Treasury has published a draft statutory instrument using its powers under s138B FSMA. This provision was introduced by FSMA 2023. PRA and FCA have always had power to modify the application of certain rules, but before Brexit could not change the application of EU rules. Following Brexit, the position remained broadly the same in respect of assimilated laws which remain on the UK rulebooks while Treasury works through its Smarter Regulatory Framework initiative. This draft SI would allow PRA the ability to disapply or modify the application of any of its rules made under FSMA if appropriate for any individual firm.
