The Uncertificated Securities Regulations 2001

25.  An Operator’s rules and practices—

(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 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).