On 12 September 2024, HM Treasury (HMT) published a Policy Paper ‘Applying the FSMA 2000 model of regulation to the Capital Requirements Regulation’.
The Financial Services and Markets Act (FSMA) 2023 revoked assimilated law on financial services so that areas of regulation covered by assimilated law can be made consistent with the UK’s FSMA model approach. The revocation of parts of the UK Capital Requirements Regulations (CRR) has already taken effect and been replaced with PRA rules. The Policy Paper now published sets out HMT’s plans to commence the revocation of the remainder of the CRR and revocations and restatements with modifications of the Capital Requirements (Capital Buffers and Macro-prudential Measures) Regulations 2014 (CBR) in accordance with FSMA 2023. It also explains how the PRA and Bank of England will replace the CRR and CBR provisions with regulator rules and statements of policy.
Three stages
The Policy Statement explains that:
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Applying the FSMA model t