The Financial Services and Markets Act 2023 (Commencement No. 12 and Saving Provisions) Regulations 2026

The Financial Services and Markets Act 2023 (Commencement No. 12 and Saving Provisions) Regulations 2026 were published. The Regulations, which were made on 13 January, use powers under the Financial Services and Markets Act 2023 (FSMA 2023) to revoke provisions in the UK Capital Requirements Regulation (UK CRR) and related legislation. They also make saving provisions relating to some of the revoked provisions The Regulations continue the process of revoking certain pieces of retained EU law relating to financial services and restating them into UK domestic law, including through regulator-made rules. You may like to read our article "A boost for UK Financial Services" for further information.

Specifically:

• Regulation 2 revokes, on 1 July, certain provisions of Commission Implementing Regulation (EU) 2016/1646 concerning main indices and recognised exchanges for the purposes of the CRR.
• Regulation 3 revokes, on 1 January 2027, further provisions of the CRR on prudential requirements for credit institutions and investment firms, and related instruments.
• Regulations 4 and 5 include extensive saving provisions ensuring continuity for firms by preserving permissions granted under revoked CRR provisions, so that from 1 January 2027 they continue to have effect as permissions under section 138BA FSMA 2000 or the equivalent UK Prudential Regulation Authority (PRA) rules. They also include specific rules applying separately to small domestic deposit takers (SDDTs), SDDT consolidation entities and non-SDDT firms.
• Regulation 6 preserves references within specified articles of: (i) Delegated Regulation (EU) 152/2013 regarding regulatory technical standards (RTS) on capital requirements for central counterparties; and (ii) Delegated Regulation (EU) 2017/390 regarding RTS on certain prudential requirements for central securities depositories and designated credit institutions offering banking-type ancillary services.
• Regulation 7 maintains the PRA's power to modify, amend and revoke specified instruments.
• Regulation 8 saves certain pre‑31 December 2020 decisions made by bodies other than the PRA and UK Financial Conduct Authority.

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