The Markets in Financial Instruments, Benchmarks and Financial Promotions (Amendment) (EU Exit) Regulations 2021

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations are made in the exercise of the powers in section 8 of the European Union (Withdrawal) Act 2018 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), (d) and (e) of section 8(2)).

Regulation 2 amends the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 to provide that UK markets that meet the criteria in new Part A1 of Schedule 3 (to be inserted into that Order by regulation 2(8) of this instrument) are covered by the exemptions in that Order from the prohibition on financial promotions in section 21 of the Financial Services and Markets Act 2000.

Regulations 3 and 4 amend Regulation (EU) No 600/2014 on markets in financial instruments and Commission Delegated Regulation (EU) 2017/581 supplementing Regulation (EU) No 600/2014 with regard to regulatory technical standards on clearing access in respect of trading venues and central counterparties, to provide that the requirement for trading venues and central counterparties to grant each other non-discriminatory access does not apply in relation to exchange traded derivatives and to make consequential amendments, as that requirement does not operate appropriately in a UK-only context.

Regulations 5 and 6 amend Commission Delegated Regulation (EU) 2020/1816 and Commission Delegated Regulation (EU) 2020/1818 on low carbon benchmarks. The amendments correct deficiencies in the Delegated Regulations as they form part of retained EU law, removing inappropriate references to EU institutions or provisions of EU law.

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