Financial Services Act 2021

1 Exclusion of certain investment firms from the Capital Requirements Regulation U.K.

(1) Article 4(1) of the Capital Requirements Regulation (definitions) is amended in accordance with subsections (2) to (6).

(2) In point (2) (definition of “investment firm”), for the words from “excluding” to the end substitute “ other than a credit institution ”.

(3) In point (2A) (definition of “CRR firm”), in paragraph (a)(ii), for “an investment firm” substitute “ a designated investment firm ”.

(4) After point (2A) insert—

“(2AA) ‘designated investment firm’ means an investment firm that is for the time being designated by the PRA under article 3 of the Financial Services and Markets Act 2000 (PRA-regulated Activities) Order 2013 (S.I. 2013/556), but is not—

(a) a commodity and emission allowance dealer,

(b) a collective investment undertaking, or

(c) an insurance undertaking;

(2AB) ‘FCA investment firm’ means an investment firm that—

(a) is an authorised person within the meaning of section 31(1)(a) of FSMA, and

(b) is not a designated investment firm;”.

(5) In point (3) (definition of “institution”), for “an investment firm” substitute “ a designated investment firm ”.

(6) At the end insert—

“(150) ‘commodity and emission allowance dealer’ means an undertaking the main business of which consists exclusively of the provision of investment services or activities in relation to—

(a) commodity derivatives or commodity derivative contracts referred to in paragraphs 5, 6, 7, 9 and 10 of Part 1 of Schedule 2 to the Regulated Activities Order,

(b) derivatives of emission allowances referred to in paragraph 4 of that Part of that Schedule, or

(c) emission allowances referred to in paragraph 11 of that Part of that Schedule.”

(7) In Schedule 1—

(a) Part 1 contains consequential amendments of the Capital Requirements Regulation, and

(b) Part 2 contains consequential amendments of the Capital Requirements (Country-by-Country Reporting) Regulations 2013 (S.I. 2013/3118).

Commencement Information

I1 S. 1 in force at 1.1.2022 by S.I. 2021/671, reg. 5(1)(a) (with reg. 5(2)) (as amended by S.I. 2021/1163, regs. 1(2), 2)