The Financial Services and Markets Act 2023 (Commencement No. 10 and Saving Provisions) Regulations 2025

• Citation: S.I. 2025/873
• Sections: 7

Section 1 Citation and interpretation

(1) These Regulations may be cited as the Financial Services and Markets Act 2023 (Commencement No. 10 and Saving Provisions) Regulations 2025.

(2) In these Regulations, “ the Capital Requirements Regulation ” has the meaning given in regulation 4(b).

Section 2 Provisions coming into force on 15th July 2025

The following provision of the Financial Services and Markets Act 2023 come into force on 15th July 2025—

(a) section 1(1) (revocation of assimilated law relating to financial services and markets), so far as it relates to the provision in paragraph (b) of this regulation;

(b) in Part 1 (assimilated direct principal legislation) of Schedule 1 (revocation of assimilated law relating to financial services), the revocation of Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment.

Section 3 Provisions coming into force on 28th November 2025

The following provisions of the Financial Services and Markets Act 2023 come into force on 28th November 2025—

(a) section 1(1), so far as it relates to the provisions in paragraph (b) of this regulation;

(b) in Part 2 (subordinate legislation) of Schedule 1, the revocation of—

(i) the Equivalence Determinations for Financial Services and Miscellaneous Provisions (Amendment etc) (EU Exit) Regulations 2019 ;

(ii) the Equivalence Determinations for Financial Services (Amendment etc.) (EU Exit) Regulations 2020 .

Section 4 Provisions coming into force on 1st January 2026

The following provisions of the Financial Services and Markets Act 2023 come into force on 1st January 2026—

(a) section 1(1) so far as it relates to the provisions in paragraphs (b) and (c);

(b) in Part 1 of Schedule 1, the revocation of the following provisions of Regulation (EU) No575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No648/2012 (“ the Capital Requirements Regulation ”)—

(i) Article 6(1a) (general principles) ;

(ii) Article 11(3a) (general treatment) ;

(iii) Article 12a (consolidated calculation for G-SIIs with multiple resolution entities) ;

(iv) in Article 18(1) (methods of prudential consolidation) the words from “For the purposes of Article 11(3a)” to “relevant resolution groups”;

(v) Articles 25 (tier 1 capital) to 35 (unrealised gains and losses measured at fair value) ;

(vi) Articles 37 (deduction of intangible assets) to 47 (deduction of holdings of Common Equity Tier 1 instruments where an institution has a significant investment in a financial sector entity) ;

(vii) Article 47a(1) and (2) (non-performing exposures);

(viii) Articles 47c (deduction for non-performing exposures) to 79a (assessment of compliance with the conditions for own funds and eligible liabilities instruments) ;

(ix) in Article 81 (minority interests that qualify for inclusion in consolidated Common Equity Tier 1 capital) —

(aa) paragraph 1(a)(i) to (iic), (b) and (c);

(bb) paragraph 2;

(x) in Article 82 (Qualifying Additional Tier 1, Tier 1, Tier 2 capital and qualifying own funds) , points (a)(i) to (iic), (b) and (c);

(xi) Articles 83 (Qualifying Additional Tier 1 and Tier 2 capital issued by a special purpose entity) to 91 (exceptions) ;

(xii) Article 92a (requirements for own funds and eligible liabilities for G-SIIs) ;

(xiii) Article 466 (first time application of International Financial Reporting Standards) ;

(xiv) Article 468 (temporary treatment of unrealised gains and losses measured at fair value through other comprehensive income in view of the COVID-19 pandemic) ;

(xv) Article 469a (derogation from deductions from Common Equity Tier 1 items for non-performing exposures);

(xvi) Article 471 (exemption from deduction of equity holdings in insurance companies from Common Equity Tier 1 items);

(xvii) Articles 473 (introduction of amendments to IAS 19) to 474 (deductions from Additional Tier 1 items) ;

(xviii) Article 476 (deductions from Tier 2 items);

(xix) Article 479 (recognition in consolidated Common Equity Tier 1 capital of instruments and items that do not qualify as minority interests);

(xx) Article 480 (recognition in consolidated own funds of minority interests and qualifying Additional Tier 1 and Tier 2 capital);

(xxi) Articles 482 (scope of application for derivatives transactions with pension funds) to 491 (effective maturity) ;

(xxii) Articles 494 (transitional provisions concerning the requirement for own funds and eligible liabilities) to 494b (grandfathering of own funds instruments and eligible liabilities instruments);

(c) in Part 3 (EU tertiary legislation etc.) of Schedule 1 (revocation of assimilated law relating to financial services), the revocation of the following instruments—

(i) Commission Delegated Regulation (EU) 2016/1450 of 23 May 2016 supplementing Directive 2014/59/EU of the European Parliament and of the Council with regard to regulatory technical standards specifying the criteria relating to the methodology for setting the minimum requirement for own funds and eligible liabilities ;

(ii) Commission Implementing Regulation (EU) 2016/1800 of 11 October 2016 laying down implementing technical standards with regard to the allocation of credit assessments of external credit assessment institutions to an objective scale of credit quality steps in accordance with Directive 2009/138/EC of the European Parliament and of the Council ;

(iii) Commission Implementing Regulation (EU) 2016/1801 of 11 October 2016 on laying down implementing technical standards with regard to the mapping of credit assessments of external credit assessment institutions for securitisation in accordance with Regulation (EU) No575/2013 of the European Parliament and of the Council .

Section 5 Saving provision relating to equivalence directions, regulatory decisions and applications

(1) The directions, decisions, and applications specified in paragraph (2) continue to have the same effect as they had immediately before the revocation brought into force by regulation 3.

(2) The directions, decisions, and applications specified for the purposes of paragraph (1) are —

(a) an equivalence direction of the kind referred to in regulation 8(1) of S.I. 2020/1055 ;

(b) a regulatory decision of the kind referred to in regulation 8(2) of those Regulations;

(c) an application of the kind referred to in regulation 8(3) of those Regulations.

Section 6 Saving provision for permissions granted under the Capital Requirements Regulation

(1) Despite the revocations brought into force by regulation 4—

(a) any permission granted by the PRA under the following provisions of the Capital Requirements Regulation at any time before 1st January 2026, has effect, on and after 1st January 2026, as if granted under section 138BA (disapplication or modification of rules in individual cases) of FSMA 2000—

(i) Article 26(3);

(ii) Article 31(1);

(iii) Article 41(1);

(iv) Article 73(1);

(v) Article 76(2);

(vi) Article 77(1);

(vii) Article 78(1);

(b) any permission granted by the PRA under Article 26(2) of the Capital Requirements Regulation at any time before 1st January 2026 has effect, on and after 1st January 2026, as if it were a notification for the purpose of paragraph 2 of Article 26 of the Own Funds (CRR) Part of the PRA rulebook.

(2) In paragraph (1)(b), “ PRA rulebook ” means the rulebook published by the PRA containing rules made by that Authority under FSMA 2000 as it has effect on 1st January 2026.

Section 7 Saving for the PRA’s power to amend and revoke Commission Delegated Regulation (EU) No 523/2014

Despite its revocation brought into force by regulation 4, Article 33(4) of the Capital Requirements Regulation continues to have effect, on and after 1st January 2026, so far as is necessary to enable the PRA to amend or revoke Commission Delegated Regulation (EU) No 523/2014 of 12 March 2014 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards for determining what constitutes the close correspondence between the value of an institution’s covered bonds and the value of the institution’s assets.