The UK’s new Financial Services Bill has received Royal Assent and is now officially law.

The government said the legislation represents a “major milestone” in shaping a regulatory framework for UK financial services outside of the European Union.

“For the first time in decades, the UK has full control of its own financial services regulation,” said John Glen, economic secretary to the Treasury. “This Act will protect people who rely on financial services day-to-day and boost the competitiveness of our dynamic global financial centre.

Glen added: “It marks a major milestone in our plans to develop a regulatory regime that works for the UK and helps us seize new opportunities in the global economy.”

The act incorporates a number of new measures, including enhancing the UK’s prudential standards and promoting financial stability by enabling the implementation of the remaining Basel III standards and a new prudential regime for investment firms. The new regulation will also give the Financial Conduct Authority the powers to oversee a transition away from the LIBOR benchmark.

The legislation aims to promote openness between the UK and international markets by simplifying the process to market overseas investment funds in the UK and delivering a Ministerial commitment to provide long-term access between the UK and Gibraltar for financial services firms.

The government said that the law will help the UK maintain an “effective financial services regulatory framework and sound capital markets with a number of smaller measures,” including measures to improve the functioning of the Packaged Retail and Insurance-based Investment Products Regulation and increase penalties for market abuse.

The rules will also bring interest-free buy now, pay later products into regulation.

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