Letter to HM Treasury: Review of EMIR Implementing Regulations: 15 August 2019

HM Treasury is conducting a review The Financial Services and Markets Act 2000 (Over the Counter Derivatives, Central Counterparties and Trade Repositories) Regulations 2013 which had implemented EMIR in the U.K.  The review might propose changes to Part VII of the Companies Act 1989.

In 2016, the Committee undertook research on issues of legal complexity arising in the context of proprietary claims to collateral under Part VII of the Companies Act 1989, culminating in the publication of a report.  The FMLC Report drew attention to issues of legal uncertainty in the default management processes of a central counterparty, which were designed to meet certain regulatory objectives and requirements, including the reduction of systemic risk and the implementation of safeguards for (non-defaulting) clients.

The Committee has sent a letter to HM Treasury urging it to take the matters raised in the FMLC Report into account in the conduct of HM Treasury’s review of the 2013 Regulations.

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