Joint statement from FCA, PRA and Bank of England on the government’s proposed amendments to the CCP run-off regime

In view of the HM Treasury’s proposed revisions to the Financial Services and Markets Bill (FSM Bill) to ensure that central counterparties (CCPs) currently operating under the „run-off“ regime can continue to provide services after exiting the regime and the Bill has not yet received Royal Assent, the Financial Conduct Authority (FCA), the Prudential Regulation Authority (PRA), and the Bank of England (BoE) have issued a joined statement in this context.
Therein, the regulators express their full support of the amendments and the goal of facilitating an uninterrupted provision of clearing services to UK firms. In case there is a „regulatory gap period“ between July 1st and Royal Assent, the regulators will adopt a balanced and risk-based approach when assessing the utilization of their supervisory powers concerning firms that may be affected before Royal Assent is granted.