PART 3Amendment of subordinate legislation

Amendments to the Uncertificated Securities Regulations 2001I14

1

The Uncertificated Securities Regulations 2001 M1 are amended as follows.

2

In regulation 3(1) (interpretation)—

a

in the appropriate place insert—

“CSD regulation” means Regulation (EU) No 909/2014 of the European Parliament and of the Council of 23 July 2014 on improving securities settlement in the European Union and on central securities depositories;

b

for the definition of “Operator”M2 substitute—

“Operator” means a person operating or proposing to operate a relevant system subject to these Regulations, who is—

a

a recognised CSD within the meaning of section 285(1)(e) of the 2000 Act M3,

b

an EEA CSD within the meaning of section 285(1)(f) of the 2000 Act, or

c

a third country CSD within the meaning of section 285(1)(g) of the 2000 Act;

c

in the definition of “settlement”M4, omit “except in paragraph 28 of Schedule 1,”.

3

Omit regulation 4 M5 (applications for approval).

4

For regulation 5 M6 (grant and refusal of approval) substitute—

Operating conditions for relevant system5

Schedule 1 M7 contains the requirements which must be satisfied with respect to the Operator, the Operator's rules and practices and the relevant system.

5

In regulation 6 M8 (fees charged by the Bank of England)—

a

omit paragraph (1);

b

omit sub-paragraph (a) of paragraph (3).

6

Omit regulation 7 M9 (withdrawal of approval).

7

Omit regulation 12 M10 (international obligations).

8

Omit regulation 13 M11 (prevention of excessive regulatory provision).

9

In Schedule 1 (requirements for approval of a person as Operator)—

a

for the heading substitute “ Requirements for operation of a relevant system ”;

b

omit paragraphs 1 to 4;

c

in paragraph 5—

i

for sub-paragraph (1) substitute—

1

A relevant system must satisfy the requirements of sub-paragraphs (3) to (6).

ii

omit sub-paragraph (2);

iii

in sub-paragraph (3)—

aa

for paragraph (a) substitute—

a

in accordance with the specifications of the Operator, and those specifications shall provide that each dematerialised instruction is identifiable as being from the computers of the Operator or of a particular system-participant; or

bb

in paragraph (b) omit “and” at the end of sub-paragraph (i) and omit sub-paragraph (ii);

iv

in sub-paragraph (7), in the definition of “depositary” after “ “depositary” means” insert “ a CSD within the meaning of the CSD regulation or ”;

d

omit paragraphs 6 to 8;

e

omit paragraphs 10 and 11;

f

omit paragraphs 23 and 24;

g

omit paragraph 25(a) and (d);

h

omit paragraphs 27 and 28.

10

Omit Schedule 2 (prevention of excessive regulatory provision).

11

In Schedule 3 M12 (procedure for refusal or withdrawal of approval as Operator, or for giving directions etc.)—

a

for the heading substitute “ Procedure for giving directions ”;

b

in paragraph 1 omit sub-paragraphs (a) and (b);

c

in paragraph 2(a) omit “refuse the application, withdraw the approval or”;

d

in paragraph 5 omit “refuse the application, withdraw the approval, or”;

e

in paragraph 6(1)—

i

omit sub-paragraphs (a) and (b);

ii

after “decision” insert “ and the reasons for its decision ”;

f

after paragraph 6 insert—

9

If the Bank of England decides to give the direction, the Operator may refer the matter to the Upper Tribunal.

10

Part 9 of the 2000 Act (hearings and appeals) applies to a reference to the Upper Tribunal under paragraph 9 as it applies to a reference to the Upper Tribunal under the 2000 Act, with the following modifications—

a

a reference is a “disciplinary reference” for the purposes of section 133 of the 2000 Act M13 if it is in respect of a decision to give a direction under this Schedule;

b

section 133(1)(a) and (c) of the 2000 Act does not apply.

g

omit paragraphs 7 and 8.