On 9 October 2018, HM Treasury published guidance setting out its approach to regulations relating to the European Supervisory Authorities (ESAs) and the European Systemic Risk Board following Brexit (ESRB).
As the Regulations establishing the ESAs and the ESRB are directly applicable EU law, they will become “retained EU law” by operation of the EU (Withdrawal) Act (Act). HM Treasury intends to revoke these Regulations in their entirety using a statutory instrument under the Act.
Guidelines and recommendations that have been produced by the ESAs are not retained EU law under the Act and will not form part of UK law after Brexit. However, the UK financial regulators will be able to communicate their expectations of firms and market participants in relation to EU guidelines or recommendations, as appropriate.