UK wholesale markets review update: Financial Services and Markets Act 2023 and latest developments

Published Date
Aug 4, 2023
On 7 July 2023, the new Financial Services and Markets Act 2023 (the Act) was published, marking a significant step in the development of the UK’s post-Brexit ‘Smarter Regulatory Framework’.

Significantly, in the context of the UK Wholesale Markets Review (WMR), the Act provides for the eventual revocation of on-shored EU financial services regulation (such as UK MiFIR, MiFID-derived statutory instruments and related onshored technical standards), although this is likely to be a process that takes a number of years. The Act makes certain ‘transitional’ amendments to UK MiFIR and the Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017 (the MiFI Regulations) (i.e. amendments that apply from the date they are stated to come into force until the eventual revocation and/or replacement of the EU-derived regulations).

For further background and context on the WMR and the Act, our earlier briefing which covers the Financial Services and Markets Bill (as it then was) can be found here, and our broader briefing which covers the original WMR proposals can be found here.

Since the Act’s publication, the Financial Services and Markets Act 2023 (Commencement No. 1) Regulations 2023 (the Commencement Regulations) has also been published, confirming timings of when certain of the MiFID transitional amendments – which have been included as part of the implementation of the various WMR outcomes - will come into force.

Our summary table below sets out the key changes and where they can be found.

Beyond the Act, work continues on the UK’s Smarter Regulatory Framework reforms and the FCA is proceeding with WMR outcomes as confirmed in its policy statement earlier this year – including the new designated reporter regime for systematic internalisers. For additional information, our recent webinar on the Smarter Regulatory Framework and the impact of the Act can be found here.


1 References are to paragraphs and parts of Schedule 2 to the Act, being the schedule that include the transitional amendments.
2 EMIR REFIT refers to the amendments made to EMIR framework under the European Commission’s regulatory fitness and performance programme (REFIT).
3 This exemption also applies to best execution and certain transparency and other obligations.
4 The Act also amends UK EMIR similarly in respect of the CO.

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