Bank of England’s approach to financial services legislation under the European Union (Withdrawal) Act – October 2018

October 25th 2018

On 25th October, the Bank of England (BoE) updated firms on its regulatory and supervisory approach in relation to its work on EU withdrawal.

The package of communications published today sets out changes to our rules and binding technical standards arising out of EU Withdrawal.

It also sets out further guidance on the process for authorisation and recognition for incoming EEA firms and non-UK FMIs, including the temporary permissions and recognition regimes. The package does not reflect any policy changes other than those related to EU withdrawal, and builds on previous communications to firms on their preparations around EU withdrawal.

They are relevant to:

  • all firms authorised and regulated by the Prudential Regulation Authority (PRA);
  • EA firms undertaking cross-border activities into the UK from the rest of the EU;
  • UK Financial Market Infrastructures (FMIs) regulated by the Bank;  and
  • non-UK central counterparties (CCPs) and central securities depositories (CSDs) providing cross border services into the UK.

The press release includes the following consultation papers:

  • CP25/18: Sets out the general approach being taken to ensure there is a functioning legal framework when the UK leaves the EU
  • CP26/18:  Sets out the key changes to PRA rules and relevant binding technical standards.
  • Changes to FMI rules and onshored Binding Technical standards (CP)
  • Approach to resolution statements of policy and onshored Binding Technical Standards (CP)

 

Further information can be found on the BoE press release, here.

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