Draft Capital Requirements Regulation (Market Risk Transitional Provision) Regulations 2026 Draft Credit Institutions and Investment Firms (Miscellaneous Definitions) (Amendment) Regulations 2026

Mark Garnier Excerpts

Tuesday 21st April 2026 General Committees

[Mark Garnier (Wyre Forest) (Con)]

It is a great pleasure to serve under your chairmanship, Mrs Hobhouse. As the Minister has said, the draft regulations are pretty uncontroversial, and the Opposition will certainly not oppose them.

I have a couple of questions on the draft Capital Requirements Regulation (Market Risk Transitional Provision) Regulations 2026. The Minister has quite rightly said that they have been introduced in response to delays in other jurisdictions, including the US and the EU. Of course, it is very important that we remain globally competitive and do not cause any self-inflicted harm. However, can the Minister provide some more detail on why other jurisdictions are delaying the implementation of these rules? Is it procedural, or is it because they have some concerns about the rules that they are being asked to implement?

Secondly, the draft regulations allow the Treasury to extend the delay beyond 1 January 2028, which is absolutely fine—we completely understand why that might need to be the case. That will also be subject to the affirmative procedure. However, there are one or two concerns within the industry that this provision might create uncertainty about when the rules will actually be brought in. It would be very helpful if the Minister gave some idea about what internal tests the Treasury will use to decide whether to pursue such an extension. As I said, the Opposition support the intention behind the draft regulations, and we will certainly not be pressing them to a vote.