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Are there transitional rules or grandfathering provisions and when do institutions need to comply?
Executive summary
Regulatory changes across jurisdictions often include explicit transitional or grandfathering provisions, but the presence and length vary by rule and regulator — examples in these results include a two‑year transitional period for parts of the EU Data Act (effective for new contracts after 12 Sep 2025, with certain pre‑existing agreements covered during a two‑year transition) [1], and an SEC exemptive order that pushed some Regulation NMS compliance dates out to late 2026 or early 2026 [2]. Other rules expressly provide a fixed compliance window (EPA’s TSCA laboratory deadlines run into 2026–2027) [3]; some UK changes to immigration rules appear to have little or no transitional protection for pending applications [4].
1. Transitional rules are common but not uniform — timing and scope matter
Regulators routinely use transitional provisions to avoid operational disruption and give entities time to adapt; the EU Data Act is explicit that rules apply to new contracts from 12 September 2025 and — “subject to a two‑year transitional period” — to certain pre‑existing agreements [1]. By contrast the SEC used temporary exemptive relief to defer compliance dates for key parts of Regulation NMS — moving some requirements to the first business day of November 2026 and others into February 2026 — illustrating that regulators may delay enforcement deadlines when market functioning or litigation creates risk [2].
2. Grandfathering can be narrow and rule‑specific — read the fine print
“Grandfathering” is not a single concept: it can mean protection for applications or contracts submitted before a cutoff, phased compliance for different-sized entities, or extended implementation windows for particular activities. For example, UK immigration changes published in autumn 2025 reportedly contain “no transitional provisions for pending applications” generally, though one commentary notes an exception for Appendix FM family/private life applications submitted on or before 10 November 2025 to be assessed under prior rules [4]. That contrast shows how a single policy package can mix immediate application and narrow carve‑outs [4].
3. Phased approaches by size or function are common in financial and supervisory rules
Supervisory regimes frequently stagger compliance by institution type or volume. Guidance for banks and lenders sets tiered dates — Tier 1 through Tier 3 — with different effective dates and first‑filing deadlines, and allows institutions to choose different reference years to determine tiering [5]. The European Central Bank’s rollout for reporting and oversight commitments is phased from 31 December 2025 through 31 December 2028, making clear that transition periods can be multi‑year and tied to supervisory capacity [6].
4. Compliance date extensions often respond to practical constraints or litigation
When implementation creates risk of market disruption or litigation is pending, agencies may issue exemptive orders or final rules extending dates. The SEC expressly linked its exemptive order to judicial proceedings and a lapse in appropriations, giving markets clarity by postponing compliance for major Regulation NMS provisions [2]. Similarly, EPA extended compliance dates for laboratory activities under TSCA to avoid disrupting cleanup, university, and law‑enforcement lab functions, setting staggered deadlines into 2026–2027 [3].
5. Dual‑frameworks and transition documents are tools for auditability and planning
Where a major grant or audit regime changes, authorities sometimes publish “dual‑framework” guidance or transition supplements so auditors and recipients can plan. The 2025 OMB Compliance Supplement and related commentary indicate a bridging approach between “old” and “new” Uniform Guidance rules and advise that single audits may need the final supplement before reports can be finalized — effectively creating a planning transition even if formal compliance dates are unresolved [7] [8].
6. What institutions should do now — practical steps
Because the shape and duration of transitional relief vary across rules, institutions must: 1) identify the regime and exact text of compliance dates; 2) check whether transitional provisions or exemptive orders apply to their submissions, tiers, or contract vintage (examples include contract cutoffs in the Data Act and staggered tiers for lending rules) [1] [5]; and 3) monitor agency orders and Federal Register notices for extensions or specific deadlines (the SEC and EPA decisions show agencies will and do issue such orders) [2] [3]. Available sources do not mention every jurisdiction or rule you might be asking about — seek the specific regulation’s text or a qualified adviser for rule‑by‑rule application.
Limitations: this synopsis relies on sample items in the provided results rather than an exhaustive review; the cited pieces illustrate common patterns (phased compliance, carve‑outs, extensions) but do not cover all sectors or every regulator [1] [2] [3] [4] [5] [6] [7] [8].