The Financial Services (Miscellaneous) (Amendment) (EU Exit) (No. 2) Regulations 2019

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations are made in exercise of the powers in section 8 of the European Union (Withdrawal) Act 2018 (c.16) in order to address failures of retained EU law to operate effectively and other deficiencies arising from the withdrawal of the United Kingdom from the European Union (and in particular, the deficiencies under paragraphs (a), (b), (c), (d) and (e) of section 8(2)).

Part 2 of these Regulations amends the EEA Passport Rights (Amendment, etc., and Transitional Provisions) (EU Exit) Regulations 2018 (S.I. 2018/1149) (“the 2018 Regulations”) as follows:

• regulation 3 inserts provision into Chapter 2 of Part 7 of the 2018 Regulations to make provision for the notification of certain matters to a party to a contract with a person to whom regulation 47 of those Regulations applies;

• regulation 4 amends regulation 58 of the 2018 Regulations to modify section 21 of the Financial Services and Markets Act 2000 (c. 8) (restrictions on financial promotion), in its application to a person to whom regulation 47 of those Regulations applies, in order to remove the reference to an authorised person;

• regulation 5 amends regulation 70 of the 2018 Regulations to modify section 213 of that Act (the compensation scheme), in its application to a person to whom regulation 28 or 34 of those Regulations applies, to remove inapplicable references to funds;

• regulation 6 amends regulation 71 of the 2018 Regulations to modify section 213 of that Act (the compensation scheme), in its application to a person to whom regulation 47 of those Regulations applies, to remove inapplicable references to funds.

Part 3 of these Regulations amends Schedule 3 to the Electronic Money, Payment Services and Payment Systems (Amendment and Transitional Provisions) (EU Exit) Regulations 2018 (S.I. 2018/1201). Regulation 7(3) and (5) inserts new sub-paragraphs (6) to (8) into paragraphs 12L and 36, respectively, of Schedule 3 to make provision for the notification of certain matters to a party to a contract with a person whom paragraph 12L or 36, as the case may be, applies. Regulation 7(4) inserts a new paragraph (ja) into paragraph 20(1) to give the Financial Conduct Authority a power to cancel the transitional authorisation of a person carrying on account information services, similar to the power it has under paragraph 20(1)(j) in relation to a person carrying on payment initiation services.

Part 4 of these Regulations inserts a new Part 6 into the Financial Conglomerates and Other Financial Groups (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/264) to make transitional provision in relation to the supervision of financial conglomerates.

Part 5 makes a minor amendment to the Long-term Investment Funds (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/336).

Part 6 of these Regulations makes a minor amendment to Commission Delegated Regulation (EU) 2015/61 of 10 October 2014 to supplement Regulation (EU) No 575/2013 of the European Parliament and the Council with regard to liquidity coverage requirement for Credit Institutions.

A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen.