The Financial Services and Markets Act 2023 establishes a UK-centric regulatory architecture by revoking substantial retained EU law and replacing it with domestic powers. Key measures create a designated activities regime; extend Bank and FCA powers over financial market infrastructure (including recognised CCPs, CSDs, investment exchanges and data reporting providers); authorise FMI sandboxes; and introduce designation and supervisory powers for critical third parties. The Act also provides specific regimes for digital settlement assets, mutual recognition arrangements and Treasury directions to support financial stability.

The Act strengthens accountability and governance: FCA and PRA duties now include a competitiveness and growth objective, enhanced rule‑review and reporting requirements, and new statutory panels. It creates a CCP special resolution regime (including share/property transfers, tear‑ups, cash calls, variation and write‑down instruments and bridge CCPs), introduces write‑down orders for insurers, reforms access to cash, and establishes a Bank of England levy and powers for the Payment Systems Regulator. Extensive consultation, reporting and safeguard mechanisms are required.