The government has published the City of London Markets Bill, legislation that is designed to modernise the regulation of the UK's financial markets and to ensure that the City remains competitive as a global financial centre in the face of increasing competition from New York, Singapore and other financial hubs.
The bill introduces several significant reforms. It creates a new framework for the regulation of digital assets, including cryptocurrencies and stablecoins, bringing them within the regulatory perimeter for the first time. It reforms the prospectus regime to make it easier for companies to raise capital on public markets, while maintaining investor protections. And it gives the Financial Conduct Authority a new secondary objective to promote the competitiveness of the UK financial services industry, alongside its primary objectives of consumer protection and market integrity.
The bill also includes provisions designed to address specific concerns that have been raised by the financial services industry. It simplifies the rules governing research and trading, making it easier for asset managers to access the research they need and for trading venues to compete effectively. And it creates a new framework for the regulation of financial market infrastructure that is designed to be more proportionate and more responsive to innovation.
The Chancellor described the bill as the most significant reform of financial services regulation since the Financial Services and Markets Act 2000. The bill will now proceed through its parliamentary stages, with Royal Assent expected in 2027.
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