Why it matters
The bottom line
Taking a step back from these details, FSMA 2023 aims to enhance the powers of the FCA and the PRA in wholesale markets, while also providing clarity on the interaction between HM Treasury and these regulatory authorities. Additionally, it establishes stricter accountability measures for Critical Third Parties associated with FCA authorised firms, with the ultimate goal of strengthening financial stability throughout the entire UK market. Moreover, the legislation introduces a phased approach to the regulation of digital assets and stablecoin, ensuring the UK applies a comprehensive framework for these emerging financial technologies.
This is one significant piece of legislation. The late Sir Win Bischoff, one of the City's grandees (and a fellow NYU alumni) commented on the Reforms describing them “[...] more of an adjustment, a redress of sorts [...] The Edinburgh Reforms will however be useful in arresting the relative and measurable decline of the City over the past five years.”
The legislation is extensive and as such there are more changes that were made to the regulatory framework which I have not discussed in this article. Have a look at the parliamentary bill itself by clicking here. The FCA has also published a good overview of the act in its Regulatory Initiatives publication as well as interesting articles on specific parts of the act such as Financial Services & Markets Act 2023 gives FCA new powers to protect access to cash.
***CAPITAL AT RISK***
Dont invest unless you are prepared to lose all of your money.
These are high-risk investments and you are unlikely to be protected if something goes wrong.