The Uncertificated Securities Regulations 2001

Regulation 50

SCHEDULE 6 TRANSITORY PROVISIONS

1.  Prior to the day on which section 19 of the 2000 Act comes into force, each provision of these Regulations specified in this Schedule shall have effect modified as provided in this Schedule.

2.  The definition of “securities” in regulation 3(1) shall be modified by the substitution of the words “the 1986 Act” for the words “section 235 of the 2000 Act”.

3.  Regulation 5 shall be modified by the substitution for paragraph (4) of—

“(4) Where the Treasury refuse an application for approval they shall give the applicant a written notice to that effect stating the reasons for the refusal.”.

4.  Regulation 7 shall be modified by—

(a) the insertion in paragraph (2) of the words “subject to paragraph (3)” after the words “they may”; and

(b) the substitution for paragraphs (3) to (6) of—

“(3) Subsections (2) to (7) and (9) of section 11 of the 1986 Act shall apply in relation to the withdrawal by the Treasury of approval from an Operator under paragraph (2) as they apply in relation to the revocation by the Secretary of State of a recognition order under subsection (1) of that section; and in those subsections as they so apply—

(a) any reference to a recognised organisation shall be taken to be a reference to an Operator;

(b) any reference to members of a recognised organisation shall be taken to be a reference to system-users;

(c) any reference to the Secretary of State shall be taken to be a reference to the Treasury;

(d) any reference to an order other than a recognition order shall be taken to be a reference to a written instrument; and

(e) the reference in subsection (6) to the interests of investors shall be taken to be a reference to the interests of system-users.”

5.  Regulation 8 shall be modified by—

(a) the substitution for paragraph (4) of—

“(4) Before giving a direction under paragraph (2)(b) the Treasury shall—

(a) if the circumstances permit, consult the Operator and afford him an opportunity to make representations; and

(b) so far as is practicable to estimate it, have regard to the cost to the Operator of complying with any term of any direction and to the costs to other persons resulting from the Operator’s compliance.”; and

(b) the omission of paragraphs (5) and (7).

6.  In regulation 9—

(a) paragraph (7) shall be modified by the substitution of the words “Subsections (6) and (7) of section 61 of the 1986 Act” for the words “Subsections (3) to (5) and (8) of section 382 of the 2000 Act”;

(b) paragraphs (10) to (12) shall be modified by the substitution of the words “investment business within the meaning of the 1986 Act” for the words from “business of any of the following kinds” in paragraph (10) to the end of paragraph (12).

7.  Regulation 11(1) shall be modified to read—

“(1) If it appears to the Treasury that there is a body corporate—

(a) to which functions have been transferred under section 114 of the 1986 Act; and

(b) which is able and willing to discharge all or any of the functions conferred by this Part of these Regulations,

they may, subject to paragraphs (2) and (5), by instrument in writing delegate all or any of those functions to that body; and a body to which functions are so delegated is referred to in these Regulations as a “designated agency”.”.

8.  In paragraph 5(7) of Schedule 1—

(a) paragraph (a) of the definition of “clearing house” shall be modified by the substitution of the words “for the purposes of the 1986 Act” for the words “within section 285(1)(b) of the 2000 Act”; and

(b) paragraph (a) of the definition of “exchange” shall be modified by the substitution of the words “for the purposes of the 1986 Act” for the words “within section 285(1)(a) of the 2000 Act”.

9.  Schedule 2 shall be modified by—

(a) the substitution for subparagraph (5) in paragraph 1 of—

“(5) Subsections (2) to (5), (7) and (9) of section 11 of the 1986 Act shall apply in relation to the withdrawal of approval under subparagraph (3) as they apply in relation to the revocation by the Secretary of State of a recognition order under subsection (1) of that section; and in those subsections as they so apply—

(a) any reference to a recognised organisation shall be taken to be a reference to an Operator;

(b) any reference to members of a recognised organisation shall be taken to be a reference to system-users;

(c) any reference to the Secretary of State shall be taken to be a reference to the Treasury; and

(d) any reference to an order other than a recognition order shall be taken to be a reference to a written instrument.”;

(b) the omission from paragraph 2 of subparagraph (5); and

(c) the insertion after paragraph 7 of a new paragraph reading—

“8.— (1) Before the Treasury exercise a power under paragraph 1(3)(b) or (c), or their power to refuse leave under paragraph 2(2), or their power to give a direction under paragraph 2(4), in respect of an Operator, they shall—

(a) give written notice of their intention to do so to the Operator and take such steps (whether by publication or otherwise) as they think appropriate for bringing the notice to the attention of any other person who in their opinion is likely to be affected by the exercise of the power; and

(b) have regard to any representation made within such time as they consider reasonable by the Operator or by any such other person.

(2) A notice under subparagraph (1) shall give particulars of the manner in which the Treasury propose to exercise the power in question and state the reasons for which they propose to act; and the statement of reasons may include matters contained in any report received by them under paragraph 3.”.