On 28 March 2023, HM Treasury published guidance explaining its plans to extend the pension fund clearing exemption and the exemptions for intragroup transactions.
HM Treasury intends to lay a statutory instrument extending:
- the exemption for pension funds from the clearing obligation by a period of two years to 18 June 2025, through amendments to Article 89(1) of onshored Regulation (EU) 648/2012 (UK EMIR); and
- the temporary intragroup exemption regime by a further three years to 31 December 2026, by amending the relevant days set out in Articles 81(1)(b), 81(2)(b), 83(1)(b) and 83(2)(b) of The Over the Counter Derivatives, Central Counterparties and Trade Repositories (EU Exit) Regulations 2019.
A review of the pension fund exemption will be conducted ahead of its expiry in 2025, allowing time for consideration and implementation of a longer-term approach.
The guidance also notes that the government will consider reforming this area of legislation in due course as part of the ongoing process of building a smarter financial services framework for the UK.
HM Treasury intends to lay this statutory instrument shortly to ensure it comes into force before the current expiry date of the pension fund clearing exemption on 18 June 2023.