Revocation of retained EU law Associated powers Effective regulator rule-making Targeted regulator exemption from complying with certain accountability requirements
When deciding what rules to make, the regulators will need to follow their usual process for making rules – including considering how to further their objectives, having regard to the regulatory principles, and any additional "have regards" set by HM Treasury. The regulators are also required to consult publicly on rule changes, and to conduct a cost benefit analysis, unless an exemption applies.
	The Act introduces some exemptions from the statutory consultation requirements imposed by FSMA in relation to the FCA, the PRA, and the Bank of England, and by the Financial Services (Banking Reform) Act 2013 in relation to the Payment Systems Regulator (PSR). This will give the regulators discretion as to whether to consult, and enable them to take a proportionate approach to consultation when creating rules tailored to the UK to replace EU-derived regulation or EU-derived rules which are already in their rulebooks.
	The Act introduces an exemption from the regulators’ statutory requirements to consult and conduct cost benefit analysis where the regulator is deleting, without replacing, rules in their rulebooks which contain a retained EU obligation. This will allow the regulators to quickly remove unnecessary rules which they were required to make in order to fulfill EU obligations where the regulator determines that those rules should not be replaced.
	The Act also enables HM Treasury to specify in regulations parts of retained EU law where the regulators are exempt from the same requirements, in circumstances where the regulators are: restating retained EU law revoked through this Act in their rulebooks without material changes; replacing revoked retained EU law with material changes but the only material effect is to reduce a regulatory burden; or amending their own rules that currently contain retained EU law obligations to make material changes but the only material effect is to reduce a regulatory burden. Where changes also have other material effects, which may include impacts on the regulators’ objectives, for example on market integrity, competition, or consumer protection, it is appropriate to require the regulators to consult, to allow affected parties to participate in a consultation. Therefore, the exemption does not apply where this is the case.
	This exemption will allow the regulators to more easily replicate in their rules important provisions currently in retained EU law which HM Treasury and the regulators agree work well for the UK and are already familiar to stakeholders. It will also allow the regulators to more easily remove unnecessary regulatory burdens inherited from the EU, and focus time and resource on the areas where reform will unlock the greatest benefits.
	When making or amending rules in accordance with the provisions of section 6 on the basis that they reduce regulatory burden, the FCA, the PRA and the PSR are required to publish a statement alongside the final rules which explains how any changes are compatible with their duties (for example, their duties in relation to statutory objectives). In relation to the Bank of England, the statement must explain how any changes are compatible with the Bank’s financial stability objective under section s2A of the Bank of England Act 1998.