Citation and interpretation

1.—(1) These Regulations may be cited as the Financial Services and Markets Act 2023 (Commencement No. 12 and Saving Provisions) Regulations 2026.

(2) In these Regulations—

“ the Capital Requirements Regulation ” means 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 );

“ FSMA 2023 ” means the Financial Services and Markets Act 2023 ;

“ permission ” includes a decision to waive a requirement or grant an approval in connection with a requirement;

“ PRA Rulebook ” means the Rulebook published by the PRA containing rules made by the PRA under FSMA 2000( 3 ) on or before 13th January 2026 as that Rulebook has effect on 1st January 2027( 4 );

“SDDT” and “SDDT consolidation entity” have the meanings given in chapter 3 of the SDDT Regime – General Application Part of the PRA Rulebook.

Provisions coming into force on 1st July 2026

2. The following provisions of FSMA 2023 come into force on 1st July 2026—

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

(b)in Part 3 (EU tertiary legislation etc) of Schedule 1 (revocation of assimilated law relating to financial services), the revocation of the following provisions of Commission Implementing of 13 September 2016 laying down implementing technical standards with regard to main indices and recognised exchanges in accordance with Regulation (EU) 2016/1646 of the European Parliament and of the Council on prudential requirements for credit institutions and investment firms(Regulation (EU) No 575/20135)—

(i)in Part 2 (PRA), Article 2 (recognised exchanges);

(ii)in Annex II (recognised exchanges), Part 2 (PRA).

Provisions coming into force on 1st January 2027

3. The following provisions of FSMA 2023 come into force on 1st January 2027—

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

(b)in Part 1 (assimilated direct principal legislation) of Schedule 1, the revocation of the provisions of the Capital Requirements Regulation specified in Part 1 of the Schedule to these Regulations;

(c)in Part 2 (subordinate legislation) of Schedule 1, the revocation of the following instruments—

(i)the Capital Requirements Regulations 2013(6) except for regulations 1 and 2, Part 8 and regulation 45(b) to (c);

(ii)the Financial Holding Companies (Approval etc.) and Capital Requirements (Capital Buffers and Macro-prudential Measures) (Amendment) (EU Exit) Regulations 2020(7);

(iii)the Capital Requirements Regulation (Amendment) Regulations 2021(8) except for regulations 1 and 15;

(d)in Part 3 of Schedule 1, the revocation of the instruments specified in Part 2 of the Schedule to these Regulations.

Saving for permissions granted under the Capital Requirements Regulation: CRR firms that are not SDDTs and CRR consolidation entities that are not SDDT consolidation entities

4.—(1) This regulation applies to a person who—

(a)immediately before 1st January 2027 has a permission granted under a provision of the Capital Requirements Regulation referred to in paragraph (2), and

(b)on 1st January 2027, is—

(i)a CRR firm which is not an SDDT, or

(ii)a CRR consolidation entity which is not an SDDT consolidation entity.

(2) Despite the revocations brought into force by regulation 3 of, and the Schedule to, these Regulations, any permission granted before 1st January 2027 to a person to whom this regulation applies—

(a)under any of the following provisions of the Capital Requirements Regulation has effect, on and after 1st January 2027, as if granted under section 138BA (disapplication or modification of rules in individual cases) of FSMA 2000(9)—

(i)Article 9;

(ii)Article 19(2);

(iii)Article 265(2);

(iv)Article 283(1), (3) and (5);

(v)Article 284(9);

(vi)Article 285(1);

(vii)Article 289(5);

(viii)Article 294(2);

(b)under a provision of the Capital Requirements Regulation listed in the first column of the table below has effect, on and after 1st January 2027, as if granted under the rule of the PRA Rulebook listed in the corresponding entry in the second column of that table.

(3) In this regulation, “CRR consolidation entity” and “CRR firm” have the meanings given in the Glossary to the PRA Rulebook.

Saving for permissions granted under the Capital Requirements Regulation: SDDTs and SDDT consolidation entities

5.—(1) This regulation applies to a person who—

(a)immediately before 1st January 2027 has a permission granted under a provision of the Capital Requirements Regulation referred to in paragraph (2), and

(b)on 1st January 2027, is—

(i)an SDDT, or

(ii)an SDDT consolidation entity.

(2) Despite the revocations brought into force by regulation 3 of, and the Schedule to, these Regulations, any permission granted before 1st January 2027 to a person to whom this regulation applies—

(a)under Article 9 or 19(2) of the Capital Requirements Regulation has effect, on and after 1st January 2027, as if granted under section 138BA of FSMA 2000;

(b)under a provision of the Capital Requirements Regulation listed in the first column of the table below has effect, on and after 1st January 2027, as if granted under the rule of the PRA Rulebook listed in the corresponding entry in the second column of that table.

Saving for central securities depositories and central counterparties

6.—(1) This regulation applies to an enactment specified in paragraph (3) in so far as the enactment—

(a)contains a reference to a relevant provision of the Capital Requirements Regulation, and

(b)relates to a central counterparty or a central securities depository.

(2) An enactment to which this regulation applies is to be read, on and after 1st January 2027, as if the reference to a relevant provision of the Capital Requirements Regulation were a reference to that provision as it had effect immediately before 1st January 2027.

(3) The enactments are—

(a)Articles 3 and 4 of Commission Delegated of 19 December 2012 supplementing Regulation (EU) No 152/2013 of the European Parliament and of the Council with regard to regulatory technical standards on capital requirements for central counterparties(Regulation (EU) No 648/201210);

(b)Articles 4, 5 and 8 of Commission Delegated of 11 November 2016 supplementing Regulation (EU) 2017/390 of the European Parliament and of the Council with regard to regulatory technical standards on certain prudential requirements for Regulation (EU) No 909/2014central securities depositories and designated credit institutions offering banking-type ancillary services(11).

(4) A provision of the Capital Requirements Regulation is relevant for the purpose of this regulation if, and to the extent that, its revocation is brought into force by regulation 3 of, and the Schedule to, these Regulations.

(5) In this regulation—

“ central counterparty ” has the meaning given in regulation 2 of the Financial Services and Markets Act 2000 (Over the Counter Derivatives, Central Counterparties and Trade Repositories) Regulations 2013 ( 12 );

“ central securities depository ” has the meaning given in Article 2 of of the European Parliament and of the Council of 23 July 2014 Regulation (EU) No 909/2014 on improving securities settlement in the European Union and on central securities depositories and amending Directives 98/26/EC and 2014/65/EU and ( Regulation (EU) No 236/2012 13 ).

Saving for PRA’s technical standards

7. Despite the revocations brought into force by regulation 3 of, and the Schedule to, these Regulations, a provision of the Capital Requirements Regulation listed in the first column of the table below continues to have effect, on and after 1st January 2027, so far as is necessary to enable the PRA to modify, amend or revoke the instrument listed in the corresponding entry in the second column of that table.

Saving for decisions made before 31st December 2020

8. Despite its revocation brought into force by regulation 3 of, and the Schedule to, these Regulations, Article 522(18) of the Capital Requirements Regulation continues to have effect, on and after 1st January 2027, in relation to the types of decision specified in points (a) to (f) and (i) of Article 522(2) as it had effect immediately before 1st January 2027.

Regulation 3

SCHEDULE REVOCATIONS

PART 1 The Capital Requirements Regulation

Articles 1 (scope) to 3 (application to stricter requirements by institutions).

In Article 4(1) (definitions)—

(a)point (54) (“probability of default”);

(b)point (55) (“loss given default”);

(c)point (56) (“conversion factor”).

Article 6(1) and (2) (general principles).

Article 7 (derogation from the application of prudential requirements on an individual basis).

Article 9 (individual consolidation method).

Article 10A (application of prudential requirements on a consolidated basis where FCA investment firms are parent undertakings)(19).

Article 11(1), (2) and (6) (general treatment).

Article 14 (application of due-diligence rules on a consolidated basis).

Articles 18 (methods of prudential consolidation) to 20 (joint decisions on prudential requirements).

Article 23 (undertakings in third countries).

Article 24 (valuation of assets and off-balance sheet items).

Article 47a(3) to (7) (non-performing exposures).

Article 47b (forbearance measures).

Article 92 (own funds requirements).

Article 93 (initial capital requirement on going concern).

Article 107(1) and (2) (approaches to credit risk).

Articles 108 (use of credit risk mitigation technique under the standardised approach and the IRB approach) to 113 (calculation of risk-weighted exposure amounts).

Article 114(1) to (4) (exposures to central governments or central banks).

Article 115(1) to (3) and (5) (exposures to regional governments or local authorities).

Article 116(1) to (4) (exposures to public sector entities).

Articles 117 (exposures to multilateral development banks) to 127 (exposures in default).

Articles 129 (exposures in the form of covered bonds) to 131 (exposures to institutions and corporates with a short-term credit assessment).

Articles 133 (equity exposures) to 151 (treatment by exposure class).

Articles 153 (risk-weighted exposure amounts for exposures to corporates, institutions and central governments and central banks) to 157 (risk-weighted exposure amounts for dilution risk of purchased receivables).

Articles 159 (treatment of expected loss amounts) to 272 (definitions).

Articles 283 (permission to use the internal model method) to 299 (items in the trading book).

Articles 312 (permission and notification) to 315 (own funds requirement).

Articles 317 (own funds requirement) to 325 (approaches for calculating the own funds requirements for market risk).

Article 325b (permission for consolidated requirements).

Articles 326 (own funds requirements for position risk) to 381 (meaning of credit valuation adjustment).

In Article 382 (scope)—

(d)paragraphs (1) to (3);

(e)in paragraph (4), points (a), (c), (d) and the words after point (d);

(f)paragraph (5).

Articles 383 (advanced method) and 384 (standardised method).

Article 386 (eligible hedges).

Articles 456 (regulations modifying this regulation) to 459 (prudential requirements).

Articles 464A (regulations: general provisions)(20) to 465 (own funds requirements).

Article 496 (own funds requirements for covered bonds).

Article 498 (exemption for commodities dealers).

Article 500 (adjustment for massive disposals).

Article 500c (exclusion of overshootings from the calculation of the back-testing addend in view of the COVID-19 pandemic).

Article 501 (adjustment of risk-weighted non-defaulted SME exposures).

Article 501a (adjustment to own funds requirements for credit risk for exposures to entities that operate or finance physical structures or facilities, systems and networks that provide or support essential public services).

Articles 520 (amendment of ) and 522 (savings provisions: pre-exit decisions). Regulation (EU) No 648/2012

Annexes I (classification of off-balance sheet items) to IV (correlation table).

PART 2 Other instruments

Commission Delegated of 12 March 2014 supplementing Regulation (EU) No 525/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the definition of market. Regulation (EU) No 575/2013

Commission Delegated of 12 March 2014 supplementing Regulation (EU) No 526/2014 of the European Parliament and of the Council with regard to regulatory technical standards for determining proxy spread and limited smaller portfolios for credit valuation adjustment risk. Regulation (EU) No 575/2013

Commission Delegated of 12 March 2014 supplementing Regulation (EU) 528/2014 of the European Parliament and of the Council with regard to regulatory technical standards for non-delta risk of options in the standardised market risk approach. Regulation (EU) No 575/2013

Commission Delegated of 12 March 2014 supplementing Regulation (EU) No 529/2014 of the European Parliament and of the Council with regard to regulatory technical standards for assessing the materiality of extensions and changes of the Internal Ratings Based Approach and the Advanced Measurement Approach. Regulation (EU) No 575/2013

Commission Delegated of 12 March 2014 supplementing Regulation (EU) No 530/2014 of the European Parliament and of the Council with regard to regulatory technical standards further defining material exposures and thresholds for internal approaches to specific risk in the trading book. Directive 2013/36/EU

Commission Implementing of 4 June 2014 laying down implementing technical standards for facilitating the convergence of supervisory practices with regard to the implementation of additional risk weights according to Regulation (EU) No 602/2014 of the European Parliament and of the Council. Regulation (EU) No 575/2013

Commission Implementing of 4 September 2014 laying down implementing technical standards with regard to relevant appropriately diversified indices according to Regulation (EU) No 945/2014 of the European Parliament and of the Council. Regulation (EU) No 575/2013

Commission Delegated of 11 June 2015 supplementing Regulation (EU) 2015/1556 of the European Parliament and of the Council with regard to regulatory technical standards for the transitional treatment of equity exposures under the IRB approach. Regulation (EU) No 575/2013

Commission Implementing of 27 November 2015 laying down implementing technical standards with regard to closely correlated currencies in accordance with Regulation (EU) 2015/2197 of the European Parliament and of the Council. Regulation (EU) No 575/2013

Commission Implementing of 13 September 2016 laying down implementing technical standards with regard to main indices and recognised exchanges in accordance with Regulation (EU) 2016/1646 of the European Parliament and of the Council on prudential requirements for credit institutions and investment firms. Regulation (EU) No 575/2013

Commission Implementing of 14 September 2016 laying down implementing technical standards for templates, definitions and IT-solutions to be used by institutions when reporting to the European Banking Authority and to competent authorities in accordance with Article 78(2) of Regulation (EU) 2016/2070 of the European Parliament and of the Council. Directive 2013/36/EU

Commission Delegated of 23 September 2016 supplementing Regulation (EU) 2017/72 of the European Parliament and of the Council with regard to regulatory technical standards specifying conditions for data waiver permissions. Regulation (EU) No 575/2013

Commission Implementing of 7 October 2016 laying down implementing technical standards with regard to the mapping of credit assessments of external credit assessment institutions for credit risk in accordance with Articles 136(1) and 136(3) of Regulation (EU) 2016/1799 of the European Parliament and of the Council. Regulation (EU) No 575/2013

Commission Delegated of 24 October 2016 supplementing Regulation (EU) 2017/180 of the European Parliament and of the Council with regard to regulatory technical standards for benchmarking portfolio assessment standards and assessment-sharing procedures. Directive 2013/36/EU

Commission Delegated of 19 October 2017 on supplementing Regulation (EU) 2018/171 of the European Parliament and of the Council with regard to regulatory technical standards for the materiality threshold for credit obligations past due. Regulation (EU) No 575/2013

Commission Delegated of 24 January 2018 supplementing Regulation (EU) 2018/728 of the European Parliament and of the Council with regard to regulatory technical standards for procedures for excluding transactions with non-financial counterparties established in a third country from the own funds requirement for credit valuation adjustment risk. Regulation (EU) No 575/2013

Commission Delegated of 14 March 2018 supplementing Regulation (EU) 2018/959 of the European Parliament and of the Council with regard to regulatory technical standards of the specification of the assessment methodology under which competent authorities permit institutions to use Advanced Measurement Approaches for operational risk. Regulation (EU) No 575/2013