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This Part—
(a)provides for a procedure to be known as FMI administration, F2...
(b)restricts the powers of persons other than the Bank of England in relation to the insolvency of infrastructure companies, [F3and
(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).]
Textual Amendments
F1Words in s. 111 heading inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(d), Sch. 9 para. 3
F2Word in s. 111 omitted (26.6.2020) by virtue of Corporate Insolvency and Governance Act 2020 (c. 12), s. 49(1), Sch. 9 para. 49(2)(a) (with ss. 2(2), 5(2))
F3S. 111(c) and word inserted (26.6.2020) by Corporate Insolvency and Governance Act 2020 (c. 12), s. 49(1), Sch. 9 para. 49(2)(b) (with ss. 2(2), 5(2))
Commencement Information
I1S. 111 in force at 13.7.2018 for E.W. by S.I. 2018/848, art. 2(c)
(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 F4... payment system, other than an operator excluded by subsection (3),
[F5(aa)a recognised DSA service provider,]
[F6(b)a recognised CSD F7..., F8...]
[F9(ba)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 [F10(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 F11... payment system or securities settlement system in question [F12or, in the case of a person falling within subsection (2)(ba), a relevant function].
(5)An order under subsection (4) must specify the recognised F13... 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 [F14(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.
[F15(7)In subsection (4)(b), “relevant function” means a function performed by the person in relation to wholesale cash distribution.]
Textual Amendments
F4Word in s. 112(2)(a) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 41
F5S. 112(2)(aa) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 45
F6S. 112(2)(b) substituted (28.11.2017) by The Central Securities Depositories Regulations 2017 (S.I. 2017/1064), reg. 1, Sch. para. 16(3) (with regs. 7(3)(b)(4), 9(1))
F7Words in s. 112(2)(b) omitted (27.3.2019) by virtue of The Uncertificated Securities (Amendment and EU Exit) Regulations 2019 (S.I. 2019/679), regs. 1(2), 3(3) (with regs. 10-12)
F8Word in s. 112(2)(b) omitted (29.8.2023) by virtue of Financial Services and Markets Act 2023 (c. 29), s. 86(2)(d), Sch. 9 para. 4(2)
F9S. 112(2)(ba) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(d), Sch. 9 para. 4(2)
F10Words in s. 112(4)(a) substituted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(d), Sch. 9 para. 4(3)(a)
F11Word in s. 112(4)(b) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 41
F12Words in s. 112(4)(b) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(d), Sch. 9 para. 4(3)(b)
F13Word in s. 112(5) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 41
F14Words in s. 112(6)(b) substituted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(d), Sch. 9 para. 4(4)
F15S. 112(7) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(d), Sch. 9 para. 4(5)
Commencement Information
I2S. 112 in force at 13.7.2018 for E.W. by S.I. 2018/848, art. 2(a)
(1)In this Part—
“company” means a company registered under the Companies Act 2006;
“operator”, in relation to a recognised F16... payment system, is to be read in accordance with section 183 of the Banking Act 2009;
[F17“recognised CSD” has the meaning given by section 285 of FSMA 2000;]
[F18“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 F19... payment system” means [F20a] 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—
in relation to an infrastructure company falling within subsection (2)(a) of section 112, the recognised F21... payment system,
in relation to an infrastructure company falling within subsection (2)(b) of that section, the securities settlement system,
[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,]
in relation to a company designated under subsection (4) of that section, the recognised F21... 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.
Textual Amendments
F16Word in s. 113(1) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 42(a)
F17Words in s. 113(1) inserted (28.11.2017) by The Central Securities Depositories Regulations 2017 (S.I. 2017/1064), reg. 1, Sch. para. 16(4) (with regs. 7(3)(b)(4), 9(1))
F18Words in s. 113(1) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 46
F19Word in s. 113(1) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 42(b)(i)
F20Word in s. 113(1) substituted (27.6.2017) by Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 42(b)(ii)
F21Word in s. 113(1) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 42(c)
F22Words in s. 113(1) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(d), Sch. 9 para. 5(a)
F23Words in s. 113(1) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(d), Sch. 9 para. 5(b)
Commencement Information
I3S. 113 in force at 13.7.2018 for E.W. by S.I. 2018/848, art. 2(c)