Temporary UK reprieve for EU UCITS

The PRA and FCA yesterday published a joint policy statement on margin requirements for non-centrally cleared derivatives, making amendments to Binding Technical Standard BTS 2016/2251. The amendments temporarily extend the period during which EEA UCITS are eligible collateral under the UK margin regime, until end-December 2022.

“2.9 The PRA has given due regard to the potential challenges faced by firms on the limitation of scope of collateral eligibility, and the confluence of the extended implementation phases. The PRA and FCA have therefore amended the specific transitional provision in the final UKTS, which temporarily allows the continued use of EEA UCITS as collateral. The transitional provision will now last until end-December 2022. The extended period will also provide the PRA and FCA with sufficient time to further consider the relative merits of these challenges for firms.”

The amendments take immediate effect.

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