On 18 March 2025, the draft Pension Fund Clearing Obligation Exemption (Amendment) Regulations 2025 (the draft Regulations) were published on legislation.gov.uk, along with a draft explanatory memorandum.

The draft Regulations relate to the temporary exemption which pension scheme arrangements (i.e. pension funds) currently have from the clearing obligation, which requires them to clear certain derivative contracts through a central counterparty (CCP).

Under the draft Regulations, this exemption would be established on an indefinite basis, by removing the current expiry date of 18 June 2025. HM Treasury’s ability to extend the exemption by up to 2 years at a time would also be removed, as it will no longer be necessary when the exemption has no expiry date.

As a result of these changes, the pension funds based in the UK and the EEA will continue to be exempt from the UK clearing obligation.