5.—(1) Regulation 2 (interpretation) is amended as follows.
(2) In paragraph (1)—
(a)for the definition of “central bank” substitute—
““central bank” means–
(a)the Bank of England; or
(b)any central bank (or other monetary authority) of a country or territory outside the United Kingdom that is a central bank (or other monetary authority) of an EEA state (including the European Central Bank) or a member of the Bank for International Settlements (including the Bank for International Settlements), as may be notified by the Bank of England to the Treasury from time to time;”;
(b)for the definition of “credit institution” substitute—
““credit institution” means a body corporate or unincorporated association whose head office is in the United Kingdom and whose business is to take deposits or other repayable funds from the public and to grant credits for its own account;”;
(c)for the definition of “designated system” substitute—
““designated system” means—
(a)a system which is declared by a designation order for the time being in force to be a designated system for the purposes of these Regulations; or
(b)a system which has temporary designation in accordance with Part 4 of the Financial Markets and Insolvency (Amendment and Transitional Provision) (EU Exit) Regulations 2019;”;
(d)omit the definition of “ESMA”;
(e)in the definition of “institution”—
(i)for sub-paragraph (aa) substitute—
“(aa)an electronic money institution within the meaning of regulation 2(1) of the Electronic Money Regulations 2011 M1;”;
(ii)in sub-paragraph (ab) omit “, or a person whose head office, registered office or place of residence, as the case may be, is outside the United Kingdom and whose functions correspond to those of such an institution”;
(iii)for paragraph (b) substitute—
“(b)an investment firm as defined in Article 2.1A of Regulation (EU) No. 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Regulation (EU) No 648/2012;”;
(iv)for sub-paragraph (d), substitute—
“(d)any undertaking whose head office, registered office or place of residence is outside the United Kingdom and whose functions correspond to those of a credit institution, an electronic money institution, an authorised payment institution, a small payment institution, or an investment firm as defined in sub-paragraphs (a), (aa), (ab), and (b) respectively above; or”;
(f)for the definition of “securities” substitute—
““securities” means (except for the purposes of the definition of “charge”) any instruments referred to in Part 1 of Schedule 2 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 M2;”;
(g)in the appropriate place, insert new definitions as follows—
““insolvency proceedings” means any collective measure provided for in the law applicable within the United Kingdom or any part of the United Kingdom, or a third country, either to wind up the participant or to reorganise it, where such measure involves the suspending of, or imposing limitations on, transfers or payments;”;
““system” means a formal arrangement—
(a)between two or more participants, without counting a settlement agent, a central counterparty, a clearing house or an indirect participant, with common rules and standardised arrangements for the clearing, whether or not through a central counterparty, or execution of transfer orders between the participants; and
(b)governed by the law of a country or territory chosen by the participants; the participants may, however, only choose the law of a country or territory in which at least one of them has its head office;”;
““third country” means a country or territory other than the United Kingdom;”.
(3) In paragraph (2A) M3—
(a)omit “under the recovery and resolution directive”;
(b)in sub-paragraph (a) for the words “a contract to which that undertaking is a party” substitute “the rules of the system in which the undertaking is a participant”.
[F1(c)in sub-paragraph (b), for the word “contract” substitute “rules”.]
(4) In paragraph (2B) M4, omit sub-paragraph (b).
(5) Omit paragraph (3).
(6) In paragraph (5), insert a sub-paragraph (d) as follows—
“(d)section 121 of, and Schedule 6 to, the Financial Services (Banking Reform) Act 2013 M5.”.
(7) Insert a new paragraph (6) as follows—
“(6) For the purposes of these Regulations—
(a)a reference to a system governed by the law of the United Kingdom is a reference to a system of which the governing law is the law of England and Wales, Northern Ireland, or Scotland;
(b)a reference to a system being designated in Gibraltar means designated under a Gibraltar law corresponding to these Regulations;
(c)a participant is regarded as established in the United Kingdom if its head office, registered office or place of residence is in the United Kingdom or if it has a branch in the United Kingdom (within the meaning of section 1046(3) of the Companies Act 2006) M6.”.
(8) After new paragraph (6) insert—
“(7) For the purposes of sub-paragraph (b) of the definition of “central bank”, the designating authority must publish on its website a list of central banks.”.
Textual Amendments
F1Reg. 5(3)(c) inserted (31.12.2020 immediately before IP completion day) by The Financial Services (Miscellaneous) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/710), regs. 1(2), 20(2); 2020 c. 1, Sch. 5 para. 1(1)
Commencement Information
I1Reg. 5 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)
Marginal Citations
M2S.I. 2001/544. Schedule 2 was substituted by S.I. 2006/3384, Part 2 article 29.
M3Paragraph (2A) was inserted by S.I. 2014/3348.
M4Paragraph (2B) was inserted by S.I. 2014/3348.