The Central Securities Depositories Regulations 2014

[F1 PART 4 U.K. Powers of the Bank]

Textual Amendments

F1 Pts. 4-8 and Pt. 9 heading inserted (28.11.2017) by The Central Securities Depositories Regulations 2017 (S.I. 2017/1064), regs. 1, 5(9) (with regs. 7(4), 9(1))

[F1 Power of the Bank to require information U.K.

5A.— (1) This regulation applies where it is necessary for the Bank to determine whether—

(a) a settlement internaliser has complied with the first sub-paragraph of Article 9(1) of the CSD regulation or regulation 5N; or

(b) a person is a settlement internaliser.

(2) The Bank may, by giving notice in writing, require a person—

(a) to provide specified information or information of a specified description, or

(b) to provide specified documents or documents of a specified description,

so that it can verify whether the settlement internaliser has complied with the first sub-paragraph of Article 9(1) of the CSD regulation or regulation 5N, or whether the person is a settlement internaliser.

(3) The information or documents must be provided or produced—

(a) before the end of such reasonable period as may be specified; and

(b) at such place as may be specified.

(4) This regulation applies only to information and documents reasonably required in connection with the exercise by the Bank of its functions under the CSD regulation.

(5) The Bank may require any information provided under this regulation to be provided in such a form as it may reasonably require.

(6) The Bank may require—

(a) any information provided, whether in a document or otherwise, to be verified in such a manner, or

(b) any document produced to be authenticated in such a manner,

as it may reasonably require.

(7) A requirement imposed under this regulation is a relevant requirement for the purposes of sections 380 (injunctions) and 382 (restitution orders) of the Act as applied to the Bank by paragraphs 26 and 27 of Schedule 17A to the Act.

(8) In this regulation, “specified” means specified in the notice.]

[F1 Penalties and statements U.K.

5B.— (1) If the Bank considers that—

(a) a person has contravened a relevant requirement imposed on it;

(b) a settlement internaliser has contravened a requirement imposed by or under the CSD regulation; or

(c) a settlement internaliser has contravened regulation 5N,

the Bank may publish a statement to that effect or impose on it a penalty, in respect of the contravention, of such amount as the Bank considers appropriate.

(2) If the Bank considers that a person has in purported compliance with a relevant requirement knowingly or recklessly given the Bank information which is false or misleading in a material particular, the Bank may publish a statement to that effect or impose upon the person a penalty of such amount as it considers appropriate.

(3) Where the Bank has published a statement or imposed a penalty under paragraph (1) or (2), it must comply with the requirements of Article 62 of the CSD regulation.

(4) A penalty under paragraph (1) or (2) is payable to the Bank.

(5) The Bank must in respect of each of its financial years pay to the Treasury any amounts received by it during the year by way of penalties imposed under this regulation.

(6) The Treasury may give directions to the Bank as to how the Bank is to comply with its duty under paragraph (5).

(7) The directions may in particular—

(a) specify the time when any payment is required to be made to the Treasury, or

(b) require the Bank to provide the Treasury at specified times with information relating to penalties that the Bank has imposed under this regulation.

(8) The Treasury must pay into the Consolidated Fund any sums received by them under this regulation.

(9) In this regulation, a “relevant requirement” means a requirement imposed under regulation 5A.]

[F1 Procedure in relation to regulation 5B U.K.

5C.— (1) If the Bank proposes to take action against a person under regulation 5B, it must give the person concerned a warning notice.

(2) A warning notice about a proposal to impose a penalty must state the amount of the penalty.

(3) A warning notice about a proposal to publish a statement must set out the terms of the proposed statement.

(4) If, having considered any representations made in response to the warning notice, the Bank decides to take action against a person under regulation 5B, it must without delay give the person concerned a decision notice.

(5) A decision notice about the imposition of a penalty must state the amount of the penalty.

(6) A decision notice about the publication of a statement must set out the terms of the statement.

(7) If the Bank decides to take action against a person under regulation 5B, the person may refer the matter to the Tribunal.

(8) Sections 312J (statement of policy) and 312K (statement of policy: procedure) of the Act apply in respect of the imposition of penalties under regulation 5B and the amount of such penalties as they apply in respect of the imposition of penalties under section 312F of the Act.

(9) After a statement under regulation 5B is published, the Bank must send a copy of it to the person concerned and to any person to whom a copy of the decision notice was given under section 393(4) of the Act (applied by paragraph (10)).

(10) Sections 387(1), (2) and (3) (warning notices), 388 (decision notices), 389 (notices of discontinuance), 390 (final notices), 393 (third party rights) and 394 (access to FCA or PRA material) of the Act apply in relation to a warning notice or decision notice given by the Bank under this regulation as if—

(a) references to the regulator or the regulator concerned were references to the Bank;

(b) the reference in section 388(1)(e)(i) to “this Act” were a reference to these Regulations.

(11) Section 391 of the Act (publication) applies in relation to a warning notice or decision notice under this regulation and in relation to a notice of discontinuance and a final notice under section 389 or 390 of the Act as applied by paragraph (10), but as if—

(a) references to the regulator and the FCA were references to the Bank;

(b) a warning notice under this regulation were treated as falling within subsection (1ZB);

(c) in subsection (8A)—

(i) the reference to the Act were to these Regulations;

(ii) the reference to a requirement included a requirement under regulation 5A.

(12) Part 9 of the Act (hearings and appeals) applies to references to the Tribunal under this regulation as it applies to references to the Tribunal under the Act, as if—

(a) a reference were a “disciplinary reference” for the purposes of section 133 of the Act if it is in respect of a decision to publish a statement or impose a penalty under regulation 5B;

(b) section 133(1)(a) and (c) of the Act did not apply.]

[F1 Power of the Bank to require a report by a skilled person U.K.

5D.— (1) This regulation applies where the Bank has required or could require a person on whom it could impose a requirement under regulation 5A(2) (“the person concerned”) to provide information or to produce documents under regulation 5A so that the Bank can verify whether—

(a) a settlement internaliser has complied with Article 9(1) of the CSD regulation, or

(b) a person is a settlement internaliser,

(“the matter concerned”).

(2) The Bank may appoint a person to provide the Bank with a report on the matter concerned.

(3) The Bank must give notice of an appointment under paragraph (2) to the person concerned.

(4) The person appointed to make a report must be a person appearing to the Bank to have the skills necessary to make a report on the matter concerned.

(5) It is the duty of—

(a) the person concerned, and

(b) any person who is providing (or who has at any time provided) services to the person concerned in relation to the matter concerned,

to give the person appointed to prepare a report all such assistance as the appointed person may reasonably require.

(6) The obligation imposed by paragraph (5) is enforceable, on the application of the Bank, by an injunction or, in Scotland, by an order for specific performance under section 45 of the Court of Session Act 1988.]

[F1 Power of the Bank to appoint a skilled person to collect and update information U.K.

5E.— (1) This regulation applies if the Bank considers that a settlement internaliser has failed to comply with the first sub-paragraph of Article 9(1) of the CSD regulation.

(2) The Bank may appoint a skilled person to collect or update the information required to be submitted under that sub-paragraph.

(3) References in this regulation to a skilled person are to a person appearing to the Bank to have the skills necessary to collect or update the information in question.

(4) The Bank must give notice of an appointment under paragraph (2) to the settlement internaliser.

(5) The skilled person may require any person to provide all such assistance as the skilled person may reasonably require to collect or update the information in question.

(6) A requirement imposed under paragraph (5) is enforceable, on the application of the Bank, by an injunction or, in Scotland, by an order for specific performance under section 45 of the Court of Session Act 1988.

(7) A contractual or other requirement imposed on a person (“P”) to keep any information in confidence does not apply if—

(a) the information is or may be relevant to anything required to be done as a result of this regulation,

(b) a settlement internaliser or a skilled person requests or requires P to provide the information for the purposes of securing that those things are done, and

(c) the Bank has approved the making of the request or the imposition of the requirement before it is made or imposed.

(8) A settlement internaliser may provide information (whether received under paragraph (7) or otherwise) that would otherwise be subject to a contractual or other requirement to keep it in confidence if it is provided for the purposes of anything required to be done as a result of this regulation.]