The Pension Fund Clearing Obligation Exemption and Intragroup Transaction Transitional Clearing and Risk-Management Obligation Exemptions (Extension and Amendment) Regulations 2023
These Regulations extend the transitional provision in Article 89 of Regulation (EU) 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories (“UK EMIR”) which exempts certain pension fund transactions from the clearing obligation provided for in Article 4 of UK EMIR. Regulation 2 provides that this exemption, in the first subparagraph of Article 89(1) of UK EMIR, is extended by two years, so that it ends on 18th June 2025.
Lifecycle
Department
Made
26 Apr 2023
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In force
12 Jun 2023
Enabling power
In accordance with the fourth subparagraph of Article 89(1) of Regulation (EU) 648/2012, the Treasury have concluded for the purposes of extending the exemption in the first subparagraph of Article 89(1) of that Regulation that no appropriate technical solution has been developed for the transfer by pension scheme arrangements and EEA pension scheme arrangements of cash and non-cash collateral as variation margins and that the adverse effect of centrally clearing derivative contracts on the retirement benefits of future pensioners remains.
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