Financial Services Bill gets Royal Assent

The Financial Services Bill received Royal Assent on 19 December.

The bill, now an Act of Parliament, will be known as the Financial Services Act and will come into effect from 1 April 2013.

It gives the Bank of England responsibility for protecting and enhancing financial stability. It also abolishes the Financial Services Authority and creates three new authorities: the Financial Policy Committee, the Prudential Regulation Authority and the Financial Conduct Authority.

Greg Clark, financial secretary to the Treasury, said: “The Financial Services Act replaces a regulatory structure, which palpably failed when tested by crisis.

“It sets out a comprehensive regulatory framework designed to enhance financial stability in the future and protect customers.

“It takes important steps to focus the regulators on rebuilding competition in a banking sector that has become too concentrated.”