The Financial Services Act 2012 (the “Act”) received Royal Assent on 19 December 2012. The Act, which will come into force on 1 April 2013, will deliver the longawaited reform of financial regulation in the UK, replacing the old tripartite system. Among other things, the Act:
- gives the Bank of England responsibility for protecting and enhancing financial stability, bringing together macro and micro prudential regulation;
- introduces the Financial Policy Committee; and
- abolishes the FSA and replaces it with the twin peaks structure of the Prudential Regulation Authority and the Financial Conduct Authority.
Draft secondary legislation under the Act, including regulations setting out how regulated activities will be divided between the new authorities, is expected in the new year.