On 10 January 2025, HM Treasury (HMT) issued its response following its November 2023 call for evidence on the exemption which pension funds currently have from the obligation to clear certain derivatives contracts. The government previously extended the exemption to 18 June 2025 and noted that it would conduct a review to determine a long-term approach.

In its response HMT states that it received 26 responses to the call for evidence and its response provides a breakdown of the key themes raised by respondents.

It states that having analysed the responses to the call for evidence and having engaged with the UK regulatory authorities on the issue, the government has decided that the exemption should be maintained for the longer-term. The government will now take forward legislation to ensure that the exemption does not expire on 18 June 2025 as currently scheduled and to remove any further time limit on the exemption.

The government will, however, keep this policy under review in coordination with the UK regulatory authorities.