On 5 July 2022, HM Treasury published a draft of The Financial Services (Miscellaneous Amendments) (EU Exit) Regulations 2022.
The draft Regulations make various miscellaneous amendments to existing Brexit related Regulations including the:
- Central Counterparties (Amendment, etc., and Transitional Provision) (EU Exit) Regulations 2018 (CCP Regulations). The draft Regulations amend Part 6 of the CCP Regulations which makes transitional provision in relation to the provision of clearing services in the United Kingdom by central counterparties (CCPs) that are established outside the United Kingdom and that are currently in the United Kingdom’s temporary recognition regime. Subject to the conditions specified in new regulation 17(5A), the services, activities or classes of financial instrument in respect of which such CCPs are to be taken to be recognised by the Bank of England is extended beyond the conditions specified in existing regulation 17(5) to include services, activities or classes of financial instrument which such CCPs are authorised or permitted to provide in the country in which they are established, provided that they have notified the Bank of England of their intention to offer such services in the United Kingdom.
- Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019 (FSMA Amendment Regulations). The draft Regulations amend the FSMA Amendment Regulations by extending the period during which a transitional direction may be given by the UK regulators. The period is extended from two years after IP completion day to four years after that day, in respect of transitional directions relating to share trading and derivatives trading respectively. The time period during which transitional directions of this description may remain in effect is also extended from two years after IP completion day to four years after that day.
The draft Regulations come into force 21 days after the day on they are laid.