Citation, commencement and interpretation

1.—(1) These Regulations may be cited as the Financial Services and Markets Act 2023 (Commencement No. 15 and Saving and Transitional Provisions) Regulations 2026.

(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 2027.

(4) 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 );

“ CCP ” has the meaning given to “central counterparty” in section 313(1) of the Financial Services and Markets Act 2000 (interpretation of Part XVIII) ( 3 );

“ EMIR ” means of the European Parliament and of the Council of 4 July 2012 Regulation (EU) No 648/2012 on OTC derivatives, central counterparties and trade repositories ( 4 );

“ QCCP ” means a CCP that is—

Provisions coming into force on 1stJanuary 2027

2. The following provisions of the Financial Services and Markets Act 2023 come into force on 1st January 2027—

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

(b)in Part 1 (assimilated direct principal legislation) of Schedule 1 (revocation of assimilated law relating to financial services), the revocation of the following provisions of the Capital Requirements Regulation—

(i)Article 81 (minority interests that qualify for inclusion in consolidated Common Equity Tier 1 capital) to the extent that it is not already revoked;

(ii)Article 82 (qualifying Additional Tier 1, Tier 1, Tier 2 capital and qualifying own funds) to the extent that it is not already revoked;

(iii)Article 107(3) and (4) (approaches to credit risk);

(iv)Article 114(7) (exposures to central governments or central banks);

(v)Article 115(4) (exposures to regional governments or local authorities);

(vi)Article 116(5) (exposures to public sector entities);

(vii)Article 382(4)(b) (scope);

(viii)Article 391 (definition of an institution for large exposures purposes);

(ix)Article 497 (own funds requirements for exposures to CCPs);

(c)in Part 2 (subordinate legislation) of Schedule 1, the revocation of regulation 11(5)(e) of the Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (saving for certain financial services legislation relating to Gibraltar)(5);

(d)in Part 3 (EU tertiary legislation etc) of Schedule 1, the revocation of Commission Implementing Decision of 12 December 2014 on the equivalence of the supervisory and regulatory requirements of certain third countries and territories for the purposes of the treatment of exposures according to of the European Parliament and of the Council(Regulation (EU) No 575/20136).

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

3. In regulation 5 of the Financial Services and Markets Act 2023 (Commencement No. 10 and Saving Provisions) Regulations 2025 (saving provision relating to equivalence directions, regulatory decisions and applications)(7), in paragraph (2)(a), at the end insert “except for the Capital Requirements Regulation Equivalence Directions 2020”(8).

Saving provision for CCPs treated as QCCPs before 1stJanuary 2027under Article 497 of the Capital Requirements Regulation

4.—(1) This regulation applies to a CCP which, immediately before 1st January 2027, is treated as a QCCP by virtue of Article 497 of the Capital Requirements Regulation (own funds requirements for exposures to CCPs)(9).

(2) A CCP to which this regulation applies continues, on and after 1st January 2027, to be treated as a QCCP during the period applicable under Article 497 as that Article had effect immediately before 1st January 2027.

(3) In paragraph (2), the reference to the period applicable under Article 497 includes a reference to that period as extended by regulations made by the Treasury under paragraph (3) of Article 497(10).

Transitional provision for CCPs treated as QCCPs where the CCPs apply for EMIR recognition on or after 1st January 2027

5.—(1) This regulation applies to a CCP which, on or after 1st January 2027, makes an application for recognition under Article 25 of EMIR.

(2) On or after 1st January 2027, an institution may treat a CCP to which this regulation applies as a QCCP during the period—

(a) beginning with the day on which the CCP made the application for recognition under Article 25 of EMIR (“application day”), and

(b)ending in accordance with paragraph (3).

(3) For the purposes of paragraph (2), the period ends—

(a)if EMIR regulations are in force on the application day, two years after the application day;

(b)if no EMIR regulations are in force on the application day, on the earlier of the following—

(i)two years after the day on which EMIR regulations come into force, or

(ii)six years after the application day.

(4) In paragraph (3)—

(a)the period of two years specified in sub-paragraph (a) includes the application day,

(b)the period of two years specified in sub-paragraph (b)(i) includes the day on which EMIR regulations come into force, and

(c)the period of six years specified in sub-paragraph (b)(ii) includes the application day.

(5) In this regulation—

“ credit institution ” has the same meaning as in section 417(1) (definitions) of the Financial Services and Markets Act 2000 ;

“ EMIR regulations ” means regulations which—

“ institution ” means—

“ investment firm ” has the same meaning as in section 258A (investment firm) of the Banking Act 2009 ( 11 ).

Saving provision relating to article 497(2) of the Capital Requirements Regulation

6.—(1) This regulation applies to a CCP which, on and after 1st January 2027, is treated as a QCCP by virtue of regulation 4 or 5.

(2) Despite its revocation brought into force by regulation 2, Article 497(2) of the Capital Requirements Regulation continues to have effect, on and after 1st January 2027, subject to the following modifications—

(a)the reference to the expiration of the deadline in Article 497(1) is to be read as a reference to the end of the period specified in—

(i)regulation 4(2) in the case of a CCP to which regulation 4 applies;

(ii)regulation 5(3) in the case of a CCP to which regulation 5 applies;

(b)the reference to a CCP referred to in Article 497(1) is to be read as a reference to a CCP to which regulation 4 or 5 applies;

(c)the reference to Article 308(2) is to be read as a reference to Article 308(2) of the Counterparty Credit Risk (CRR) Part of the PRA Rulebook.

(3) In this regulation, “ PRA Rulebook ” means the Rulebook published by the Prudential Regulation Authority containing rules made by that Authority under the Financial Services and Markets Act 2000 as that Rulebook has effect on the day on which these Regulations are made( 12 ).