The Financial Services and Markets Act 2023 (Commencement No. 15 and Saving and Transitional Provisions) Regulations 2026

Explanatory note

Reproduced verbatim from the instrument as published on legislation.gov.uk (Crown Copyright, Open Government Licence v3.0). The note is prepared by the responsible government department and is not part of the instrument itself.

These Regulations are the 15th commencement regulations made under the Financial Services and Markets Act 2023 (c. 29) (“FSMA 2023”).

Section 1(1) of FSMA 2023 revokes the legislation listed in Schedule 1 to that Act, which includes 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 ( EUR 2013/575 ) (“ the Capital Requirements Regulation ”).

Regulation 2 brings into force on 1st January 2027 section 1(1) of, and Schedule 1 to, FSMA 2023 so far as they relate to the revocation of the following articles of the Capital Requirements Regulation: Articles 81(1)(a)(iii), 82(a)(iii), 107(3) and (4), 114(7), 115(4), 116(5), 382(4)(b), 391 and 497.

Regulation 2 also brings into force on 1st January 2027 the revocation of—

regulation 11(5)(e) of the Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 ( S.I. 2019/680 ), and

Commission Implementing Decision of 12 December 2014 on the equivalence of the supervisory and regulatory requirements of certain third countries and territories for the purposes of the treatment of exposures according to Regulation (EU) No 575/2013 of the European Parliament and of the Council.

Regulation 3 amends the saving provision in regulation 5 of the Financial Services and Markets Act 2023 (Commencement No. 10 and Saving Provisions) Regulations 2025 ( S.I. 2025/873 (C. 38) ) to exclude the Capital Requirements Regulation Equivalence Directions 2020 from that saving.

Regulations 4 to 6 make saving and transitional provision in relation to Article 497 of the Capital Requirements Regulation. Under Article 497, institutions (e.g. banks) may consider a central counterparty (“ CCP ”) as a qualifying central counterparty (“ QCCP ”) where the CCP applies to the Bank of England for recognition under Article 25 of Regulation (EU) No. 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories ( EUR 2012/648 ) (“ EMIR ”). Article 497 specifies the periods of time during which a CCP may be treated as a QCCP. Section 1(1) of, and Schedule 1 to, FSMA 2023 revokes EMIR subject to that revocation being commenced by regulations to be made by the Treasury. In July 2025, the Treasury published a policy note on updating the UK’s regulatory framework for CCPs. That note is available at www.gov.uk/government/publications/updating-the-uks-regulatory-framework-for-central-counterparties and copies can be obtained from HM Treasury, 1 Horse Guards Road, London, SW1A 2HQ.

Regulation 4 provides that a CCP considered as a QCCP immediately before 1st January 2027 continues to be treated as a QCCP on and after 1st January 2027.

Regulation 5 provides that, where a CCP applies for recognition under Article 25 of EMIR on or after 1st January 2027, an institution may treat the CCP as a QCCP on or after 1st January 2027 during the period specified in regulation 5.

Regulation 6 provides that article 497(2) of the Capital Requirements Regulation continues to have effect on and after 1st January 2027 (subject to certain modifications) in relation to a CCP which is treated, on and after 1st January 2027, as a QCCP by virtue of regulation 4 or 5.

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. A full impact assessment has been published in relation to FSMA 2023 and copies can be obtained from HM Treasury, 1 Horse Guards Road, London, SW1A 2HQ or at https://bills.parliament.uk/publications/49053/documents/2621 .