Clifford Chance

The Financial Services and Markets Bill - What does It mean for insurers?

3 August 2022

The Financial Services and Markets Bill was introduced to Parliament on 22 July 2022 and proposes important changes to the UK's regulatory framework for financial services, including paving the way for Solvency II reforms.

If passed, the Bill would revoke all ‘EU-derived legislation’ relating to financial services and markets, including regulations relating to Solvency II, insurance distribution, motor vehicle insurance and occupational pensions.

The government has indicated that this process would take several years, and that 'EU-derived legislation' would continue to be treated as retained EU law until it is revoked. Retained EU law comprises onshored EU regulations, technical standards and decisions and domestic legislation and rules implementing EU law, all as amended by ‘exit instruments’ under the European Union (Withdrawal) Act 2018. Retained EU law would remain in force during a transitional period until it is revoked and replaced by new or modified legislation.

This note focuses on the provisions which will impact the UK insurance market.

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