The Financial Services Bill, which will deliver fundamental reform of financial regulation in the UK, has received Royal Assent.
The Bill, which has now become an Act of Parliament, will be known as the Financial Services Act and sets out a clear and coherent regulatory framework, replacing the uncertainty and inadequacy of the failed Tripartite system.
The Act, which comes into force from 1 April next year, will:
• give the Bank of England responsibility for protecting and enhancing financial stability, bringing together macro and micro prudential regulation;
• abolish the Financial Services Authority (FSA) and create a strengthened regulatory architecture consisting of the Financial Policy Committee, the Prudential Regulation Authority and the Financial Conduct Authority; and
• empower authorities to look beyond ‘tick-box' compliance and foster a regulatory culture of judgment, expertise and proactive supervision.
Greg Clark, financial secretary to the Treasury, said: "I am delighted that the Financial Services Bill has received Royal Assent today.
"The Financial Services Act replaces a regulatory structure which palpably failed when tested by crisis. It sets out a comprehensive regulatory framework designed to enhance financial stability in the future and protect consumers.
"It takes important steps to focus the regulators on rebuilding competition in a banking sector that has become too concentrated.
"It is important that the reputation of the UK as a global financial centre is underpinned by a regulatory environment in which the world's investors, as well as British taxpayers, can have confidence. These reforms - as well as those in the forthcoming Banking Reform Bill - can help rebuild confidence and trust."
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