Have your say on the Financial Services (Implementation of Legislation) Bill

12 February 2019

Do you have relevant expertise and experience or a special interest in the Financial Services (Implementation of Legislation) [Lords] Bill, which is currently passing through Parliament?

If so, you can submit your views in writing to the House of Commons Public Bill Committee which is going to consider this Bill.

The Public Bill Committee is now able to receive written evidence. The sooner you send in your submission, the more time the Committee will have to take it into consideration.

The Committee will meet for the first time on Tuesday 26 February 2019. It will stop receiving written evidence at the end of the Committee stage, which is expected to be not later than 5.00pm on Thursday 28 February 2019. However, please note that when the Committee concludes its consideration of the Bill it is no longer able to receive written evidence and it can conclude earlier than the expected deadline of 5.00pm on Thursday 28 February 2019.*

 

* In the last Parliamentary Session, the following Public Bill Committees concluded their consideration of the Bill earlier than scheduled: Criminal Finances, Cultural Property (Armed Conflicts), Health Service Medical Supplies (Costs), Neighbourhood Planning, Savings (Government Contributions), Technical and Further Education, Commonwealth Development Corporation, Children & Social Work, National Citizen Service, and Bus Services.

Aims of the Bill

The Bill is short, with only two clauses:

  • Clause 1: Power in respect of EU financial services legislation with pre-exit origins
  • Clause 2: Extent, commencement and short title

The Financial Services (Implementation of Legislation) Bill 2017-19 enables the Treasury to make corresponding or similar provisions in UK law to upcoming EU financial services legislation in the event that the UK leaves the European Union without a deal.

Currently, most financial services regulation is made at EU level. It is either directly applicable or transposed into domestic law by secondary legislation. In preparation for leaving the EU, the European Union (Withdrawal) Act 2018 (EUWA) incorporates all EU law on the day of exit into UK law so that existing regulation continues to have effect after Brexit. If the UK ratifies the Withdrawal Agreement, it will enter an implementation period until 31 December 2020, during which EU law will continue to apply. During this period the UK will continue to implement financial services regulation through secondary legislation. However, if the UK leaves the EU with no deal, there will be no mechanism through which financial services regulation can be updated without the need for primary legislation.

There are several items of EU financial services legislation which have either been adopted by the EU but will not be implemented by the time the UK leaves, or that are currently in negotiation and may be adopted shortly after. These items are referred to as “in-flight files”. The Bill would give the Treasury the power to create corresponding or similar UK regulations, subject to any adjustments appropriate to the UK’s new position outside the EU.

The power is subject to the same restrictions on scope as the correcting power in the EUWA and may only be used for up to two years after exit day. Statutory instruments made under the power in this Bill will be subject to the affirmative resolution procedure, which requires a vote in both Houses. The Treasury will be required to produce six-monthly reports on the use of the power.

Follow the progress of the Financial Services (Implementation of Legislation) [Lords] Bill

The Bill has completed its passage through the House of Lords and was introduced in the House of Commons on 6 February 2019. It had its Second Reading in the House of Commons on 11 February 2019.

This Bill has now been committed to a Public Bill Committee which will hold its first meeting on Tuesday 26 February 2019.

Guidance on submitting written evidence

Deadline for written evidence submissions

The Public Bill Committee is now able to receive written evidence. The sooner you send in your submission, the more time the Committee will have to take it into consideration, and possibly reflect it in an amendment. The order in which amendments are taken in Committee will be available in due course under Selection of Amendments on the Bill documents pages. Once the Committee has dealt with an amendment it will not revisit it.

The Committee is expected to meet for the first time on Tuesday 26 February 2019; it will stop receiving written evidence at the end of the Committee stage on Thursday 28 February 2019. Please note that when the Committee concludes its consideration of the Bill it is no longer able to receive written evidence and it can conclude earlier than the expected deadline of 5.00pm on Thursday 28 February 2018.

Your submission should be emailed to scrutiny@parliament.uk.

Further guidance on submitting written evidence can be found here.

Image: iStockphoto

More news on: Parliament, government and politics, Parliament, Business, industry and consumers, Economy and finance, European Union, Financial services, Taxation, Regulation, Bill news, Exiting the European Union

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