On 29 January 2019, there was published on legislation.gov.uk a draft version of the Financial Regulators’ Powers (Technical Standards etc) and Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2019, together with an explanatory memorandum. The draft statutory instrument has been laid before Parliament.
The draft statutory instrument is being made in order to ensure that recently adopted Binding Technical Standards (BTS) continue to operate effectively after the UK withdraws from the EU. This is achieved by amending the Financial Regulators’ Powers (Technical Standards etc.) (Amendment etc.) (EU Exit) Regulations 2018 (the Regulations) to add the recently adopted BTS to the list of BTS in that statutory instrument which the regulators may amend to correct deficiencies. The Regulations listed all BTS that were known at the point of laying, however since the Regulations were made, further BTS have been adopted within the financial services sector. In order to maintain consistency with the approach set out in the Regulations, responsibility for fixing any deficiencies in these new BTS should also be transferred to the UK regulators. Specifically, BTS are added relating to the:
- Benchmarks Regulations;
- European Long-Term Investment Funds Regulation;
- Market Abuse Regulation;
- Bank Recovery and Resolution Directive; and
- Capital Requirements Regulation.
The draft statutory instrument also makes some minor amendments to the Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 to ensure that it effectively addresses deficiencies in retained EU law relating to markets in financial instruments, so that it continues to operate effectively after exit day.
You can track the financial services Brexit EU Exit statutory instruments (as well as gain access to our Brexit resources) on our Brexit Pathfinder hub. Registration is free via the NRF Institute portal. Conformed copies of the EU Exit statutory instruments are available exclusively through our PathfinderPLUS service. To gain access to PathfinderPLUS, please contact Jochen Vester or Simon Lovegrove.