The Uncertificated Securities (Amendment and EU Exit) Regulations 2019

Amendments to the Uncertificated Securities Regulations 2001 U.K.

4.—(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 system

5.   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.

Commencement Information

I1 Reg. 4 in force at 27.3.2019, see reg. 1(2)

Marginal Citations

M1 S.I. 2001/3755.

M2 The definition of “Operator” was amended by S.I. 2013/632.

M3 2000 c.8; paragraphs (e) to (g) of section 285(1) were inserted by S.I. 2017/1064.

M4 The definition of “settlement” was amended by S.I. 2007/124.

M5 Regulation 4 was amended by S.I. 2013/632.

M6 Regulation 5 was amended by S.I. 2013/632.

M7 Schedule 1 was amended by S.I. 2003/1633, 2007/124, 2013/472, 2013/504, 2013/632, 2013/3115 and 2017/701.

M8 Regulation 6 was amended by S.I. 2013/632.

M9 Regulation 7 was amended by S.I. 2001/3755 and 2013/632.

M10 Regulation 12 was amended by S.I. 2011/1043 and 2013/632.

M11 Regulation 13 was amended, and Schedule 2 was substituted, by S.I. 2013/632.

M12 Schedule 3 was amended by S.I. 2013/632.

M13 Section 133 was substituted by S.I. 2010/22 and amended by section 23 of the Financial Services Act 2012, paragraph 83 in Part 3 of Schedule 9 to the Crime and Courts Act 2013 (c.22), section 4 of the Financial Services (Banking Reform) Act 2013 and S.I. 2013/1388, 2014/3329, 2016/680 and 2017/1064.