On 29 April 2020, the Prudential Authority and the Financial Sector Conduct Authority (jointly, the Authorities) published Joint Communication 3 of 2020 (Communication).

The Communication sets out the Authorities’ proposed revised implementation dates in respect of specific joint regulatory frameworks in order to mitigate strain on the resources and financial and operational capacity of financial institutions due to COVID-19.

The proposed dates are:

Regulatory Reform

 Original implementation date

Revised implementation date

Joint Standard: Margin Requirements for non-centrally cleared OTC derivative transactions

1 October 2020

On a date to be determined by the Authorities; the standard will be published during May 2020*

Joint Standard: Significant Owners (fitness and propriety and related matters)

1 October 2020

1 November 2020

Joint Standard: CCP Application Form (intended to be finalised in Q4 2020)

On date of publication

On date of publication**

Joint Standard: Recovery Plans for Market Infrastructures (in development, with draft intended to be published by Q3 2020)

On date of publication with six month transitional period

On date of publication with six month transitional period

* The Authorities will continue to engage relevant stakeholders on the implementation of the Margin Requirements. At this stage, the Authorities envisage that the Margin Requirements will come into effect during Q1 2021 in order to align with the proposed implementation dates of the reforms to the capital requirements for banks, including the standardised approach for measuring counterparty credit risk exposures.

** The Authorities are finalising the responses to comments on the Draft Joint Standard. The Authorities are mindful that the necessary requirements to be licensed as a central counterparty must be prescribed as the transitional arrangements in section 110(6) of the Financial Markets Act, 2012 state that a clearing house performing the functions of a central counterparty must comply with any requirements imposed by regulations or standards, and must as of 1 January 2022, be licensed as both an independent clearing house and a central counterparty.