LegalizeThe Financial Services Act 2021 (Prudential Regulation of Credit Institutions and Investment Firms) (Consequential Amendments and Miscellaneous Provisions) Regulations 2021
- (2) If the requirements set out in Article 6(1) of Regulation (EU) 2017/2402104 were met in the manner specified in Article 6(4) of that Regulation before 1 January 2022, and were it not for the prudential regulation changes, the requirements set out in Article 6(1) of Regulation (EU) 2017/2402 would continue to be met in the manner specified in Article 6(4) of that Regulation in respect of such a securitisation after 1 January 2022, then the requirements set out in Article 6(1) of that Regulation are deemed to be met in respect of that securitisation.
Transitional provision in respect of Article 43(5) of Regulation (EU) 2017/2402
36
- (1) This regulation applies to securitisations to which Article 43(5) (transitional provisions) of Regulation (EU) 2017/2402 applies.
- (2) For the purposes of Article 43(5) of Regulation (EU) 2017/2402, in Article 407 (additional risk weight) and Article 410 (uniform condition of application) of Regulation (EU) No 575/2013, a reference to Article 405 (retained interest of the issuer) of Regulation (EU) No 575/2013 is to be read as a reference to that Article in the version applicable on 31 December 2018 as modified by points (a) and (b) of Article 43(6) of Regulation (EU) 2017/2402 disregarding the effect of any of the prudential regulation changes on those modifications.
- (3) In paragraph (2), references to Article 407 (additional risk weight) and Article 410 (uniform condition of application) of Regulation (EU) No 575/2013 are references to those Articles in the version applicable on 31 December 2018 as modified by points (a) to (c) of Article 43(5) of Regulation (EU) 2017/2402.
Transitional provision in respect of Article 43(6) of Regulation (EU) 2017/2402
37
- (1) This regulation applies to securitisations to which Article 43(6) (transitional provisions) of Regulation (EU) 2017/2402 applies.
- (2) If the requirements set out in Article 405 (retained interest of the issuer) of Regulation (EU) No 575/2013 were met before 1 January 2022, and were it not for the effect of the prudential regulation changes on the modifications set out in points (a) and (b) of Article 43(6) of Regulation (EU) 2017/2402, the requirements set out in Article 405 of Regulation (EU) No 575/2013 would continue to be met in respect of such a securitisation after 1 January 2022, then the requirements set out in Article 405 of Regulation (EU) No 575/2013 are deemed to be met in respect of that securitisation.
- (3) In paragraph (2), references to Article 405 of Regulation (EU) No 575/2013 are references to that Article in the version applicable on 31 December 2018 as modified by points (a) and (b) of Article 43(6) of Regulation (EU) 2017/2402.
Application and interpretation of regulations 35 to 37
38
- (1) The transitional provisions in regulations 35 to 37 apply from the beginning of 1 January 2022 and cease to have effect on 1 January 2023.
- (2) In regulations 35 to 37 and this regulation—
- (a) “FCA Handbook” means the Handbook made by the Financial Conduct Authority under the Financial Services and Markets Act 2000105;
- (b) “prudential regulation changes” means any one or more of the following—
- (i) changes made by sections 1 or 2 of, or Schedules 1 or 2 to, the Financial Services Act 2021106;
- (ii) provision made by the Treasury under section 45 of the Financial Services Act 2021 (power to make consequential provision);
- (iii) provision made by the Treasury under section 143B(2) of the Financial Services and Markets Act 2000 (other terms used in this Part)107;
- (iv) the deletion of the Prudential sourcebook for Investment Firms (IFPRU) or the creation of the Prudential sourcebook for MiFID Investment Firms (MIFIDPRU) in the FCA Handbook;
- (c) “securitisation” has the meaning given in Article 2(1) of Regulation (EU) 2017/2402.
Signed
Rebecca Harris — Craig Whittaker — Two of the Lords Commissioners of Her Majesty’s Treasury — 2021-12-07
Explanatory note
(This note is not part of the Regulations)
EXPLANATORY NOTE
The primary purpose of this instrument is to make amendments to legislation that are consequential on changes made by sections 1 to 5 of, and Schedules 1 to 4 to, the Financial Services Act 2021 (c. 22) (the “Act”).
This instrument also revokes some provisions of Regulation (EU) 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms (known as the Capital Requirements Regulation or “CRR”) using section 3 of the Act. These provisions will be replaced by rules to be made by the Prudential Regulation Authority (“PRA”).
The rules made by the PRA to replace the provisions of the CRR revoked by this instrument can be found at https://www.bankofengland.co.uk/prudential-regulation and a copy can be obtained from the Prudential Regulation Authority, 20 Moorgate, London EC2R 6DA. Section 5(3) of the Act makes provision for certain references in the CRR to revoked provisions of the CRR to be read as references to corresponding rules made by the PRA (referred to in the Act as “CRR rules”). Under section 5(4) of the Act, the PRA has prepared a document setting out whether and how the proposed CRR rules correspond to the provisions of the CRR revoked by this instrument. This document is published at https://www.bankofengland.co.uk/prudential-regulation and a copy can be obtained from the Prudential Regulation Authority, 20 Moorgate, London EC2R 6DA.
HM Treasury are also exercising powers in the Bank of England Act 1998 (c. 11), the Banking Act 2009 (c. 1) and the Financial Services and Markets Act 2000 (c. 8) (“FSMA”) in order to update related elements of the prudential regimes for credit institutions and investment firms.
Provisions contained in regulations 12, 17, 24, 26, 28 and 31 of this instrument are made in exercise of the powers in section 8(1) of, and paragraph 21 of Schedule 7 to, the European Union (Withdrawal) Act 2018 (c. 16) in order to address failures of retained EU law to operate effectively, and other deficiencies arising from the withdrawal of the United Kingdom from the European Union (and in particular, the deficiencies under paragraphs (a) and (g) of section 8(2) of that Act).
Part 2 of this instrument makes amendments to primary legislation and Northern Ireland legislation.
Part 3 of this instrument makes amendments to secondary legislation. In particular, regulation 15 amends the Financial Services and Markets Act 2000 (PRA-regulated Activities) Order 2013 (S.I. 2013/556). That Order specifies, for the purposes of FSMA, which regulated activities are “PRA-regulated activities”.
Part 4 of this instrument makes amendments to retained EU law.
Part 5 of this instrument makes amendments to the Capital Requirements Regulation Equivalence Directions 2020.
Part 6 of this instrument makes amendments to the Capital Requirements Regulation (Amendment) Regulations 2021 (S.I. 2021/1078).
Part 7 of this instrument exercises a power to remove certain investment firms from the definition of “investment firm” in the Banking Act 2009 (c. 1).
Part 8 of this instrument makes savings provision in respect of powers in Article 124(4) of the CRR to make, revoke and amend technical standards, and transitional provision in respect of Regulation (EU) 2017/2402 of the European Parliament and of the Council of 12 December 2017 laying down a general framework for securitisation and creating a specific framework for simple, transparent and standardised securitisation.
A full impact assessment has not been produced for this instrument, as no, or no significant, impact on the private, voluntary or public sector is foreseen. A de minimis impact assessment is available from HM Treasury, 1 Horse Guards Road, London, SW1A 2HQ and is published with the Explanatory Memorandum alongside this instrument on www.legislation.gov.uk.
Footnotes
1998 c. 11; sections 9I and 9L were inserted by section 4(1) of the Financial Services Act 2012 (c. 21).
2000 c. 8; section 22A was inserted by section 9 of the Financial Services Act 2012; section 144F was inserted by paragraph 1 of Schedule 3 to the Financial Services Act 2021 (c. 22).
2009 c. 1; section 258A was inserted by section 21 of the Financial Services Act 2012. Section 258A has been amended by S.I. 2013/3115, 2018/1392 and 2020/1385.
2018 c. 16; section 8 was amended by section 27 of the European Union (Withdrawal Agreement) Act 2020 (c. 1).
EUR 2013/575, amended, or prospectively amended by, sections 1 and 7 of, and Schedules 1 and 4 to, the Financial Services Act 2021 (c. 22) and S.I. 2018/1401, 2019/264, 660, 710 and 1232, 2020/1301, 1385 and 1470 and 2021/558.
See section 22B(2)(a)(i) of the Financial Services and Markets Act 2000.
1998 c. 11; section 9N was inserted by section 4(1) of the Financial Services Act 2012.
2000 c. 8; section 22B was inserted, with section 22A, by section 9 of the Financial Services Act 2012; “PRA-regulated activity” is defined in section 22 of the Financial Services and Markets Act 2000, which has been amended by section 7(1) of the Financial Services Act 2012; section 144F was inserted by paragraph 1 of Schedule 3 to the Financial Services Act 2021 (c. 22); and section 429(2) was amended by section 5 and paragraph 19 of Schedule 3 to that Act.
1986 c. 45; section 387A was inserted by S.I. 2018/1244.
EUR 2013/575, amended, or prospectively amended by, sections 1 and 7 of, and Schedules 1 and 4 to, the Financial Services Act 2021 (c. 22) and S.I. 2018/1401, 2019/264, 660, 710 and 1232, 2020/1301, 1385 and 1470 and 2021/558.
Section 144A was inserted by paragraph 1 of Schedule 3 to the Financial Services Act 2021.
Section 143F was inserted by paragraph 1 of Schedule 2 to the Financial Services Act 2021.
S.I. 1989/2405 (N.I.19); article 347A was inserted by S.I. 2018/1244 and modified by S.I. 2020/1350.
Section 3M was inserted by the Financial Services Act 2012 (c. 21) and amended by S.I. 2019/632.
Sections 55A to 55Z and 55Z1 to 55Z4 were substituted for Part IV (sections 40 to 55) by the Financial Services Act 2012 (c. 21) and section 55J(6A) was inserted by S.I. 2013/1773 and amended by S.I. 2013/3115 and 2019/632.
Section 55PB was inserted by S.I. 2016/1239.
Relevant amending instruments are S.I. 2018/1401 and section 1(2) of the Financial Services Act 2021 (c. 22).
Section 71I was inserted by S.I. 2016/1239.
Section 137J was inserted by section 24(1) of the Financial Services Act 2012 (c. 21) and subsection (6) was amended by S.I. 2019/632.
Article 4(1)(2AA) is inserted by section 1(4) of the Financial Services Act 2021 and will come into force on 1st January 2022; see S.I. 2021/671 (C. 27).
Section 192JB was inserted by section 133(1) of the Financial Services (Banking Reform) Act 2013 (c. 33) and subsection (4) was substituted by S.I. 2014/3329.
Sections 190O, 192R and 192T were inserted by S.I. 2020/1406 and were amended by paragraphs 4, 14, 15 and 16 of Schedule 3 to the Financial Services Act 2021.
2000 c. 11; Schedule 3A was inserted by section 3 and paragraphs 5(1) and (6) of Part 3 of Schedule 2 to the Anti-terrorism, Crime and Security Act 2001 (c. 24) and the definition of “Capital Requirements Regulation” in paragraph 3(1) of Schedule 3A was inserted by S.I. 2013/3115.
2002 c. 29; Part 1 of Schedule 9 was substituted by article 2 of S.I. 2007/3287; the definition of “Capital Requirements Regulation” was inserted by S.I. 2013/3115 and amended by S.I. 2017/692.
2008 c. 2; section 15(2) was amended by S.I. 2013/3115.
2008 c. 28; paragraph 7 of Part 2 of Schedule 7 was amended by S.I. 2013/3115.
The definition of “the capital requirements regulation” in section 3(1) was inserted by S.I. 2014/3329 and amended by S.I. 2018/1394 and 2020/1385.
2000 c. 8; section 144A was inserted by paragraph 1 of Schedule 3 to the Financial Services Act 2021.
Section 6A was inserted by S.I. 2014/3329 and amended by S.I. 2016/1239 and 2018/1394.
2016 asp 21; section 129A was inserted by S.I. 2018/1244.
S.I. 2001/3084, as amended by S.I. 2018/589. These Regulations are prospectively revoked by paragraph 19 of Schedule 8 to the Financial Services Act 2021.
S.I. 2004/1862, as amended by S.I. 2013/3115; there are other amending instruments but none are relevant.
S.I. 2011/99 as amended by S.I. 2013/3115; there are other amending instruments but none are relevant.
S.I. 2013/644, as amended by S.I. 2018.1297; there are other amending instruments but none are relevant.
S.I. 2013/556, amended by S.I. 2019/632; there is another amending instrument but it is not relevant.
Section 59 of the Financial Services and Markets Act 2000 was amended by section 18 of, and paragraph 1 of Schedule 3 to, the Financial Services (Banking Reform) Act 2013 (c. 33), paragraph 2 of Schedule 4 to the Bank of England and Financial Services Act 2016 (c. 14), section 14 of the Financial Services Act 2012 (c. 21) and S.I. 2013/1773.
S.I. 2013/3115, amended by paragraphs 22 and 23 of Schedule 3 to the Financial Services Act 2021 (c. 22); relevant amending instruments are S.I. 2018/1401, S.I. 2019/264 and S.I. 2020/1406.
Regulation 2A was inserted by S.I. 2018/1401.
Regulation 34A and 34B were inserted by S.I. 2018/1401.
Regulation 39 is amended by paragraph 22 of Schedule 3 to the Financial Services Act 2021.
S.I. 2014/894, as amended by S.I. 2018/1401.
Regulation 12A was inserted by S.I. 2018/1401.
The definition of “liquid assets” was amended by S.I. 2019/632.
S.I. 2014/3348; the definitions of “appropriate regulator”, “conditions for early intervention” and “consolidating supervisor” were amended by, and “investment firm” was inserted by, S.I. 2018/1394.
2009 c. 1; section 258A was inserted by section 21 of the Financial Services Act 2012 (c. 21) and amended by S.I. 2013/3115 and S.I. 2018/1394.
Articles 11(1)(a), 33(6)(a), 36, 53(4)(a), 107, 121(1), 147(3)(b), 154, 159(1)(a), 181 and paragraph 4 of Schedule 2 were amended by S.I. 2018/1394.
S.I. 2015/575; regulation 11 was amended by S.I. 2019/407.
S.I. 2017/701; the definition of “the capital requirements regulation” was inserted by S.I. 2017/1255.
S.I. 2017/752, as amended by S.I. 2018/1201; there are other amending instruments but none are relevant.
EUR 2012/648, as amended by S.I. 2018/1184, S.I. 2018/1318, S.I. 2019/335, S.I. 2019/1416 and S.I. 2020/646.
Points (32) to (35) were inserted by S.I. 2018/1184.
Article 3 was amended by S.I. 2019/335 and S.I. 2019/685.
EUR 2013/575, amended, or prospectively amended, by sections 1 and 7 of, and Schedules 1 and 4 to, the Financial Services Act 2021 (c. 22) and S.I. 2018/1401, 2019/264, 2019/660, 2019/710, 2019/1232, 2020/1301, 2020/1385, 2020/1470 and 2021/558.
Article 49 was amended by S.I. 2018/1401 and S.I. 2019/264.
Article 63 was amended by S.I. 2019/264.
Article 89 was amended by S.I. 2018/1401.
Article 92 is prospectively amended by paragraph 3 of Schedule 4 to the Financial Services Act 2021.
Article 124 was amended by S.I. 2020/1385.
Article 144 was amended by S.I. 2018/1401 and is prospectively amended by paragraph 5 of Schedule 4 to the Financial Services Act 2021.
Article 164 was amended by S.I. 2020/1385.
Article 181 was amended by S.I. 2018/1401 and is prospectively amended by paragraph 47 of Schedule 1 to the Financial Services Act 2021.
Article 197 was amended by S.I. 2018/1401 and is prospectively amended by paragraph 47 of Schedule 1 to the Financial Services Act 2021.
Paragraph (5A) of Article 223 is prospectively inserted by paragraph 7 of Schedule 4 to the Financial Services Act 2021.
Article 249 was amended by S.I. 2019/660.
Article 255 was amended by S.I. 2019/660 and is prospectively amended by paragraph 47 of Schedule 1 to the Financial Services Act 2021.
Paragraph 4 of Article 283 is prospectively substituted by paragraph 8 of Schedule 4 to the Financial Services Act 2021.
Article 298 was amended by S.I. 2018/1401.
Article 325 was amended by S.I. 2019/1232 and is prospectively amended by paragraph 47 of Schedule 1 to the Financial Services Act 2021.
Article 384 is prospectively amended by paragraph 11 of Schedule 4 to the Financial Services Act 2021.
Annex III was amended by S.I. 2018/1401 and is prospectively amended by paragraph 46 of Schedule 1 to the Financial Services Act 2021.
EUR 909/2014.
Article 2 was amended by S.I. 2018/1320.
Article 46(1) was substituted by S.I. 2018/1320.
Article 54 was amended by S.I. 2018/1320.
EUR 2017/565 OJ L 87, 31.3.2017, p. 1–83.
Point (16) was inserted by S.I. 2018/1403.
EUR 2013/36.
Article 41 was amended by S.I. 2018/1403.
EUR 2014/49/EU OJ L 173, 12.6.2014, p. 149–178.
EUR 2017/1129, as amended by S.I. 2019/107 and 2020/628.
EUR 2017/1131, amended by S.I. 2019/394.
https://www.legislation.gov.uk/uksi/2019/541/pdfs/uksiod_20190541_en_015.pdf. These Directions were made under S.I. 2019/541 and have effect subject to regulation 8(1) of S.I. 2020/1055.
Article 13 was amended by S.I. 2019/1232.
Article 429 was amended by S.I. 2018/1401 and 2019/710; Article 430(1) was amended by S.I. 2018/1401.
Part Eight was amended by S.I. 2018/1401 and 2019/1232 and is prospectively amended by paragraphs 40, 41 and 47 of Schedule 1 to the Financial Services Act 2021 (c. 22).
Article 459 was amended by S.I. 2018/1401.
Article 500d was amended by paragraph 12 of Schedule 4 to the Financial Services Act 2021 (c. 22).
EUR 2014/680; this instrument was amended by the Technical Standards (Capital Requirements) (EU Exit) (No. 3) Instrument 2019 made by the Prudential Regulation Authority under S.I. 2018/1115 on 9th April 2019.
EUR 2016/200; this instrument was amended by the Technical Standards (Capital Requirements) (EU Exit) (No. 3) Instrument 2019 made by the Prudential Regulation Authority under S.I. 2018/1115 on 9th April 2019.
“the Capital Requirements Regulation” is defined in section 47 of the Financial Services Act 2021 (c. 22).
Commission Delegated Regulation (EU) 2015/61 of 10 October 2014 to supplement Regulation (EU) No 575/2013 of the European Parliament and the Council with regard to liquidity coverage requirement for Credit Institutions.
2000 c. 8. Section 143A was inserted by Schedule 2 to the Financial Services Act 2021 (c. 22).
2009 c. 1. Section 258A was inserted by section 21 of the Financial Services Act 2012 (c. 21). Section 258A has been amended by S.I. 2013/3115 and 2018/1394.
“the Capital Requirements Regulation” is defined in section 47 of the Financial Services Act 2021 (c. 22).
EUR 2017/2402; Article 6 was amended by S.I. 2019/660 and is amended by regulation 30 of this instrument.
2000 c. 8; section 143B(2) was inserted by paragraph 1 of Schedule 2 to the Financial Services Act 2021 (c. 22).
Editorial notes
Reg. 1 in force at 8.12.2021, see reg. 1(2)
Reg. 2 in force at 1.1.2022, see reg. 1(3)
Reg. 3 in force at 1.1.2022, see reg. 1(3)
Reg. 4 in force at 1.1.2022, see reg. 1(3)
Reg. 5 in force at 1.1.2022, see reg. 1(3)
Reg. 6 in force at 1.1.2022, see reg. 1(3)
Reg. 7 in force at 1.1.2022, see reg. 1(3)
Reg. 8 in force at 1.1.2022, see reg. 1(3)
Reg. 9 in force at 1.1.2022, see reg. 1(3)
Reg. 10 in force at 1.1.2022, see reg. 1(3)
Reg. 11 in force at 1.1.2022, see reg. 1(3)
Reg. 12 in force at 1.1.2022, see reg. 1(3)
Reg. 13 in force at 1.1.2022, see reg. 1(3)
Reg. 14 in force at 1.1.2022, see reg. 1(3)
Reg. 15 in force at 1.1.2022, see reg. 1(3)
Reg. 16 in force at 1.1.2022, see reg. 1(3)
Reg. 17 in force at 1.1.2022, see reg. 1(3)
Reg. 18 in force at 1.1.2022, see reg. 1(3)
Reg. 19 in force at 1.1.2022, see reg. 1(3)
Reg. 20 in force at 1.1.2022, see reg. 1(3)
Reg. 21 in force at 1.1.2022, see reg. 1(3)
Reg. 22 in force at 1.1.2022, see reg. 1(3)
Reg. 23 in force at 1.1.2022, see reg. 1(3)
Reg. 24 in force at 1.1.2022, see reg. 1(3)
Reg. 25 in force at 1.1.2022, see reg. 1(3)
Reg. 26 in force at 1.1.2022, see reg. 1(3)
Reg. 27 in force at 1.1.2022, see reg. 1(3)
Reg. 28 in force at 1.1.2022, see reg. 1(3)
Reg. 29 in force at 1.1.2022, see reg. 1(3)
Reg. 31 in force at 1.1.2022, see reg. 1(3)
Reg. 32 in force at 8.12.2021, see reg. 1(2)
Reg. 33 in force at 1.1.2022, see reg. 1(3)
Reg. 34 in force at 1.1.2022, see reg. 1(3)
Reg. 35 in force at 1.1.2022, see reg. 1(3)
Reg. 36 in force at 1.1.2022, see reg. 1(3)
Reg. 37 in force at 1.1.2022, see reg. 1(3)
Reg. 38 in force at 1.1.2022, see reg. 1(3)
Regulations: power to modify conferred (11.7.2023) by Financial Services and Markets Act 2023 (c. 29), ss. 3, 86(3), Sch. 1 Pt. 2; S.I. 2023/779, reg. 2(d)
Regulations revoked (1.11.2024 for the revocation of reg. 30) by Financial Services and Markets Act 2023 (c. 29), s. 86(3), Sch. 1 Pt. 2 (with s. 1(4)); S.I. 2024/891, reg. 2(c)(ii)
Regulations revoked (1.11.2024 for the revocation of reg. 30) by Financial Services and Markets Act 2023 (c. 29), s. 86(3), Sch. 1 Pt. 2 (with s. 1(4)); S.I. 2024/891, reg. 2(c)(ii)
Reading this document does not replace reading the official text published on legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. We assume no responsibility for any inaccuracies arising from the conversion of the original CLML XML to this format.
This text is published under legislation.gov.uk's own terms of reuse, not a Legalize or public-domain licence.
legislation.gov.uk
Open Government Licence v3.0 (attribution required)
© Crown and database right. Derived from content available under the Open Government Licence v3.0 from legislation.gov.uk.