HM Treasury, also known as HMT, has updated the table containing the list of the equivalence decisions that came into effect in UK at the end of the transition period of its withdrawal from EU. in general, the table provides an overview of the equivalence decisions for various jurisdictions worldwide, including Australia, Brazil, Canada, China, European Economic Area, Hong Kong, Japan, New Zealand, Singapore, South Africa, Taiwan, Thailand, and the United States. The table was initially published in November 2020 as an annex to the guidance/policy paper on the UK's equivalence framework for financial services. The guidance on the equivalence framework of UK explains how the UK intends to use equivalence framework as one of the key mechanisms to facilitate cross-border financial services transactions and market access.
The EU Withdrawal Act 2018 converted the applicable EU legislation into UK law and this legislation came into effect from the end of the transition period on December 31, 2020. The conversion of EU legislation includes nearly 40 equivalence and exemption provisions. The guidance document outlines the principles and processes that govern the equivalence framework of UK. In particular, the document highlights the commitment of UK to an outcomes-based model of equivalence, which operates in a transparent manner, providing predictability and stability over time to UK industry, overseas jurisdictions, and firms. In the equivalence framework of UK, the role of EC in making equivalence determinations for overseas jurisdictions has been replicated and transferred to HM Treasury. BoE, PRA, and FCA (collectively, the financial services regulators) are responsible for providing support to HM Treasury on matters relating to their regulatory functions. This includes the provision of information or advice to HM Treasury in connection with any consideration of equivalence or exemption determinations. Annex to the guidance on equivalence framework of UK also includes a table explaining the lead regulators for the decisions for each EU-retained legislation.
Keywords: Europe, UK, Banking, Insurance, Securities, Equivalence Regime, Equivalence Decisions, Post-Brexit, HM Treasury
Previous ArticleFSC Korea Announces Fintech Updates and COVID-19 Measures
The Board of Governors of the Federal Reserve System (FED) published the final rule that amends Regulation I to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to the Federal Reserve Bank capital stock, except in the context of mergers.
The European Banking Authority (EBA) published its assessment of risks through the quarterly Risk Dashboard and the results of the Autumn edition of the Risk Assessment Questionnaire (RAQ).
The Hong Kong Monetary Authority (HKMA) published a circular, along with the reporting form and instructions, for self-assessment, by authorized institutions, of compliance with the Code of Banking Practice 2021.
The Financial Conduct Authority (FCA) decided to register European DataWarehouse Ltd and SecRep Limited as securitization repositories under the UK Securitization Regulation, with effect from January 17, 2022.
The European Commission (EC) published the Delegated Regulation 2022/25, which supplements the Investment Firms Regulation (IFR or Regulation 2019/2033) with respect to the regulatory technical standards specifying the methods for measuring the K-factors referred to in Article 15 of the IFR.
The Bank of International Settlements (BIS) published a paper that assesses the ways in which platform-based business models can affect financial inclusion, competition, financial stability and consumer protection.
The European Supervisory Authorities (ESAs) published the list of identified financial conglomerates for 2021.
The Australian Prudential Regulation Authority (APRA) updated the list of authorized deposit-taking institutions, granting license to Barclays Bank PLC and Crédit Agricole Corporate and Investment Bank to operate as foreign authorized deposit-taking institutions under the Banking Act 1959.
EU published, in the Official Journal of the European Union, a corrigendum to the Delegated Regulation 2015/35, which supplements Solvency II Directive (2009/138/EC).
The European Banking Authority (EBA) published an Opinion on the scale and impact of de-risking in European Union and the steps that competent authorities should take to tackle unwarranted de-risking.