The Financial Services and Markets Act 2023 (Commencement No. 2 and Transitional Provisions) Regulations 2023, made on August 22, 2023, bring into force certain provisions of the Financial Services and Markets Act 2023 and create a number of transitional regimes. We discuss the FSM Act in our client note, "A Boost for U.K. Financial Services: The U.K. Financial Services and Markets Act 2023."
From February 7, 2024 the new regulatory gateway for the approval by authorized firms of financial promotions of unauthorized firms will apply. The FSM Act amends the Financial Promotion Restriction banning authorized firms from approving financial promotions of unauthorized firms unless they have received approval from the Financial Conduct Authority to have the prohibition removed in whole or part. In addition to bringing the gateway in from February 7, 2024, the 2nd Commencement Regulations provide that from September 6, 2023, provisions will apply that enable the FCA to give directions and guidance and to make rules will apply. In addition, from November 6, 2023, provisions will apply that allow the FCA to receive (but not determine) applications to approve financial promotions that are made during the application period. The application period begins on November 6, 2023 and ends February 6, 2024. Where an authorized firm applies for FCA approval during the application period or where a person communicates a communication approved by an authorized firm, under a transitional measure, the regulatory gateway provisions will not apply until the authorized firm's application for approval is determined by the FCA or is withdrawn. HM Treasury is empowered to make regulations providing for exemptions from the requirement to pass through the regulatory gateway and has indicated that exemptions will be available for authorized firms approving financial promotions of unauthorized companies within their group and for principals approving financial promotions for their appointed representatives for regulated activities, for which the principal has agreed to accept responsibility.
The 2nd Commencement Regulations also provide for other transitional measures:
[View source.]