PART 6Special administration for operators of certain infrastructure systems

Introductory

I2111Financial market infrastructure administration

This Part—

a

provides for a procedure to be known as FMI administration, F11...

b

restricts the powers of persons other than the Bank of England in relation to the insolvency of infrastructure companies, F12and

c

confers power on the Bank of England to participate in proceedings under Part 26A of the Companies Act 2006 (arrangements and reconstructions: companies in financial difficulty).

I1112Interpretation: infrastructure companies

1

In this Part “infrastructure company” has the meaning given by this section.

2

“Infrastructure company” means a company which is—

a

the operator of a recognised F1... payment system, other than an operator excluded by subsection (3),

F8b

a recognised CSD F10..., or

c

a company designated by the Treasury under subsection (4).

3

But a company is not an infrastructure company if it is a recognised central counterparty, as defined by section 285 of FSMA 2000.

4

The Treasury may by order designate a company for the purposes of subsection (2)(c) if—

a

the company provides services to a person falling within subsection (2)(a) or (b), and

b

the Treasury are satisfied that an interruption in the provision of those services would have a serious adverse effect on the effective operation of the recognised F2... payment system or securities settlement system in question.

5

An order under subsection (4) must specify the recognised F3... payment system or securities settlement system in connection with which the company is designated.

6

Before designating a company under subsection (4), the Treasury must consult—

a

the company to be designated,

b

the person within subsection (2)(a) or (b) to whom the company provides services,

c

the Bank of England,

d

if the company is a PRA-authorised person, the PRA and the FCA, and

e

if the company is an authorised person other than a PRA-authorised person, the FCA.

I3113Interpretation: other expressions

1

In this Part—

  • “company” means a company registered under the Companies Act 2006;

  • “operator”, in relation to a recognised F4... payment system, is to be read in accordance with section 183 of the Banking Act 2009;

  • F9“recognised CSD” has the meaning given by section 285 of FSMA 2000;

  • “recognised F5... payment system” means F6a payment system, as defined by section 182 of the Banking Act 2009, in respect of which a recognition order under section 184 of that Act is in force;

  • “the relevant system” means—

    1. a

      in relation to an infrastructure company falling within subsection (2)(a) of section 112, the recognised F7... payment system,

    2. b

      in relation to an infrastructure company falling within subsection (2)(b) of that section, the securities settlement system,

    3. c

      in relation to a company designated under subsection (4) of that section, the recognised F7... payment system or securities settlement system falling within paragraph (b) of that subsection;

  • “securities settlement system” means a computer-based system, and procedures, which enable title to units of a security to be evidenced and transferred without a written instrument, and which facilitate supplementary and incidental matters.

2

Expressions used in the definition of “securities settlement system” in subsection (1) are to be read in accordance with section 783 of the Companies Act 2006.