HM Treasury - Call For Evidence Outcome: Pension Fund Clearing Exemption

In November 2023, HM Treasury published a call for evidence on the exemption which pension funds currently have from the obligation to clear certain derivatives contracts. The call for evidence requested input from industry stakeholders to inform the government’s review of the exemption, which aimed to determine a long-term approach.

The government received 26 responses to the call for evidence. This document provides a breakdown of the key themes raised by respondents. Having analysed the responses to the call for evidence and having engaged with the UK regulatory authorities on the issue, the government has decided that the exemption should be maintained for the longer-term. The government will now take forward legislation to ensure that the exemption does not expire on 18 June 2025 as currently scheduled and to remove any further time limit on the exemption. The government will, however, keep this policy under review in coordination with the UK regulatory authorities.