The Financial Services Bill, which included a set of reforms aimed at making the banking sector stronger to withstand crisis, will now become law in the UK following the Royal Assent.

The Financial Services Bill received the Royal Assent after it was approved by the British Parliament earlier. The new laws will require banks to ring-fence High Street operations from more high-risk investment banking businesses. The new laws will also give powers to the regulators to be able to split banks in order to protect their future.

Several banks in the country are taking steps to comply with the new rules and are planning to ring fence their retail arm to protect them from riskier investment arm. Experts have said that it is not required for the banks to completely separate the business but they said that the bigger banks might create separate entities.

Ministers said that the rules, which also make senior executives liable for criminal prosecution for reckless misconduct, will make the banking sector stronger and safer. They said that the new laws will make the banks in the country more resilient and competitive in the global market.