The Securities Financing Transactions, Securitisation and Miscellaneous Amendments (EU Exit) Regulations 2020

• Citation: S.I. 2020/1385
• Sections: 79

Section 1 Citation and commencement

(1) These Regulations may be cited as the Securities Financing Transactions, Securitisation and Miscellaneous Amendments (EU Exit) Regulations 2020.

(2) This regulation, Parts 2 and 3, and regulations 43, 47, 50(1) and (4) to (6), 54(1), (2) and (5), and 70 come into force on the day after the day on which these Regulations are made.

(3) Part 6 come into force on IP completion day.

(4) The remainder of these Regulations come into force immediately before IP completion day.

Section 2 Advance application for registration as a trade repository

(1) A person may submit an advance application to the FCA for registration as a trade repository.

(2) Such an application must—

(a) be made in such a manner as the FCA may direct; and

(b) contain, or be accompanied by, such information as the FCA may direct.

Section 3 Assessment of whether an advance application is complete

The FCA must, before the end of period of 20 working days beginning with the day of receipt of an advance application—

(a) if it considers that the application complies with any applicable direction under regulation 2(2)(a) or (b), confirm in writing that the application is complete; or

(b) if it considers that the application does not comply with one or more of the directions under that regulation—

(i) confirm in writing to the applicant that the application is not complete; and

(ii) where applicable, inform the applicant of the steps which need to be taken, and the time within which they need to be taken, for the application to be considered complete.

Section 4 Determination of an advance application

(1) The FCA must, before the end of a period of 40 working days beginning with the day on which the FCA confirms that an application is complete, take the following steps.

(2) The first step is that the FCA must consider the application based on compliance with—

(a) Article 5(2) of the SFT Regulation; and

(b) Article 12 of the SFT Regulation.

(3) The second step is that the FCA must decide whether the applicant should be registered as a trade repository or whether the application for registration should be rejected.

(4) The third step is that the FCA must notify the applicant of its decision under paragraph (3), and the reasons for that decision.

Section 5 Effect of determining an advance application

A decision in respect of an advance application under regulation 4(3) has effect from—

(a) the day of notification, or

(b) IP completion day,

whichever is later, as if it were a decision to register or refuse registration adopted in accordance with Article 7 of the SFT Regulation.

Section 6 Temporary deemed registration under the SFT Regulation

(1) A person to whom this regulation applies is to be treated as if the person is registered as a trade repository under Chapter III of the SFT Regulation.

(2) Reference in an enactment to a person registered as a trade repository under that Chapter, however expressed, is to be read, unless the contrary intention appears, as including a person treated as being so registered by virtue of this regulation.

Section 7 Application of regulation 6

Regulation 6 applies to a person—

(a) who satisfied the conditions in regulation 8;

(b) for the period specified in regulation 9.

Section 8 Conditions to be satisfied for regulation 6 to apply

The conditions are—

(a) the person is a body corporate which, immediately before IP completion day, is—

(i) incorporated under the law of any part of the United Kingdom; and

(ii) included within a group of undertakings which comprises a trade repository registered under the EU SFT Regulation;

(b) the person has—

(i) submitted an advance application in accordance with regulation 2, whether or not the application complies with any applicable direction under regulation 2(2)(b); and

(ii) not been notified by the FCA of its decision in respect of the application in accordance with regulation 4(4).

Section 9 Period during which regulation 6 is to apply

(1) For the purposes of regulation 7(b), the period is one that begins with IP completion day and ends with a day determined in accordance with paragraph (2).

(2) The period ends—

(a) after three years beginning with the day on which IP completion day occurs; or

(b) if earlier, with the day—

(i) before the day on which the person’s registration as a trade repository has effect;

(ii) on which the FCA determines, in accordance with regulation 10(1), that regulation 6 should cease to apply to that person; or

(iii) on which the person ceases to be included within a group of undertakings which comprises a trade repository under the EU SFT Regulation.

Section 10 Cessation following a determination by the FCA

(1) The FCA may determine that regulation 6 should cease to apply to a person—

(a) where, in respect of an advance application—

(i) the application does not comply with any applicable direction made by the FCA under regulation 2(2)(a) or (b); and

(ii) the steps referred to in regulation 3(b)(ii) have not been taken within the time specified;

(b) following a decision refusing registration in accordance with regulation 4(3); or

(c) at the request of the person to whom regulation 6 applies.

(2) The FCA must notify the person in respect of whom the determination is made of the day on which regulation 6 will cease to apply.

(3) Paragraph (1) is subject to Article 10 (withdrawal of registration) of the SFT Regulation.

Section 11 Temporary deemed registration under the SFT Regulation for run-off period

(1) A person to whom this regulation applies is to be treated as if the person is registered as a trade repository under Chapter III of the SFT Regulation.

(2) Reference in an enactment to a person registered as a trade repository under that Chapter, however expressed, is to be read, unless the contrary intention appears, as including a person treated as being so registered by virtue of this regulation.

Section 12 Application of regulation 11

Regulation 11 applies to a person—

(a) who satisfies the condition in regulation 13;

(b) for the period determined in accordance with regulation 14.

Section 13 Condition to be satisfied for regulation 11 to apply

The condition is that the FCA has determined that regulation 6 should cease to apply to a person in accordance with regulation 10, or that the FCA has withdrawn registration of a person to whom regulation 6 applies in accordance with Article 10 of the SFT Regulation.

Section 14 Period during which regulation 11 is to apply

For the purposes of regulation 12(b), the period is a period of one year beginning with the day on which the condition in regulation 13 is satisfied, or such shorter period as the FCA may determine in a particular case.

Section 15 Transitional arrangements during the run-off period

(1) The FCA may make such transitional arrangements imposing requirements in respect of the registration of a person to whom regulation 11 applies as it considers necessary or expedient.

(2) A requirement may, in particular, be imposed—

(a) so as to require the person concerned to take specified action, including to make arrangements for the transfer of data stored by the person to whom regulation 6 or 11 applies or a person which is registered as a trade repository under Chapter III of the EU SFT Regulation; or

(b) so as to require the person concerned to refrain from taking specified action.

(3) A requirement may be imposed by reference to the person’s relationship with—

(a) the person’s group; or

(b) other members of the person’s group.

Section 16 Notification of a decision to impose requirements under regulation 15

(1) This regulation applies to an exercise of the FCA’s power to impose a requirement in respect of the registration of a person (“P”) in accordance with regulation 15.

(2) The imposition of the requirement takes effect—

(a) immediately, if the notice given under paragraph (4) states that that is the case,

(b) on such date as may be specified in the notice, or

(c) if no date is specified in the notice, when the matter to which the notice relates is no longer subject to review.

(3) The imposition of a requirement may be expressed to take effect immediately, or on a specified date, only if the FCA, having regard to the ground on which it is exercising its power, reasonably considers that it is necessary for the imposition of the requirement to take effect immediately, or on that date.

(4) If the FCA proposes to impose, or imposes, a requirement it must give P written notice.

(5) The notice must—

(a) give details of the requirement;

(b) state the reasons for the imposition of the requirement;

(c) inform P that P may make representations to the FCA, within a period specified in the notice, whether or not P has referred the matter to the Tribunal;

(d) inform P of when the imposition of the requirement takes effect; and

(e) inform P of their right to refer the matter to the Tribunal.

(6) The FCA may extend the period allowed under the notice for making representations.

(7) If, having considered any representations made by P, the FCA decides—

(a) to impose a requirement in the way proposed, or

(b) if the requirement has been imposed, not to rescind the imposition of the requirement,

it must give P written notice.

(8) If, having considered any representations made by P, the FCA decides—

(a) not to impose a requirement in the way proposed,

(b) to impose a different requirement, or

(c) to rescind a requirement which has effect,

it must give P written notice.

(9) A notice under paragraph (7) must inform P of P’s right to refer the matter to the Tribunal.

(10) A notice under paragraph (8)(b) must comply with paragraph (5).

(11) If a notice informs P of P’s right to refer a matter to the Tribunal, it must give an indication of the procedure on such a reference.

Section 17 Right to refer to the Tribunal

P may refer to the Tribunal any decision by the FCA to impose a requirement under this Chapter.

Section 18 Application of Part 9 of the Financial Services and Markets Act 2000

(1) Part 9 of the Financial Services and Markets Act 2000 (“the Act”) (hearings and appeals) applies in respect of a reference to the Tribunal under regulation 17 as it applies in respect of a reference to the Tribunal under the Act but with the following modifications.

(2) In section 133 (proceedings before the Tribunal: general provisions)—

(a) in subsection 1—

(i) omit “(whether made under this or any other Act)”;

(ii) in paragraph (a), omit “or the PRA”;

(iii) omit paragraphs (b) and (c);

(b) omit subsection (1A);

(c) in subsection (2), omit “, (b) or (c)”;

(d) omit subsection (5);

(e) in subsection (6), for “In any other case, the Tribunal” substitute “The Tribunal”;

(f) omit subsection (7A).

(3) Omit section 133A (proceedings before the Tribunal: decision and supervisory notices, etc).

(4) In section 133B (offences), in subsection (1)—

(a) in paragraph (a), omit “or the PRA”;

(b) omit paragraphs (b) and (c).

Section 19 Registration under the SFT Regulation

(1) Notwithstanding Articles 5 to 10 of the SFT Regulation, a person to whom this regulation applies is, on and after IP completion day, registered as a trade repository under Chapter III of that Regulation.

(2) Reference in an enactment to a person registered under that Chapter, however expressed, includes a person registered by virtue of this regulation.

Section 20 Application to regulation 19

Regulation 19 applies to a person who—

(a) satisfies the conditions in regulation 21; and

(b) notifies the FCA in accordance with regulation 22.

Section 21 Conditions to be satisfied for regulation 19 to apply

The conditions are that the person is a body corporate which, immediately before IP completion day, is—

(a) incorporated under the law of any part of the United Kingdom; and

(b) registered as a trade repository under the EU SFT Regulation.

Section 22 Notification for registration

(1) The person must, no later than the final day, notify the FCA that the person wishes to be registered in accordance with regulation 19.

(2) For the purposes of paragraph (1), the notification must—

(a) be made in such a manner as the FCA may direct; and

(b) contain, or be accompany by, such information as the FCA may direct.

(3) For the purposes of paragraph (1), the final day is—

(a) the day before IP completion day; or

(b) such earlier day as the FCA may direct.

Section 23 Acknowledgement of receipt

The FCA must, within a period of 10 working days beginning with the day on which it receives a notification under regulation 22, confirm in writing to the person making the notification that the notification has been received.

Section 24 FCA response

The FCA must, within a period of 20 working days beginning with the day on which it receives a notification under regulation 22—

(a) if it considers that the notification complies with the requirements of, or made under, that regulation, confirm in writing to the person making the notification that the notification is valid; or

(b) if it considers that the notification does not comply with those requirements—

(i) confirm in writing to the person making the notification that the notification is not valid; and

(ii) where applicable, inform the person of the steps which need to be taken, and the time within which they need to be taken, for the notification to be considered valid.

Section 25 Misleading the FCA: criminal offence

Section 398 of the Financial Services and Markets Act 2000 (misleading the FCA or PRA: residual cases) applies to a requirement to provide information in accordance with a direction under regulation 2(2)(b) or 22(2)(b) as it applies to a requirement falling within subsection (1A) of that section.

Section 26 Further information to be supplied by a person to whom regulation 9 or 13 applies

(1) A person to whom regulation 6 applies must notify the FCA if any information contained in or accompanying an advance application submitted in accordance with regulation 1 changes.

(2) A person to whom regulation 11 applies must notify the FCA if any information contained in or accompanying a notification made in accordance with regulation 25 changes.

Section 27 Directions

(1) The power to make a direction under this Part includes the power—

(a) to make different directions in relation to different applications or categories of application;

(b) to vary or revoke a previous direction.

(2) A direction under this Part must be—

(a) in writing; and

(b) published by the FCA in a manner suitable to bring it to the attention of persons likely to be affected.

Section 28 Enforcement

The following provisions of the Transparency of Securities Financing Transactions and of Reuse (Amendment) (EU Exit) Regulations 2019 apply to this Part, as though contraventions of the requirements of this Part were a contravention of a requirement of those Regulations—

(a) Chapter 2 in Part 4;

(b) regulation 36;

(c) regulation 38; and

(d) regulation 39.

Section 29 Interpretation

In this Part—

“advance application” means an application made under regulation 2(1) submitted during the period that begins with the day on which this Part comes into force and ends immediately before IP completion day;

“EU SFT Regulation” means Regulation (EU) 2015/2365 of the European Parliament and of the Council of 25 November 2015 on transparency of securities financing transactions and of reuse and amending Regulation (EU) No 648/2012 ;

“the FCA” means the Financial Conduct Authority;

“SFT Regulation” means Regulation (EU) 2015/2365 of the European Parliament and of the Council of 25 November 2015 on transparency of securities financing transactions and of reuse and amending Regulation (EU) No 648/2012 as it forms part of assimilated law;

“trade repository” has the same meaning as in Article 3(1) of the SFT Regulation;

“the Tribunal” means the Upper Tribunal;

“working day” means any day other than a Saturday, a Sunday, Christmas Day, Good Friday, or a bank holiday within the meaning of the Banking and Financial Dealings Act 1971 .

Section 30 Advance application for registration as a securitisation repository

(1) A person may submit an advance application to the FCA for registration as a securitisation repository.

(2) Such an application must—

(a) be made in such a manner as the FCA may direct; and

(b) contain, or be accompanied by, such information as the FCA may direct.

Section 31 Assessment of whether an advance application is complete

The FCA must, before the end of a period of 20 working days beginning with the day of receipt of an advance application (“the application”)—

(a) if it considers that the application complies with any applicable direction under regulation 30(2)(a) or (b), confirm in writing that the application is complete; or

(b) if it considers that the application does not comply with one or more of the directions under that regulation—

(i) confirm in writing to the applicant that the application is not complete; and

(ii) where applicable, inform the applicant of the steps which need to be taken, and the time within which they need to be taken, for the application to be considered complete.

Section 32 Determination of an advance application

(1) The FCA must, before the end of a period of 40 working days beginning with the day on which the FCA confirms that an advance application is complete, take the following steps.

(2) The first step is that the FCA must consider the application based on compliance with Article 10(2) and Article 17 of the Securitisation Regulation.

(3) The second step is that the FCA must decide whether the applicant should be registered as a securitisation repository or whether the application for registration should be rejected.

(4) The third step is that the FCA must notify the applicant of its decision under paragraph (3), and the reasons for that decision.

Section 33 Effect of determining an advance application

A decision in respect of an advance application under regulation 32(3) has effect from whichever is the later of—

(a) the day of notification under regulation 32(4), or

(b) IP completion day,

as if it were a decision to register or refuse registration adopted in accordance with Article 12 of the Securitisation Regulation.

Section 34 Misleading the FCA: criminal offence

Section 398 of the Financial Services and Markets Act 2000 (misleading the FCA or PRA: residual cases) applies to a requirement to provide information in accordance with a direction under regulation 30(2)(a) or (b) as it applies to a requirement falling within subsection (1A) of that section.

Section 35 Directions

(1) The power to make a direction under regulation 30(2)(a) or (b) includes the power—

(a) to make different directions in relation to different applications or categories of application;

(b) to vary or revoke a previous direction.

(2) A direction under regulation 30(2)(a) or (b) must be—

(a) in writing; and

(b) published by the FCA in a manner suitable to bring it to the attention of persons likely to be affected.

Section 36 Interpretation

In this Part—

“advance application” means an application made under regulation 30(1) submitted during the period that begins with the day on which this Part comes into force and ends immediately before IP completion day;

“the FCA” means the Financial Conduct Authority;

“Securitisation Regulation” means Regulation (EU) 2017/2402 of the European Parliament and of the Council of 12 December 2017 laying down a general framework for securitisation and creating a specific framework for simple, transparent and standardised securitisation, and amending Directives 2009/65/EC , 2009/138/EC and 2011/61/EU and Regulations (EC) No 1060/2009 and (EU) No 648/2012 as it forms part of assimilated law;

“securitisation repository” has the same meaning as in Article 2(23) of the Securitisation Regulation;

“working day” means any day other than a Saturday, a Sunday, Christmas Day, Good Friday, or a bank holiday within the meaning of the Banking and Financial Dealings Act 1971.

Section 37 Insolvency Act 1986

In paragraph 15C(4) of Schedule 6 to the Insolvency Act 1986 , for “had effect on the day on which the Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 were made” substitute “forms part of retained EU law”.

Section 38 Financial Services and Markets Act 2000

(1) The Financial Services and Markets Act 2000 is amended as follows.

(2) In section 313 (interpretation of Part XVIII) , in the definition of “the EMIR regulation”, for “last amended by Regulation (EU) 2019/2099 of the European Parliament and of the Council of 23 October 2019” substitute “it forms part of retained EU law”.

(3) In Section 417 (definitions) —

(a) in subsection (1)—

(i) in definition of “capital requirements regulation”, for “has effect at the beginning of the day on which the Financial Services (Electronic Money, Payment Services and Miscellaneous Amendments) (EU Exit) Regulations 2019 ( S.I. 2019/1212 ) are made (but see regulation 2 of the European Union (Withdrawal) Act 2018 (Consequential Modifications and Repeals and Revocations) Regulations 2019 ( S.I. 2019/628 ), which may further update the reference)” substitute “forms part of retained EU law”;

(ii) in definition of “the CSD regulation”, for “has effect at the updating point (see subsection (1A))” substitute “forms part of retained EU law”;

(iii) in the definition of “the EU Benchmarks Regulation 2016”, after “596/2014” insert “, as it forms part of retained EU law”;

(iv) for the definition of “investment services and activities” substitute—

“investment services and activities” means any of the services and activities listed in Part 3 of Schedule 2 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 ( S.I. 2001/544 ), relating to any of the instruments listed in Part 1 of that Schedule;

(v) in the definition of “market abuse regulation”, for “has effect at the updating point (see subsection (1A))” substitute “forms part of retained EU law”;

(vi) in the definition of “markets in financial instruments regulation”, for “instruments;” substitute “instruments, as it forms part of retained EU law;”;

(vii) in the definition of “MMF Regulation”, after “funds” insert “, as it forms part of retained EU law”;

(viii) in the definition of “short selling regulation” for “has effect at the updating point (see subsection (1A))” substitute “forms part of retained EU law”;

(b) omit subsection (1A).

Section 39 Banking Act 2009

(1) The Banking Act 2009 is amended as follows.

(2) In section 3 (interpretation: other expressions) , in the definition of “the capital requirements regulation”, for “had effect on the day on which the Financial Services (Electronic Money, Payment Services and Miscellaneous Amendments) (EU Exit) Regulations 2019 ( S.I. 2019/1212 ) were made” substitute “forms part of retained EU law”.

(3) In section 4(4)(a) (special resolution objectives) , for “, as that regulation had effect on the day on which the Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 ( S.I. 2018/1394 ) were made” substitute “as it forms part of retained EU law”.

(4) In section 11A(8) (private sector purchaser: marketing) , for “had effect on the day on which the Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 ( S.I. 2018/1394 ) were made” substitute “forms part of retained EU law”.

Section 40 The Financial Services and Markets Act 2000 (Regulated Activities) Order 2001

(1) Article 3(1) (interpretation) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 is amended as follows.

(2) In the definition of “EU Securitisation Regulation 2017”, at the end insert “as it forms part of retained EU law”.

(3) In the definition of “markets in financial instruments regulation”, at the end insert “as it forms part of retained EU law”.

Section 41 The Financial Services and Markets Act 2000 (Disclosure of Confidential Information) Regulations 2001

In regulation 2 (interpretation) of the Financial Services and Markets Act 2000 (Disclosure of Confidential Information) Regulations 2001 , at the end of the list of definitions, for the final “.” substitute—

, and

any reference to an EU regulation, or part of an EU regulation, is to be read as a reference to that EU regulation, or that part of an EU regulation, as amended from time to time.

Section 42 The Financial Services and Markets Act 2000 (Benchmarks) Regulations 2018

In regulation 2(1) (interpretation) of the Financial Services and Markets Act 2000 (Benchmarks) Regulations 2018 , in the definition of “the EU Benchmarks Regulation 2016”, at the end insert “as it forms part of retained EU law”.

Section 43 The Financial Regulators’ Powers (Technical Standards etc.) (Amendment etc.) (EU Exit) Regulations 2018

(1) The Schedule to the Financial Regulators’ Powers (Technical Standards etc.) (Amendment etc.) (EU Exit) Regulations 2018 is amended as follows.

(2) In Part 1—

(a) after paragraph 9 insert—

(9A) Commission Delegated Regulation (EU) 2020/447 of 16 December 2019 supplementing Regulation (EU) No 648/2012 of the European Parliament and of the Council with regard to regulatory technical standards on the specification of criteria for establishing the arrangements to adequately mitigate counterparty credit risk associated with covered bonds and securitisations, and amending Delegated Regulations (EU) 2015/2205 and (EU) 2016/1178.

(b) after paragraph 11A insert—

(11B) Commission Delegated Regulation (EU) 2018/1108 of 7 May 2018 supplementing Directive (EU) 2015/849 of the European Parliament and of the Council with regulatory technical standards on the criteria for the appointment of central contact points for electronic money issuers and payment service providers and with rules on their functions.

(c) in the heading before paragraph 68, for “Directive” substitute “Regulation”;

(d) omit paragraphs 68 and 69;

(e) after paragraph 69G insert—

(69H) Commission Delegated Regulation (EU) 2020/1226 of 12 November 2019 supplementing Regulation (EU) 2017/2402 of the European Parliament and of the Council and laying down regulatory technical standards specifying the information to be provided in accordance with the STS notification requirements.

(69I) Commission Implementing Regulation (EU) 2020/1227 of 12 November 2019 laying down implementing technical standards with regard to templates for the provision of information in accordance with the STS notification requirements.

(69J) Commission Implementing Regulation (EU) 2020/1228 of 29 November 2019 laying down implementing technical standards with regard to the format of applications for registration as a securitisation repository or for extension of a registration of a trade repository pursuant to Regulation (EU) 2017/2402 of the European Parliament and of the Council.

(69K) Commission Delegated Regulation (EU) 2020/1229 of 29 November 2019 supplementing Regulation (EU) 2017/2402 of the European Parliament and of the Council with regard to regulatory technical standards on securitisation repository operational standards for data collection, aggregation, comparison, access and verification of completeness and consistency.

(69L) Commission Delegated Regulation (EU) 2020/1230 of 29 November 2019 supplementing Regulation (EU) 2017/2402 of the European Parliament and of the Council with regard to regulatory technical standards specifying the details of the application for registration of a securitisation repository and the details of the simplified application for an extension of registration of a trade repository.

(3) In Part 4, after paragraph 174 insert—

Securitisation Regulation

(174ZA) Commission Delegated Regulation (EU) 2020/1224 of 16 October 2019 supplementing Regulation (EU) 2017/2402 of the European Parliament and of the Council with regard to regulatory technical standards specifying the information and the details of a securitisation to be made available by the originator, sponsor and SSPE.

(174ZB) Commission Implementing Regulation (EU) 2020/1225 of 29 October 2019 laying down implementing technical standards with regard to the format and standardised templates for making available the information and details of a securitisation by the originator, sponsor and SSPE.

Section 44 The Central Counterparties (Amendment, etc., and Transitional Provision) (EU Exit) Regulations 2018

(1) The Central Counterparties (Amendment, etc., and Transitional Provision) (EU Exit) Regulations 2018 are amended as follows.

(2) In regulation 1(4) (interpretation), in the definition of “the EMIR Regulation”, for “last amended by Regulation (EU) 2019/2099 of the European Parliament and of the Council of 23 October 2019” substitute “it forms part of retained EU law”.

(3) After regulation 9 (revocation of implementing acts made under Article 25.6 of the EMIR Regulation), insert—

Revocation of delegated acts made under Articles 25.2a, 25a.3 or 25d.3 of the EMIR Regulation

(9A) Any delegated acts which have been adopted by the European Commission under Articles 25.2a, 25a.3 or 25d.3 of the EMIR Regulation and are in force immediately before IP completion day are revoked.

(4) In regulation 19(6) (cessation of temporary deemed recognition), for “6 months” substitute “18 months”.

Section 45 The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018

(1) Regulation 3 of the Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 is amended as follows.

(2) In paragraph (2)—

(a) for sub-paragraph (a) substitute—

(a) in the definition of “the 2009 European Regulation”, for “2009 European” substitute “2009”;

(b) for sub-paragraph (c) substitute—

(c) for the definition of “the European Regulations” substitute—

“the Regulations” means the 2009 Regulation or the 2012 Regulation;

(3) For paragraph (3) substitute—

(3) In regulations 4 to 18—

(a) for “European Regulations” each time it appears, substitute “Regulations”;

(b) for “2012 European Regulation” each time it appears, substitute “2012 Regulation”.

(4) Omit paragraph (4).

Section 46 The Deposit Guarantee Scheme and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018

In regulation 5(5) of the Deposit Guarantee Scheme and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 , in new regulation 7A, for paragraph (7) substitute—

(7) The first review carried out in accordance with paragraph (5) must be completed no later than five years after regulation 5 of the Deposit Guarantee Scheme and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 comes into force (in accordance with paragraph 1(1) of Schedule 5 to the European Union (Withdrawal Agreement) Act 2020).

Section 47 The Trade Repositories (Amendment and Transitional Provision) (EU Exit) Regulations 2018

(1) The Trade Repositories (Amendment and Transitional Provision) (EU Exit) Regulations 2018 are amended as follows.

(2) In regulation 4 (interpretation), for “last amended by Regulation (EU) 2019/2099 of the European Parliament and of the Council of 23 October 2019” substitute “it forms part of retained EU law”.

(3) For regulation 20 (misleading the FCA: criminal offence), substitute—

(20) Section 398 of the Financial Services and Markets Act 2000 (misleading the FCA or PRA: residual cases) applies to a requirement to provide information in accordance with—

(a) a direction under regulation 5(2)(b) or 17(2)(b),

(b) regulation 21, or

(c) a written notification under regulation 21A,

as it applies to a requirement falling within subsection (1A) of that section.

(4) After regulation 20, insert—

Further information to be supplied

(20A) Subject to regulation 21A(7), regulations 21 and 21A apply to a person who, before IP completion day—

(a) has submitted an advance application to the FCA in accordance with regulation 5, and has not been notified by the FCA of its decision in respect of the application in accordance with regulation 7;

(b) has notified the FCA in accordance with regulation 17, and has not received a response from the FCA in accordance with regulation 19; or

(c) has been notified by the FCA of a decision to register in accordance with regulation 7 or a decision to confirm the notification in accordance with regulation 19.

(5) For regulation 21 (further information to be supplied by a person to whom regulation 9 or 14 applies), including the heading, substitute—

Duty to disclose information

(21) A person to whom this regulation applies must notify the FCA without delay if—

(a) any information contained in, or accompanying—

(i) an advance application submitted in accordance with regulation 5, or

(ii) a notification made in accordance with regulation 17,

changes; or

(b) there are any material changes which affect or may affect compliance by that person with the conditions for registration set out in Title 7 of the European Market Infrastructure Regulation.

FCA power to require information from a person to whom this regulation applies

(21A)

(1) The FCA may, by notice in writing given to a person to whom this regulation applies, require that they—

(a) provide information specified or information of a description specified by the FCA; or

(b) produce documents specified or documents of a description specified by the FCA.

(2) The information or documents must be provided or produced—

(a) before the end of such reasonable period, and

(b) at such place,

as may be specified.

(3) The powers conferred by paragraphs (1) and (2) apply only to information and documents reasonably required—

(a) in connection with the exercise by the FCA of functions conferred on it by or under these Regulations; and

(b) in anticipation of the exercise by the FCA of the functions conferred on it by or under the European Market Infrastructure Regulation and the Over the Counter Derivatives, Central Counterparties and Trade Repositories (Amendment, etc., and Transitional Provision) (EU Exit) Regulations 2019/335 on IP completion day.

(4) An officer who has written authorisation from the FCA to do so may request that a person to whom this regulation applies without delay—

(a) provide the officer with specified information or information of a specified description; or

(b) produce to the officer specified documents or documents of a specified description.

(5) The FCA may require any information provided under this regulation to be provided in such form as it may reasonably require.

(6) The FCA may require—

(a) any information provided, whether in a document or otherwise, to be verified in such manner, or

(b) any document produced to be authenticated in such manner,

as it may reasonably require.

(7) The FCA may also impose requirements under paragraphs (1) to (4) on related third parties, to whom a person to whom this regulation applies has outsourced operational functions or activities, to provide all information that is necessary in order to carry out the duties of the person to whom this regulation applies.

(8) In this regulation, “officer” means an officer of the FCA and includes a member of the FCA’s staff or an agent of the FCA.

Section 48 The Capital Requirements (Amendment) (EU Exit) Regulations 2018

(1) The Capital Requirements (Amendment) (EU Exit) Regulations 2018 are amended as follows.

(2) In regulation 66 (Article 4A and 4B (insertion of new paragraphs)), in new Article 4A, paragraph 2, for “Articles 4(1)(25), 11(5), 81(1)(ii), 82(a)(ii) and 336(4)(c),” substitute “Articles 4(1)(25), 11(2) and (6), 81(1)(ii), 82(a)(ii), 336(4)(c), 468(4) and 473a(7a)”.

(3) Omit—

(a) regulation 72 (Article 11 (general treatment));

(b) regulation 119 (Article 124 (exposures secured by mortgages on immovable property));

(c) regulation 133 (Article 164 (loss given default)).

Section 49 The Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018

(1) The Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 are amended as follows.

(2) In regulation 24 (Markets in Financial Instruments Regulation), before “is amended in accordance with this Part” insert “, as it forms part of retained EU law,”.

(3) In regulation 28 (transparency for systematic internalisers and investment firms trading OTC), after paragraph (4), insert—

(4A) In Article 17a, first paragraph, for “Article 49 of Directive 2014/65/EU ” substitute “paragraph 3G of Schedule 1 to the Financial Services and Markets Act 2000 (Recognition Requirements for Investment Exchanges, Clearing Houses and Central Securities Depositories) Regulations 2001 , as if that paragraph applied to the systemic internaliser in the course of its operations as such and sub-paragraph (1A) were omitted”.

(4) In regulation 30(3) (derivatives), for sub-paragraph (a) substitute—

(a) in the first subparagraph—

(i) for “ESMA shall develop draft regulatory” substitute “The appropriate regulator may make”; and

(ii) at the end insert “For cases other than CCPs, technical standards may also specify the types of indirect clearing service arrangements that meet conditions for reasonable and transparent commercial terms.”.

(5) In regulation 33(2)(c) (provision of services and performance of activities by third-country firms following an equivalence decision), after sub-paragraph (ii), insert—

(iii) after “paragraph 1” insert “or in retained EU law by a decision made by the Commission under paragraph 1 as it had effect in EU law before IP completion day”.

(6) In regulation 37 (transfer of functions), in paragraph 44(a) of the new Schedule 3 to be inserted, for “sections 7A.3 and 7A.4” substitute “sections 7A.3, 7A.4 and 7A.5”.

Section 50 The Credit Rating Agencies (Amendment etc.) (EU Exit) Regulations 2019

(1) The Credit Rating Agencies (Amendment etc.) (EU Exit) Regulations 2019 are amended as follows.

(2) In each of the following provisions, for “credit rating agency”, in each place it occurs, substitute “person”—

(a) regulation 7(1) (financial penalties);

(b) regulation 8(7) (statement of policy);

(c) regulation 9(6) (statement of policy: procedure);

(d) regulation 10 (public censure);

(e) regulation 11(1) (warning notice);

(f) regulation 12(1) (decision notice);

(g) regulation 15 (right to refer a decision to the Upper Tribunal);

(h) in regulation 17 (application to a court for an injunction)—

(i) paragraph (1)(a) and (b);

(ii) paragraph (2);

(iii) paragraph (3).

(3) In regulation 18 (information gathering and investigations)—

(a) in paragraph (1), for “in respect of a credit rating agency as it applies in respect of an authorised person under the Act, subject as follows” substitute “as if references to an authorised person also included references to a person subject to requirements under these Regulations or the CRA Regulation, and subject to the following further modifications”;

(b) in paragraph (2)(b), in new paragraph (b)(iv), for “credit rating agency” substitute “person”;

(c) in paragraph (3), in the new subsection (1A), for “credit rating agency” substitute “person”.

(4) For regulation 45 (misleading the FCA: criminal offence), substitute—

(45) Section 398 of the Financial Services and Markets Act 2000 (misleading the FCA or PRA: residual cases) applies to a requirement to provide information in accordance with—

(a) a direction under regulation 24(3), 36(2) or 42(2),

(b) regulation 24(2) or 47,

(c) a written notification under regulation 47A, or

as it applies to a requirement falling within subsection (1A) of that section.

(5) After regulation 46 (offence by bodies corporate) insert—

Further information to be supplied

(46A) Subject to regulation 47A(7), regulations 47 and 47A apply to any person who, before IP completion day—

(a) has submitted an advance application to the FCA in accordance with regulation 24, and has not been notified by the FCA of its decision in respect of the application in accordance with regulation 26;

(b) has notified the FCA in accordance with regulation 36, and has not received a response from the FCA in accordance with regulation 38;

(c) has notified the FCA in accordance with regulation 42, and who has not received a response from the FCA in accordance with regulation 44; or

(d) has been notified by the FCA of a decision to register in accordance with regulation 26 or a decision to confirm the notification in accordance with regulations 38 or 44.

(6) For regulation 47 (further information to be supplied by a person to whom regulation 28, 33 or 39 applies), including the heading, substitute—

Duty to disclose information

(47) A person to whom this regulation applies must notify the FCA without delay if—

(a) any information contained in, or accompanying—

(i) an advance application submitted in accordance with regulation 24, or

(ii) a notification made in accordance with regulations 36 or 42,

changes; or

(b) there are any material changes which affect or may affect compliance by that person with the conditions for registration set out in Title 3 of the CRA Regulation.

FCA power to require information from a person to whom this regulation applies

(47A)

(1) The FCA may, by notice in writing given to a person to whom this regulation applies, require that they—

(a) provide information specified or information of a description specified by the FCA; or

(b) produce documents specified or documents of a description specified by the FCA.

(2) The information or documents must be provided or produced—

(a) before the end of such reasonable period, and

(b) at such place,

as may be specified.

(3) The powers conferred by paragraphs (1) and (2) apply only to information and documents reasonably required—

(a) in connection with the exercise by the FCA of functions conferred on it by or under these Regulations; and

(b) in anticipation of the exercise by the FCA of their functions under the CRA Regulation and these Regulations which are conferred on them on IP completion day.

(4) An officer who has written authorisation from the FCA to do so may request that a person to whom this regulation applies without delay—

(a) provide the officer with specified information or information of a specified description; or

(b) produce to the officer specified documents or documents of a specified description.

(5) The FCA may require any information provided under this regulation to be provided in such form as it may reasonably require.

(6) The FCA may require—

(a) any information provided, whether in a document or otherwise, to be verified in such manner, or

(b) any document produced to be authenticated in such manner,

as it may reasonably require.

(7) The FCA may also impose requirements under paragraphs (1) and (4) on related third parties, to whom a person to whom this regulation applies has outsourced operational functions or activities, to provide all information that is necessary in order to carry out the duties of the person to whom this regulation applies.

(8) In this regulation, “officer” means an officer of the FCA and includes a member of the FCA’s staff or an agent of the FCA.