The Financial Services (Miscellaneous) (Amendment) (EU Exit) Regulations 2019
| Year | 2019 |
2019 No. 710
Exiting The European Union
Financial Services
The Financial Services (Miscellaneous) (Amendment) (EU Exit) Regulations 2019
Made 27th March 2019
Coming into force in accordance with regulation 1
A draft of these Regulations has been approved by a resolution of each House of Parliament in accordance with paragraph 1(3) of Schedule 7 to the European Union (Withdrawal) Act 20181.
The Treasury, in exercise of the powers conferred by section 8(1) of, and paragraph 21 of Schedule 7 to, that Act, make the following Regulations.
PART 1
Introduction
Citation and commencement
1.—(1) These Regulations may be cited as the Financial Services (Miscellaneous) (Amendment) (EU Exit) Regulations 2019.
(2) Regulation 38 comes into force on the day before the day on which exit day falls.
(3) Regulations 1 and 13 to 24 come into force immediately before exit day.
(4) The other provisions in these Regulations come into force on exit day.
PART 2
Amendment of primary legislation
2. Omit sections 124B (petition for winding up of SE) and 124C (petition for winding up of SCE) of the Insolvency Act 19862.
The Financial Services and Markets Act 2000
3.—(1) The Financial Services and Markets Act 20003is amended as follows.
(2) In section 425(1)(a)4(expressions relating to authorisation elsewhere in the single market) omit ““EEA AIFM”,” and ““EEA authorisation”,”.
(3) In Part 1 of Schedule 35(defined terms) omit paragraphs 6 (EEA authorisation) and 11D (EEA AIFM).
4. In section 886 of the Income Tax Act 20076(interest paid by recognised clearing houses etc.), in subsection (3), in the definition of “relevant entity”, omit paragraphs (c) and (f).
5. In section 697 of the Corporation Tax Act 20097(exceptions to section 696)—
(a) in subsection (1)(a), omit “, EEA central counterparty”;
(b) in subsection (6), omit “, EEA central counterparty”.
PART 3
Amendment and revocation of secondary legislation
Financial Services and Markets Act 2000 (Regulated Activities) Order 2001
6.—(1) In article 7 of the Financial Services and Markets Act 2000 (Regulated Activities) Order 20018—
(a)
(a) in paragraph (2)—
(i) at the end of sub-paragraph (b), insert “or”;
(ii) omit sub-paragraphs (d) and (e).
(b)
(b) in paragraph (3)—
(i) at the end of sub-paragraph (b) insert “and”;
(ii) omit sub-paragraph (d) and the preceding “and”.
(2) Until 11 p.m. on 31 December 2020, the amendments made by paragraph (1) do not apply in relation to—
(a)
(a) an individual who was a registered European lawyer immediately before exit day, or
(b)
(b) an individual to whom paragraph (3), (4) or (5) applies.
(3) This paragraph applies to an individual who made an application for registration under regulation 16 of the relevant regulations before exit day, if—
(a)
(a) the application has not been decided before exit day, or
(b)
(b) the application has been rejected (or deemed to be rejected) under regulation 19 of the relevant regulations and—
(i) an appeal against the rejection (or deemed rejection) has been made, but not finally determined or withdrawn, before exit day, or
(ii) an appeal against the rejection (or deemed rejection) is made on or after exit day.
(4) This paragraph applies to an individual whose registration as a registered European lawyer was suspended before exit day, if—
(a)
(a) the suspension does not end until on or after exit day,
(b)
(b) an application to terminate the suspension or an appeal against the suspension has been made, but not finally determined or withdrawn, before exit day,
(c)
(c) an appeal against a determination of an application to terminate the suspension has been made, but not finally determined or withdrawn, before exit day,
(d)
(d) an appeal against the suspension is made on or after exit day, or
(e)
(e) an appeal against a determination of an application to terminate the suspension is made on or after exit day.
(5) This paragraph applies to an individual whose registration as a registered European lawyer was withdrawn or revoked before exit day by the professional body with whom that individual had been registered, if—
(a)
(a) an appeal against the withdrawal or revocation has been made, but not finally determined or withdrawn, before exit day, or
(b)
(b) an appeal against the withdrawal or revocation is made on or after exit day.
(6) In this regulation, and in article 7 as it has effect by virtue of paragraph (2) above, “registered European lawyer” has the meaning given by regulation 2(1) of the relevant regulations as that regulation had effect immediately before exit day.
(7) In this regulation “the relevant regulations” means—
(a)
(a) the European Communities (Lawyer’s Practice) Regulations 20009, or
(b)
(b) the European Communities (Lawyer’s Practice) (Scotland) Regulations 200010.
The Financial Services and Markets Act 2000 (Exemption) Order 2001
7.—(1) The Financial Services and Markets Act 2000 (Exemption) Order 200111is amended as follows.
(2) In article 2, omit the definition of “credit institution”12and insert in the appropriate place—
““qualifying credit institution” has the meaning given by article 3 of the Regulated Activities Order13;”
(3) In the Schedule in paragraph 40(3)14, for “credit institution” substitute “qualifying credit institution”.
8. In article 2(1) of the Building Societies Act 1986 (Modification of the Lending Limit and Funding Limit Calculations) Order 200415, for the definition of “credit institution”, substitute—
““credit institution” means an undertaking the business of which is to take deposits or other repayable funds from the public and to grant credits for its own account;”.
The Financial Services and Markets Act 2000 (Prescribed Financial Institutions) Order 2013
9. In article 1(2) of the Financial Services and Markets Act 2000 (Prescribed Financial Institutions) Order 201316omit the definition of “credit institution”.
The Payment to Treasury of Penalties (Enforcement Costs) Order 2013
10.—(1) In article 2 of the Payment to Treasury of Penalties (Enforcement Costs) Order 201317, omit paragraph (1)(i).
(2) The omission of paragraph (1)(i) of article 2 does not affect the ability of the Financial Conduct Authority to deduct expenses incurred before exit day in connection with the exercise, or the consideration of the possible exercise, of its powers under regulation 5A of the Recognised Auction Platforms Regulations 2011 in accordance with paragraph 20(1) of Schedule 1ZA to the Financial Services and Markets Act 200018.
The Small and Medium Sized Business (Credit Information) Regulations 2015
11. In regulation 7(3) of the Small and Medium Sized Business (Credit Information) Regulations 201519, in sub-paragraph (b)—
(a) in paragraph (iv), after “elsewhere;” insert “or”;
(b) omit paragraph (vi), and the “or” preceding it.
The Financial Services and Markets Act 2000 (Benchmarks) Regulations 2018
12.—(1) The Financial Services and Markets Act 2000 (Benchmarks) Regulations 201820are amended as follows.
(2) In regulation 2—
(a)
(a) in paragraph (1), for the definition of “third country” substitute—
““third country” means a country other than the United Kingdom.”;
(b)
(b) in paragraph (2), at the end of the definition of “senior management” insert “as it had effect immediately before exit day”.
(3) For the heading to regulation 3, substitute “Retained direct EU legislation”.
(4) In regulation 3, for “directly applicable EU regulation” substitute “retained direct EU legislation”.
(5) Omit regulation 4.
(6) In regulation 8, in paragraphs (2), (3) and (5), for “an EU obligation” substitute “a retained EU obligation”.
(7) In regulation 34, for paragraph (2) substitute—
“2 The FCA must determine the application within 90 working days of receipt of the completed application.”
(8) In regulation 35(1), for “outside the EU” substitute “in a third country”.
(9) In regulation 6121—
(a)
(a) in paragraph (1), after “does not”, the second time it occurs, insert “, subject to paragraph (3),”;
(b)
(b) after paragraph (2) insert—
“3 Paragraph (1) does not apply if the benchmark may not be used by virtue of Article 51(1C) of the EU Benchmarks Regulation 2016.”.
(10) In regulation 62—
(a)
(a) in paragraph (1), after “does not”, the second time it occurs, insert “, subject to paragraph (3),”;
(b)
(b) after paragraph (2) insert—
“3 Paragraph (1) does not apply if the benchmark may not be used by virtue of Article 51(1C) of the EU Benchmarks Regulation 2016.”
The Alternative Investment Fund Managers (Amendment etc.) (EU Exit) Regulations 2019
13. In the Alternative Investment Fund Managers (Amendment etc.) (EU Exit) Regulations 2019—
(a) in regulation 10(8)(b), omit paragraph (ii);
(b) in regulation 20(3)(a)(v), for paragraph (aa), substitute—
“(aa)
“(aa) for paragraph (b) of the new definition of “UK AIFM” substitute—
“(b) has its registered office in a third country but has been given permission by the FCA...
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