Preparing for Brexit: SFTR—quick guide
Preparing for Brexit: SFTR—quick guide

The following Financial Services guidance note provides comprehensive and up to date legal information covering:

  • Preparing for Brexit: SFTR—quick guide
  • UK preparations for Brexit
  • Relevant retained EU law and UK legislation—SFTs
  • Key changes introduced by the Transparency of Securities Financing Transactions and of Reuse (Amendment) (EU Exit) Regulations 2019
  • Binding Technical Standards
  • ‘In-flight’ EU financial services legislation—SFTR
  • Regulators’ transitional powers
  • FCA approach to transitional powers
  • PRA approach to transitional powers
  • HM Treasury power to designate third countries as equivalent in the event of no-deal Brexit

UK preparations for Brexit

This Brexit Securities Financing Transactions Regulation (EU) 2015/2365 (SFTR) quick guide details current UK legislation, retained EU legislation and Financial Conduct Authority (FCA) regulatory rules and guidance relating to the SFTR that will be amended and/or revoked by the Transparency of Securities Financing Transactions and of Reuse (Amendment) (EU Exit) Regulations 2019 statutory instrument (the SI) in the event of a no-deal Brexit. The SI is part of HM Treasury’s programme of statutory instruments under the European Union (Withdrawal) Act 2018 (EU(W)A 2018) dealing with contingency preparations for a no-deal Brexit. The SI forms part of the process of domesticating EU law to ensure legal continuity at the point of the UK’s exit from the EU. EU(W)A 2018 onshores and preserves most EU and EU-derived law as it stands immediately before the UK’s departure.

In October 2019, the UK government and the European Commission announced agreement in principle on the revised legal terms of the UK’s withdrawal from the EU, and in December 2019, after winning a majority in the UK general election, the government reintroduced the European Union (Withdrawal Agreement) Bill to the House of Commons. The Bill passed its second reading on 20 December 2019.

The new Withdrawal Agreement sets out the arrangements for UK withdrawal from the EU legal order. It includes a