On 17 October 2022, HM Treasury published a draft of the Financial Services (Miscellaneous Amendments) Regulations 2022.

The draft Regulations:

  • Ensure that HM Treasury can use its power under article 5(4) of the onshored Short Selling Regulation in relation to Gibraltar firms with net  short positions in shares admitted to trading on a UK trading venue. Under article 5(4) of that Regulation, HM Treasury may by regulations modify the thresholds in article 5(2) relating to net short positions.
  • Ensure that under articles 20(3) and 21(5) of the onshored Markets in Financial Instruments Regulation the FCA can apply technical standards in relation to post-trade disclosure obligations by Gibraltar investment firms operating in the UK.
  • Ensure that HM Treasury and the FCA can use certain powers in relation to Gibraltar firms acting as sellers, advisers or manufacturers of packaged retail and insurance-based investment products (PRIIPs) to retail investors in the UK. Under article 8(4) of the onshored PRIIPs Regulation, HM Treasury may by regulations specify the procedural details to establish whether a PRIIP targets specific  environmental or social objectives. Under articles 8(5), 10(2) and 13(5) of that Regulation, the FCA may make technical standards relating to Key Information Documents for PRIIPs.
  • Amend references to the original end date of the temporary recognition of EU simple, transparent and standardised (STS) securitisations in the Securitisation Regulation and the European Market Infrastructure Regulation, so that they refer to the new end date of 11pm on 31 December 2024. This will ensure consistent treatment for EU STS securitisations notified before this date.

When finalised the draft Regulations will come into force on 31 December 2022.