Clearing solutions for pension scheme arrangements under EMIR: Temporary exemption extended once more

In our January 2023 newsletter, we noted that pension scheme arrangements which operate using certain types of OTC derivatives had been warned that the temporary exemption for pension schemes under EMIR had been extended several times since 2012, and was due to end on June 19, 2023.

On March 28, 2023, HM Treasury announced that it intends to extend the pension fund clearing exemption for a further period of two years to June 18, 2025. It also intends to extend the temporary intragroup exemption regime by a further three years to December 31, 2026. The relevant statutory instrument will be laid before Parliament shortly in order to ensure that it is effective before the current June exemption expires.

HM Treasury will conduct a review of the pension fund exemption ahead of its new expiry date in 2025, allowing time for consideration and implementation of a longer-term approach. This review will be undertaken with the UK regulatory authorities and will seek input from industry stakeholders. It will also incorporate relevant findings from work being undertaken by regulators internationally on financial market fragilities and resilience in the non-banking financial sector.