The Markets in Financial Instruments, Benchmarks and Financial Promotions (Amendment) (EU Exit) Regulations 2021
| Jurisdiction | UK Non-devolved |
| Citation | SI 2021/1074 |
2021 No. 1074
Exiting The European Union
Financial Services
The Markets in Financial Instruments, Benchmarks and Financial Promotions (Amendment) (EU Exit) Regulations 2021
Made 22th September 2021
Laid before Parliament 23th September 2021
Coming into force 18th October 2021
The Treasury make these Regulations in exercise of the powers conferred by section 8(1) of, and paragraph 21(b) of Schedule 7 to, the European Union (Withdrawal) Act 2018 (“the 2018 Act”)1.
The requirements of paragraph 3(2) of Schedule 7 to the 2018 Act (relating to the appropriate Parliamentary procedure for these Regulations) have been satisfied.
Citation, commencement and extent
1.—(1) These Regulations may be cited as the Markets in Financial Instruments, Benchmarks and Financial Promotions (Amendment) (EU Exit) Regulations 2021.
(2) These Regulations come into force on 18th October 2021.
(3) These Regulations extend to England and Wales, Scotland and Northern Ireland.
Amendment of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005
2.—(1) The Financial Services and Markets Act 2000 (Financial Promotion) Order 20052is amended as follows.
(2) In article 2(1) (interpretation: general), after the definition of “relevant investment activities” insert—
““relevant UK market” means a market that meets the criteria specified in Part A1 of Schedule 3;”.
(3) In article 37(4) (financial markets), before sub-paragraph (a) insert—
“(za)
“(za) is a relevant UK market;”.
(4) In article 41(4) (bearer instruments: promotions required or permitted by market rules), before sub-paragraph (a) insert—
“(za)
“(za) is a relevant UK market;”.
(5) In article 67(2) (promotions required or permitted by market rules), before sub-paragraph (a) insert—
“(za)
“(za) is a relevant UK market;”.
(6) Article 68 (promotions in connection with admission to certain EEA markets) is amended as follows—
(a)
(a) in the heading, after “certain” insert “UK and”;
(b)
(b) in paragraph (1)(b), after “relevant” insert “UK market or relevant”.
(7) In article 69(1) (promotions of securities already admitted to certain markets), in the definition of “relevant market”, before sub-paragraph (a) insert—
“(za)
“(za) is a relevant UK market;”.
(8) In Schedule 3 (markets and exchanges), before Part 1 (criteria for Relevant EEA or Gibraltar Markets) insert—
“PART A1
Criteria for Relevant UK Markets
The criteria for a “relevant UK market” are—
(a) the head office of the market must be situated in the United Kingdom; and
(b) the market must satisfy any requirements of the law of the United Kingdom as to—
(i) the manner in which it operates;
(ii) the means by which access may be had to the facilities it provides;
(iii) the conditions to be satisfied before an investment may be traded or dealt in by means of its facilities; and
(iii) the reporting and publication of transactions effected by means of its facilities.”.
Amendment of the Markets in Financial Instruments Regulation
3.—(1) Regulation (EU) No 600/2014of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Regulation (EU) No 648/20123is amended as follows.
(2) In Article 35—
(a)
(a) in paragraph 1, after “648/2012”, the first time it occurs, insert “and subject to paragraph 1A”;
(b)
(b) after paragraph 1 insert—
“1A. Paragraph 1 does not apply in relation to exchange-traded derivatives.”;
(c)
(c) in paragraph 3, omit “and within six months in the case of exchange-traded derivatives,”;
(d)
(d) in paragraph 4—
(i) omit point (a), and “or” at the end of the point”;
(ii) omit the second and third sub-paragraphs.
(3) In Article 36—
(a)
(a) in paragraph 1, after “648/2012”, the first time it occurs, insert “and subject to paragraph 1A”;
(b)
(b) after paragraph 1 insert—
“1A. Paragraph 1 does not apply in relation to exchange-traded derivatives.”;
(c)
(c) in paragraph 3, omit “and within six months in the case of exchange-traded derivatives,”;
(d)
(d) in paragraph 4—
(i) omit point (a), and “or” at the end of the point;
(ii) omit the second and third sub-paragraphs.
(e)
(e) omit paragraphs 5 and 6(d).
Amendment of Commission Delegated Regulation (EU) 2017/581
4.—(1) Commission Delegated Regulation (EU) 2017/581 of 24 June 2016 supplementing Regulation (EU) No 600/2014of the European Parliament and of the Council with regard to regulatory technical standards on clearing access in respect of trading venues and central counterparties4is amended as follows.
(2) Omit Articles 18, 19 and 20.
(3) In the Annex, omit forms 4.1 and 4.2.
Amendment of Commission Delegated Regulation (EU) 2020/1816
5.—(1) Commission Delegated Regulation (EU) 2020/1816 of 17 July 2020 supplementing Regulation (EU) 2016/1011 of the European Parliament and of the Council as regards the explanation in the benchmark statement of how environmental, social and governance factors are reflected in each benchmark provided and published5is amended as follows.
(2) In Article 1 (definitions)—
(a)
(a) before point (a) insert—
“(za)
“(za) “environmental goods and services sector” means the production activities that generate environmental products (environmental goods and services);
(zb)
(zb) “environmental products” means products that have been produced for the purpose of environmental protection and resource management;
(zc)
(zc) “environmental protection” includes all activities and actions which have as their main purpose the prevention, reduction and elimination of pollution and of any other degradation of the environment, and—
(i) includes all measures taken in order to restore the environment after it has been degraded; and
(ii) excludes activities which, while beneficial to the environment, primarily satisfy the technical needs or the internal requirements for hygiene or safety and security of an enterprise or other institution;”;
(b)
(b) after point (b) insert—
“(ba)
“(ba) “resource management” includes the preservation, maintenance and enhancement of the stock of natural resources and therefore the safeguarding of those resources against depletion;
(bb)
(bb) “SIC” means the UK Standard Industrial Classification of Economic Activities 2007 (SIC 2007) published by the Office for National Statistics, as amended from time to time6;”.
(3) In Annex I (template for explaining how Environmental, Social and Governance (ESG) factors are reflected in the benchmark statement)—
(a)
(a) for “EU Climate Transition Benchmarks”, in each place it occurs, substitute “UK Climate Transition Benchmarks”;
(b)
(b) for “EU Paris-aligned Benchmarks”, in each place it occurs (including in the heading for Section 2), substitute “UK Paris-aligned Benchmarks”;
(c)
(c) in the heading for Section 2 (additional disclosure requirements for EU Climate Transition and EU...
To continue reading
Request your trial