On 13 October 2026, there were published a draft of The Financial Services and Markets Act 2023 (Addition of Relevant Enactments) Regulations 2026, with an explanatory memorandum.
Background
HM Treasury (HMT) sets out in its explanatory memorandum that this instrument brings several additional pieces of legislation into scope of section 17(3) of the Financial Services and Market Act of 2023 (FSMA 2023), which is intended to facilitate further temporary modifications to UK legislation in relation to Financial Market Infrastructure (FMI) Sandboxes set up under these powers.
FMI Sandboxes are intended to enable firms to utilise developing technologies, such as Distributed Ledger Technology, in performing the functions of traditional FMI firms, such as the operation of a securities settlement system or operating a trading venue. They do this by providing temporary modifications to existing legislation to participating firms where existing legislation, or its interpretation, would otherwise form a barrier or an obstacle to performing these functions in innovative ways.
Summary
This instrument will bring the following relevant enactments into scope of FMI Sandbox powers:
- The National Debt Act 1870
- The Finance Act 1916
- The Rehabilitation of Offenders Act 1974
- The Insolvency Act 1986
- The Companies Act 1989
- The Financial Services (Banking Reform) Act 2013
- The Regulations for the Payment of Dividends (pursuant to section 4(1) of the National Debt Act 1889) 1957
- The Rehabilitation of Offenders (Northern Ireland) Order 1978
- The Insolvency (Northern Ireland) Order 1989(c)
- The Payment Services Regulations 2017(d)
The consequence of this will be that HMT will be able to apply, disapply or modify the effect of these pieces of legislation by way of negative statutory instrument (SI) when establishing new FMI Sandboxes or modifying existing sandboxes. Any such negative SI will set out in detail the specific changes being made.