C1 Part XVIIIF1Recognised investment exchanges, clearing houses F3, CSDs and other parties
Words in Pt. 18 heading substituted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), ss. 18(2), 86(3); S.I. 2023/779, reg. 4(m)
Pt. 18 applied in part (with modifications) (12.12.2011) by The Recognised Auction Platforms Regulations 2011 (S.I. 2011/2699), reg. 7, Sch. 2 (as amended (28.11.2017) by The Central Securities Depositories Regulations 2017 (S.I. 2017/1064), reg. 1, Sch. para. 37 (with regs. 7(4), 9(1)))
F2CHAPTER 2APerformance of functions of recognised bodies
Pt. 18 Ch. 2A inserted (29.6.2023 for specified purposes) by Financial Services and Markets Act 2023 (c. 29), s. 86(1)(e), Sch. 10 para. 1
Certification of employees
309YCertification of employees by relevant recognised bodies
1
A relevant recognised body must take reasonable care to ensure that none of its employees performs a specified function in relation to the carrying on of an activity by the body, unless the employee has a valid certificate issued by the body under section 309Z.
2
Subsection (1) applies only in relation to a function performed under an arrangement entered into by the body.
3
In this section, “specified function” means a function of a description specified in rules made by the appropriate regulator.
4
The appropriate regulator may specify a description of function under subsection (3) only if, in relation to the carrying on of an activity by a relevant recognised body of a particular description—
a
the function is not a designated senior management function in relation to the carrying on of that activity by a relevant recognised body of that description, and
b
the appropriate regulator is satisfied that the function is a significant-harm function.
5
A function is a “significant-harm function”, in relation to the carrying on of an activity by a relevant recognised body, if—
a
the function will require the person performing it to be involved in one or more aspects of the body’s affairs, so far as relating to the activity, and
b
those aspects involve, or might involve, a risk of significant harm to the body or to any of its consumers.
6
In this section, “consumers”, in relation to a relevant recognised body, means—
a
persons who use, have used or may use a service provided by the body, or
b
persons who have relevant rights or interests in relation to any such service.
7
A person (“P”) has a “relevant right or interest” in relation to a service provided by a relevant recognised body if P has a right or interest—
a
which is derived from, or is otherwise attributable to, the use of the service by others, or
b
which may be adversely affected by the use of the service by persons acting on P’s behalf or in a fiduciary capacity in relation to P.
8
For these purposes—
a
if a person is providing a service as a trustee, the persons who are, have been or may be beneficiaries of the trust are to be treated as persons who use, have used or may use the service;
b
a person who deals with another person (“A”) in the course of A providing a service is to be treated as using the service.
Pt. 18 heading substituted (28.11.2017) by The Central Securities Depositories Regulations 2017 (S.I. 2017/1064), regs. 1, 2(8) (with regs. 7(4), 9(1))