The Financial Services (Miscellaneous Amendments) (EU Exit) Regulations 2022 - Draft statutory instrument and explanatory memorandum published - 5 July 2022
HM Treasury has published a draft version of The Financial Services (Miscellaneous Amendments) (EU Exit) Regulations 2022 (the Regulations), together with an explanatory memorandum, under section 8(1) of, and paragraph 21 of Schedule 7 to, the European Union (Withdrawal) Act 2018.
The Regulations make the following amendments to financial services legislation using HM Treasury’s powers under the European Union (Withdrawal) Act 2018 to allow retained EU law to operate efficiently following Brexit:
- Payment Services Regulations 2017 (SI 2017/752): amending article 14(8)(b) to require applicant firms to declare ‘close links’ outside the UK’s territory;
- Central Counterparties (Amendment, etc., and Transitional Provision) (EU Exit) Regulations 2018 (SI 2018/1184) (the TRR Regulations): amending regulation 17 to allow overseas central counterparties (CCPs) within the Temporary Recognition Regime (TRR) to offer, in the UK, clearing products in classes of financial instrument that such CCPs are permitted to offer in the country in which they are established, provided they have notified the Bank of England of their intention to offer these products in the UK. This is in addition to any products that an overseas CCP is currently permitted to offer while in the TRR under regulation 17(5) of the TRR Regulations;
- The UK Credit Rating Agencies Regulation (1060/2009/EC): deleting article 32 on professional secrecy requirements and clarifying the FCA’s ability to share information with other UK and third country regulatory authorities in line with information collected under its other regulatory functions, as provided for through the confidential information rules in FSMA 2000;
- The Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019 (SI 2019/632): amending Part 7 to extend the period that the FCA can use its Temporary Transitional Power to mitigate disruption in relation to the share trading obligation and derivatives trading obligation by two years, until 31 December 2024; and
- The UK Securitisation Regulation ((EU) 2017/2402): amending article 18(3) to extend the transitional period by allowing certain EU Simple Transparent and Standardised (STS) securitisations issued prior to 31 December 2024 to be recognised as STS in the UK for the lifetime of the securitisation.
The Regulations will come into force 21 days after they are laid before Parliament.
Draft statutory instrument: The Financial Services (Miscellaneous Amendments) (EU Exit) Regulations 2022