SCHEDULES

SCHEDULE 11Central counterparties

PART 4Removal of directors and senior managers

6Temporary manager

1

If the Bank is satisfied that the conditions in paragraph 7(1), (2) and (4) are met in relation to a CCP, the Bank may appoint a person to act (or more than one persons to act jointly) as a temporary manager of that CCP.

2

A temporary manager may be appointed under sub-paragraph (1)

a

to replace the directors of a CCP where they have been removed in compliance with a requirement imposed under paragraph 5, or

b

to work with the directors of a CCP.

3

A temporary manager has the functions specified in the instrument of appointment (see paragraph 9).

4

The functions which may be specified include (amongst other things)—

a

ascertaining the financial position of the CCP;

b

managing the business or part of the business of the CCP in order to preserve or restore the financial position of the CCP;

c

taking measures to restore the prudent management of the CCP;

d

any functions of the directors.

5

The temporary manager may, with the consent of the Bank—

a

require the directors to call a general meeting of the shareholders, or in the case of an unincorporated association, the members of the CCP, or

b

in the case where all of the directors have been removed in compliance with a requirement imposed under paragraph 5, call a general meeting of the shareholders of the CCP or, if the CCP is an unincorporated association, the members of the CCP.

6

The temporary manager may propose business for consideration at the general meeting.

7

If the temporary manager is being appointed to work with the directors, the Bank—

a

may require the directors not to exercise specified functions during the period of appointment;

b

may require the directors to consult the temporary manager, or obtain the consent of the temporary manager, before taking such decisions or actions as may be specified in the requirement.