1 Power in respect of EU financial services legislation with pre-exit origins

(1) The Treasury may by regulations make provision—

(a) corresponding, or similar, to—

(i) the provisions, or any of the provisions, of any specified EU
5financial services legislation, or

(ii) any provision that might be made by a member State for the
purpose of implementing any provision of specified EU
financial services legislation, but

(b) with any adjustments the Treasury consider appropriate, including (in
10particular) adjustments in connection with the withdrawal of the
United Kingdom from the EU.

(2) “Specified EU financial services legislation” means—

(a) Articles 6 and 7 of the Central Securities Depositories Regulation,

(b) the Delegated Cash Penalties Regulation,

(c) 15Articles 37 and 38(2) of the Markets in Financial Instruments
Regulation,

(d) the provisions of the Prospectus Regulation that apply from 21 July
2019 (see Article 49(2) of that regulation),

(e) any delegated acts under the Prospectus Regulation, other than
20technical standards, that are adopted by the European Commission
before 21 July 2019,

(f) Article 4(1) of the Securities Financing Transactions Regulation, or

(g) any EU Directive, or EU Regulation, adopted before, on or after exit day
as a result of any of the proposals listed in the Schedule to this Act,

25as that legislation has effect in EU law.

(3) Section 8(5) and (7) of the European Union (Withdrawal) Act 2018 (provision
that may be made by regulations) apply in relation to regulations under
subsection (1).

(4) In paragraph 1(1) of Schedule 4 to that Act (power to provide for fees or other
5charges in connection with functions of public authorities arising from
provision made in exercise of the listed powers), after paragraph (b) insert “, or

(c) section 1(1) of the Financial Services (Implementation of
Legislation) Act 2018.”

(5) No regulations may be made under this section after the end of the period of
10two years beginning with exit day.

(6) Power to make regulations under this section is exercisable by statutory
instrument.

(7) No regulations may be made under this section unless a draft of the instrument
containing them has been laid before, and approved by a resolution of, each
15House of Parliament.

(8) The Treasury must before the end of April 2020 prepare and publish a report
on—

(a) the exercise of their powers under subsection (1), or by virtue of
subsection (4), in the year beginning with exit day, and

(b) 20their proposals for exercise of the powers in the year following that
year.

(9) The Treasury must before the end of April 2021 prepare and publish a report
on the exercise of the powers in that following year.

(10) In this section—

• 25“the Central Securities Depositories Regulation” means 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 236/2012;

• 30“the Delegated Cash Penalties Regulation” means Commission Delegated
  Regulation (EU) 2017/389 of 11 November 2016 supplementing
  Regulation (EU) No 909/2014 of the European Parliament and of the
  Council as regards the parameters for the calculation of cash penalties
  for settlement fails and the operations of CSDs in host Member States;

• 35“the Markets in Financial Instruments Regulation” means Regulation
  (EU) No 600/2014 of the European Parliament and of the Council of 15
  May 2014 on markets in financial instruments and amending
  Regulation (EU) No 648/2012;

• “the Prospectus Regulation” means Regulation (EU) 2017/1129 of the
  40European Parliament and of the Council of 14 June 2017 on the
  prospectus to be published when securities are offered to the public or
  admitted to trading on a regulated market, and repealing Directive
  2003/71/EC;

• “the Securities Financing Transactions Regulation” means Regulation
  45(EU) 2015/2365 of the European Parliament and of the Council of 25
  November 2015 on transparency of securities financing transactions
  and of reuse and amending Regulation (EU) No 648/2012.

2 Extent, commencement and short title

(1) This Act extends to England and Wales, Scotland and Northern Ireland.

(2) This Act comes into force on the day on which it is passed.

(3) This Act may be cited as the Financial Services (Implementation of Legislation)
5Act 2018.

Section 1(2)(g)SCHEDULE

List of proposals for the purposes of section 1

1 The European Commission’s proposal of 23 November 2016 for a Directive
of the European Parliament and of the Council amending Directive 2013/
536/EU as regards exempted entities, financial holding companies, mixed
financial holding companies, remuneration, supervisory measures and
powers and capital conservation measures.

2 The European Commission’s proposal of 23 November 2016 for a
Regulation of the European Parliament and of the Council amending
10Regulation (EU) No 575/2013 as regards the leverage ratio, the net stable
funding ratio, requirements for own funds and eligible liabilities,
counterparty credit risk, market risk, exposures to central counterparties,
exposures to collective investment undertakings, large exposures, reporting
and disclosure requirements and amending Regulation (EU) No 648/2012.

3 15The European Commission’s proposal of 23 November 2016 for a Directive
of the European Parliament and of the Council amending Directive 2014/
59/EU on loss-absorbing and recapitalisation capacity of credit institutions
and investment firms and amending Directive 98/26/EC, Directive 2002/
47/EC, Directive 2012/30/EU, Directive 2011/35/EU, Directive 2005/56/
20EC, Directive 2004/25/EC and Directive 2007/36/EC.

4 The European Commission’s proposal of 28 November 2016 for a
Regulation of the European Parliament and of the Council on a framework
for the recovery and resolution of central counterparties and amending
Regulations (EU) No 1095/2010, (EU) No 648/2012, and (EU) 2015/2365.

5 25The European Commission’s proposal of 4 May 2017 for a Regulation of the
European Parliament and of the Council amending Regulation (EU) No
648/2012 as regards the clearing obligation, the suspension of the clearing
obligation, the reporting requirements, the risk-mitigation techniques for
OTC derivatives contracts not cleared by a central counterparty, the
30registration and supervision of trade repositories and the requirements for
trade repositories.

6 The European Commission’s proposal of 13 June 2017 for a Regulation of the
European Parliament and of the Council amending Regulation (EU) No
1095/2010 establishing a European Supervisory Authority (European
35Securities and Markets Authority) and amending Regulation (EU) No 648/
2012 as regards the procedures and authorities involved for the
authorisation of CCPs and requirements for the recognition of third-country
CCPs.

7 The European Commission’s proposal of 20 December 2017 for a Regulation
40of the European Parliament and of the Council on the prudential
requirements of investment firms and amending Regulations (EU) No 575/
2013, (EU) No 600/2014 and (EU) No 1093/2010.

8 The European Commission’s proposal of 20 December 2017 for a Directive
of the European Parliament and of the Council on the prudential
supervision of investment firms and amending Directives 2013/36/EU and
2014/65/EU.

9 5The European Commission’s proposal of 12 March 2018 for a Directive of the
European Parliament and of the Council amending Directive 2009/65/EC of
the European Parliament and of the Council and Directive 2011/61/EU of
the European Parliament and of the Council with regard to cross-border
distribution of collective investment funds.

10 10The European Commission’s proposal of 12 March 2018 for a Regulation of
the European Parliament and of the Council on facilitating cross-border
distribution of collective investment funds and amending Regulations (EU)
No 345/2013 and (EU) No 346/2013.

11 The European Commission’s proposal of 12 March 2018 for a Directive of the
15European Parliament and of the Council on the issue of covered bonds and
covered bond public supervision and amending Directive 2009/65/EC and
Directive 2014/59/EU.

12 The European Commission’s proposal of 12 March 2018 for a Regulation of
the European Parliament and of the Council on amending Regulation (EU)
20No 575/2013 as regards exposures in the form of covered bonds.

13 The European Commission’s proposal of 24 May 2018 for a Regulation of the
European Parliament and of the Council amending Regulation (EU) 2016/
1011 on low carbon benchmarks and positive carbon impact benchmarks.

14 The European Commission’s proposal of 24 May 2018 for a Regulation of the
25European Parliament and of the Council amending Regulations (EU) No
596/2014 and (EU) No 2017/1129 as regards the promotion of the use of
SME growth markets.

15 The European Commission’s amended proposal of 12 September 2018 for a
Regulation of the European Parliament and of the Council amending
30Regulation (EU) No 1093/2010 establishing a European Supervisory
Authority (European Banking Authority); Regulation (EU) No 1094/2010
establishing a European Supervisory Authority (European Insurance and
Occupational Pensions Authority); Regulation (EU) No 1095/2010
establishing a European Supervisory Authority (European Securities and
35Markets Authority); Regulation (EU) No 345/2013 on European venture
capital funds; Regulation (EU) No 346/2013 on European social
entrepreneurship funds; Regulation (EU) No 600/2014 on markets in
financial instruments; Regulation (EU) 2015/760 on European long-term
investment funds; Regulation (EU) 2016/1011 on indices used as
40benchmarks in financial instruments and financial contracts or to measure
the performance of investment funds; Regulation (EU) 2017/1129 on the
prospectus to be published when securities are offered to the public or
admitted to trading on a regulated market; and (EU) Directive 2015/849 on
the prevention of the use of the financial system for the purposes of money-
45laundering or terrorist financing.