The Securities Financing Transactions, Securitisation and Miscellaneous Amendments (EU Exit) Regulations 2020

PART 6 Amendment or revocation of retained direct EU legislation

Regulation (EC) No 924/2009

72.—(1) Regulation (EC) No 924/2009 of the European Parliament and of the Council of 16 September 2009 on cross-border payments in the Community and repealing Regulation (EC) No 2560/2001 is amended as follows.

(2) In Article 1—

(a) in paragraph 1, for “Union” substitute “United Kingdom”;

(b) in paragraph 2—

(i) omit the first sub-paragraph;

(ii) for the second sub-paragraph substitute—

“This Regulation shall apply to national and cross-border payments that are denominated in euro, sterling or in a national currency of a Member State of the European Union other than the euro and that involve a currency conversion service.”;

(c) after paragraph 2 insert—

“2A.   In respect of cross-border payments, this Regulation applies only to those parts of a payment transaction which are carried out in the United Kingdom.”;

(d) omit paragraph 4.

(3) In Article 2—

(a) for point (1) substitute—

“1.   ‘cross-border payment’ means an electronically processed payment transaction initiated by a payer or by or through a payee where—

(a) the payer’s payment service provider is located in the United Kingdom and the payee’s payment service provider is located in the EEA; or

(b) the payee’s payment service provider is located in the United Kingdom and the payer’s payment service provider is located in the EEA,

and for the purposes of this definition, “payment service provider” has the same meaning as in regulation 40(1A)(a) of the Payment Services Regulations 2017(1);”;

(b) in point (2), for “same Member State” substitute “United Kingdom”;

(c) for point (5) substitute—

“5.   ‘payment service provider’ has the same meaning as in regulation 2(1) of the Payment Services Regulations 2017;”;

(d) in point (9), for “Article 59(2) of Directive (EU) 2015/2366 of the European Parliament and of the Council” substitute “regulation 57(2) of the Payment Services Regulations 2017”;

(e) for point (10) substitute—

“10.   ‘funds’ has the same meaning as in regulation 2(1) of the Payment Services Regulations 2017.”;

(f) omit points (11) to (15).

(4) Omit Article 3.

(5) In Article 3a, in paragraph 1—

(a) for “Articles 45(1), 52(3) and 59(2) of Directive (EU) 2015/2366” substitute “regulations 43(1), 48(1) (taken with paragraph 3 of Schedule 4) and 57(2) of the Payment Services Regulations 2017”;

(b) for “Article 59(2) of that Directive” substitute “regulation 57(2) of the Payment Services Regulations 2017”.

(6) In Article 3b, in paragraph 1—

(a) for “point (24) of Article 4 of Directive (EU) 2015/2366” substitute “regulation 2(1) of the Payment Services Regulations 2017”;

(b) for “Articles 45(1) and 52(3) of that Directive” substitute “regulations 43(1) and 48(1) (taken with paragraph 3 of Schedule 4) of the Payment Services Regulations 2017”.

(7) Omit Articles 4 to 17.

Regulation (EU) No 231/2013

73.  After Article 1 of Commission Delegated Regulation (EU) No 231/2013 of 19 December 2012 supplementing Directive 2011/61/EU of the European Parliament and of the Council with regard to exemptions, general operating conditions, depositaries, leverage, transparency and supervision insert—

Application of Articles 2, 7 and 8 to small AIFMs

1.   Articles 2, 7 and 8 apply to a small AIFM subject to the modifications in paragraphs 2 and 3.

2.   In Article 2(2), second sub-paragraph, as if “AIFs managed by the AIFM for which the AIFM has delegated functions in accordance with section 3.10 of the Investment Funds sourcebook” includes AIFs managed by a small AIFM for which that small AIFM has delegated functions.

3.   In Articles 7 and 8, as if section 3.9 of the Investment Funds sourcebook applied to a small AIFM as it does to a full-scope UK AIFM.”.

Regulation (EU) No 575/2013

74.—(1) Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 is amended as follows.

(2) In Article 11—

(a) in paragraph 1, for “Parent institutions in a Member State” substitute “UK parent institutions”;

(b) in paragraph 2—

(i) for “‘parent institution in a Member State’, ‘EU parent institution’” substitute “‘UK parent institution’”;

(ii) after “Directive 2013/36/EU”, in each place it occurs, insert “ UK law”;

(c) in paragraph 3a—

(i) for “non-EU G-SII”, in each place it occurs, substitute “non-UK G-SII”;

(ii) for “EU parent undertakings” substitute “UK parent undertakings”;

(iii) in the second sub-paragraph, omit “Where Article 21b(2) of Directive 2013/36/EU applies, the two intermediate EU parent undertakings jointly identified as a material subsidiary shall each comply with Article 92b of this Regulation on the basis of their consolidated situation.”;

(d) in paragraph 4, first sub-paragraph—

(i) for “EU parent institutions”, in each place it occurs, substitute “UK parent institutions”;

(ii) for “points (3) and (6) of Section A of Annex I to Directive 2014/65/EU” substitute “paragraphs 3 and 6 of Part 3 of Schedule 2 to the Regulated Activities Order”;

(iii) for “Pending the report from the Commission referred to in Article 508(2) of this Regulation, and where the group comprises only investment firms, competent authorities” substitute “Where the group comprises only investment firms, the competent authority”;

(e) omit paragraph 5;

(f) in paragraph 6—

(i) for the first sub-paragraph substitute—

“6.   In addition to the requirements of paragraphs 1 to 3, the competent authority may require an institution to comply with the obligations mentioned in the third sub-paragraph on a sub-consolidated basis when—

(a) it is justified for supervisory purposes by the specificities of the risk or the capital structure of the institution, or

(b) the institution is a ring-fenced body within the meaning of section 142A(1) of FSMA.”;

(ii) in the second sub-paragraph, omit “and shall neither entail disproportionate adverse effects on the whole or parts of the financial system in other Member States or in the Union as a whole nor form or create an obstacle to the functioning of the internal market”;

(iii) after the second sub-paragraph insert—

“The obligations mentioned in this sub-paragraph are those provided for in—

(a) Parts 2, 3, 4, 6, 7, 7A and 8 of this Regulation;

(b) Directive 2013/36/EU UK law which implemented Title 7, Chapter 4 of Directive 2013/36/EU.”.

(3) In Article 18—

(a) in paragraph 3, for “within the meaning of Article 22(7) of Directive 2013/34/EU” insert “by a common management relationship”;

(b) in paragraph 6, second sub-paragraph, after “Directive 2013/34/EU” insert “, as it had effect immediately before IP completion day”;

(c) in paragraph 8(a), for “an undertaking excluded from the scope of Directive 2009/138/EC in accordance with Article 4 of that Directive;” substitute “an undertaking within Article 4(1)(27)(k) of this Regulation”;

(d) in paragraph 9—

(i) in the first sub-paragraph, for “EBA shall develop draft regulatory” substitute “The FCA and PRA may each make”;

(ii) omit the second and third sub-paragraphs.

(4) In Article 124—

(a) in paragraph 1, in the second sub-paragraph, for “in those Member States that have laid down rigorous criteria for the assessment of the mortgage lending value in statutory or regulatory provisions” substitute “, if rigorous criteria are in force at the time in the United Kingdom for the assessment of the mortgage lending value”;

(b) in paragraph 1a—

(i) omit the first sub-paragraph;

(ii) for the second sub-paragraph substitute—

“The PRA shall ensure that the Financial Policy Committee is duly informed of the PRA’s intention to make use of this Article, and is appropriately involved in the assessment of financial stability concerns in the United Kingdom in accordance with paragraph 2.”;

(iii) omit the third sub-paragraph;

(c) in paragraph 2—

(i) in the first and second sub-paragraphs—

(aa) for “authority designated in accordance with paragraph 1a of this Article”, in each place, substitute “PRA”;

(bb) for “one or more parts of the territory of the Member State of the relevant authority”, in each place, substitute “the United Kingdom”;

(ii) in the second sub-paragraph, for “its Member State” substitute “the United Kingdom”;

(iii) omit the third sub-paragraph;

(iv) in the fourth sub-paragraph, for “authority designated in accordance with paragraph 1a” substitute “PRA”;

(d) in paragraph 3, for “authority designated in accordance with paragraph 1a” substitute “PRA”;

(e) in paragraph 4—

(i) in the first sub-paragraph, for “EBA, in close cooperation with the ESRB, shall develop draft regulatory” substitute “The FCA and PRA may each make”;

(ii) omit the second and third sub-paragraphs;

(f) omit paragraphs 5 and 6.

(5) In Article 164—

(a) in paragraph 5—

(i) omit the first sub-paragraph;

(ii) for the second sub-paragraph substitute—

“The PRA shall ensure that the Financial Policy Committee is duly informed of the PRA’s intention to make use of this Article, and is appropriately involved in the assessment of financial stability concerns in the United Kingdom in accordance with paragraph 6.”;

(iii) omit the third sub-paragraph;

(b) in paragraph 6—

(i) in the first sub-paragraph—

(aa) for “authority designated in accordance with paragraph 5 of this Article” substitute “PRA”;

(bb) for “one or more parts of the territory of the Member State of the relevant authority” substitute “the United Kingdom”;

(ii) in the second sub-paragraph—

(aa) for “authority designated in accordance with paragraph 5” substitute “PRA”;

(bb) for “its Member State” substitute “the United Kingdom”;

(cc) for “one or more parts of the territory of the Member State of the relevant authority” substitute “the United Kingdom”;

(iii) omit the third sub-paragraph;

(c) in paragraph 7, for “authority designated in accordance with paragraph 5” substitute “PRA”;

(d) in paragraph 8—

(i) in the first sub-paragraph—

(aa) for “EBA, in close cooperation with the ESRB, shall develop draft regulatory” substitute “The FCA and PRA may each make”;

(bb) for “authority designated in accordance with paragraph 5” substitute “PRA”;

(ii) omit the second and third sub-paragraphs;

(e) omit paragraphs 9 and 10.

(6) In Article 468, paragraph 4, after “Directive 2013/36/EU” insert “ UK law”.

(7) In Article 473a—

(a) in paragraph 7a, after “Directive 2013/36/EU” insert “ UK law”;

(b) in paragraph 9, omit the final sub-paragraph.

(8) Omit Article 500a.

Regulation (EU) 2015/2365

75.  In Article 3 of Regulation (EU) 2015/2365 of the European Parliament and of the Council of 25 November 2015 on transparency of securities financing transactions and of reuse and amending Regulation (EU) No 648/2012, after paragraph (3)(g) insert—

“(h) a central securities depository authorised in accordance with Regulation (EU) No 909/2014 of the European Parliament and of the Council of 23 July 2014 on improving securities settlement in the European Union and on central securities depositories;”.

Regulation (EU) 2019/877

76.  Regulation (EU) 2019/877 of the European Parliament and of the Council of 20 May 2019 amending Regulation (EU) No 806/2014 as regards the loss-absorbing and recapitalisation capacity of credit institutions and investment firms is revoked.

Regulation (EU) 2019/2088

77.  Articles 2a, 8(4), 9(6) and 11(5) in Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial services sector(2) are omitted.

Regulation (EU) 2020/852

78.—(1) Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088(3) is amended as follows.

(2) Omit Article 1, paragraph 2.

(3) In Article 2—

(a) omit paragraphs (2) to (4);

(b) for paragraph (7) substitute—

“(7) “greenhouse gas” has the meaning given in section 92 of the Climate Change Act 2008(4).”;

(c) for paragraph (8) substitute—

“(8) “waste hierarchy” has the meaning—

(a) in England and Wales, given in regulation 12 of the Waste (England and Wales) Regulations 2011(5);

(b) in Northern Ireland, given in regulation 9(1) of the Waste (Northern Ireland) Regulations 2011(6);

(c) in Scotland, given in section 34(2A) of the Environmental Protection Act 1990(7).”;

(d) for paragraph (12) substitute—

“(12) “pollution” means—

(a) the direct or indirect introduction of pollutants into air, water or land as a result of human activity;

(b) in the context of the marine environment, pollution as defined in Part 2 of Schedule 1 to the Marine Strategy Regulations 2010(8);

(c) in the context of the water environment—

(i) in England and Wales, pollution as defined in paragraph 1(2) of Schedule 1 to the Water Environment (Water Framework Directive) (England and Wales) Regulations 2017(9);

(ii) in Northern Ireland, pollution as defined in paragraph 1(2) of Schedule 1 to the Water Environment (Water Framework Directive) (Northern Ireland) Regulations 2017(10);

(iii) in Scotland, pollution as defined in regulation 20(6) of the Water Environment and Water Services (Scotland) Act 2003(11).”;

(e) for paragraph (18) substitute—

“(18) “marine waters” means marine waters as defined in regulation 3(3) of the Marine Strategy Regulations 2010(12).”;

(f) for paragraph (19) substitute—

“(19) “surface water” has the meaning—

(a) in England and Wales, given in paragraph 1(2) of Schedule 1 to the Water Environment (Water Framework Directive) (England and Wales) Regulations 2017(13);

(b) in Northern Ireland, given in paragraph 1(2) of Schedule 1 to the Water Environment (Water Framework Directive) (Northern Ireland) Regulations 2017(14);

(c) in Scotland, given in regulation 3(3) of the Water Environment and Water Services (Scotland) Act 2003(15).”;

(g) for paragraph (20) substitute—

“(20) “groundwater” has the meaning—

(a) in England and Wales, given in paragraph 1(2) of Schedule 1 to the Water Environment (Water Framework Directive) (England and Wales) Regulations 2017(16);

(b) in Northern Ireland, given in paragraph 1(2) of Schedule 1 to the Water Environment (Water Framework Directive) (Northern Ireland) Regulations 2017(17);

(c) in Scotland, given in regulation 3(4) of the Water Environment and Water Services (Scotland) Act 2003(18).”;

(h) for paragraph (21) substitute—

“(21) “good environmental status” has the meaning given in Part 2 of Schedule 1 to the Marine Strategy Regulations 2010(19).”;

(i) for paragraph (22) substitute—

“(22) “good status” has the meaning—

(a) for surface water—

(i) in England and Wales, of having both “good ecological status” and “good surface water chemical status”, as defined in paragraph 1(2) of Schedule 1 to the Water Environment (Water Framework Directive) (England and Wales) Regulations 2017(20);

(ii) in Northern Ireland, of having both “good ecological status” and “good surface water chemical status”, as defined in paragraph 1(2) of Schedule 1 to the Water Environment (Water Framework Directive) (Northern Ireland) Regulations 2017(21);

(iii) in Scotland, of having both “good ecological status”, as defined in paragraph 3(2)(b) of Part B of Schedule 1 to the Scotland River Basin District (Status) Directions 2014, and “good surface water chemical status”, as defined in paragraph 5(2)(a) of Part C of Schedule 1 to the Scotland River Basin District (Status) Directions 2014(22);

(b) for groundwater—

(i) in England and Wales, of having both “good groundwater status” and “good quantitative status”, as defined in paragraph 1(2) of Schedule 1 to the Water Environment (Water Framework Directive) (England and Wales) Regulations 2017(23);

(ii) in Northern Ireland, of having both “good groundwater status” and “good quantitative status”, as defined in paragraph 1(2) of Schedule 1 to the Water Environment (Water Framework Directive) (Northern Ireland) Regulations 2017(24);

(iii) in Scotland, of having both “good groundwater chemical status”, as defined in paragraph 2(2) of Part B of Schedule 4 to the Scotland River Basin District (Status) Directions 2014, and “good quantitative status”, as defined in paragraph 3(2) of Part C of Schedule 4 to the Scotland River Basin District (Status) Directions 2014(25).”;

(j) for paragraph (23) substitute—

“(23) “good ecological potential” has the meaning—

(a) in England and Wales, given in paragraph 1(2) of Schedule 1 to the Water Environment (Water Framework Directive) (England and Wales) Regulations 2017(26);

(b) in Northern Ireland, given in paragraph 1(2) of Schedule 1 to the Water Environment (Water Framework Directive) (Northern Ireland) Regulations 2017(27);

(b) in Scotland, given in paragraph 2(b) of Part B of Schedule 2 to the Scotland River Basin District (Status) Directions 2014(28).”.

(4) In Article 3(d) omit “by the Commission”.

(5) Omit Article 8(4).

(6) In Article 10—

(a) in paragraph 1(a), omit “in line with Directive (EU) 2018/2011”;

(b) in paragraph 2, for “the Commission” substitute “the Treasury”;

(c) in paragraph 3, for “The Commission shall adopt a delegated act in accordance with Article 23” substitute “The Treasury must make regulations”;

(d) omit paragraph 4;

(e) for paragraph 5 substitute—

“5.   The Treasury must establish the technical screening criteria referred to in paragraph 3 of this Article taking into account the requirements of Article 19.”;

(f) for paragraph 6 substitute—

“6.   The Treasury must make the regulations in paragraph 3 above no later than 1 January 2023.”.

(7) In Article 11—

(a) in paragraph 3 for “The Commission shall adopt a delegated act in accordance with Article 23” substitute “the Treasury must make regulations”;

(b) omit paragraph 4;

(c) for paragraph 5 substitute—

“5.   The Treasury must establish the technical screening criteria referred to in paragraph 3 of this Article taking into account the requirements of Article 19.”;

(d) for paragraph 6 substitute—

“6.   The Treasury must make the regulations in paragraph 3 above no later than 1 January 2023.”.

(8) In Article 12—

(a) in paragraph 2, for “The Commission shall adopt a delegated act in accordance with Article 23” substitute “the Treasury must make regulations”;

(b) omit paragraph 3;

(c) for paragraph 4 substitute—

“4.   The Treasury must establish the technical screening criteria referred to in paragraph 2 of this Article taking into account the requirements of Article 19.”;

(d) for paragraph 5 substitute—

“5.   The Treasury must make the regulations in paragraph 2 above no later than 1 January 2024.”.

(9) In Article 13—

(a) in paragraph 1(d) omit “in line with the objectives set out in Union law,”;

(b) in paragraph 2 for “The Commission shall adopt a delegated act in accordance with Article 23” substitute “the Treasury must make regulations”;

(c) omit paragraph 3;

(d) for paragraph 4 substitute—

“4.   The Treasury must establish the technical screening criteria referred to in paragraph 2 of this Article taking into account the requirements of Article 19.”;

(e) for paragraph 5 substitute—

“5.   The Treasury must make the regulations in paragraph 2 above no later than 1 January 2024.”.

(10) In Article 14—

(a) in paragraph 2 for “The Commission shall adopt a delegated act in accordance with Article 23” substitute “the Treasury must make regulations”;

(b) omit paragraph 3;

(c) for paragraph 4 substitute—

“4.   The Treasury must establish the technical screening criteria referred to in paragraph 2 of this Article taking into account the requirements of Article 19.”;

(d) for paragraph 5 substitute—

“5.   The Treasury must make the regulations in paragraph 2 above no later than 1 January 2024.”.

(11) In Article 15—

(a) in paragraph 2 for “The Commission shall adopt a delegated act in accordance with Article 23” substitute “the Treasury must make regulations”;

(b) omit paragraph 3;

(c) for paragraph 4 substitute—

“4.   The Treasury must establish the technical screening criteria referred to in paragraph 2 of this Article taking into account the requirements of Article 19.”;

(d) for paragraph 5 substitute—

“5.   The Treasury must make the regulations in paragraph 2 above no later than 1 January 2024.”.

(12) In Article 17, in paragraph 1(f)(ii), for “Union” substitute “United Kingdom”.

(13) In Article 18, omit paragraph 2.

(14) In Article 19—

(a) in paragraph 1, omit subparagraphs (d) and (e), and in subparagraph (f) omit “and the precautionary principle enshrined in Article 191 TFEU”;

(b) in paragraph 5—

(i) in the first subparagraph, for “The Commission shall regularly review the technical screening criteria referred to in paragraph 1 and, where appropriate, amend the delegated acts” substitute “The Treasury may by regulations amend the technical screening criteria set out in any regulations made under this Regulation.”;

(ii) omit the second subparagraph;

(iii) in the third paragraph for “the Commission” substitute “the Treasury”.

(15) Omit Articles 20 to 22.

(16) For Article 23 substitute—

“Article 23 Regulations

1.   Any power to make regulations conferred on the Treasury by this Regulation is exercisable by statutory instrument.

2.   Such regulations may—

(a) contain incidental, supplemental, consequential, transitional, transitory or saving provision; and

(b) make different provisions for different purposes.

3.   A statutory instrument containing regulations made under this Regulation is subject to annulment in pursuance of a resolution of either House of Parliament.”.

(17) Omit Article 24.

(18) In Article 25—

(a) omit paragraphs 1, 2(b) and (c), 3(b) and (c) and 4;

(b) in paragraph (5) in the inserted paragraph 3 of Article 20 of Regulation (EU) 2019/2088 omit subparagraphs (a) and (b).

(19) In Article 26—

(a) in paragraph 1, for “By 13 July 2022, and subsequently every three years thereafter, the Commission shall publish a report on the application of this Regulation” substitute “The Treasury must, no later than 1 January 2024, and every three years thereafter, review the functioning of this Regulation and lay a report before Parliament”;

(b) omit paragraph 1(c), (d), (e) and (f);

(c) in paragraph 2, for “By 31 December 2021, the Commission shall publish a report describing the provisions that would be required to extend the scope of this Regulation beyond environmentally sustainable economic activities and describing the provisions that would be required to cover” substitute “The Treasury must, no later than 1 January 2024, lay a report before Parliament evaluating the appropriateness of extending the scope of this Regulation beyond environmentally sustainable economic activities, and considering the measures that would be required to cover”;

(d) omit Article 26(3).

(20) After Article 27 omit the words “This Regulation shall be binding in its entirety and directly applicable in all member States.”.

(1)

S.I. 2017/752, paragraph (1A) to be inserted by S.I. 2018/1201.

(2)

OJ No L 317 09.12.2019, p.1.

(3)

OJ No L 198, 22.06.2020, p.13.

(4)

2008 c. 27.

(5)

S.I. 2011/988.

(6)

S.R. 2011 No. 127, amended by S.R. 2016 No. 95 and 2018 No. 200.

(7)

1990 c. 43, amended by S.S.I. 2011/266.

(8)

S.I. 2010/1627.

(9)

S.I. 2017/407.

(10)

S.R. 2017 No. 81.

(11)

2003 asp 3, amended by S.S.I. 2005/348.

(12)

S.I. 2010/1627.

(13)

S.I. 2017/407.

(14)

S.R. 2017 No. 81.

(15)

2003 asp 3.

(16)

S.I. 2017/407.

(17)

S.R. 2017 No. 81.

(18)

2003 asp 3.

(19)

S.I. 2010/1627.

(20)

S.I. 2017/407.

(21)

S.R. 2017 No. 81.

(22)

ISBN 9781784127640.

(23)

S.I. 2017/407.

(24)

S.R. 2017 No. 81.

(25)

ISBN 9780784127640.

(26)

S.I. 2017/407.

(27)

S.R. 2017 No. 81.

(28)

ISBN 9780784127640.