Textual Amendments
F1Pts. 4-8 and Pt. 9 heading inserted (28.11.2017) by The Central Securities Depositories Regulations 2017 (S.I. 2017/1064), regs. 1, 5(9) (with regs. 7(4), 9(1))
5I.—(1) The Bank may give notice in writing (a “restriction notice”) to a person (“P”) in the following circumstances.
(2) The circumstances are that—
(a)P has taken a decision in relation to which P is required to give the Bank an Article 27 notice; and
(b)P has made the acquisition—
(i)without giving the Article 27 notice,
(ii)before the expiry date of the assessment period (unless the Bank has approved the acquisition), or
(iii)in contravention of the Bank’s decision under Article 27(8) of the CSD regulation.
(3) In a restriction notice, the Bank may direct that shares or voting power to which the notice relates are, until further notice, subject to one or more of the following restrictions—
(a)except by court order, an agreement to transfer or a transfer of any such shares or voting power or, in the case of unissued shares, any agreement to transfer or transfer of the right to be issued with them, is void;
(b)no voting power is to be exercisable;
(c)no further shares are to be issued in pursuance of any right of the holder of any such shares or voting power or in pursuance of any offer made to their holder;
(d)except in a liquidation, no payment is to be made of any sums due from the body corporate on any such shares, whether in respect of capital or otherwise.
(4) A restriction notice takes effect—
(a)immediately; or
(b)on such date as may be specified in the notice.
(5) A restriction notice does not extinguish rights which would be enjoyable but for the notice.
(6) A copy of the restriction notice must be given to—
(a)the recognised CSD in question; and
(b)in the case of shares or voting power held in a parent undertaking of a recognised CSD, the parent undertaking.
(7) A person to whom the Bank gives a restriction notice may refer the matter to the Tribunal.
(8) Part 9 of the Act (hearings and appeals) applies to references to the Tribunal under this regulation as it applies to references to the Tribunal under the Act.]