On 22 October 2018, HM Treasury published a draft of The Central Securities Depositories (Amendment) (EU Exit) Regulations 2018 (the draft Regulations) together with an explanatory memorandum.
The draft Regulations form part of a series of draft statutory instruments that HM Treasury is publishing as part of its contingency planning for a no-deal Brexit. The statutory instruments are made by HM Treasury in exercise of its powers conferred by the European Union (Withdrawal) Act 2018.
The draft Regulations make technical changes to the Central Securities Depositories Regulations (CSDR) to ensure that the UK retains an operative regulatory framework for central securities depositories (CSDs) in the event that the UK leaves the EU without a deal; transfer the power to make equivalence decisions from the European Commission to HM Treasury; transfer powers from the European Securities and Markets Authority to the Bank of England (the Bank) enabling the Bank to recognise third country CSDs post exit; and make amendments to the CSDR transitional regime so that third country CSDs can continue to provide services relating to the UK after exit.
The Bank, and the PRA as appropriate, will be updating the CSDR Binding Technical Standards (BTS) to reflect the changes introduced by the draft Regulations. The Bank will consult on the changes in the Autumn. The FCA will review the BTS and feed comments back to the Bank and the PRA.