Final UK Policy on Regulation of Central Counterparties and Central Securities Depositories Post-Brexit

HM Treasury has published its final policy approach to the regulation of central counterparties and central securities depositories under the Financial Services Future Regulatory Framework Review. The response is published on the same day as the Financial Services and Markets Bill is introduced to Parliament, which will implement these changes as well as the reforms to the U.K.’s regulatory architecture post-Brexit. HM Treasury has also published its final response to the Financial Services Future Regulatory Framework Review in which it sets out the government's final policy approach to reforming the U.K.’s regulatory architecture post-Brexit.

HM Treasury confirms that reforms will be made, including:

• granting the Bank of England powers to set regulatory requirements for CCPs and CSDs;
• enhancing the BoE's statutory objectives as they relate to CCPs and CSDs;
• subjecting the BoE to the same regulatory principles as the PRA and FCA with respect to its regulation of CCPs and CSDs (including efficiency and economy, proportionality and sustainable growth); and
• enhancing the BoE's accountability mechanisms when exercising its CCP and CSD powers.

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