32.—(1) The Financial Markets and Insolvency (Settlement Finality) Regulations 1999(1) are amended as follows.
(2) In regulation 2(2)—
(a)in paragraph (1)—
(i)at the appropriate place insert—
““administration” and “administrator” shall be interpreted in accordance with the modifications made by the enactments mentioned in paragraph (5);”;
(ii)in the definition of “default arrangements”—
(aa)in sub-paragraph (b) omit “or”;
(bb)in sub-paragraph (c) after “the application or transfer of collateral security;” insert “or”; and
(cc)after sub-paragraph (c) insert—
“(d)the transfer of assets or positions on the default of a participant in the system;”;
(iii)in the definition of “winding up”—
(aa)omit sub-paragraph (c); and
(bb)after sub-paragraph (b) insert—
“and shall be interpreted in accordance with the modifications made by the enactments mentioned in paragraph (5); and “liquidator” shall be construed accordingly.”;
(b)in paragraph (2) for sub-paragraph (a) substitute—
“(a)references to the law of insolvency—
(i)include references to every provision made by or under the Bankruptcy (Scotland) Act 1985(3), Part 10 of the Building Societies Act 1986(4), the Insolvency Act 1986(5), the Insolvency (Northern Ireland) Order 1989(6) and in relation to a building society references to insolvency law or to any provision of the Insolvency Act 1986 or the Insolvency (Northern Ireland) Order 1989 are to that law or provision as modified by the Building Societies Act 1986;
(ii)shall also be interpreted in accordance with the modifications made by the enactments mentioned in paragraph (5);”;
(c)after paragraph (4) insert—
“(5) The enactments referred to in the definitions of “administration”, “administrator”, “liquidator” and “winding up” in paragraph (1), and in paragraph (2)(a)(ii), are—
(a)article 3 of, and the Schedule to, the Banking Act 2009 (Parts 2 and 3 Consequential Amendments) Order 2009(7);
(b)article 18 of, and paragraphs (1)(a), (2) and (3) of Schedule 2 to, the Building Societies (Insolvency and Special Administration) Order 2009(8);
(c)regulation 27 of, and Schedule 6 to, the Investment Bank Special Administration Regulations 2011(9).”.
(3) In regulation 6—
(a)in paragraph (1) for “or recognised clearing house” substitute “, recognised clearing house, EEA central counterparty and third country central counterparty”;
(b)after regulation 6(2) insert—
“(3) “EEA central counterparty” and “third country central counterparty” have the meanings given by section 285 of the 2000 Act.”.
(4) In regulation 10—
(a)in paragraph (4) for “fourteen days’” substitute “three months’”;
(b)after paragraph (4) insert—
“(4A) The designating authority may, if it considers it appropriate, agree a shorter period of notice.”.
(5) In regulation 13(4)—
(a)for “include— ” substitute “include winding up and administration.”;
(b)omit sub-paragraphs (a) and (b).
(6) In regulation 20—
(a)in paragraph (1) for “conditions mentioned in paragraph (2)” substitute “conditions mentioned in either paragraph (2) or paragraph (4)”;
(b)in paragraph (2) for “The conditions referred to in paragraph (1)” substitute “The conditions referred to in this paragraph”;
(c)after paragraph (3) insert—
“(4) The conditions referred to in this paragraph are that—
(a)a recognised central counterparty, EEA central counterparty or third country central counterparty is the system operator;
(b)a clearing member of that central counterparty has defaulted; and
(c)the transfer order has been entered into the system pursuant to the provisions of the default rules of the central counterparty that provide for the transfer of the positions or assets of a clearing member on its default.
(5) In paragraph (4)—
(a)“recognised central counterparty”, “EEA central counterparty” and “third country central counterparty” have the meanings given by section 285 of the 2000 Act; and
(b)“clearing member” has the meaning given by section 190(1) of the Companies Act 1989.”.
S.I. 1999/2979; regulation 2(1) was amended by Schedule 1 to the Bankruptcy (Scotland) Act 1993 (c. 6), S.I. 2002/1555, S.I. 2006/50, S.I. 2006/3221, S.I. 2007/108, S.I. 2007/126, S.I. 2010/2993 and by S.I. 2011/99.
Regulation 2(2) was amended by S.I. 2006/50; regulation 6 was amended by S.I. 2002/1555 and by S.I. 2009/1972; regulation 7(2) was amended by S.I. 2002/1555 regulation 10 was amended by S.I. 2002/1555 and S.I. 2010/2993; regulation 13(4) was inserted by S.I. 2010/2993; regulation 20(1) was amended by S.I. 2010/2993.
S.I. 2009/805; paragraph 3 of Schedule 2 was amended by S.I. 2010/1189.