Part 1: Regulatory Framework Chapter 1: Revocation of retained EU law Section 3: Power to make further transitional amendments
This section creates a power for HM Treasury to modify retained EU law captured by Schedule 1 during the transitional period. It can only be modified for the reasons set out in subsection (2).
	Many of the ‘reasons’ in subsection (2) are similar to the objectives of the FCA, the PRA, the financial stability objective of the Bank of England, and the special resolution objectives in section 4 of the Banking Act 2009. This section should be read in its own right, and is in no way bound by the way that these objectives are interpreted by the regulators.
	Subsection (3) is self-explanatory.
	Subsection (4) enables HM Treasury to create powers, including new regulator rule-making powers, as part of modifying retained EU law for or in connection to one of the purposes in subsection (4). Subsection (4)(a) governs the creation of new powers generally; and subsections (4)(b) and (4)(c) confirm that HM Treasury may confer powers for HM Treasury to make subordinate legislation and for the regulators to make rules and other instrument. An important point is that subsection (4)(c) is not limited to rule-making. The Payments Systems Regulator (PSR), for example, makes directions and not rules, and a direction is an example of an "other instrument" that is captured by this section. Section 7 defines "regulator" as the PRA, the FCA, the Bank of England, or the PSR.
	Subsection (5) clarifies that when exercising the power under section 84(2)(c), HM Treasury can restate legislation for the purpose of making the law clearer or more accessible.
	Subsection (6) require HM Treasury to consult the PRA, the FCA, and PSR, and the Bank of England when exercising this power. The effect of subsection (7) is that HM Treasury must consult the PRA and the FCA in all instances, and the Bank of England and the PSR only where HM Treasury considers it appropriate to do so.
	Subsection (8)(b) provides that the power in this section cannot be used to amend technical standards, which are a subset of EU tertiary legislation. Responsibility for these instruments was transferred to the financial services regulators using powers in EUWA 2018, and the regulators already have the ability to amend or revoke them. Subsection (8)(b) also prohibits the use of the power over new technical standards instruments made by the regulators.
	Subsections (9) and (10) govern the Parliamentary procedure to be applied when the power in this section is exercised. Regulations under this section can be made through the negative procedure where they modify either EU tertiary legislation, or subordinate legislation which was originally made under negative procedure. Otherwise, the affirmative procedure must be used.