The Financial Services (Overseas Recognition Regime Designations) Regulations 2025 (the ORR Regulations) have been laid before Parliament, accompanied by an explanatory memorandum. A draft was laid before Parliament in July. The ORR is the UK's regime for providing "recognition" of a regulatory regime in an overseas jurisdiction, allowing cross-border financial services into the UK. It is similar to the EU's equivalence and the U.S.'s comparability regimes. The ORR Regulations, made on 30 October, set out powers and obligations relating to HM Treasury's ORRs, including (i) giving HM Treasury the power to request information and advice from the Bank of England (BoE), the UK Prudential Regulation Authority and the UK Financial Conduct Authority in connection with the ORR; (ii) giving HM Treasury the power to impose conditions on the application of an ORR designation; and (iii) requiring HM Treasury and the UK regulators to co-ordinate the discharge of their respective functions in relation to ORRs. The instrument also amends ORRs that have already been established.
These amendments are intended to ensure there is clarity and uniformity across ORRs, to make the law clearer, and to provide for efficient and effective regulatory arrangements relating to the provision of financial services or the operation of financial markets. The Regulations will enter into force on 28 November.
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