According to a recent announcement from HM Treasury, a review of a current exemption for pension schemes has been launched. This exemption, applicable for a temporary period, falls under the purview of the U.K. EMIR, which stands for the onshored European Market Infrastructure Regulation. As part of this exemption review, HM Treasury has published a call for evidence. Read more at
jdsupra.com.
The U.K. EMIR typically mandates the clearing at a central counterparty of all interest rate swaps and credit default swaps. In the context of pension schemes, those that comply with certain pre-set requirements can avail exemption from this obligation. The exemption was initially incorporated into the EMIR due to various underlined factors.
The review by HM Treasury is significant as it underscores the evolving nature of legal and regulatory adjustments faced by pension schemes in the U.K, particularly in the approch towards managing interest rate swaps and credit default swaps. Such a move, it is evident, is designed to solicit views and perspectives for grounding the decision-making process.
The responses from this call for evidence will greatly shape the course of EMIR regulations in terms of pension scheme exemptions. While the short-term implications for pension schemes are unclear, they will nonetheless be at the forefront of discussions, as stakeholders navigate this consultative process. These developments are worth following for corporations and law firms involved heavily in the pension schemes, legal and compliance affairs.