What does FCA's "PS26/21: Streamlining the UK EMIR Intragroup Regime" change?

The Over-the-Counter Derivatives (Intragroup Transactions) Regulations 2026 (SI 2026/1117), made on 21 October 2026, amend Article 3 of UK EMIR so that an intragroup transaction may involve entities in any jurisdiction, provided both counterparties are in the same group, included in the same consolidation on a full basis, and subject to appropriate centralised risk evaluation, measurement and control procedures. The reform removes the dependence of permanent intragroup exemptions on an Article 13 UK EMIR equivalence decision. For transactions between a UK entity and an overseas group entity, or between two overseas group entities, counterparties must notify the FCA and may use the relevant clearing or margin exemption if the FCA does not object within 30 calendar days after receiving a complete notification; this replaces the former application and approval process, which could involve a three-month period. For qualifying transactions between two UK counterparties, notification is no longer required for the clearing exemption. The margin regime removes the requirement to publicly disclose margin exemptions and changes the relevant transfer condition so that an exemption should only be unavailable where there is a material practical or legal impediment to promptly transferring own funds or repaying liabilities. The FCA’s final BTS and related changes also streamline notification documentation and processes, including reducing supplementary evidence requirements and allowing existing margin exemptions to cover new transactions without re-notification where the applicable conditions are met. Exemptions that were effective immediately before 1 January 2027, including TIGER exemptions, continue under the transitional provisions without re-application or re-notification, subject to the relevant conditions. Notifications submitted from 1 January 2027 must use the new Connect process; the FCA has also confirmed revocation of certain intragroup EMIR Q&As.

UK investment firms and banks entering into OTC derivatives with group entities outside the UK UK financial counterparties and non-financial counterparties subject to UK EMIR clearing or bilateral-margin requirements Overseas group entities relying on UK counterparties to obtain intragroup clearing or margin exemptions UK counterparties currently relying on Temporary Intragroup Exemption Regime exemptions Industry associations, law firms and consultants supporting UK EMIR compliance

What should firms consider doing?

Firms should inventory all existing UK EMIR intragroup clearing and margin exemptions, identify whether each exemption remains effective immediately before 2027-01-01, and retain evidence that the Article 3 group, consolidation and centralised risk-control conditions remain satisfied. Firms currently relying on TIGER should assess the transitional conditions and document the basis on which each exemption will continue after 2026-12-31; firms should not assume that grandfathering expands the scope of an existing exemption. Counterparties seeking a new exemption before 2027-01-01 should consider submitting a complete notification under the current process before 2026-12-05 so that the FCA can process it before the temporary regime expires. Firms expecting to submit a notification between 2026-12-05 and 2026-12-31 should contact the FCA promptly regarding transition arrangements, particularly where the notification may not be processed before year-end. From 2027-01-01, firms seeking exemptions for UK-to-overseas or overseas-to-overseas intragroup transactions should use the new Connect notification process and allow for the FCA’s 30-calendar-day objection period, calculated from receipt of a complete notification. Compliance teams may wish to update policies, notification templates, controls and legal opinions to reflect the removal of the equivalence prerequisite, the material-impediment test for margin exemptions, the removal of public disclosure, and the revised evidence requirements. Firms should review existing public disclosures and websites for margin-exemption information and consider whether information made unnecessary by the new regime should be removed or retained for audit-trail purposes. Derivatives, legal and operations teams should reconcile the final FCA BTS with the Treasury SI and identify any changes to transaction documentation, exemption registers, counterparty representations and regulatory reporting procedures.

🇬🇧 FCA Policy Statement high

PS26/21: Streamlining the UK EMIR Intragroup Regime

Published 3 November 2026 | UK

AI Analysis

The FCA has finalised Binding Technical Standards and EMIR Q&As implementing HM Treasury’s permanent reform of the UK EMIR intragroup exemption regime. From 1 January 2027, qualifying intragroup OTC derivative transactions may benefit from clearing and bilateral-margin exemptions without relying on third-country equivalence, while the notification process changes from FCA approval to notification with a 30-calendar-day non-objection period for relevant overseas transactions.

Key dates

2025-11-05: FCA consultation CP25/30 opened on streamlining the UK EMIR intragroup regime.
2026-01-16: FCA consultation closed.
2026-10-21: HM Treasury made the Over-the-Counter Derivatives (Intragroup Transactions) Regulations 2026 (SI 2026/1117).
2026-11-02: FCA published PS26/21, final BTS and related EMIR Q&A changes.
2026-12-05 Deadline: FCA-recommended date by which firms seeking new exemptions under the current regime should submit complete notifications to support processing before transition.
2026-12-31 Deadline: Temporary Intragroup Exemption Regime expires.
2027-01-01 Deadline: The permanent streamlined intragroup regime takes effect; new notifications must use the Connect process and relevant overseas exemptions operate subject to the 30-calendar-day FCA non-objection period.

Suggested considerations

Firms should inventory all existing UK EMIR intragroup clearing and margin exemptions, identify whether each exemption remains effective immediately before 2027-01-01, and retain evidence that the Article 3 group, consolidation and centralised risk-control conditions remain satisfied.
Firms currently relying on TIGER should assess the transitional conditions and document the basis on which each exemption will continue after 2026-12-31; firms should not assume that grandfathering expands the scope of an existing exemption.
Counterparties seeking a new exemption before 2027-01-01 should consider submitting a complete notification under the current process before 2026-12-05 so that the FCA can process it before the temporary regime expires.
Firms expecting to submit a notification between 2026-12-05 and 2026-12-31 should contact the FCA promptly regarding transition arrangements, particularly where the notification may not be processed before year-end.
From 2027-01-01, firms seeking exemptions for UK-to-overseas or overseas-to-overseas intragroup transactions should use the new Connect notification process and allow for the FCA’s 30-calendar-day objection period, calculated from receipt of a complete notification.
Compliance teams may wish to update policies, notification templates, controls and legal opinions to reflect the removal of the equivalence prerequisite, the material-impediment test for margin exemptions, the removal of public disclosure, and the revised evidence requirements.
Firms should review existing public disclosures and websites for margin-exemption information and consider whether information made unnecessary by the new regime should be removed or retained for audit-trail purposes.
Derivatives, legal and operations teams should reconcile the final FCA BTS with the Treasury SI and identify any changes to transaction documentation, exemption registers, counterparty representations and regulatory reporting procedures.

What changed

The Over-the-Counter Derivatives (Intragroup Transactions) Regulations 2026 (SI 2026/1117), made on 21 October 2026, amend Article 3 of UK EMIR so that an intragroup transaction may involve entities in any jurisdiction, provided both counterparties are in the same group, included in the same consolidation on a full basis, and subject to appropriate centralised risk evaluation, measurement and control procedures. The reform removes the dependence of permanent intragroup exemptions on an Article 13 UK EMIR equivalence decision. For transactions between a UK entity and an overseas group entity, or between two overseas group entities, counterparties must notify the FCA and may use the relevant clearing or margin exemption if the FCA does not object within 30 calendar days after receiving a com

Compliance impact

The change is materially beneficial for firms with cross-border intragroup derivatives because it removes equivalence dependence, shortens the FCA process from an approval period of up to three months to a 30-day non-objection period, and provides continuity for existing TIGER exemptions. Compliance risk remains significant because an exemption depends on complete notification, continuing group an

Who is affected

UK investment firms and banks entering into OTC derivatives with group entities outside the UK
UK financial counterparties and non-financial counterparties subject to UK EMIR clearing or bilateral-margin requirements
Overseas group entities relying on UK counterparties to obtain intragroup clearing or margin exemptions
UK counterparties currently relying on Temporary Intragroup Exemption Regime exemptions
Industry associations, law firms and consultants supporting UK EMIR compliance

UK EMIR (Regulation (EU) No 648/2012 as it forms part of assimilated UK law)
The Over-the-Counter Derivatives (Intragroup Transactions) Regulations 2026 (SI 2026/1117)
The Over-the-Counter Derivatives, Central Counterparties and Trade Repositories (Amendment, etc., and Transitional Provision) (EU Exit) Regulations 2019 (SI 2019/335)
Financial Services and Markets Act 2023
UK EMIR Binding Technical Standards on OTC derivatives, central counterparties and trade repositories

References

AI-generated analysis. May contain errors or omissions — verify with the original FCA source before acting. Full disclaimer.

What the FCA said

Our final Binding Technical Standards and EMIR questions and answers implementing the Treasury’s reform to intragroup transactions, alongside changes to reduce burdens on counterparties. ... Read PS26/21What we are changingOn 21 October 2026, the Treasury published the Over-the-Counter Derivatives (Intragroup…

Extract from FCA . Read the full notice at the source for the authoritative text.

Sectors

Capital Markets & Trading Banking & Credit

Topics

Reporting & Disclosure Prudential / Capital Requirements General

Relevant Firm Types

BankBroker DealerHedge FundAsset Manager

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AI Analysis

Key dates

Suggested considerations

What changed

Compliance impact

Who is affected

Related regulations

References

What the FCA said

Sectors

Topics

Relevant Firm Types

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