Treasury amends clearing house regulations: Treasury has made the Financial Services and Markets Act (FSMA) (Over the Counter Derivatives, Central Counterparties and Trade Repositories) (Amendment) Regulations. The Regulations take effect on 18 March and amend what was a transitional provision so that the Banking Act 2009 special resolution regime will now apply to any UK clearing house that was recognised under FSMA and provided clearing services as a central counterparty immediately before 15 March 2013. The change corrects an error in the original Regulations that had the unintentional consequence that entities awaiting authorisation under the European Market Infrastructure Regulation could not be made subject to the special resolution regime (Source: Treasury Amends Clearing House Regulations)
Treasury amends settlement finality regulations: Treasury has made the Financial Markets and Insolvency (Settlement Finality) Regulations 2015. These also take effect on 18 March and implement Article 70 of the Central Securities Depository Regulation relating to notifications into UK law. Treasury has also published a transposition note showing how it has done this. (Source: Treasury Amends Settlement Finality Regulations)
Treasury amends RAO for additional benchmarks: Treasury has amended the FSMA (Regulated Activities) Order (RAO) with effect from 1 April to take into account the additional benchmarks prescribed by Treasury. It includes transitional provisions granting a variation of permission to those authorised for activities relating to existing specified benchmarks and an interim permission regime for firms carrying on the relevant activities immediately before commencement of the Order (Source: Treasury Amends RAO for Additional Benchmarks)
Treasury makes miscellaneous FSMA changes: Treasury has made an Order making miscellaneous amendments to FSMA from 18 March. The amendments mainly relate to consumer credit and debt activities, most notably:
- to increase from four to 12 the maximum number of repayments which may be due from a borrower under a credit agreement which is to be an exempt agreement under the RAO; and
- to vary one of the conditions that must be met by a credit agreement which is to be an exempt agreement so an agreement may be exempt if the borrower is employed by an undertaking in the same group as the lender.