HM Treasury Publishes Multiple Regulatory Updates in July 2022
HM Treasury published a draft statutory instrument titled “The Financial Services (Miscellaneous Amendments) (EU Exit) Regulations 2022,” along with the related explanatory memorandum and impact assessment. The UK government also published statutory instrument titled “Financial Services and Markets Act 2000 (Consequential Amendments of References to Rules and Miscellaneous Amendments) Regulations 2022.” Additionally, HM Treasury and the U.S. Department of the Treasury issued a joint statement on the sixth meeting of the UK-U.S. Financial Regulatory Working Group.
Below are the key highlights of the aforementioned updates:
- The Financial Services (Miscellaneous Amendments) (EU Exit) Regulations 2022 have been made in exercise of the powers in section 8 of the European Union (Withdrawal) Act 2018. They make miscellaneous amendments to financial services legislation to remedy deficiencies arising from the withdrawal of the United Kingdom from the European Union. Part 1 of the statutory instrument sets out general provisions. Part 2 makes amendments to Payment Services Regulations 2017, Central Counterparties (Amendment, etc., and Transitional Provision) (EU Exit) Regulations 2018, and Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019. Part 3 of the instrument makes amendments to Regulation (EC) No 1060/2009 on credit rating agencies, and Regulation (EU) 2017/2402 framework for securitization and creating a specific framework for simple, transparent and standardized securitization. These Regulations come into force 21 days after the day on which they are laid.
- Part 2 of the instrument titled "Financial Services and Markets Act 2000 (Consequential Amendments of References to Rules and Miscellaneous Amendments) Regulations 2022" makes amendments to update references in legislation to rules made by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA). These amendments relate to changes to the prudential regulation of credit institutions and investment firms in the Financial Services Act 2021. In particular, regulation 2(1) amends the Financial Conglomerates and Other Financial Groups Regulations 2004 (S.I. 2004/1862) so that the legislation reflects changes made by the Financial Services Act 2021. Part 3 of this instrument makes amendments to the retained EU law. This instrument also makes amendments to legislation that are consequential on changes made by sections 1 to 5 of, and schedules 1 to 4 to, the Financial Services Act 2021. The instrument shall enter into force on August 17, 2022.
- The UK-U.S. Working Group meeting focused on seven themes: international and bilateral cooperation, benchmark transition, financial innovation, sustainable finance, non-bank financial intermediation, operational resilience, and cross-border regimes. On Basel III reforms, participants reaffirmed their commitment to the final prudential standards and reiterated the value of global cooperation in their implementation. On the topic of financial innovation, participants reflected on the outcomes of the U.S.-UK Financial Innovation Partnership meeting in June 2022. This included exchanging views on crypto-asset regulation and recent market developments, including those in relation to stablecoins, and the exploration of central bank digital currencies (CBDCs). Participants will conduct follow-up work on the above topics and other issues of mutual interest through bilateral engagement and in multilateral fora ahead of the next Working Group meeting, which is expected later in 2022.
Related Links
- Notification on Draft Statutory Instrument
- Draft Statutory Instrument (PDF)
- Second Statutory Instrument
- Joint Statement on Working Group Meeting
Keywords: Europe, UK, Banking, Securities, Financial Services Regulation, Statutory Instrument, Investment Firms, Credit Rating Agency, HM Treasury, UK Government
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