25. An Operator’s rules and practices—U.K.
(a)must bind system-members and participating issuers—
(i)so as to ensure the efficient processing of transfers of title to uncertificated units of a security in response to Operator-instructions; and
(ii)as to the action to be taken where transfer of title in response to a system-member instruction or an Operator-instruction cannot be effected;
(b)must make provision as to the manner in which a system-member or the relevant participating issuer may change the form in which that system-member holds units of a participating security (other than a wholly dematerialised security);
(c)must make provision for a participating issuer to cease to participate in respect of a participating security so as—
(i)to minimise so far as practicable any disruption to system-members in respect of their ability to transfer the relevant security; and
(ii)to provide the participating issuer with any relevant information held by the Operator relating to the uncertificated units of the relevant security held by system-members;
(d)must make provision for the orderly termination of participation by system-members and system-participants whose participation is disruptive to other system-members or system-participants or to participating issuers;
(e)must make provision—
(i)as to which of the Operator’s records are to constitute an Operator register of securities in relation to a participating security, or a participating security of a particular kind; and
(ii)as to the times at which, and the manner in which, a participating issuer may inspect an Operator register of securities [F1(other than an Operator register of eligible debt securities)] in accordance with paragraph 12;
(f)if they make provision for the designation of a subsidiary undertaking as a relevant nominee, must require that the relevant nominee maintain adequate records of—
(i)the names of the persons who have an interest in the securities it holds; and
(ii)the nature and extent of their interests; and
(g)must make provision for the authentication by the Operator of any written notification given under regulation 25(3) or 32(2)(c).
Textual Amendments
F1Words in Sch. 1 para. 25(e)(ii) inserted (24.6.2003) by The Uncertificated Securities (Amendment) (Eligible Debt Securities) Regulations 2003 (S.I. 2003/1633), regs. 1(1), 12
Commencement Information
I1Sch. 1 para. 25 in force at 26.11.2001, see reg. 1
26. An Operator’s rules and practices must require—U.K.
(a)that each system-participant is able to send and receive properly authenticated dematerialised instructions;
(b)that each system-member has arrangements—
(i)for properly authenticated dematerialised instructions attributable to him to be sent;
(ii)for properly authenticated dematerialised instructions to be received by or for him; and
(iii)with a settlement bank for payments to be made, where appropriate, for units of a security transferred by means of the relevant system; and
(c)that each participating issuer is able to respond with sufficient speed to Operator-instructions.
Commencement Information
I2Sch. 1 para. 26 in force at 26.11.2001, see reg. 1
27. An Operator must have rules which require system-users and former system-users to provide him with such information in their possession as he may require in order to meet his obligations under these Regulations.U.K.
Commencement Information
I3Sch. 1 para. 27 in force at 26.11.2001, see reg. 1