UK Offence Report

The Central Securities Depositories Regulations 2017

UK Statutory Instrument 2017 No. 1064 — creates 5 criminal offences.

5offences created
0recorded in force
0revoked
Made
6 November 2017
In force from
28 November 2017
Extent
Not stated
Subject
Corporate, financial services, company law, employment, charity, electoral and tax
Made under
European Communities Act 1972, Financial Services and Markets Act 2000

Explanatory note

(This note is not part of the Regulations) — published with the instrument by the department that made it. © Crown copyright, reused under the Open Government Licence v3.0.

These Regulations implement in part certain Articles of Regulation (EU) No 909/2014 of the European Parliament and of the Council of 23 July 2014 on improving securities settlement in the European Union and on central securities depositories (“CSDs”) (OJ No L257, 28.8.2014, p1) (“the CSD regulation”). Part 2 amends Part 18 of the Financial Services and Markets Act 2000 (recognised investment exchanges and clearing houses) (“the Act”) (c.8) in order to implement the CSD regulation. Part 18 of the Act does not currently make explicit provision for CSDs, although they may be recognised clearing houses. Part 2 makes provision for Part 18 of the Act to apply to recognised CSDs as a new category of recognised body. Recognised bodies are exempt from the general prohibition in section 19 of the Act. Part 2 also provides for EEA CSDs and third country CSDs to be exempt from the general prohibition. Provisions of Part 18 are applied in relation to recognised CSDs (and in some cases, EEA CSDs) with modifications for consistency with the CSD regulation, including— powers of the Bank of England (the “Bank”) to make, vary and revoke recognition orders; the recognition requirements for recognised bodies; the Bank’s information gathering and investigations powers; the Bank’s power to make rules; the Bank’s power to charge fees; the Bank’s powers to give directions to recognised bodies, impose financial penalties and of public censure. Part 2 also makes consequential amendments to other provisions of the Act. Part 3 amends Part 7 of the Companies Act 1989 (c.40) (financial markets and insolvency) to apply that Part in relation to recognised CSDs in a similar way to the way in which it applies in relation to recognised clearing houses. Part 4 amends the Financial Services and Markets Act 2000 (Recognition Requirements for Investment Exchanges and Clearing Houses) Regulations 2001 (S.I. 2001/995). The requirements relating to clearing houses in Part 3 of the Schedule to those Regulations will no longer apply to CSDs, and a new Part 7 is inserted which provides that requirements of the CSD regulation must be met in order for a CSD to obtain and retain recognition. Part 5 amends the Central Securities Depositories Regulations 2014 (S.I. 2014/2879). The amendments include— designating the FCA as competent authority for the supervision of investment firms and participants in securities settlement systems for the purposes of the CSD regulation and the Bank as competent authority for the supervision of central counterparties for the purposes of that Regulation; providing the Bank with power to obtain information from settlement internalisers, and to impose penalties and publish statements of censure if settlement internalisers contravene Article 9 of the CSD regulation; providing the Bank with enforcement powers in relation to the requirements in Article 27(7) and (8) of the CSD regulation (control over a CSD); providing for reference to be made to the Upper Tribunal in respect of FCA and Bank decisions under the CSD regulation. Part 6 contains saving and transitional provisions. The Schedule makes consequential amendments to other primary and secondary legislation. An impact assessment has not been produced for this instrument as no significant impact on the costs of business or the voluntary sector is foreseen.

Offences created by this instrument

What Parliament said about it

Contributions, debates and written statements mentioning this instrument by name. Parliamentary material is reused under the Open Parliament Licence v3.0.

How Parliament handled it

This instrument became law without a debate or a vote. Under the negative procedure it took effect unless a motion to stop it succeeded, and none was tabled.

Procedure
Made negative — law unless a motion to stop it succeeded
Could either House amend it?
No. A statutory instrument is put to each House as a whole thing, to be approved or not. Neither House can change a word of it.

Procedural history

From Parliament's Statutory Instruments service. Parliamentary material is reused under the Open Parliament Licence v3.0.

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