The Bank of England (Amendment) (EU Exit) Regulations 2018

PART 3 Amendments of Secondary Legislation

Cash Ratio Deposits (Eligible Liabilities) Order 1998

9.—(1) The Cash Ratio Deposits (Eligible Liabilities) Order 1998(1) is amended as follows.

(2) In regulation 2(3), for the words from “Directive 2013/36/EU” to the end, substitute “point (118) of Article 4(1) of Regulation (EU) No 575/2013 on prudential requirements for credit institutions and investment firms”.

The Scottish and Northern Ireland Banknote Regulations 2009

10.  In regulation 17(2) of the Scottish and Northern Ireland Banknote Regulations 2009, omit sub-paragraph (g)(2).

The Bank of England Act 1998 (Macro-prudential Measures) Order 2013

11.—(1) The Bank of England Act 1998 (Macro-prudential Measures) Order 2013(3) is amended as follows.

(2) In article 1(2)—

(a) in the definition of “financial sector entity”, in paragraph (e), for the words from “activities listed” to the end, substitute “activities listed in paragraphs 2 to 12 and 15 of the Annex 1 Activities (with the meaning given by Article 4(1)(26A) of the Regulation (EU) 575/2013 of 26 June 2013 of the European Parliament and of the Council on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012)”;

(b) for the definition of “insurance undertaking” substitute—

““insurance undertaking” has the meaning given in section 417(1) of the Financial Services and Markets Act 2000;”;

(c) in the definition of “mixed financial holding company”, for “under Article 3(3) of that Directive” substitute “not to regard a group as a financial conglomerate”;

(d) for the definition of “reinsurance undertaking” substitute—

““reinsurance undertaking” has the meaning given in section 417(1) of the Financial Services and Markets Act 2000;”;

(e) for the definition of “third country insurance undertaking” substitute—

““third country insurance undertaking” has the meaning given in regulation 2(1) of the Solvency 2 Regulations 2015(4);”;

(f) for the definition of “third country reinsurance undertaking” substitute—

““third country reinsurance undertaking” means an undertaking which, if its head office were in the United Kingdom, would—

(a)

require permission under Part 4A of the Financial Services and Markets Act 2000(5) to carry out regulated activities relating to reinsurance, and

(b)

immediately before exit day, have required authorisation as a reinsurance undertaking in accordance with Article 14 of the solvency 2 directive(6);”.

The Bank of England Act 1998 (Macro-prudential Measures) (No 2) Order 2015

12.—(1) The Bank of England Act 1998 (Macro-prudential Measures) (No 2) Order 2015(7) is amended as follows.

(2) In article 2(1)—

(a) omit the definition of “capital requirements directive”;

(b) for the definition of “countercyclical capital buffer rate” substitute—

““countercyclical capital buffer rate” means any of the rates that UK banks and investment firms must apply to calculate their institution-specific countercyclical capital buffer;”;

(c) for the definition of “G-SII buffer” substitute—

““G-SII buffer” has the meaning given in regulation 2 of the Capital Requirements (Capital Buffers and Macro-prudential Measures) Regulations 2014(8);”;

(d) at the appropriate place, insert—

““institution-specific countercyclical capital buffer” has the meaning given in regulation 2 of the Capital Requirements (Capital Buffers and Macro-prudential Measures) Regulations 2014;”;

(e) in the definition of “SRB institution”, for “34D” substitute “34C”;

(f) in the definition of “systemic risk buffer”, for “regulation 2”, substitute “regulation 34A”.

The Bank of England Act 1998 (Macro-prudential Measures) Order 2016

13.  In article 2(1) of the Bank of England Act 1998 (Macro-prudential Measures) Order 2016(9), in the definition of “buy-to-let mortgage contract” in paragraph (b), for “any EEA state” substitute “the United Kingdom”.

(1)

S.I. 1998/1130. Regulation 2(3) was amended by S.I. 2015/3115.

(2)

S.I. 2009/3056. Regulation 17(2)(g) was amended by S.I. 2011/1043.

(3)

S.I. 2013/644.

(4)

S.I. 2015/575.

(5)

2000 c.8. Part 4A was inserted by section 11(2) of the Financial Services Act 2012 (c.21).

(6)

OJ L 335 17.12.2009, p.1, as last amended by Directive (EU) 2018/843 of the European Parliament and of the Council of 30 May 2018 amending Directive (EU) 2015/849 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, and amending Directives 2009/138/EC and 2013/36/EU (OJ L 156, 19.6.2018, p. 43).

(7)

S.I. 2015/905.

(8)

S.I. 2014/894.

(9)

S.I. 2016/1240.