The Over the Counter Derivatives, Central Counterparties and Trade Repositories (Amendment, etc., and Transitional Provision) (EU Exit) (No. 2) Regulations 2019

EXPLANATORY NOTE

(This note is not part of the Regulations)

Except for regulations 3 and 4, these Regulations are made in exercise of the powers in section 8(1) of, and paragraph 21 of Schedule 7 to, the European Union (Withdrawal) Act 2018 (c.16) in order to address failures of retained EU law to operate effectively (see in particular paragraphs (a), (b) and (g) of section 8(2) of that Act) and other deficiencies arising from the withdrawal of the United Kingdom from the European Union. Regulations 3 and 4 are made in exercise of powers under the European Communities Act 1972 (c. 68).

These Regulations are made following the amendment of Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on over the counter derivatives, central counterparties and trade repositories (known as “the EMIR regulation”) by Regulation (EU) 2019/834 of the European Parliament and of the Council of 20 May 2019 (OJ L 141 28.5.2019 p.42) (the “EMIR REFIT regulation”).

Regulations 3 and 4 ensure that the references to the EMIR regulation in the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544) and the Financial Services and Markets Act 2000 (Qualifying EU Provisions) Order 2013 (S.I. 2013/419) are up to date, in accordance with the United Kingdom’s EU obligations prior to exit day.

The Regulations (other than regulations 3 and 4) make amendments to primary legislation, existing regulations made under section 8 of the European Union (Withdrawal) Act 2018 and to the EMIR regulation to take account of recent changes to the EMIR regulation made by the EMIR REFIT regulation.

Part 2 amends the Financial Services and Markets Act 2000 (c.8).

Part 3 amends subordinate legislation.

Part 4 amends the EMIR regulation as amended by the EMIR REFIT regulation.

A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen.