financial Ombudsman Service (FOS) fees (new clause 64)
• The appointment of the Complaints Commissioner (new clause 78)
• Politically exposed persons (PEPs) (new clauses 79 and 80)
• The run-off regime for non-UK central counterparties (CCPs) (revised Schedule 2)

What was rejected?

The House of Commons rejected:

• an opposition amendment that would require the FCA and the PRA to have regard to the natural environment (revised clause 27);
• an opposition amendment that would require the FCA to consider financial inclusion in respect of its consumer protection objective (new clause 29); and
• an opposition amendment also introducing restrictions on financial institutions' activities concerning forest risk commodities (new clause 71).

What did the House of Commons propose?

The House of Commons proposed amendments concerning the UK net zero objective and a review of the adequacy of the UK financial system for eliminating the financing of the use of prohibited forest risk commodities.

Details of the rejected amendments and the amendments in lieu are set out in the Commons Disagreement and Reason document.

Royal Assent

The House of Lords accepted the amendments made to the Bill by the House of Commons and the Bill received Royal Assent.