The Financial Services and Markets Act 2023 (Commencement No. 12 and Saving Provisions) Regulations 2026
S.I. 2026/45 · Made 13 January 2026
Financial Services And Markets
Made 13th January 2026
The Treasury make these Regulations in exercise of the powers conferred by section 86(3) to (6) of the Financial Services and Markets Act 2023f1.
Annotations to the whole text
Footnotes
- f1
Contents
- 1Citation and interpretation
- 2Provisions coming into force on 1st July 2026
- 3Provisions coming into force on 1st January 2027
- 4Saving for permissions granted under the Capital Requirements Regulation: CRR firms that are not SDDTs and CRR consolidation entities that are not SDDT consolidation entities
- 5Saving for permissions granted under the Capital Requirements Regulation: SDDTs and SDDT consolidation entities
- 6Saving for central securities depositories and central counterparties
- 7Saving for PRA’s technical standards
- 8Saving for decisions made before 31st December 2020
- Signature
- Schedule: REVOCATIONS
- 1The Capital Requirements Regulation
- 2Other instruments
- Explanatory note
1Citation and interpretation
These Regulations may be cited as the Financial Services and Markets Act 2023 (Commencement No. 12 and Saving Provisions) Regulations 2026.
In these Regulations—
-
“the Capital Requirements Regulation” means Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012f1;
-
“FSMA 2023” means the Financial Services and Markets Act 2023;
-
“permission” includes a decision to waive a requirement or grant an approval in connection with a requirement;
-
“PRA Rulebook” means the Rulebook published by the PRA containing rules made by the PRA under FSMA 2000f2 on or before 13th January 2026 as that Rulebook has effect on 1st January 2027f3;
-
“SDDT” and “SDDT consolidation entity” have the meanings given in chapter 3 of the SDDT Regime – General Application Part of the PRA Rulebook.
2Provisions coming into force on 1st July 2026
The following provisions of FSMA 2023 come into force on 1st July 2026—
section 1(1) (revocation of assimilated law relating to financial services and markets) so far as it relates to the provisions in paragraph (b);
in Part 3 (EU tertiary legislation etc) of Schedule 1 (revocation of assimilated law relating to financial services), the revocation of the following provisions of Commission Implementing Regulation (EU) 2016/1646 of 13 September 2016 laying down implementing technical standards with regard to main indices and recognised exchanges in accordance with Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions and investment firmsf1—
in Part 2 (PRA), Article 2 (recognised exchanges);
in Annex II (recognised exchanges), Part 2 (PRA).
3Provisions coming into force on 1st January 2027
The following provisions of FSMA 2023 come into force on 1st January 2027—
section 1(1) so far as it relates to the provisions in paragraphs (b) to (d);
in Part 1 (assimilated direct principal legislation) of Schedule 1, the revocation of the provisions of the Capital Requirements Regulation specified in Part 1 of the Schedule to these Regulations;
in Part 2 (subordinate legislation) of Schedule 1, the revocation of the following instruments—
the Capital Requirements Regulations 2013f1 except for regulations 1 and 2, Part 8 and regulation 45(b) to (c);
the Financial Holding Companies (Approval etc.) and Capital Requirements (Capital Buffers and Macro-prudential Measures) (Amendment) (EU Exit) Regulations 2020f2;
the Capital Requirements Regulation (Amendment) Regulations 2021f3 except for regulations 1 and 15;
in Part 3 of Schedule 1, the revocation of the instruments specified in Part 2 of the Schedule to these Regulations.
4Saving for permissions granted under the Capital Requirements Regulation: CRR firms that are not SDDTs and CRR consolidation entities that are not SDDT consolidation entities
This regulation applies to a person who—
immediately before 1st January 2027 has a permission granted under a provision of the Capital Requirements Regulation referred to in paragraph (2), and
on 1st January 2027, is—
a CRR firm which is not an SDDT, or
a CRR consolidation entity which is not an SDDT consolidation entity.
Despite the revocations brought into force by regulation 3 of, and the Schedule to, these Regulations, any permission granted before 1st January 2027 to a person to whom this regulation applies—
under any of the following provisions of the Capital Requirements Regulation has effect, on and after 1st January 2027, as if granted under section 138BA (disapplication or modification of rules in individual cases) of FSMA 2000f1—
Article 9;
Article 19(2);
Article 265(2);
Article 283(1), (3) and (5);
Article 284(9);
Article 285(1);
Article 289(5);
Article 294(2);
under a provision of the Capital Requirements Regulation listed in the first column of the table below has effect, on and after 1st January 2027, as if granted under the rule of the PRA Rulebook listed in the corresponding entry in the second column of that table.
| Capital Requirements Regulation | PRA Rulebook |
|---|---|
| Article 113(6) | Article 113(6) of the Credit Risk: Standardised Approach (CRR) Part |
| Article 143(1) | Rules 1.1 and 1.2 and Article 143(1) and (2A) of the Credit Risk: Internal Ratings Based Approach (CRR) Part |
| Article 143(2) | Rules 1.1 and 1.2 and Article 143(1) and (2A) of the Credit Risk: Internal Ratings Based Approach (CRR) Part |
| Article 143(3) | Article 143(3) of the Credit Risk: Internal Ratings Based Approach (CRR) Part |
| Article 148(1) | Article 148(1) and (1A) of the Credit Risk: Internal Ratings Based Approach (CRR) Part |
| Article 149(1) | Article 149(1) of the Credit Risk: Internal Ratings Based Approach (CRR) Part |
| Article 149(2) | Article 149(2) of the Credit Risk: Internal Ratings Based Approach (CRR) Part |
| Article 150(1) | Article 150(1) of the Credit Risk: Internal Ratings Based Approach (CRR) Part |
| Article 162(2)(h) | Article 162(2A)(h) of the Credit Risk: Internal Ratings Based Approach (CRR) Part |
| Article 179(1) | Article 179(1) of the Credit Risk: Internal Ratings Based Approach (CRR) Part |
| Article 199(6) | Article 199(6) of the Credit Risk Mitigation (CRR) Part |
| Article 221(1) | Article 221(1) of the Credit Risk Mitigation (CRR) Part |
| Article 221(2) | Article 221(1) of the Credit Risk Mitigation (CRR) Part |
| Article 315(3) | Rule 5.5 of the Operational Risk Part |
| Article 317(4) | Rule 5.5 of the Operational Risk Part |
| Article 325b(2) | Article 325b(2) of the Market Risk: General Provisions (CRR) Part |
| Article 329(1) | Article 329(1) of the Market Risk: Simplified Standardised Approach (CRR) Part |
| Article 331(1) | Article 331(1) of the Market Risk: Simplified Standardised Approach (CRR) Part |
| Article 352(1) | Article 352(1) of the Market Risk: Simplified Standardised Approach (CRR) Part |
| Article 352(2) | Article 325(9) of the Market Risk: General Provisions (CRR) Part |
| Article 358(3) | Article 358(3) of the Market Risk: Simplified Standardised Approach (CRR) Part |
| Article 363(1) | Article 363(1) of Part A of Annex 3 of the Market Risk: Internal Models Approach (CRR) Part |
| Article 363(3) | Article 363(3) of Part A of Annex 3 of the Market Risk: Internal Models Approach (CRR) Part |
| Article 366(4) | Article 366(4) of Part A of Annex 3 of the Market Risk: Internal Models Approach (CRR) Part |
| Article 373 | Article 373 of Part A of Annex 3 of the Market Risk: Internal Models Approach (CRR) Part |
| Article 377(1) | Article 377(1) of Part A of Annex 3 of the Market Risk: Internal Models Approach (CRR) Part |
In this regulation, “CRR consolidation entity” and “CRR firm” have the meanings given in the Glossary to the PRA Rulebook.
5Saving for permissions granted under the Capital Requirements Regulation: SDDTs and SDDT consolidation entities
This regulation applies to a person who—
immediately before 1st January 2027 has a permission granted under a provision of the Capital Requirements Regulation referred to in paragraph (2), and
on 1st January 2027, is—
an SDDT, or
an SDDT consolidation entity.
Despite the revocations brought into force by regulation 3 of, and the Schedule to, these Regulations, any permission granted before 1st January 2027 to a person to whom this regulation applies—
under Article 9 or 19(2) of the Capital Requirements Regulation has effect, on and after 1st January 2027, as if granted under section 138BA of FSMA 2000;
under a provision of the Capital Requirements Regulation listed in the first column of the table below has effect, on and after 1st January 2027, as if granted under the rule of the PRA Rulebook listed in the corresponding entry in the second column of that table.
| Capital Requirements Regulation | PRA Rulebook |
|---|---|
| Article 113(6) | Article 113(6) of the Credit Risk: Standardised Approach (CRR) Part |
| Article 315(3) | Rule 5.5 of the Operational Risk Part |
| Article 317(4) | Rule 5.5 of the Operational Risk Part |
6Saving for central securities depositories and central counterparties
This regulation applies to an enactment specified in paragraph (3) in so far as the enactment—
contains a reference to a relevant provision of the Capital Requirements Regulation, and
relates to a central counterparty or a central securities depository.
An enactment to which this regulation applies is to be read, on and after 1st January 2027, as if the reference to a relevant provision of the Capital Requirements Regulation were a reference to that provision as it had effect immediately before 1st January 2027.
The enactments are—
Articles 3 and 4 of Commission Delegated Regulation (EU) No 152/2013 of 19 December 2012 supplementing Regulation (EU) No 648/2012 of the European Parliament and of the Council with regard to regulatory technical standards on capital requirements for central counterpartiesf1;
Articles 4, 5 and 8 of Commission Delegated Regulation (EU) 2017/390 of 11 November 2016 supplementing Regulation (EU) No 909/2014 of the European Parliament and of the Council with regard to regulatory technical standards on certain prudential requirements for central securities depositories and designated credit institutions offering banking-type ancillary servicesf2.
A provision of the Capital Requirements Regulation is relevant for the purpose of this regulation if, and to the extent that, its revocation is brought into force by regulation 3 of, and the Schedule to, these Regulations.
In this regulation—
-
“central counterparty” has the meaning given in regulation 2 of the Financial Services and Markets Act 2000 (Over the Counter Derivatives, Central Counterparties and Trade Repositories) Regulations 2013f3;
-
“central securities depository” has the meaning given in Article 2 of Regulation (EU) No 909/2014 of the European Parliament and of the Council of 23 July 2014 on improving securities settlement in the European Union and on central securities depositories and amending Directives 98/26/EC and 2014/65/EU and Regulation (EU) No 236/2012f4.
7Saving for PRA’s technical standards
Despite the revocations brought into force by regulation 3 of, and the Schedule to, these Regulations, a provision of the Capital Requirements Regulation listed in the first column of the table below continues to have effect, on and after 1st January 2027, so far as is necessary to enable the PRA to modify, amend or revoke the instrument listed in the corresponding entry in the second column of that table.
| Capital Requirements Regulation | Instrument |
|---|---|
| Article 110(4) | Commission Delegated Regulation (EU) No 183/2014 of 20 December 2013 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions and investment firms, with regard to regulatory technical standards for specifying the calculation of specific and general credit risk adjustmentsf1 |
| Article 181(3) | The PRA Standards Instrument: Technical Standards (Economic Downturn) 2021f2 |
| Article 182(4) | The PRA Standards Instrument: Technical Standards (Economic Downturn) 2021 |
| Article 464B(2)(e) | Commission Delegated Regulation (EU) No 527/2014 of 12 March 2014 supplementing Directive (EU) No 2013/36/EU of the European Parliament and of the Council with regard to regulatory technical standards specifying the classes of instruments that adequately reflect the credit quality of an institution as a going concern and are appropriate to be used for the purposes of variable remuneration f3 |
| Article 464B(2)(f) | Commission Delegated Regulation (EU) No 1152/2014 of 4 June 2014 supplementing Directive 2013/36/EU of the European Parliament and of the Council with regard to regulatory technical standards on the identification of the geographical location of the relevant credit exposures for calculating institution-specific countercyclical capital buffer rates f4 |
8Saving for decisions made before 31st December 2020
Despite its revocation brought into force by regulation 3 of, and the Schedule to, these Regulations, Article 522f1 of the Capital Requirements Regulation continues to have effect, on and after 1st January 2027, in relation to the types of decision specified in points (a) to (f) and (i) of Article 522(2) as it had effect immediately before 1st January 2027.
Signature
Taiwo Owatemi
Gen Kitchen
Two of the Lords Commissioners of His Majesty’s Treasury
13th January 2026
1The Capital Requirements Regulation
Articles 1 (scope) to 3 (application to stricter requirements by institutions).
In Article 4(1) (definitions)—
point (54) (“probability of default”);
point (55) (“loss given default”);
point (56) (“conversion factor”).
Article 6(1) and (2) (general principles).
Article 7 (derogation from the application of prudential requirements on an individual basis).
Article 9 (individual consolidation method).
Article 10A (application of prudential requirements on a consolidated basis where FCA investment firms are parent undertakings)f1.
Article 11(1), (2) and (6) (general treatment).
Article 14 (application of due-diligence rules on a consolidated basis).
Articles 18 (methods of prudential consolidation) to 20 (joint decisions on prudential requirements).
Article 23 (undertakings in third countries).
Article 24 (valuation of assets and off-balance sheet items).
Article 47a(3) to (7) (non-performing exposures).
Article 47b (forbearance measures).
Article 92 (own funds requirements).
Article 93 (initial capital requirement on going concern).
Article 107(1) and (2) (approaches to credit risk).
Articles 108 (use of credit risk mitigation technique under the standardised approach and the IRB approach) to 113 (calculation of risk-weighted exposure amounts).
Article 114(1) to (4) (exposures to central governments or central banks).
Article 115(1) to (3) and (5) (exposures to regional governments or local authorities).
Article 116(1) to (4) (exposures to public sector entities).
Articles 117 (exposures to multilateral development banks) to 127 (exposures in default).
Articles 129 (exposures in the form of covered bonds) to 131 (exposures to institutions and corporates with a short-term credit assessment).
Articles 133 (equity exposures) to 151 (treatment by exposure class).
Articles 153 (risk-weighted exposure amounts for exposures to corporates, institutions and central governments and central banks) to 157 (risk-weighted exposure amounts for dilution risk of purchased receivables).
Articles 159 (treatment of expected loss amounts) to 272 (definitions).
Articles 283 (permission to use the internal model method) to 299 (items in the trading book).
Articles 312 (permission and notification) to 315 (own funds requirement).
Articles 317 (own funds requirement) to 325 (approaches for calculating the own funds requirements for market risk).
Article 325b (permission for consolidated requirements).
Articles 326 (own funds requirements for position risk) to 381 (meaning of credit valuation adjustment).
In Article 382 (scope)—
paragraphs (1) to (3);
in paragraph (4), points (a), (c), (d) and the words after point (d);
paragraph (5).
Articles 383 (advanced method) and 384 (standardised method).
Article 386 (eligible hedges).
Articles 456 (regulations modifying this regulation) to 459 (prudential requirements).
Articles 464A (regulations: general provisions)f2 to 465 (own funds requirements).
Article 496 (own funds requirements for covered bonds).
Article 498 (exemption for commodities dealers).
Article 500 (adjustment for massive disposals).
Article 500c (exclusion of overshootings from the calculation of the back-testing addend in view of the COVID-19 pandemic).
Article 501 (adjustment of risk-weighted non-defaulted SME exposures).
Article 501a (adjustment to own funds requirements for credit risk for exposures to entities that operate or finance physical structures or facilities, systems and networks that provide or support essential public services).
Articles 520 (amendment of Regulation (EU) No 648/2012) and 522 (savings provisions: pre-exit decisions).
Annexes I (classification of off-balance sheet items) to IV (correlation table).
2Other instruments
Commission Delegated Regulation (EU) No 525/2014 of 12 March 2014 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards for the definition of market.
Commission Delegated Regulation (EU) No 526/2014 of 12 March 2014 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards for determining proxy spread and limited smaller portfolios for credit valuation adjustment risk.
Commission Delegated Regulation (EU) 528/2014 of 12 March 2014 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards for non-delta risk of options in the standardised market risk approach.
Commission Delegated Regulation (EU) No 529/2014 of 12 March 2014 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards for assessing the materiality of extensions and changes of the Internal Ratings Based Approach and the Advanced Measurement Approach.
Commission Delegated Regulation (EU) No 530/2014 of 12 March 2014 supplementing Directive 2013/36/EU of the European Parliament and of the Council with regard to regulatory technical standards further defining material exposures and thresholds for internal approaches to specific risk in the trading book.
Commission Implementing Regulation (EU) No 602/2014 of 4 June 2014 laying down implementing technical standards for facilitating the convergence of supervisory practices with regard to the implementation of additional risk weights according to Regulation (EU) No 575/2013 of the European Parliament and of the Council.
Commission Implementing Regulation (EU) No 945/2014 of 4 September 2014 laying down implementing technical standards with regard to relevant appropriately diversified indices according to Regulation (EU) No 575/2013 of the European Parliament and of the Council.
Commission Delegated Regulation (EU) 2015/1556 of 11 June 2015 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards for the transitional treatment of equity exposures under the IRB approach.
Commission Implementing Regulation (EU) 2015/2197 of 27 November 2015 laying down implementing technical standards with regard to closely correlated currencies in accordance with Regulation (EU) No 575/2013 of the European Parliament and of the Council.
Commission Implementing Regulation (EU) 2016/1646 of 13 September 2016 laying down implementing technical standards with regard to main indices and recognised exchanges in accordance with Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions and investment firms.
Commission Implementing Regulation (EU) 2016/2070 of 14 September 2016 laying down implementing technical standards for templates, definitions and IT-solutions to be used by institutions when reporting to the European Banking Authority and to competent authorities in accordance with Article 78(2) of Directive 2013/36/EU of the European Parliament and of the Council.
Commission Delegated Regulation (EU) 2017/72 of 23 September 2016 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards specifying conditions for data waiver permissions.
Commission Implementing Regulation (EU) 2016/1799 of 7 October 2016 laying down implementing technical standards with regard to the mapping of credit assessments of external credit assessment institutions for credit risk in accordance with Articles 136(1) and 136(3) of Regulation (EU) No 575/2013 of the European Parliament and of the Council.
Commission Delegated Regulation (EU) 2017/180 of 24 October 2016 supplementing Directive 2013/36/EU of the European Parliament and of the Council with regard to regulatory technical standards for benchmarking portfolio assessment standards and assessment-sharing procedures.
Commission Delegated Regulation (EU) 2018/171 of 19 October 2017 on supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards for the materiality threshold for credit obligations past due.
Commission Delegated Regulation (EU) 2018/728 of 24 January 2018 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards for procedures for excluding transactions with non-financial counterparties established in a third country from the own funds requirement for credit valuation adjustment risk.
Commission Delegated Regulation (EU) 2018/959 of 14 March 2018 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards of the specification of the assessment methodology under which competent authorities permit institutions to use Advanced Measurement Approaches for operational risk.
Explanatory note
(This note is not part of the Regulations)
These Regulations are the 12th commencement regulations made under the Financial Services and Markets Act 2023 (c. 29) (“FSMA 2023”).
Section 1(1) of FSMA 2023 revokes the legislation listed in Schedule 1 to that Act, which includes assimilated direct principal legislation, subordinate legislation and EU tertiary legislation.
Regulation 2 brings into force on 1st July 2026 section 1(1) of, and Schedule 1 to, FSMA 2023 so far as they relate to the revocation of some provisions of Commission Implementing Regulation (EU) 2016/1646 of 13 September 2016 laying down implementing technical standards with regard to main indices and recognised exchanges in accordance with Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions and investment firms.
Regulation 3 brings into force on 1st January 2027 section 1(1) of, and Schedule 1 to, FSMA 2023 so far as they relate to the revocation of provisions of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (“the Capital Requirements Regulation”) and other instruments relating to the Capital Requirements Regulation.
Regulations 4 and 5 save permissions granted under provisions of the Capital Requirements Regulation the revocation of which is brought into force by these Regulations. These saving provisions ensure that those permissions will continue to be valid as if they had been granted under section 138BA of the Financial Services and Markets Act 2000 (c. 8) or rules of the Prudential Regulation Authority (“PRA”) which replace those provisions. The rules can be found at https://www.prarulebook.co.uk/ and a copy can be obtained from the PRA, 20 Moorgate, London EC2R 6DA.
Regulation 6 makes provision in relation to certain articles of—
-
Commission Delegated Regulation (EU) No. 152/2013 of 19 December 2012 supplementing Regulation (EU) No 648/2012 of the European Parliament and of the Council with regard to regulatory technical standards on capital requirements for central counterparties, and
-
Commission Delegated Regulation (EU) 2017/390 of 11 November 2016 supplementing Regulation (EU) No 909/2014 of the European Parliament and of the Council with regard to regulatory technical standards on certain prudential requirements for central securities depositories and designated credit institutions offering banking-type ancillary services
in so far as those articles apply to central counterparties and central securities depositories. It saves references in those articles to provisions of the Capital Requirements Regulation the revocation of which is brought into force by these Regulations.
Regulation 7 preserves the PRA’s powers to modify, amend and revoke specified instruments. Regulation 8 saves certain decisions made by bodies other than the PRA and the Financial Conduct Authority before 31st December 2020.
An impact assessment has not been published for these Regulations as they have no impact on the costs to business or the public or voluntary sectors independent of the provision these Regulations bring into force. A full impact assessment has been published in relation to FSMA 2023 and copies can be obtained from HM Treasury, 1 Horse Guards Road, London, SW1A 2HQ or at https://bills.parliament.uk/publications/49053/documents/2621.