On 6 September 2019, the following Brexit statutory instruments were published:
- The Capital Requirements (Amendment) (EU Exit) Regulations 2019 together with an explanatory memorandum. The statutory instrument is intended to ensure that the Capital Requirements Regulation (CRR), as amended by the Capital Requirements Regulation II (CRR II), continues to operate effectively once the UK has left the EU. The relevant elements of the CRR II that the statutory instrument deals with predominantly relate to new definitions, technical rules regarding what qualifies as capital, new mandates for the European Supervisory Authorities to draft binding technical standards, and some changes to loss absorbing equity and debt, known as the minimum requirement for own funds and eligible liabilities;
- The Financial Services (Electronic Money, Payment Services and Miscellaneous Amendments) (EU Exit) Regulations 2019 together with an explanatory memorandum. The statutory instrument updates certain cross-references to the CRR, as amended by the CRR II. It also amends legislation relating to the temporary regimes established by the Electronic Money, Payment Services and Payments Systems (Amendment and Transitional Provisions) (EU Exit) Regulations 2018 and the regimes established by the EEA Passport Rights (Amendment, etc and Transitional Provisions) (EU Exit) Regulations 2018. It also makes amendments to the Market Abuse (Amendment) (EU Exit) Regulations 2019 to ensure that the UK’s overseas territories will be in scope of the UK market abuse regime; and
- The Prospectus (Amendment etc) (EU Exit) Regulations 2019 together with an explanatory memorandum. The statutory instrument amends the EU Prospectus Regulation, the Official Listing of Securities, Prospectus and Transparency (Amendment etc) (EU Exit) Regulations 2019 and other relevant legislation that collectively set the UK prospectus regime to ensure it functions effectively once the UK leaves the EU. In most cases, the legislation is amended to bring the treatment of the EU into line with the current treatment of other non-EU countries.
The statutory instruments come into force on exit day in a no deal scenario.
You can track the financial services Brexit EU Exit statutory instruments (as well as gain access to our Brexit resources) on our Brexit Pathfinder hub. Registration is free via the NRF Institute portal. Conformed copies of the EU Exit statutory instruments are available exclusively through our PathfinderPLUS service. To gain access to PathfinderPLUS, please contact Jochen Vester or Simon Lovegrove.