I thank the Minister for introducing this statutory instrument but I repeat my concern that we are considering such instruments at all. I and my party feel that the Government should have given a commitment that we would not have a no-deal exit; day by day, there is growing evidence that such an exit will be disastrous for our country. I will say no more on that but try to process these SIs on their merits against—how shall I put it?—the strict limitation that we are assuming a no-deal situation and recognising that things have to be done to achieve that.
The Treasury, I assume to be consistent, has reproduced the same eight paragraphs in all the Explanatory Memorandums. Paragraph 7.4, which I will repeat, says:
“These SIs are not intended to make policy changes, other than to reflect the UK’s new position outside the EU, and to smooth the transition to this situation”.
It is against that test that I spent my time studying the Explanatory Memorandum. It seems to do all the right things: it creates a new name; it says that passporting dies; and it goes on to offer a temporary permission regime. This regime may last for up to three years, or three years and 12 months, or three years and 24 months, or perhaps for ever. One has to view the SI in the light of that regime.
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The SI goes on to make perfectly reasonable rules about information sharing, which is not mandatory but discretionary to make sure there is a function transfer. This SI suffers from what I would loosely call asymmetry. As I understand the situation under the temporary permission regime, EEA UCITS can be marketed in the UK but there is no reciprocity. UK UCITS have no right to be marketed in the EEA. The justification for that is that if this temporary permission regime were not there the disruption would be negative for customers and for participants in the market. Will the Minister affirm that there is consideration on both sides and that that is why we have chosen not to seek reciprocity in this SI?
In this SI and in all the SIs coming forward we need to discuss what happens if we have a deal. When and how does this SI get repealed?
The Long-term Investments Funds (Amendment) (EU Exit) Regulations seem even less controversial. There seem to be no particular problems or transition problems and they do not create asymmetry.
What comes across with all the SIs is the increased workload for the SCA and other regulatory bodies, the Treasury, the Bank of England and the PRA. Whenever we ask this question, we are assured that these institutions have plans in hand to cope with it. Will the Minister give that assurance again? I understand that these institutions work on a cash-neutral basis—that is, they charge for their services so the industry pays their costs—but there are only so many competent people. Whatever the funding situation, are the Government sure that they have sufficient resource of quality people to allow these agencies and institutions to discharge their duties?