HM Treasury has made the Financial Services (Overseas Recognition Regime Designations) Regulations 2025 (S.I. 2025/1147) under sections 4, 84(2) and 86(5) of the Financial Services and Markets Act 2023. Approved by both Houses, the instrument was made on 30 October 2025 and comes into force on 28 November 2025 across the United Kingdom.
The Regulations establish the framework for 'overseas recognition regime designations'-Treasury decisions that another country or territory’s law and practice are equivalent, or of equivalent effect taken as a whole, to the UK in a relevant area of financial services or markets law.
For these purposes, 'territory' includes the European Union and any other international organisation or authority comprising countries or territories. This makes clear that designations may refer to supranational regimes as well as individual jurisdictions.
Where a designation power exists, the Treasury may revoke or vary an existing designation and may impose conditions or limitations on how it applies, unless a contrary intention appears in the relevant enactment. This provides flexibility to tailor the scope of recognition.
To inform decisions on whether to make, amend or revoke a designation, the Treasury may require information or advice from regulators by written notice that specifies what is sought and sets a reasonable period for response. The FCA, the PRA and the Bank of England may also provide information or advice proactively.
Co-ordination duties are formalised. The Treasury, FCA, PRA and Bank of England must co-ordinate their respective functions on designations and information flows, and must prepare and maintain a memorandum describing, in general terms, how they will exercise those functions. The Treasury must lay the memorandum before Parliament and publish it.
Confidential information received by the Bank of England for these purposes is brought within the Financial Services and Markets Act 2000 regime. Sections 348 to 350 and 352 apply with modifications so the Bank may disclose confidential information to the Treasury and receive and disclose information to discharge functions under regulation 4.
Terminology in prudential insurance rules is adjusted. In the Insurance and Reinsurance Undertakings (Prudential Requirements) Regulations 2023, regulation 10 is amended so that the definition of 'overseas jurisdiction' no longer includes the words 'or Gibraltar'.
Short selling provisions are also aligned. In the Short Selling Regulations 2025, regulation 3(1) now refers to a 'territory outside' the UK, and 'territory' is defined to include the European Union and any other international organisation or authority comprising countries or territories.
The Schedule lists the designation powers to which the regime applies, including regulation 11 of the 2023 insurance prudential regulations and regulation 11(1) of the 2025 short selling regulations. The definition also captures any other enactment that provides for equivalence or equivalent effect across financial services matters.
The Regulations restate, with modifications, provisions previously contained in the Equivalence Determinations for Financial Services and Miscellaneous Provisions (Amendment etc) (EU Exit) Regulations 2019, which were revoked by the Financial Services and Markets Act 2023. The Government has not produced a full impact assessment, stating no, or no significant, impact is foreseen.
For firms and overseas authorities, the immediate implications are procedural. From 28 November 2025, designations may be made, conditioned, varied or revoked under a consistent cross‑regime process, with transparency provided through the memorandum to be laid before Parliament and subsequent Treasury notices.