The Securities Financing Transactions, Securitisation and Miscellaneous Amendments (EU Exit) Regulations 2020

JurisdictionUK Non-devolved
CitationSI 2020/1385

2020 No. 1385

Exiting The European Union

Financial Services And Markets

The Securities Financing Transactions, Securitisation and Miscellaneous Amendments (EU Exit) Regulations 2020

Made 26th November 2020

Coming into force in accordance with regulation 1

The Treasury make these Regulations in exercise of the powers conferred by section 2(2) of the European Communities Act 19721and section 8(1) of, and paragraphs 21 and 38 of Schedule 7 to, the European Union (Withdrawal) Act 20182.

The Treasury are a government department designated3for the purposes of section 2(2) of the European Communities Act 1972 in relation to financial services.

A draft of these Regulations has been laid before and approved by a resolution of each House of Parliament in accordance with paragraph 2(2) of Schedule 2 to the European Communities Act 1972 and paragraph 1(1) of Schedule 7 to the European Union (Withdrawal) Act 2018.

1 General provision

PART 1

General provision

S-1 Citation and commencement

Citation and commencement

1.—(1) These Regulations may be cited as the Securities Financing Transactions, Securitisation and Miscellaneous Amendments (EU Exit) Regulations 2020.

(2) This regulation, Parts 2 and 3, and regulations 43, 47, 50(1) and (4) to (6), 54(1), (2) and (5), and 70 come into force on the day after the day on which these Regulations are made.

(3) Part 6 come into force on IP completion day.

(4) The remainder of these Regulations come into force immediately before IP completion day.

2 Transitional and saving provisions concerning the SFT Regulation

PART 2

Transitional and saving provisions concerning the SFT Regulation

CHAPTER 1

Advance applications

S-2 Advance application for registration as a trade repository

Advance application for registration as a trade repository

2.—(1) A person may submit an advance application to the FCA for registration as a trade repository.

(2) Such an application must—

(a)

(a) be made in such a manner as the FCA may direct; and

(b)

(b) contain, or be accompanied by, such information as the FCA may direct.

S-3 Assessment of whether an advance application is complete

Assessment of whether an advance application is complete

3. The FCA must, before the end of period of 20 working days beginning with the day of receipt of an advance application—

(a) if it considers that the application complies with any applicable direction under regulation 2(2)(a) or (b), confirm in writing that the application is complete; or

(b) if it considers that the application does not comply with one or more of the directions under that regulation—

(i) confirm in writing to the applicant that the application is not complete; and

(ii) where applicable, inform the applicant of the steps which need to be taken, and the time within which they need to be taken, for the application to be considered complete.

S-4 Determination of an advance application

Determination of an advance application

4.—(1) The FCA must, before the end of a period of 40 working days beginning with the day on which the FCA confirms that an application is complete, take the following steps.

(2) The first step is that the FCA must consider the application based on compliance with—

(a)

(a) Article 5(2) of the SFT Regulation; and

(b)

(b) Article 12 of the SFT Regulation.

(3) The second step is that the FCA must decide whether the applicant should be registered as a trade repository or whether the application for registration should be rejected.

(4) The third step is that the FCA must notify the applicant of its decision under paragraph (3), and the reasons for that decision.

S-5 Effect of determining an advance application

Effect of determining an advance application

5. A decision in respect of an advance application under regulation 4(3) has effect from—

(a) the day of notification, or

(b) IP completion day,

whichever is later, as if it were a decision to register or refuse registration adopted in accordance with Article 7 of the SFT Regulation.

CHAPTER 2

Temporary registration

S-6 Temporary deemed registration under the SFT Regulation

Temporary deemed registration under the SFT Regulation

6.—(1) A person to whom this regulation applies is to be treated as if the person is registered as a trade repository under Chapter III of the SFT Regulation.

(2) Reference in an enactment to a person registered as a trade repository under that Chapter, however expressed, is to be read, unless the contrary intention appears, as including a person treated as being so registered by virtue of this regulation.

S-7 Application of regulation 6

Application of regulation 6

7. Regulation 6 applies to a person—

(a) who satisfied the conditions in regulation 8;

(b) for the period specified in regulation 9.

S-8 Conditions to be satisfied for regulation 6 to apply

Conditions to be satisfied for regulation 6 to apply

8. The conditions are—

(a) the person is a body corporate which, immediately before IP completion day, is—

(i) incorporated under the law of any part of the United Kingdom; and

(ii) included within a group of undertakings which comprises a trade repository registered under the EU SFT Regulation;

(b) the person has—

(i) submitted an advance application in accordance with regulation 2, whether or not the application complies with any applicable direction under regulation 2(2)(b); and

(ii) not been notified by the FCA of its decision in respect of the application in accordance with regulation 4(4).

S-9 Period during which regulation 6 is to apply

Period during which regulation 6 is to apply

9.—(1) For the purposes of regulation 7(b), the period is one that begins with IP completion day and ends with a day determined in accordance with paragraph (2).

(2) The period ends—

(a)

(a) after three years beginning with the day on which IP completion day occurs; or

(b)

(b) if earlier, with the day—

(i) before the day on which the person’s registration as a trade repository has effect;

(ii) on which the FCA determines, in accordance with regulation 10(1), that regulation 6 should cease to apply to that person; or

(iii) on which the person ceases to be included within a group of undertakings which comprises a trade repository under the EU SFT Regulation.

S-10 Cessation following a determination by the FCA

Cessation following a determination by the FCA

10.—(1) The FCA may determine that regulation 6 should cease to apply to a person—

(a)

(a) where, in respect of an advance application—

(i) the application does not comply with any applicable direction made by the FCA under regulation 2(2)(a) or (b); and

(ii) the steps referred to in regulation 3(b)(ii) have not been taken within the time specified;

(b)

(b) following a decision refusing registration in accordance with regulation 4(3); or

(c)

(c) at the request of the person to whom regulation 6 applies.

(2) The FCA must notify the person in respect of whom the determination is made of the day on which regulation 6 will cease to apply.

(3) Paragraph (1) is subject to Article 10 (withdrawal of registration) of the SFT Regulation.

CHAPTER 3

Temporary registration for run-off period

S-11 Temporary deemed registration under the SFT Regulation for run-off period

Temporary deemed registration under the SFT Regulation for run-off period

11.—(1) A person to whom this regulation applies is to be treated as if the person is registered as a trade repository under Chapter III of the SFT Regulation.

(2) Reference in an enactment to a person registered as a trade repository under that Chapter, however expressed, is to be read, unless the contrary intention appears, as including a person treated as being so registered by virtue of this regulation.

S-12 Application of regulation 11

Application of regulation 11

12. Regulation 11 applies to a person—

(a) who satisfies the condition in regulation 13;

(b) for the period determined in accordance with regulation 14.

S-13 Condition to be satisfied for regulation 11 to apply

Condition to be satisfied for regulation 11 to apply

13. The condition is that the FCA has determined that regulation 6 should cease to apply to a person in accordance with regulation 10, or that the FCA has withdrawn registration of a person to whom regulation 6 applies in accordance with Article 10 of the SFT Regulation.

S-14 Period during which regulation 11 is to apply

Period during which regulation 11 is to apply

14. For the purposes of regulation 12(b), the period is a period of one year beginning with the day on which the condition in regulation 13 is satisfied, or such shorter period as the FCA may determine in a particular case.

S-15 Transitional arrangements during the run-off period

Transitional arrangements during the run-off period

15.—(1) The FCA may make such transitional arrangements imposing requirements in respect of the registration of a person to whom regulation 11 applies as it considers necessary or expedient.

(2) A requirement may, in particular, be imposed—

(a)

(a) so as to require the person concerned to take specified action, including to make arrangements for the transfer of data stored by the person to whom regulation 6 or 11 applies or a person which is registered as a trade repository under Chapter III of the EU SFT Regulation; or

(b)

(b) so as to require the person concerned to refrain from taking specified action.

(3) A requirement may be imposed by reference to the person’s relationship with—

(a)

(a) the person’s group; or

(b)

(b) other members of the person’s group.

S-16 Notification of a decision to impose requirements under regulation 15

Notification of a decision to impose requirements under regulation 15

16.—(1) This regulation applies to an exercise of the FCA’s power to impose a requirement in respect of the registration of a person (“P”) in accordance with regulation 15.

(2) The imposition of the requirement takes effect—

(a)

(a) immediately, if the notice given under paragraph (4) states that that is the case,

(b)

(b) on such date as may be specified in the notice, or

(c)

(c) if no date is specified...

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