Miscellaneous Regulations about financial collateral arrangements
HM Treasury made the FCARs in order to implement FCAD. Such regulations were made using the powers in section 2(2) of the ECA. HM Treasury applied the FCARs to a broader class of persons than FCAD.
	The question of the ability of HM Treasury to make the FCARs in the way it did has been raised in litigation on two occasions: R(on the application of Cukurova Finance International Limited and Cukurova Holding AS) v HM Treasury and Alfa Telecom Turkey Limited [2008] EWHC 2567 (Admin) (29 September 2008) and The United States of America v Nolan [2015] UKSC 63. This raised the prospect of a UK Court determining that HM Treasury had exceeded its powers under section 2(2)(b) of the ECA when making the FCARs. Such a decision would put in question the lawfulness of the FCARs and in turn the validity of certain financial collateral arrangements made in reliance on the FCARs.
	Section 38 confirms the validity of the FCARs and the financial collateral arrangements made in reliance on them. By confirming the validity of the legislation in this way, Parliament will remove any question around the lawfulness of the FCARs and such financial collateral arrangements. This retrospective effect removes doubt for existing contracts which were outside the scope of FCAD.
	A secondary part of the Section looks at the Parliamentary procedure for making future regulations in this area. At present, such regulations would be made pursuant to section 256 of the Banking Act 2009. This requires that the "made affirmative" procedure is used. This means that any regulations would be legally in force once made but would require approval by both Houses of Parliament within 28 days of the making of the regulations, to keep them in force. This procedure is usually associated with urgent legislation. Accordingly, this section will amend the procedure to the more common "draft affirmative" procedure, which means any regulations will be in force once approved by resolution of both Houses of Parliament.