Guidance

Extending the pension fund clearing exemption and exemptions for intragroup transactions

Published 28 March 2023

© Crown copyright 2023

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This publication is available at https://www.gov.uk/government/publications/extending-the-pension-fund-clearing-exemption-and-exemptions-for-intragroup-transactions/extending-the-pension-fund-clearing-exemption-and-exemptions-for-intragroup-transactions

HM Treasury intends to lay a statutory instrument extending the exemption for pension funds from the clearing obligation by a period of two years and extending the temporary intragroup exemption regime by a further three years.

The statutory instrument will amend Article 89 (1) of Regulation (EU) No 648/2012 of the European Parliament and of the Council to extend the expiry date of the pension fund exemption by two years to 18 June 2025.

HM Treasury will conduct a review of the pension fund exemption ahead of its expiry in 2025, allowing time for consideration and implementation of a longer-term approach. This review will be undertaken with the UK regulatory authorities and will seek input from industry stakeholders. It will also incorporate relevant findings from work being undertaken by regulators internationally on financial market fragilities and resilience in the non-banking financial sector.

The instrument will also amend the relevant days set out in Articles 81(1)(b), 81(2)(b), 83(1)(b) and 83(2)(b) of The Over the Counter Derivatives, Central Counterparties and Trade Repositories (Amendment, etc., and Transitional Provision) (EU Exit) Regulations 2019 [footnote 1], to extend the expiry date of these intragroup exemptions by three years to 31 December 2026.

The government will consider reforming this area of legislation in due course as part of the ongoing process of building a smarter financial services framework for the UK.

HM Treasury intends to lay this statutory instrument shortly to ensure it comes into force before the current expiry date of the pension fund clearing exemption on 18 June 2023.

  1. SI 2019/335 ↩

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