Fourth entry into force regulation under Financial Services and Markets Act 2023 published | Shearman & Sterling LLP

The Fourth Commencement Regulations – the Financial Services and Markets Act 2023 (Commencement No. 4 and Transitional and Savings Provisions) (Amendment) Regulations 2023 – under the Financial Services and Markets Act 2023 were made on 14 December 2023, inter alia for:

• The removal of the UK Treasury's obligation to review legislation in various financial services legislation, including but not limited to the Short Selling Regulation, the Securitization Regulation, the Alternative Investment Fund Managers Regulations and the UK version of the European Market Infrastructure Regulation. These repeals took effect on December 15, 2023.
• The repeal of the Data Reporting Services Regulations 2017 and related implementing laws from April 5, 2024 such as: B. (i) the provisions in onshore markets in Financial Instruments Regulations which give the UK Treasury and regulators the power to specify further details in relation to data reporting services; and (ii) the provisions of the MiFIR Delegated Regulation regarding the provision of data on a reasonable commercial basis. The repeal of these provisions on this date is consistent with the HM Treasury's aim for the draft Data Reporting Services Regulations 2023 to come into force on 5 April 2024. The draft Data Reporting Services Regulations 2023 will replace the Data Reporting Services Regulations 2017 and will bring some changes to the 2017 content. The FCA has confirmed the final framework for a consolidated bond tape, which will also come into force on 5 April 2024 becomes.
• The revocation from 1 January 2024 of certain retained direct principles of EU law (these are onshore EU regulations that provided for certain changes to the original EU regulations), subordinate legislation, tertiary EU legislation and other EU-derived legislation .
• The repeal of certain provisions on insurance distribution from April 5, 2024.
• The repeal of certain provisions of Solvency II, which provides for the prudential regulation of insurance companies, from June 30, 2024.
• Further provisions relating to the new recovery and resolution regime for CCPs from 1 January 2024. Many of the provisions relating to this new regime came into force on 29 August 2023 under the Financial Services and Markets Act 2023 (Commencement No. 1) Regulations 2023 .

In most of these subject areas, UK regulators have been given powers to make rules instead of laws. The Financial Services and Markets Act 2023 (Comnencement No. 2 and Transitional Provisions) Regulations 2023 and the Financial Services and Markets Act 2023 (Comnencement No. 3) (Amendment) Regulations 2023 provide further provisions for the entry into force of aspects of the FSM Act 2023 The details can be accessed via the links provided.

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