Revocation of retained EU law Revocation of retained EU law
Delivering a comprehensive FSMA model of regulation requires the revocation of retained EU law relating to financial services.
	The Act revokes the following types of retained EU law, which are all captured by Schedule 1 to the Act:
All direct principal EU legislation, such as Regulations;
Secondary legislation made under primary legislation, such as instruments made to implement EU obligations under the European Communities Act 1972, and instruments made under the European Union Withdrawal Act 2018 which addressed deficiencies in EU law;
All EU tertiary legislation, such as Delegated Regulations, Commission Decisions, and Implementing Acts; and
Some parts of primary legislation;
	The revocation of retained EU law will not extend to Acts of Parliament, except to the parts which are listed in Schedule 1, which are necessary to remove as they will not function effectively when retained EU law is revoked.
	Where revoked legislation amends domestic legislation, including primary legislation, (for example, where a statutory instrument made under section 2(2) of the European Communities Act 1972 amends FSMA 2000), the amendments to that other legislation will remain in force despite the revocation. This is necessary in order to ensure that domestic legislation continues to function effectively.
	Retained EU law is a broad category and includes some domestic legislation like the Regulated Activities Order. Some of these domestic instruments which contain elements of retained EU law are an essential part of the FSMA model of regulation that needs to be maintained. Therefore, HM Treasury will have the means to exclude instruments which are not intended to be revoked.
	Retained EU law which is already part of the regulators’ rulebooks will not be revoked through the Act, because these rules can be updated by the regulators themselves according to their normal processes established in FSMA 2000.
	The Act commences the revocation of retained EU law in a way which facilitates a smooth transition to a comprehensive FSMA model. This means that where the government feels that it is necessary, the government does not expect to commence the revocation of individual parts of the Schedule unless the regulators have drafted and consulted on rules that are ready to be enforced, where it is appropriate that these provisions are replaced.