Government response to call for evidence on pension fund clearing exemption

HM Treasury published the Government's response to its call for evidence on the pension fund clearing exemption, which exempts pension funds from the requirement to clear certain derivative contracts via a central counterparty. In November 2023, HMT published the call for evidence requesting input from industry stakeholders to inform the Government's review of the exemption, which aimed to determine a long-term approach. The response document provides a breakdown of the key themes raised by the 26 respondents to the call for evidence. Following analysis of the responses and engagement with U.K. regulatory authorities on the issue, the Government has decided that the exemption should be maintained for the longer-term. The Government will now take forward legislation to ensure that the exemption does not expire on June 18, 2025 as currently scheduled, and to remove any further time limit on the exemption. The Government will, however, keep this policy under review in coordination with the U.K. regulatory authorities.

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