Draft Financial Services and Markets Act 2023 (Central Counterparties Compensation Scheme) (Independent Valuers) Regulations 2026 published

The draft Financial Services and Markets Act 2023 (Central Counterparties Compensation Scheme) (Independent Valuers) Regulations 2026 were published and laid before the UK Parliament, accompanied by a draft explanatory memorandum. These Regulations relate to the special resolution regime for central counterparties (CCPs) set out in Schedule 11 to the Financial Services and Markets Act 2023. Schedule 11 provides the Bank of England (BoE) with powers to manage the failure of a CCP, which are exercisable by way of stabilisation instruments (as defined in Schedule 11) made by the BoE.

Paragraph 87 of the Schedule provides HM Treasury (HMT) with powers to establish schemes to determine whether any "no creditor worse off" (NCWO) compensation may be due to relevant persons (namely, clearing members, creditors, shareholders and certain clients of the CCP) following the making of a stabilisation instrument. These Regulations relate to the appointment of independent valuers by HMT for the purpose of any such potential scheme, as well as the methodology to be followed by the independent valuer when determining whether any NCWO compensation may be due.

The Regulations will come into force on the day after they are made.

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