Explanatory note

These Regulations restate with modifications the provisions of the Data Reporting Services Regulations 2017 (“the 2017 Regulations”) (S.I. 2017/699), with the broad exception of Part 3 of the 2017 Regulations referred to below. The 2017 Regulations made arrangements for the registration and supervision by the FCA of data reporting service providers. They are retained EU law and are revoked by section 1(1) of, and Schedule 1 to, the Financial Services and Markets Act 2023 (c. 29).

Certain of the revoked provisions are being replaced in rules made by the Financial Conduct Authority under section 300H of FSMA 2000 (“data reporting service rules” as defined in regulation 2). These relate principally to operating requirements for authorised or verified persons, for which Part 3 of the 2017 Regulations had made provision. Corresponding modifications to these Regulations include—

• in Part 3, references to a requirement imposed by or under these Regulations includes data reporting service rules (regulation 2(4));

• applicants for authorisation to provide a data reporting service or for verification of compliance with these Regulations must demonstrate compliance with the data reporting service rules (regulations 5, 7 and 8);

• an authorisation or verification may be cancelled where data reporting service rules have been contravened (regulations 7 and 10);

• an authorisation or verification may be subject to the imposition of restrictions where data reporting service rules are contravened (regulation 13).

• Chapter 2 of Part 3 (Application of FSMA 2000 for the purposes of the Regulations) and Part 5 (amendment of assimilated legislation) now include modifications and amendments relating to data reporting service rules.

Other modifications include—

• arrangements for the provision of a CTP service to be put out to tender by the FCA, following which the service concerned may not be provided by anyone other than a person to whom the tender contract is awarded (regulation 6). The FCA has discretion to cancel an existing authorisation or verification where a person providing the service concerned is not awarded the tender contract (regulation 7(7) and 10(1)(b));

• some administrative and enforcement arrangements for which Part 4 of the 2017 Regulations had made provision are now restated by applying equivalent provisions under FSMA 2000 with appropriate modifications; these include the FCA’s general duties (regulation 15), provision for supervision, monitoring and enforcement (regulation 16), disciplinary measures (regulation 19), the offence of misleading the FCA (regulation 24(3)) and the application of powers to formerly authorised persons (regulation 26).

A de minimis impact assessment of the effect of this instrument is available from HM Treasury, 1 Horse Guards Road, London, SW1A 2HQ and is published with the Explanatory Memorandum alongside this instrument at www.legislation.gov.uk.