The Bank of England’s amendments to financial services legislation under the European Union (Withdrawal) Act 2018

This Bank of England and Prudential Regulation Authority (PRA) joint policy statement (PS) sets out the policy to deliver the general approach being taken to ensure there is a functioning legal framework when the UK leaves the EU.
Published on 28 February 2019

Bank of England Policy Statement

PRA Policy Statement 5/19

This policy statement (PS) provides feedback to responses and sets out the Bank and PRA’s near-final policy following:

Overview

This Bank of England (Bank) and Prudential Regulation Authority (PRA) Policy Statement (PS) and the appended policy materials are relevant to:

  • all firms authorised and regulated by the Prudential Regulation Authority (PRA);
  • firms that might seek to apply to the PRA or Financial Conduct Authority (FCA) for authorisation;
  • firms that will be operating in the UK under the temporary permission regime (TPR) or financial services contracts regime (FSCR) post-exit;
  • firms authorised and regulated by the Financial Conduct Authority (FCA);
  • the Financial Services Compensation Scheme (FSCS);
  • firms in scope of the UK resolution regime;
  • financial market infrastructure providers (FMIs) that are currently supervised by the Bank, as well as market infrastructures and market participants more generally;
  • FMIs that might apply to the Bank for recognition; and
  • FMIs that will be operating in the UK under the temporary recognition regime (TRR) or the FSCR post-exit.

Structure of the PS

This PS is structured as follows:

Section A: Temporary transitional directions and guidance

  • Chapter 1 sets out background to the Bank’s use of the transitional power.
  • Chapter 2 sets out the Bank’s feedback to responses received on the Bank’s proposed approach to the use of the transitional power.
  • Chapter 3 sets out the implementation of the use of the transitional power and next steps
  • Section A Appendices: Transitional directions and guidance.

Section B: Nationalising the Acquis (NtA)

  • Part 1 sets out feedback to CP25/18 on the Bank’s general approach to NtA, including any cross-cutting issues raised, and changes relating to EU Guidelines and Recommendations.
  • Part 2 sets out feedback on CP26/18 and CP32/18 on changes relating to the PRA Rulebook and PRA BTS.
  • Part 3 sets out feedback to the consultations relating to the Bank (as resolution authority), including changes relating to Bank (as resolution authority) BTS.
  • Part 4 sets out feedback to the consultations relating to the Bank (as FMI authority), including changes to Bank (as FMI authority) BTS and FMI rules.
  • Part 5 sets out the Bank’s obligations under the EU Withdrawal Act.
  • Section B Appendices: NtA Instruments, supervisory statements (SSs) and statements of policy (SoPs).

Implementation and next steps

The policy materials appended to this PS, including all EU Exit Instruments and directions that give effect to the temporary transitional power, are ‘near final’. The Bank and PRA will communicate when the EU Exit Instruments and directions that give effect to the temporary transitional power, are made final and formally set to enter into force on exit day. Further information on what ‘near-final’ policy means can be found on Transitioning to post-exit rules and standards.

PDFPolicy Statement 5/19 ‘The Bank of England’s amendments to financial services legislation under the European Union (Withdrawal) Act 2018’

Appendices

Section A – available on the new ‘EU withdrawal policy page

  1. PRA transitional direction instrument
  2. PRA general guidance
  3. CRR guidance note on transitional powers
  4. Solvency II guidance note on transitional powers
  5. Securitisation Regulation guidance note on transitional powers
  6. PRA Rulebook guidance note on transitional powers
  7. Bank transitional direction instrument
  8. Bank general guidance
  9. Resolution guidance note on transitional powers
  10. FMI guidance note on transitional powers

Section B

  1. Bank Statement of Policy ‘Interpretation of EU Guidelines and Recommendations: Bank of England and PRA approach after the UK’s withdrawal from the EU’
  2. PRA RULEBOOK (EU EXIT) INSTRUMENT 2019
  3. PRA Binding Technical Standards (EU Exit) Instruments
  4. PRA SS1/19 ‘Non-binding PRA materials: The Prudential Regulation Authority’s approach after exit from the EU’
  5. PRA SS2/19 ‘PRA approach to interpreting reporting and disclosure requirements and regulatory transactions forms after the UK’s withdrawal from the EU’
  6. PRA SS18/15 UPDATE ‘Depositor and dormant account protection’
  7. Bank (as resolution authority) Binding Technical Standards (EU Exit) Instruments
  8. EU EXIT INSTRUMENT: RECOGNISED CLEARING HOUSE RULES (AMENDMENT ETC.) (EU EXIT) INSTRUMENT 2019
  9. Bank (as FMI competent authority) Binding Technical Standards (EU Exit) Instruments
  10. Bank SS ‘Non binding Bank materials relating to Financial Market Infrastructure Supervision: The Bank’s approach after the UK’s withdrawal from the EU’
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