Financial Services and Markets Bill starts legislative process

The Financial Services and Markets Bill has been published and has started its parliamentary passage in the House of Lords, where it has had its first reading but the second reading, which is when debate starts, does not yet have a date.

As expected, the Bill covers a range of changes, including:

• Consumers and credit unions
  • amendments to the CCA (including the list of provisions to be repealed);
  • amendments to the Credit Unions Act in respect of common bonds;
  • powers for HM Treasury to make appropriate regulations for providing access to banking services.
• Complaints and consumer redress
  • amendments to the FOS structure;
  • change to time limits for complaints under the compulsory jurisdiction, so that they can no longer be made more than 10 years after the act or omission that led to the complaint, unless the FCA determines otherwise;
  • process for the FOS to refer matters to the FCA, and the FCA’s duties on receipt of the referral, including where a matter may have significant implications and where it is asked to give an opinion about rules;
  • changes to how the FOS makes determinations under the compulsory jurisdiction;
  • changes to the rules on consumer redress schemes and interplay with the FOS.
• the Regulators
  • abolition of  the Payment Systems Regulator and the future payments regulatory structure;
  • changes to SAMLA to allow better cooperation and information sharing and to allow the FCA to take on supervision of members of various professional bodies for AML purposes;
  • long term strategies of the PRA and FCA;
  • the “have regards” test;
  • reporting and consultation requirements;
  • new time periods for determining applications.
• Carrying on regulated activities etc
  • the “principal” permission requirement for appointing ARs;
    • SMF requirements for ARs and AR supervision;
    • updates to requirements on employees or ARs;
    • ARs and the FOS;
    • the temporary permission regime for the principal permission
  • SMCR changes
    • changes to notification requirements to remove the pre-approval requirement for some SMFs;
    • repeal of SoR provisions;
    • ability for firms to request a conditional or time limited approval;
    • repeal of certification regime;
    • repeal of obligations relating to conduct rules;
  • overseas and Gibraltar recognition regimes
• lending, insurance and cryptoassets
  • ring fencing rule powers and changes;
  • changes to commercial credit data sharing;
  • transformer and insurance vehicles;
  • powers to amend cryptoasset rules.