Government consults on CCP and CSD regulation

Treasury is consulting on how the future regulatory framework should look for central counterparties and central securities depositories. It follows up on a commitment to look at whether changes should be made in the post-Brexit environment.

The key proposal is to move to a more comprehensive “FSMA-style” model. The Government is considering giving BoE more rule making powers and to enhance its regulatory objectives and accountability to cater for this.  This would be similar to PRA and FCA’s powers, and would also include powers for the BoE to take enforcement action, waive or modify rules and use a range of investigatory and information gathering powers.

New objectives for the BoE would focus on financial stability with a secondary objective of innovation, and would also build on the regulatory principles that already apply to what PRA and FCA do.

Comments are requested by 28 February.

Emma Radmore