The Capital Requirements (Amendment) (EU Exit) Regulations 2019

PART 3 U.K. Amendment of retained direct EU law

Amendments to the Capital Requirements Regulation U.K.

8.  The Capital Requirements Regulation is amended in accordance with this Part.

Commencement Information

I1 Reg. 8 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 1 (scope) U.K.

9.—(1) Article 1 (scope) is amended as follows.

(2) In the opening paragraph, for “institutions, financial holding companies and mixed financial holding companies supervised under Directive 2013/36/EU” substitute “ CRR firms, financial holding companies set up in the United Kingdom, and mixed financial holding companies set up in the United Kingdom ”.

(3) In the sentence following point (e), for “non-EU” substitute “ non-UK ”.

(4) Omit the final sentence.

Commencement Information

I2 Reg. 9 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 2 (supervisory powers) U.K.

10.—(1) Article 2 (supervisory powers) is amended as follows.

(2) For “resolution authorities” in both places it occurs substitute “ the resolution authority ”.

(3) In paragraph 1, for “Directive 2013/36/EU” substitute “ Directive 2013/36/EU UK law ”.

(4) In paragraph 2, for “Directive 2014/59/EU of the European Parliament and of the Council” substitute “ the United Kingdom legislation that implemented Directive 2014/59/EU, as amended from time to time, ”.

(5) Omit paragraph 4.

Commencement Information

I3 Reg. 10 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 4 (definitions) U.K.

11.—(1) Article 4 (definitions) is amended as follows.

(2) In paragraph 1—

(a) in point (7), for “Article 1(2) of Directive 2009/65/EC of the European Parliament and of the Council or an alternative investment fund (AIF) as defined in point (a) of Article 4(1) of Directive 2011/61/EU of the European Parliament and of the Council” substitute “ section 236A of FSMA M1 , or a UK AIF, an EEA AIF, a Gibraltar AIF, or a third country AIF within the meaning of regulation 2(1) of the Alternative Investment Fund Managers Regulations 2013 M2 ”;

(b) in point (26)—

(i) after “one or more of the” insert “ Annex 1 ”;

(ii) omit “of Annex I to Directive 2013/36/EU”;

(iii) for “a payment institution as defined in point (4) of Article 4 of Directive (EU) 2015/2366 of the European Parliament and of the Council” substitute “ an authorised payment institution within the meaning of regulation 2(1) of the Payment Services Regulations 2017 M3 ”;

(iv) for “, respectively, in points (f) and (g) of Article 212(1) of Directive 2009/138/EC” substitute “ in the PRA rulebook ”;

(c) for point (28) substitute— “ ‘UK parent institution’ means an institution in the United Kingdom which has an institution, a financial institution or an ancillary services undertaking as a subsidiary or which holds a participation in an institution, financial institution or ancillary services undertaking, and which is not itself a subsidiary of another institution authorised in the United Kingdom, or of a financial holding company or mixed financial holding company set up in the United Kingdom; ”;

(d) for point (29a) substitute— “ ‘UK parent investment firm’ means a UK parent institution that is an investment firm within the meaning of point (2) of this paragraph; ”;

(e) omit point (29b);

(f) for point (29c) substitute— “ ‘UK parent credit institution’ means a UK parent institution that is a credit institution within the meaning of point (1) of this paragraph; ”;

(g) omit point (29d);

(h) in point (72), in point (a), for “the procedure set out in point (a) of Article 25(4) of Directive 2014/65/EU of the European Parliament and of the Council” substitute “ paragraph 8 of Schedule 3 to Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Regulation (EU) No 648/2012 M4 ”;

(i) in point (128)—

(i) omit “Union or” in each place it occurs;

(ii) for “national law” in each place it occurs substitute “ the law of the United Kingdom, or any part of it, or of a third country ”;

(j) for point (130) substitute—

“‘resolution authority’ means the Bank;”;

(k) after point (130) insert—

“(130A) ‘resolution’ means the application of a stabilisation option referred to in section 1(3) of the Banking Act 2009 M5 in order to achieve one or more of the objectives referred to in section 4 of that Act;”;

(l) for point (131) substitute—

“‘resolution entity’ means either—

(a) a legal person established in the United Kingdom which is identified by the resolution authority as an entity in respect of which the resolution plan drawn up in accordance with article 40 of the second BRRD Order provides for resolution action; or

(b) an institution that is not part of a group that is subject to consolidated supervision under Part 6 of the Capital Requirements Regulations 2013 M6 , in respect of which the resolution plan drawn up in accordance with article 37 of the second BRRD Order provides for resolution action;”;

(m) for point (132) substitute—

“‘resolution group’ means a resolution entity and its subsidiaries that are not—

(a) resolution entities themselves;

(b) subsidiaries of other resolution entities; or

(c) entities established in a third country that are not included in the resolution group in accordance with the resolution plan and their subsidiaries;”;

(n) after point (132) insert—

“(132A) ‘resolution action’ means—

(a) the decision to place an institution or entity under resolution pursuant to sections 7, 81B, 81BA, 81ZBA, 81C, 81D, or 82 of the Banking Act 2009;

(b) the application of a stabilisation option referred to in section 1(3) of the Banking Act 2009; or

(c) the exercise of one or more powers conferred on the Bank by United Kingdom legislation which implemented Articles 63 to 72 of Directive 2014/59/EU;”;

(o) in point (133), for “Article 131(1) and (2) of Directive 2013/36/EU” substitute “ Part 4 of the Capital Requirements (Capital Buffers and Macro-prudential Measures) Regulations 2014 M7 ”;

(p) in point (134) for “non-EU” in both defined terms substitute “ non-UK ”;

(q) in point (135), omit the words from “for the purpose” to the end;

(r) in point (136), for “non-EU” substitute “ non-UK ”;

(s) for point (137) substitute—

“‘bail-in tool’ means the mechanism for effecting the exercise by the resolution authority of the write-down and conversion powers in relation to liabilities of an institution under resolution, in accordance with section 12A of the Banking Act 2009;”;

(t) in point (138), for the words from “that are related to each other” to the end substitute “ that are related to each other pursuant to a common management relationship within the meaning of point (38A) ”;

(u) in point (145)—

(i) in point (b)—

(aa) omit “and Directive 2013/36/EU”;

(bb) omit the words “Member States may lower that threshold;”;

(ii) in point (c) for “Article 4 of Directive 2014/59/EU” substitute “ articles 7 and 8 of the second BRRD Order ”;

(iii) in point (f) for “European Economic Area” substitute “ United Kingdom ”;

(v) in point (146)—

(i) in point (b) for “Article 131(1) and (3) of Directive 2013/36/EU” substitute “ Part 6 of the Capital Requirements (Capital Buffers and Macro-prudential Measures) Regulations 2014 M8 ”;

(ii) in point (c)—

(aa) omit “, in the Member State in which it is established,”;

(bb) after “institutions” insert “ in the United Kingdom ”;

(iii) in point (d) omit “and Directive 2013/36/EU”;

(w) in point (148) omit the words from “of any Member State” to the end;

(x) in point (149) for “Articles 4 and 5 of Directive 2004/109/EC of the European Parliament and of the Council” substitute “ sections 4.1 (Annual financial report) and 4.2 (Half-yearly financial reports) of chapter 4 (Periodic Financial Reporting) of the FCA's Disclosure Guidance and Transparency Rules sourcebook ”.

(3) In paragraph 1A M9 , after the definition of “Regulated Activities Order”, insert—

““the second BRRD Order” means the Bank Recovery and Resolution (No. 2) Order 2014 M10 ;”.

(4) In paragraph 4—

(a) for “EBA shall develop draft regulatory” substitute “ The FCA and PRA may each make ”;

(b) omit the words from “EBA shall submit” to the end.

Commencement Information

I4 Reg. 11 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M1 Section 236A was inserted by S.I. 2019/325.

M2 S.I. 2013/1773, as amended by S.I. 2019/328.

M3 S.I. 2017/752, as amended by S.I. 2018/1201.

M4 Schedule 3 was inserted by regulation 37 of S.I. 2018/1403.

M5 2009 c. 1. So far as is relevant for the purposes of these Regulations, this Act was amended by S.I. (

2014/3329).

M6 S.I. 2013/3115, as amended by these Regulations.

M7 S.I. 2014/894.

M8 S.I. 2014/894, as amended by these Regulations.

M9 As inserted by regulation 64(53) of S.I. 2018/1401.

M10 S.I. 2014/3348, as amended by S.I. 2018/1394.

Article 4A (definitions: regulators' rules) U.K.

12.  In Article 4A (definitions: regulators' rules) M11 , in paragraph 1 for “these Regulations” substitute “ this Regulation ”.

Commencement Information

I5 Reg. 12 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M11 As inserted by S.I. 2018/1401.

Article 6 (general principles) U.K.

13.—(1) Article 6 (general principles) is amended as follows.

(2) In paragraph 1a—

(a) in the second sentence for “non-EU” substitute “ non-UK ”;

(b) in point (c) for “an EU parent institution” substitute “ a UK parent institution ”.

Commencement Information

I6 Reg. 13 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Prospective

Article 11 (general treatment) U.K.

F1 14.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1 Regulations revoked (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(3), Sch. 1 Pt. 2 (with s. 1(4)); S.I. 2023/779, reg. 3(b), Sch.

Article 12a (consolidated calculation for G-SIIs with multiple resolution entities) U.K.

15.—(1) Article 12a (consolidated calculation for G-SIIs with multiple resolution entities) is amended as follows.

(2) In the first paragraph, for “EU parent institution” in both places it occurs substitute “ UK parent institution ”.

(3) Omit the second and third paragraphs.

Commencement Information

I7 Reg. 15 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 13 (application of disclosure requirements on a consolidated basis) U.K.

16.—(1) Article 13 (application of disclosure requirements on a consolidated basis) is amended as follows.

(2) For “EU parent institutions” in each place it occurs substitute “ UK parent institutions ”.

(3) In paragraph 1, for “Directive 2013/36/EU” substitute “ Directive 2013/36/EU UK law ”.

(4) In paragraph 3—

(a) for “EU parent financial holding companies” substitute “ UK parent financial holding companies ”;

(b) for “EU parent mixed financial holding companies” substitute “ UK parent mixed financial holding companies ”.

(5) Omit paragraph 4.

Commencement Information

I8 Reg. 16 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Prospective

Article 18 (methods of prudential consolidation) U.K.

F1 17.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1 Regulations revoked (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(3), Sch. 1 Pt. 2 (with s. 1(4)); S.I. 2023/779, reg. 3(b), Sch.

Article 26 (Common Equity Tier 1 items) U.K.

18.—(1) Article 26 (Common Equity Tier 1 items) is amended as follows.

(2) In paragraph 3—

(a) omit the subparagraph beginning “Competent authorities shall consult EBA”;

(b) for “On the basis of information collected from competent authorities, EBA” substitute “ Each competent authority ”;

(c) omit the words “in each Member State”;

(d) omit the words from “In accordance with Article 35” to the end.

Commencement Information

I9 Reg. 18 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 28 (Common Equity Tier 1 instruments) U.K.

19.  In Article 28 (Common Equity Tier 1 instruments), in point (b) of paragraph 3, for “same Member State” substitute “ United Kingdom ”.

Commencement Information

I10 Reg. 19 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 36 (deductions from Common Equity Tier 1 items) U.K.

20.—(1) Article 36 (deductions from Common Equity Tier 1 items) is amended as follows.

(2) In paragraph 4—

(a) for “EBA shall develop draft regulatory” substitute “ The FCA and PRA may each make ”;

(b) omit the words from “EBA shall submit” to the end.

Commencement Information

I11 Reg. 20 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 47c (deduction for non-performing exposures) U.K.

21.—(1) Article 47c (deduction for non-performing exposures) is amended as follows.

(2) In paragraph 5—

(a) for “EBA” substitute “ The PRA and the FCA ”;

(b) omit the final sentence.

Commencement Information

I12 Reg. 21 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 52 (additional Tier 1 instruments) U.K.

22.—(1) Article 52 (additional Tier 1 instruments) is amended as follows.

(2) In point (p) of paragraph 1—

(a) for “in accordance with Article 12 of Directive 2014/59/EU” in both places it occurs substitute “ by the Bank ”;

(b) for “Union” in both places it occurs substitute “ United Kingdom ”;

(c) for “in a Member State” substitute “ in the United Kingdom ”;

(d) for “Article 59 of that Directive” substitute “ section 6B of the Banking Act 2009 ”.

(3) In point (q) of paragraph 1—

(a) for “in accordance with Article 12 of Directive 2014/59/EU” substitute “ by the Bank ”;

(b) for “Union” substitute “ United Kingdom ”;

(c) for “in a Member State” substitute “ in the United Kingdom ”;

(d) for “Article 59 of that Directive” substitute “ section 6B of the Banking Act 2009 ”.

Commencement Information

I13 Reg. 22 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 54 (write down or conversion of Additional Tier 1 instruments) U.K.

23.  In Article 54 (write down or conversion of Additional Tier 1 instruments), in point (e) of paragraph 1, omit “, after consulting EBA,”.

Commencement Information

I14 Reg. 23 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 63 (Tier 2 instruments) U.K.

24.—(1) Article 63 (Tier 2 instruments) is amended as follows.

(2) In point (n)—

(a) for “in accordance with Article 12 of Directive 2014/59/EU” in both places it occurs substitute “ by the Bank ”;

(b) for “Article 59 of that Directive” substitute “ section 6B of the Banking Act 2009 ”.

(3) In point (o)—

(a) for “in accordance with Article 12 of Directive 2014/59/EU” substitute “ by the Bank ”;

(b) for “Article 59 of that Directive” substitute “ section 6B of the Banking Act 2009 ”.

Commencement Information

I15 Reg. 24 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 72a (eligible liabilities items) U.K.

25.—(1) Article 72a (eligible liabilities items) is amended as follows.

(2) In paragraph 2—

(a) in point (c), for “in Article 6 of Directive 2014/49/EU of the European Parliament and of the Council” substitute “ regulation 7A(3) of the Deposit Guarantee Scheme Regulations 2015 M12 ”;

(b) in point (d) for “Union” in each place it occurs substitute “ United Kingdom ”;

(c) in point (e) for “national law” substitute “ the law of the United Kingdom or any part of it ”;

(d) in point (i)—

(i) in paragraph (i) for “Directive 98/26/EC of the European Parliament and of the Council” substitute “ regulation 4 of the Financial Markets and Insolvency (Settlement Finality) Regulations 1999 M13 ”;

(ii) for paragraph (ii) substitute—

“(ii) participants, as defined in regulation 2(1) of the Financial Markets and Insolvency (Settlement Finality) Regulations 1999 M14 , in a system designated in accordance with Regulation 4 of those Regulations and arising from the participation in such a system; or”;

(e) in point (j)—

(i) in paragraph (i) for “as referred to in Article 92(2) of Directive 2013/36/EU” substitute “ within the meaning of Rule 3 of Part 152 (remuneration) of the PRA rulebook (other than persons deemed by virtue of rule 3.2 not to be material risk takers and notified to the PRA in accordance with rule 3.3) ”;

(ii) in paragraph (iv) for “contributions due in accordance with Directive 2014/49/EU” substitute “ levies imposed by the scheme manager under section 213(3)(b) or (4) of FSMA ”.

Commencement Information

I16 Reg. 25 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M12 S.I. 2015/486, as amended by S.I. 2018/1285.

M13 S.I. 1999/2979, as amended by S.I. 2019/341.

M14 S.I. 1999/2979, as amended by S.I. 2019/341.

Article 72b (eligible liabilities instruments) U.K.

26.—(1) Article 72b (eligible liabilities instruments) is amended as follows.

(2) In paragraph 2—

(a) in point (d)—

(i) in paragraph (i) for “as defined in point (47) of Article 2(1) of Directive 2014/59/EU” substitute “ as defined in section 3(1) of the Banking Act 2009 ”;

(ii) in paragraph (ii) for “as defined in point (47) of Article 2(1) of Directive 2014/59/EU” substitute “ as defined in section 3(1) of the Banking Act 2009 ”;

(b) in point (n) for “Article 48 of Directive 2014/59/EU” substitute “ section 12AA of the Banking Act 2009 ”;

(c) in the final sentence, for “national insolvency law” substitute “ the insolvency law of the United Kingdom or any part of it ”.

(3) In paragraph 3—

(a) in point (b) for “national insolvency law” substitute “ the insolvency law of the United Kingdom ”;

(b) in point (c) after “the principles referred to in” insert “ United Kingdom legislation which immediately before [F2 IP completion day] gave effect to ”.

(4) In paragraph 4—

(a) in point (c) for “national insolvency law” substitute “ the insolvency law of the United Kingdom ”;

(b) in point (e) after “the principles referred to in” insert “ United Kingdom legislation which immediately before [F3 IP completion day] gave effect to ”.

(5) In paragraph 7—

(a) for “EBA shall develop” substitute “ The Bank may make ”;

(b) omit “draft regulatory” in both places it occurs;

(c) for “delegated act” substitute “ technical standards ”;

(d) omit the words from “EBA shall submit” to the end.

Textual Amendments

F2 Words in reg. 26(3)(b) substituted (30.12.2020) by The Financial Services and Economic and Monetary Policy (Consequential Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1301), regs. 1, 3, Sch. para. 46

F3 Words in reg. 26(4)(b) substituted (30.12.2020) by The Financial Services and Economic and Monetary Policy (Consequential Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1301), regs. 1, 3, Sch. para. 46

Commencement Information

I17 Reg. 26 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 72e (deductions from eligible liabilities items) U.K.

27.—(1) Article 72e (deductions from eligible liabilities items) is amended as follows.

(2) In paragraph 4—

(a) for “an EU parent institution or a parent institution in a Member State” substitute “ a UK parent institution or a parent institution in the United Kingdom ”;

(b) for “of that parent institution, after duly considering the opinion of the resolution authorities of any subsidiaries concerned” substitute “ after duly considering the opinion of a relevant foreign resolution authority within the meaning of section 83ZE(10) of the Banking Act 2009 ”;

(c) in the definition of “r_i” omit “and Article 45d of Directive 2014/59/EU”.

Commencement Information

I18 Reg. 27 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 78 (supervisory permission to reduce own funds) U.K.

28.—(1) Article 78 (supervisory permission to reduce own funds) is amended as follows.

(2) For “Directives 2013/36/EU and 2014/59/EU” in each place it occurs substitute “ Directive 2013/36/EU UK law and in the United Kingdom legislation that implemented Directive 2014/59/EU as amended from time to time ”.

(3) In paragraph 1, in the sentence following point (b), for “Directive 2013/36/EU” substitute “ Directive 2013/36/EU UK law ”.

(4) In paragraph 5—

(a) for “EBA shall develop draft” substitute “ The FCA and PRA may each make ”;

(b) omit the words from “EBA shall submit” to the end.

Commencement Information

I19 Reg. 28 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 78a (permission to reduce eligible liabilities instruments) U.K.

29.—(1) Article 78a (permission to reduce eligible liabilities instruments) is amended as follows.

(2) For “resolution authorities” in both places it occurs substitute “ the resolution authority ”.

(3) For “Directives 2013/36/EU and 2014/59/EU” in each place it occurs substitute “ Directive 2013/36/EU UK law and in the United Kingdom legislation that implemented Directive 2014/59/EU as amended from time to time ”.

(4) In point (c) of paragraph 1, for “Directive 2013/36/EU” substitute “ Directive 2013/36/EU UK law ”.

(5) In paragraph 3—

(a) for “EBA shall develop draft regulatory” substitute “ The Bank may make ”;

(b) in the sentence following point (d)—

(i) omit the words “draft regulatory”;

(ii) for “delegated act” substitute “ technical standards ”;

(c) omit the words from “EBA shall submit” to the end.

Commencement Information

I20 Reg. 29 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 81 (minority interests that qualify for inclusion in consolidated Common Equity Tier 1 capital) U.K.

30.  In Article 81 (minority interests that qualify for inclusion in consolidated Common Equity Tier 1 capital), in point (a)(iii) of paragraph 1—

(a) for “Commission has” substitute “ Treasury have ”;

(b) for “decided” substitute “ determined ”.

Commencement Information

I21 Reg. 30 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 82 (qualifying Additional Tier 1, Tier 1, Tier 2 capital and qualifying own funds) U.K.

31.  In Article 82 (qualifying Additional Tier 1, Tier 1, Tier 2 capital and qualifying own funds), in paragraph (iii) of point (a)—

(a) for “Commission has” substitute “ Treasury have ”;

(b) for “decided” substitute “ determined ”.

Commencement Information

I22 Reg. 31 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 92a (requirements for own funds and eligible liabilities for G-SIIs) U.K.

32.—(1) Article 92a (requirements for own funds and eligible liabilities for G-SIIs) is amended as follows.

(2) In paragraph 2—

(a) in point (b) for “Directive 2014/59/EU” substitute “ section 48B of the Banking Act 2009 ”;

(b) in point (c) omit the words “referred to in point (b) of Article 32(1) of Directive 2014/59/EU”.

(3) Omit paragraph 3.

Commencement Information

I23 Reg. 32 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 92b (requirement for own funds and eligible liabilities for non-EU G-SIIs) U.K.

33.—(1) Article 92b (requirement for own funds and eligible liabilities for non-EU G-SIIs) is amended as follows.

(2) In the heading, for “non-EU” substitute “ non-UK ”.

(3) For “non-EU” in each place it occurs substitute “ non-UK ”.

(4) In paragraph 2 for “in a Member State” substitute “ in the United Kingdom ”.

(5) In paragraph 3—

(a) in point (a) for “as defined in point (47) of Article 2(1) of Directive 2014/59/EU” substitute “ as defined in section 3(1) of the Banking Act 2009 ”;

(b) in point (b) for “in accordance with Articles 59 to 62 of Directive 2014/59/EU” substitute “ under sections 6A or 81AA of the Banking Act 2009 ”.

Commencement Information

I24 Reg. 33 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 117 (exposures to multilateral development banks) U.K.

34.  In Article 117 (exposures to multilateral development banks), in paragraph 2, for the words from “The Commission is empowered” to the end substitute “ The Treasury may by regulations, in accordance with international standards, amend the list of multilateral development banks referred to in the first subparagraph ”.

Commencement Information

I25 Reg. 34 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 118 (exposures to international organisations) U.K.

35.  In Article 118 (exposures to international organisations), in point (a), omit “and the European Atomic Energy Community”.

Commencement Information

I26 Reg. 35 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Prospective

Article 124 (exposures secured by mortgages on immovable property) U.K.

F1 36.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1 Regulations revoked (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(3), Sch. 1 Pt. 2 (with s. 1(4)); S.I. 2023/779, reg. 3(b), Sch.

Article 132a (approaches for calculating risk-weighted exposure amounts of CIUs) U.K.

37.—(1) Article 132a (approaches for calculating risk-weighted exposure amounts of CIUs) is amended as follows.

(2) In paragraph 4—

(a) for “EBA shall develop draft regulatory” substitute “ The FCA and PRA may each make ”;

(b) omit the words from “EBA shall submit” to the end.

Commencement Information

I27 Reg. 37 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Prospective

Article 164 (loss given default (LGD)) U.K.

F1 38.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1 Regulations revoked (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(3), Sch. 1 Pt. 2 (with s. 1(4)); S.I. 2023/779, reg. 3(b), Sch.

Article 277 (transactions with a linear risk profile) U.K.

39.—(1) Article 277 (transactions with a linear risk profile) is amended as follows.

(2) In paragraph 5—

(a) for “EBA shall develop draft regulatory” substitute “ The FCA and PRA may each make ”;

(b) omit the words from “EBA shall submit” to the end.

Commencement Information

I28 Reg. 39 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 279a (supervisory delta) U.K.

40.—(1) Article 279a (supervisory delta) is amended as follows.

(2) In paragraph 3—

(a) for “EBA shall develop draft regulatory” substitute “ The FCA and PRA may each make ”;

(b) omit the words from “EBA shall submit” to the end.

Commencement Information

I29 Reg. 40 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 325 (approaches for calculating the own funds requirements for market risk) U.K.

41.—(1) Article 325 (approaches for calculating the own funds requirements for market risk) is amended as follows.

(2) In paragraph 9—

(a) for “EBA shall develop draft regulatory” substitute “ The FCA and PRA may each make ”;

(b) omit the words from “EBA shall submit” to the end.

Commencement Information

I30 Reg. 41 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 325g (own funds requirements for curvature risk) U.K.

42.  In Article 325g (own funds requirements for curvature risk) for “delegated act” substitute “ regulations ”.

Commencement Information

I31 Reg. 42 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 325h (aggregation of risk-class specific own funds requirements for delta, vega and curvature risks) U.K.

43.  In Article 325h (aggregation of risk-class specific own funds requirements for delta, vega and curvature risks), in point (c) of paragraph 2, for “delegated act” substitute “ regulations ”.

Commencement Information

I32 Reg. 43 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 325i (treatment of index instruments and multi-underlying options) U.K.

44.  In Article 325i (treatment of index instruments and multi-underlying options) for “delegated act” substitute “ regulations ”.

Commencement Information

I33 Reg. 44 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 325j (treatment of collective investment undertakings) U.K.

45.  In Article 325j (treatment of collective investment undertakings) for “delegated act” substitute “ regulations ”.

Commencement Information

I34 Reg. 45 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 325u (own funds requirements for residual risks) U.K.

46.—(1) Article 325u (own funds requirements for residual risks) is amended as follows.

(2) In paragraph 5—

(a) in the opening sentence, for “EBA shall develop draft regulatory” substitute “ The FCA and PRA may each make ”;

(b) in the second sentence—

(i) omit the words “draft regulatory”;

(ii) for “EBA” substitute “ the FCA and PRA ”.

(c) omit the words from “EBA shall submit” to the end.

Commencement Information

I35 Reg. 46 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 325w (gross jump-to-default amounts) U.K.

47.—(1) Article 325w (gross jump-to-default amounts) is amended as follows.

(2) In paragraph 8—

(a) for “EBA shall develop draft regulatory” substitute “ The FCA and PRA may each make ”;

(b) omit the words from “EBA shall submit” to the end.

Commencement Information

I36 Reg. 47 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 325ae (risk weights for general interest rate risk) U.K.

48.  In Article 325ae (risk weights for general interest rate risk) for “delegated act” substitute “ regulations ” in both places it occurs.

Commencement Information

I37 Reg. 48 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 325ag (correlations across buckets for general interest rate risk) U.K.

49.  In Article 325ag (correlations across buckets for general interest rate risk) omit paragraph 2.

Commencement Information

I38 Reg. 49 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 325ah (risk weights for credit spread risk for non-securitisations) U.K.

50.  In Article 325ah (risk weights for credit spread risk for non-securitisations) in Table 4, in the entry concerning bucket 1, for “Central government, including central banks, of a Member State” substitute “ The central government of the United Kingdom, and the Bank ”.

Commencement Information

I39 Reg. 50 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 325ak (risk weights for credit spread risk for securitisations included in the ACTP) U.K.

51.  In Article 325ak (risk weights for credit spread risk for securitisations included in the ACTP), in table 6—

(a) in the entry concerning bucket 1, for “Central government, including central banks, of Member States” substitute “ The central government of the United Kingdom, and the Bank ”;

(b) in the entry concerning bucket 9, for “Member States” substitute “ the United Kingdom ”.

Commencement Information

I40 Reg. 51 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 325ap (risk weights for equity risk) U.K.

52.—(1) Article 325ap (risk weights for equity risk) is amended as follows.

(2) In paragraph 3—

(a) for “EBA shall develop draft regulatory” substitute “ the FCA and PRA may each make ”;

(b) omit the words from “EBA shall submit” to the end.

Commencement Information

I41 Reg. 52 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 325as (risk weights for commodity risk) U.K.

53.  In Article 325as (risk weights for commodity risk) for “delegated act” substitute “ regulations ”.

Commencement Information

I42 Reg. 53 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 325av (risk weights for foreign exchange risk) U.K.

54.  In Article 325av (risk weights for foreign exchange risk) for “delegated act” substitute “ regulations ”.

Commencement Information

I43 Reg. 54 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 325az (alternative internal model approach and permission to use alternative internal models) U.K.

55.—(1) Article 325az (alternative internal model approach and permission to use alternative internal models) is amended as follows.

(2) In paragraph 5 omit the final sentence.

(3) In paragraph 8—

(a) for “EBA shall develop draft regulatory” substitute “ The FCA and PRA may each make ”;

(b) omit the words from “EBA shall submit” to the end.

(4) In paragraph 9—

(a) for “EBA shall develop draft regulatory” substitute “ The FCA and PRA may each make ”;

(b) for “competent authorities” substitute “ they ”;

(c) omit the words from “EBA shall submit” to the end.

Commencement Information

I44 Reg. 55 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 325bc (partial expected shortfall calculations) U.K.

56.  In Article 325bc (partial expected shortfall calculations), in point (c) of paragraph 4, omit the words from “competent authorities shall notify” to the end.

Commencement Information

I45 Reg. 56 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 325bd (liquidity horizons) U.K.

57.—(1) Article 325bd (liquidity horizons) is amended as follows.

(2) Omit paragraph 5.

(3) In paragraph 7—

(a) for “EBA shall develop draft regulatory” substitute “ The FCA and PRA may each make ”;

(b) omit the words from “EBA shall submit” to the end.

(4) In Table 2—

(a) in the fifth row, for “Central government, including central banks, of Member States” substitute “ The central government of the United Kingdom, and the Bank ”;

(b) in the sixth row, for “Covered bonds issued by credit institutions in Member States (Investment Grade)” substitute “ Covered bonds issued by credit institutions in the United Kingdom (Investment Grade) ”.

Commencement Information

I46 Reg. 57 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 325be (assessment of the modellability of risk factors) U.K.

58.—(1) Article 325be (assessment of the modellability of risk factors) is amended as follows.

(2) In paragraph 3—

(a) for “EBA shall develop draft regulatory” substitute “ The FCA and PRA may each make ”;

(b) omit the words from “EBA shall submit” to the end.

Commencement Information

I47 Reg. 58 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 325bf (regulatory back-testing requirements and multiplication factors) U.K.

59.—(1) Article 325bf (regulatory back-testing requirements and multiplication factors) is amended as follows.

(2) In paragraph 9—

(a) for “EBA shall develop draft regulatory” substitute “ The FCA and PRA may each make ”;

(b) omit the words from “EBA shall submit” to the end.

Commencement Information

I48 Reg. 59 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 325bg (profit and loss attribution requirement) U.K.

60.—(1) Article 325bg (profit and loss attribution requirement) is amended as follows.

(2) In paragraph 4—

(a) for “EBA shall develop draft regulatory” substitute “ The FCA and PRA may each make ”;

(b) omit the words from “EBA shall submit” to the end.

Commencement Information

I49 Reg. 60 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 325bh (requirements on risk measurement) U.K.

61.  In Article 325bh (requirements on risk measurement) omit paragraph 3.

Commencement Information

I50 Reg. 61 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 325bk (calculation of stress scenario risk measure) U.K.

62.—(1) Article 325bk (calculation of stress scenario risk measure) is amended as follows.

(2) In paragraph 3—

(a) for “EBA shall develop draft regulatory” substitute “ The FCA and PRA may each make ”;

(b) in the sentence following point (d)—

(i) omit the words “draft regulatory”;

(ii) for “EBA” substitute “ the FCA and PRA ”;

(c) omit the words from “EBA shall submit” to the end.

Commencement Information

I51 Reg. 62 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 325bp (particular requirements for an internal default risk model) U.K.

63.—(1) Article 325bp (particular requirements for an internal default risk model) is amended as follows.

(2) In paragraph 12—

(a) for “EBA shall develop draft regulatory” substitute “ The FCA and PRA may each make ”;

(b) omit the words from “EBA shall submit” to the end.

Commencement Information

I52 Reg. 63 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 390 (calculation of the exposure value) U.K.

64.—(1) Article 390 (calculation of the exposure value) is amended as follows.

(2) In paragraph 9—

(a) for “EBA shall develop draft regulatory” substitute “ the FCA and PRA may each make ”;

(b) omit the words from “EBA shall submit” to the end.

Commencement Information

I53 Reg. 64 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 391 (definition of an institution for large exposures purposes) U.K.

65.—(1) Article 391 (definition of an institution for large exposures purposes) is amended as follows.

(2) For the words from “Commission may adopt” to “decisions as to” substitute “ Treasury may by regulations determine ”.

(3) In the closing sentence, for “Union” substitute “ United Kingdom ”.

Commencement Information

I54 Reg. 65 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 394 (reporting requirements) U.K.

66.—(1) Article 394 (reporting requirements) is amended as follows.

(2) In paragraph 4—

(a) for “EBA shall develop draft regulatory” substitute “ The FCA and PRA may each make ”;

(b) in the second sentence—

(i) omit “draft regulatory”;

(ii) for “EBA” substitute “ the PRA and FCA ”;

(c) in point (b) for “Directive 2013/36/EU” substitute “ Directive 2013/36/EU UK law ”;

(d) omit the words from “EBA shall submit” to the end.

Commencement Information

I55 Reg. 66 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 396 (compliance with large exposures requirements) U.K.

67.  In Article 396 (compliance with large exposures requirements), omit paragraph 3.

Commencement Information

I56 Reg. 67 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 403 (substitution approach) U.K.

68.  In Article 403 (substitution approach), omit paragraph 4.

Commencement Information

I57 Reg. 68 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 415 (reporting obligation and reporting format) U.K.

69.—(1) Article 415 (reporting obligation and reporting format) is amended as follows.

(2) In paragraph 3a—

(a) for “EBA shall develop draft implementing” substitute “ The FCA and PRA may each make ”;

(b) omit the words from “EBA shall submit” to the end.

Commencement Information

I58 Reg. 69 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 419 (currencies with constraints on the availability of liquid assets) U.K.

70.—(1) Article 419 (currencies with constraints on the availability of liquid assets) is amended as follows.

(2) In paragraph 5—

(a) for “EBA shall develop draft regulatory” substitute “ The FCA and PRA may each make ”;

(b) omit the words from “EBA shall submit” to the end.

Commencement Information

I59 Reg. 70 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 430 (reporting on prudential requirements and financial information) U.K.

71.—(1) Article 430 (reporting on prudential requirements and financial information) is amended as follows.

(2) Omit paragraph 2.

(3) In paragraph 7—

(a) in the opening sentence, for “EBA shall develop draft implementing” substitute “ The FCA and PRA may each make ”;

(b) omit the second sentence;

(c) in the third sentence—

(i) omit the words “draft implementing”;

(ii) for “EBA” substitute “ the FCA and PRA ”;

(d) omit the words from “EBA shall submit” to the end.

(4) Omit paragraph 8.

Commencement Information

I60 Reg. 71 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 430b (specific reporting requirements for market risk) U.K.

72.—(1) Article 430b (specific reporting requirements for market risk) is amended as follows.

(2) In paragraph 1 for “delegated act” substitute “ regulations ”.

(3) In paragraph 3, omit “regulatory”.

(4) In paragraph 6—

(a) for “EBA shall develop draft implementing” substitute “ The FCA and PRA may each make ”;

(b) omit the words from “EBA shall submit” to the end.

Commencement Information

I61 Reg. 72 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 430c (feasibility report on the integrated reporting system) U.K.

73.  Omit Article 430c (feasibility report on the integrated reporting system).

Commencement Information

I62 Reg. 73 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 434a (uniform disclosure formats) U.K.

74.  In Article 434a (uniform disclosure formats)—

(a) for “EBA shall develop draft implementing” substitute “ The FCA and PRA may each make ”;

(b) in the second paragraph omit “implementing”;

(c) omit the words from “EBA shall submit” to the end.

Commencement Information

I63 Reg. 74 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 460 (liquidity) U.K.

75.—(1) Article 460 (liquidity) is amended as follows.

(2) In paragraph 1—

(a) for “Commission is empowered to supplement this Regulation by adopting delegated acts in accordance with Article 462 to” substitute “ Treasury may by regulations ”;

(b) for “Delegated acts adopted in accordance with this paragraph” substitute “ Such regulations ”;

(c) for “Commission is empowered to supplement this Regulation by adopting delegated acts specifying” substitute “ Treasury may by regulations specify ”.

(3) In paragraph 3—

(a) for “Commission is empowered to” substitute “ Treasury may by regulations ”;

(b) omit “adopting delegated acts in accordance with Article 462”;

(c) omit the words from “The Commission shall” to the end.

Commencement Information

I64 Reg. 75 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 461a (alternative standardised approach for market risk) U.K.

76.—(1) Article 461a (alternative standardised approach for market risk) is amended as follows.

(2) For “Commission is empowered to adopt delegated acts in accordance with Article 462, to amend this Regulation by making” substitute “ Treasury may by regulations make ”.

(3) Omit the closing sentence.

Commencement Information

I65 Reg. 76 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 497 (own funds requirements for exposures to CCPs) U.K.

77.—(1) Article 497 (own funds requirements for exposures to CCPs) is amended as follows.

(2) In paragraph 1—

(a) in the opening sentence, for “ESMA” substitute “ the Bank ”;

(b) in point (a), for “Commission has already adopted an implementing act referred to in” substitute “ Treasury have made regulations under ”;

(c) in point (b)—

(i) for “Commission has not yet adopted an implementing act referred to in” substitute “ Treasury have not yet made regulations under ”;

(ii) in paragraph (i) for “implementing act” substitute “ regulations ”.

(3) In paragraph 3, for “Commission may adopt, by way of implementing acts, and subject to the examination procedure referred to in Article 464(2), a decision to” substitute “ Treasury may by regulations ”.

Commencement Information

I66 Reg. 77 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 500 (adjustment for massive disposals) U.K.

78.  In Article 500 (adjustment for massive disposals), for “competent authority” in both places it occurs substitute “ PRA ”.

Commencement Information

I67 Reg. 78 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 501a (adjustment to own funds requirements for credit risk for exposures to entities that operate or finance physical structures or facilities, systems and networks that provide or support essential public services) U.K.

79.  Omit [F4 paragraphs 4 and 5 of] Article 501a (adjustment to own funds requirements for credit risk for exposures to entities that operate or finance physical structures or facilities, systems and networks that provide or support essential public services).

Textual Amendments

F4 Words in reg. 79 inserted (31.12.2020 immediately before IP completiton day) by The Securities Financing Transactions, Securitisation and Miscellaneous Amendments (EU Exit) Regulations 2020 (S.I. 2020/1385), regs. 1(4), 65(3)

Commencement Information

I68 Reg. 79 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 501b (derogation from reporting requirements) U.K.

80.  In Article 501b (derogation from reporting requirements) omit the word “implementing” in both places it occurs.

Commencement Information

I69 Reg. 80 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Article 519c (compliance tool) U.K.

81.  Omit Article 519c (compliance tool).

Commencement Information

I70 Reg. 81 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)