If we have a hard Brexit, the Financial Services (Implementation of Legislation) Bill will empower the Treasury to implement (with amendments) various EU financial services laws which have implementation dates falling in the two years after exit. The rationale is that the UK played a leading role in shaping these laws and their adoption in the UK would be beneficial. The EU (Withdrawal) Act 2018 only applies to implemented laws – such as the Securitisation Regulation – but not law such as the Prospectus Regulation, which is enacted but largely starts to apply only after 29th March 2019. The target laws are referred to as ‘in-flight files’ and include some currently in negotiation. The schedule to the Bill lists the possible laws, which include CRR II and CRD V (updating rules on minimum capital requirements derived from Basel standards), BRRD II (updating the BRRD rules by reference to FSB standards), the EMIR refit (technical changes concerning clearing and reporting, plus an extension to the current pension scheme clearing exemption that will assist pensions – readers will remember ESMA’s letter encouraging regulators not to enforce EMIR on pension funds after the final time extension allowed under EMIR ran out) and a proposed Covered Bonds Regulation and Directive.
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Mark Daley joined DLA Piper in 2015 after over thirty years’ experience as a debt finance lawyer in private practice in London and Hong Kong.