Non-binding Bank materials relating to Financial Market Infrastructure Supervision: The Bank’s approach after the UK’s withdrawal from the EU

This is a Supervisory Statement (SS) to deliver the general approach being taken to ensure there is a functioning legal framework when the UK leaves the EU. Consultation Paper available on page 2.

Published on 18 April 2019

Non-binding Bank materials relating to Financial Market Infrastructure Supervision: The Bank’s approach after the UK’s withdrawal from the EU - Supervisory Statement

This SS has been published as part of joint Bank of England and PRA Policy Statement 5/19 ‘The Bank of England’s amendments to financial services legislation under the European Union (Withdrawal) Act 2018’

Overview

HM Treasury has set out its intention to ensure that the UK will continue to have a functioning financial services regulatory regime regardless of the outcome of negotiations with the EU. Their approach is to ensure that EU-derived laws and rules that are currently in place in the UK will continue to apply at the point of exit to the extent that they remain operable in a UK regime. Changes will only be made to those laws or rules that would otherwise not operate appropriately. This will provide continuity and certainty for firms as the UK leaves the EU.

This statement sets out how Financial Market Infrastructures (FMIs) should interpret existing Bank supervisory materials in light of the UK’s withdrawal from the EU.

This statement is relevant to all Bank supervised FMIs operating, or intending to operate, in the United Kingdom. The Bank may issue further expectations in relation to this topic. 

Implementation and next steps

The policy set out is effective from the date of the UK’s withdrawal from the EU. 

Future version

Published: 18 April 2019

Bank (as FMI competent authority) Binding Technical Standards (EU Exit) Instruments:

Published as part of joint Bank of England and PRA Policy Statement 5/19 ‘The Bank of England’s amendments to financial services legislation under the European Union (Withdrawal) Act 2018’

Effective from: The date of the UK’s withdrawal from the EU

Near-final future version

Published: 28 February 2019 Published as near-final as part of joint Bank of England and PRA Policy Statement 5/19 ‘The Bank of England’s amendments to financial services legislation under the European Union (Withdrawal) Act 2018’.

Published on 25 October 2018

UK withdrawal from the EU: Changes to FMI rules and onshored Binding Technical Standards - Consultation Paper

In this consultation paper (CP), the Bank of England (the Bank) sets out its proposal to fix deficiencies in onshoring of legislation related to FMIs arising from the UK’s withdrawal from the EU as competent authority for Financial Market Infrastructures (FMIs). This includes fixing deficiencies in FMI-related binding technical standards (Chapter 3) and the Bank’s rules for FMIs (Chapter 4) and is relevant to FMIs supervised by the Bank as well as market infrastructures and market participants more broadly.

This consultation closed on Wednesday 2 January 2019. The Bank invites feedback on the proposals set out in this consultation. Please address any comments or enquiries to: fmibts@bankofengland.co.uk

The CP including the Appendix runs to 102 pages. To be helpful to readers, we have included a complete and split version of the CP below.

PDFConsultation Paper - complete version

PDFConsultation Paper - split version

Appendices

Appendix 1: Draft Supervisory Statement ‘Non-binding Bank materials relating to Financial Market Infrastructure Supervision: The Bank’s approach after the UK’s withdrawal from the EU’- included in split version above

PDFAppendix 2: Draft FMI rule changes

PDFAppendix 3: Draft BTS EU Exit Instruments within the Bank's remit as FMI competent authority 

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