Part 1: Regulatory Framework Financial market infrastructure: piloting powers Section 15: Permanent implementation of arrangements tested under an FMI sandbox
Subsections (1) to (6) of this section make provision for HM Treasury to exercise its regulatory powers and roll out into general law those legislative provisions which have been subject to temporary modification and disapplication within an FMI sandbox and Parliamentary scrutiny. These legislative provisions would therefore apply to entities that either did not participate or were ineligible to participate in an FMI Sandbox, such as overseas operators of FMI entities, subject to the entities being authorised by the appropriate regulator.
	Subsections (1) and (2) provides that the exercise of this power will be subject to the due consideration of the "efficiency or effectiveness" of an FMI sandbox arrangement, as provided for in the reporting procedure in section 14 and can take place either at the conclusion of an FMI sandbox or while it remains operational. The intention is that this power is broad enough to include provisions in relevant enactments that may not have been included in the initial legislative framework of an FMI sandbox but are nonetheless included in making permanent changes in general law to ensure the legislation operates as intended. For example, where it may not be possible or practicable to test a particular activity in the FMI sandbox, but where changes to general law may be required to facilitate the FMI activities.
	Subsection (3) makes express provision for a determination to be made as to the efficiency or effectiveness of an FMI before the expiry of an FMI sandbox. If an FMI sandbox is terminated early, it would be possible to revoke the temporary modifications before the termination date and, subject to Parliamentary scrutiny, approve the amendments into general law. This is intended to provide legislative continuity and avoid legislative gaps between the termination and the permanent implementation of FMI sandbox arrangements and would operate in conjunction with HM Treasury’s power to engage general transitional provisions within the Act.
	HM Treasury’s powers under subsections (4), (5) and (6) make provision to amend repeal or revoke a relevant enactment, subject to the affirmative statutory instrument procedure if it concerns primary legislation or retained direct principal EU legislation. Otherwise, the negative statutory instrument procedure will apply.