Publication
International Restructuring Newswire
Welcome to the Q2 2025 edition of the Norton Rose Fulbright International Restructuring Newswire.
HM Treasury issues call for evidence on pension fund clearing exemption
United Kingdom | Publication | November 2023
On November 13, 2023, HM Treasury issued a call for evidence on the exemption for pension funds from the UK EMIR clearing obligations.
As a reminder, under the European Market Infrastructure Regulation (EMIR), there are mandatory clearing obligations typically requiring cash collateral for certain over-the-counter derivative transactions. In recognition of the challenges these requirements caused for pension funds, an exemption provision was made. This exemption has been extended several times on a temporary basis since it was first introduced in 2012, with the latest exemption due to expire on June 18, 2025.
When the last exemption extension was announced, HM Treasury stated that it would review the exemption ahead of June 2025 to explore a longer-term policy approach.
The call for evidence seeks input from industry stakeholders on the clearing exemption, asking questions relating to the way in which pension funds currently make use of the exemption and, without pre-empting policy direction, how pension funds would be affected were the exemption to expire in June 2025. HM Treasury also seeks evidence on whether the exemption affected the LDI crisis and how the situation may have developed had the exemption not been in place.
The call for evidence closes on January 5, 2024.
Partner
Email
lesley.browning@nortonrosefulbright.com
Recent publications
Publication
UK MAR: Navigating disclosure obligations in uncertain markets
In the current geopolitical climate, with the imposition of tariffs and associated macroeconomic uncertainty, publicly traded companies across sectors will need to consider the potential impact on their business in the context of their ongoing disclosure obligations.
Publication
Secondary capital raising regime
In July 2022 the UK Secondary Capital Raising Review published its report (Report) setting out a series of bold and wide-ranging recommendations for improving the secondary capital raising regime in the UK designed to make it quicker, more flexible, more inclusive of retail investors and more cost-effective, as well as moving towards digitisation and making better use of technology.
Subscribe and stay up to date with the latest legal news, information and events . . .