PART 6Special administration for operators of certain infrastructure systems

Introductory

I2111Financial market F13and cash 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),

F15aa

a recognised DSA service provider,

F8b

a recognised CSD F10..., F18...

F16ba

a person recognised for the purposes of Part 5A of the Banking Act 2009 (wholesale cash distribution) as having systemic significance, 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 F19(2)(a), (b) or (ba), 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 F17or, in the case of a person falling within subsection (2)(ba), a relevant function.

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 F20(2)(a), (b) or (ba) 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.

F147

In subsection (4)(b), “relevant function” means a function performed by the person in relation to wholesale cash distribution.

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;

  • F21“recognised DSA service provider” means a DSA service provider, as defined by section 182(5A) of the Banking Act 2009, in respect of which a recognition order under section 184A of that Act is in force;

  • “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. ba

      F22in relation to an infrastructure company falling within subsection (2)(ba) of that section, any system used by the company to facilitate or control wholesale cash distribution,

    4. 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.

  • F23“wholesale cash distribution” and “wholesale cash distribution activities” have the meanings given by section 206E of the Banking Act 2009.

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.