Powers exercised

A. The Financial Conduct Authority (“the FCA”), being the appropriate regulator within the meaning of the Financial Regulators’ Powers (Technical Standards etc.) (Amendment etc.) (EU Exit) Regulations 2018 (the “Regulations”), having carried out the consultations required by regulation 5 of the Regulations and with the approval of the Treasury, makes this instrument in exercise of the powers conferred by regulation 3 of the Regulations.

Historic division

B. The Capital Requirements EU Regulations, as they have effect in domestic law by virtue of section 3 of the Act, will each be divided, with effect from IP completion day, into two identical versions of the same, headed “Part 1 (FCA)” and “Part 2 (PRA)” respectively, by the Technical Standards (Capital Requirements) (EU Exit) (No. 3) Instrument 2019 made by the PRA on 9 April 2019.

Pre-conditions to making

C. As a result of the division in paragraph B, the FCA is the appropriate regulator in relation to Part 1 (FCA) of each of the Capital Requirements EU Regulations.

D. The FCA proposes to exercise the power in regulation 3 of the Regulations to modify Part 1 (FCA) of each the Capital Requirements EU Regulations.

E. The FCA has consulted the PRA on the modifications contained in this instrument in accordance with regulation 5 of the Regulations.