Statutory Instruments
2023 No. 1409
Financial Services And Markets
The Financial Services and Markets Act 2023 (Benchmarks and Capital Requirements) (Amendment) Regulations 2023
Made
19th December 2023
Coming into force in accordance with regulation 1
The Treasury make the following Regulations in exercise of the powers conferred by sections 3(1) and 84(2) of the Financial Services and Markets Act 2023( 1 ).
In accordance with section 3(6) of the Financial Services and Markets Act 2023, the Treasury have consulted the Prudential Regulation Authority and the Financial Conduct Authority.
In accordance with sections 3(10) and 84(3) of the Financial Services and Markets Act 2023, a draft of these Regulations has been laid before, and approved by a resolution of, each House of Parliament.
Citation, commencement and extent
1. —(1) These Regulations may be cited as the Financial Services and Markets Act 2023 (Benchmarks and Capital Requirements) (Amendment) Regulations 2023.
(2) Except as provided for in paragraph (3), these Regulations come into force on the day after the day on which they are made.
(3) Regulation 3 comes into force on 1st January 2024.
(4) These Regulations extend to England and Wales, Scotland and Northern Ireland.
Amendment of Regulation (EU) No 575/2013
2. In Article 384(1) (standardised method) of 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) No 575/2013 ( Regulation (EU) No 648/2012 2 ), in the definition of “EADi total” , after “counterparty credit risk for that counterparty.” insert as a new paragraph—
“ An institution using one of the methods set out in Sections 3 to 5 of Chapter 3 of the Counterparty Credit Risk (CRR) Part of the PRA Rulebook may use, as the fully adjusted exposure value, the value calculated in accordance with Article 223(5) (financial collateral comprehensive method). For an institution not using the method set out in Section 6 of Chapter 6 of Title II, the exposure shall be discounted applying the following factor:
” .
Amendment of Regulation (EU) 2016/1011
3. —(1)Article 51(5) (transitional provisions) of of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds and amending Directives Regulation (EU) 2016/1011 2008/48/EC and 2014/17/EU and ( Regulation (EU) No 596/2014 3 ) is amended as follows.
(2) In subparagraph (a), for “31 December 2025” substitute “31 December 2030” .
(3) In subparagraph (b)—
(a) for “1 January 2026” substitute “1 January 2031” ;
(b) for “31 December 2025” substitute “31 December 2030” .
Joy Morrissey
Amanda Milling
Two of the Lords Commissioners of His Majesty’s Treasury
19th December 2023
EUR 2013/575. The definition of “EADi total” in Article 384(1) was amended by paragraph 11 of Schedule 4 to the Financial Services Act 2021 (c. 22) .
EUR 2016/1011. Paragraphs (5), (5A) and (5B) of Article 51 were substituted for paragraph (5) by S.I. 2019/657 as amended by S.I. 2020/1301 . Paragraph (5) was subsequently amended by section 20 of the Financial Services Act 2021.