HMT proposes amendments to the FSMB to facilitate UK firms’ continued use of non-UK CCPs

Article summary

HM Treasury (HMT) has introduced two technical amendments to the Financial Services & Markets Bill (FSMB) which, if approved by Parliament, will help to facilitate UK firms’ continued use of non-UK central counterparties (CCPs) which are currently due to exit the CCP run-off regime with effect from 1 July 2023. The amendments aim to ensure that the extension to the run-off period proposed in the FSMB functions as intended in the event of a gap between 1 July 2023 and the FSMB receiving Royal Assent (with the exact timings of the Royal Assent subject to parliamentary timetabling). The Financial Conduct Authority (FCA), the Prudential Regulation Authority (PRA), and the Bank of England (BoE) have published a joint statement welcoming the move, and saying they will take ‘a proportionate and risk-based approach when giving consideration to the use of their supervisory powers’ in relation to firms that may...