Fourth Commencement Regulations Under Financial Services and Markets Act 2023 Published

The Fourth Commencement Regulations - the Financial Services and Markets Act 2023 (Commencement No. 4 and Transitional and Saving Provisions) (Amendment) Regulations 2023 - under the Financial Services and Markets Act 2023 were made on December 14, 2023. The Fourth Commencement Regulations provide, among other things, for:

• The repeal of HM Treasury’s obligation to review legislation in various financial services legislation, including but not limited to, the Short Selling Regulation, the Securitization Regulation, the Alternative Investment Fund Managers Regulations and the U.K. version of the European Market Infrastructure Regulation. These repeals took effect on December 15, 2023.
• The revocation from April 5, 2024 of the Data Reporting Services Regulations 2017 and related implementing legislation such as (i) the provisions in the onshored Markets in Financial Instruments Regulations that provide HM Treasury and the regulators with powers to specify further detail relating to data reporting services; and (ii) the provisions in the MiFIR Delegated Regulation on the provision of data on reasonable commercial basis. The revocation of these provisions on this date aligns with HM Treasury's aim of the draft Data Reporting Services Regulations 2023 entering into force on April 5, 2024. The draft Data Reporting Services Regulations 2023 will replace the Data Reporting Services Regulations 2017, restating with modifications some of the 2017 content. The FCA has confirmed the final framework for a consolidated tape for bonds, which will also enter into force on April 5, 2024.
• The revocation from January 1, 2024 of certain retained direct principle EU law (these are onshored EU regulations that provided for certain amendments to the original EU regulations), subordinate legislation, EU tertiary legislation and other EU-derived legislation.
• The revocation from April 5, 2024 of certain provisions relating to insurance distribution.
• The revocation from June 30, 2024 of certain provisions under Solvency II, which provides for the prudential regulation of insurance companies.
• Further provisions relating to the new recovery and resolution regime for CCPs from January 1, 2024. Many of the provisions relating to this new regime entered into force on August 29, 2023 under the Financial Services and Markets Act 2023 (Commencement No. 1) Regulations 2023.

In most of these topic areas, powers have been delegated to the U.K.'s regulators to make rules in lieu of legislation. The Financial Services and Markets Act 2023 (Commencement No. 2 and Transitional Provisions) Regulations 2023 and the Financial Services and Markets Act 2023 (Commencement No. 3) (Amendment) Regulations 2023 make further provision for aspects of the FSM Act 2023 to come into force, the details of which can be accessed through the links provided.

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