REC 2.1 Introduction
This chapter contains the recognition requirements for UK recognised bodies and sets out guidance on those requirements. This chapter also contains the MiFID implementing requirements for UK RIEs.2 (The recognition requirements for overseas recognised bodies are set out in REC 6.)
These recognition requirements must be satisfied by applicants for recognised body status before recognition is granted and by all UK recognised bodies at all times while they are recognised. In addition the MiFID implementing requirements must be satisfied by applicants for UK RIE status before recognition is granted and by all UK RIEs at all times while they are recognised. 2The same standards apply both on initial recognition and throughout the period recognised body status is held. The terms UK RIE or UK RCH in the guidance should be taken, therefore, to refer also to an applicant when appropriate.
-
(1)
The paragraphs in the Schedule to the Recognition Requirements Regulations are grouped in this sourcebook in sections which give guidance on the same subject for both UK RIEs and UK RCHs.
-
(2)
The table in REC 2.1.4 G indicates in which section each of those paragraphs (and the associated guidance) can be found.
2
Location of recognition requirements and guidance
|
Recognition Requirements Regulations |
Subject |
Section in REC 2 |
|
Regulation 6 |
Method of satisfying recognition requirements |
2.2 |
|
Part I of the Schedule |
UK RIE recognition requirements |
|
|
Paragraph 1 |
Financial resources |
2.3 |
|
Paragraph 2 |
Suitability |
2.4 |
|
Paragraph 3 |
Systems and controls |
2.5 |
|
Paragraphs 4(1) and 4(2)(aa)2 2 |
General safeguards for investors |
2.6 |
|
Paragraph 4(2)(a) |
Access to facilities |
2.7 |
|
Paragraph 4(2)(b) |
Proper markets |
2.12 |
|
Paragraph 4(2)(c) |
Availability of relevant information |
2.12 |
|
Paragraph 4(2)(d) |
Settlement |
2.8 |
|
Paragraph 4(2)(e) |
Transaction recording |
2.9 |
|
2Paragraph 4(2)(ea) |
Conflicts |
2.5 |
|
Paragraph 4(2)(f) |
Financial crime and market abuse |
2.10 |
|
Paragraph 4(2)(g) |
Custody |
2.11 |
|
Paragraph 4(3) |
Definition of relevant information |
2.12 |
|
2Paragraph 4A |
Provision of pre-trade information about share trading |
2.6 |
|
2Paragraph 4B |
Provision of post-trade information about share trading |
2.6 |
|
Paragraph 6 |
Promotion and maintenance of standards |
2.13 |
|
Paragraph 7 |
Rules and consultation |
2.14 |
|
2Paragraph 7A |
Admission of financial instruments to trading |
2.12 |
|
2Paragraph 7B and 7C |
Access to facilities |
2.7 |
|
2Paragraph 7D |
Settlement |
2.8 |
|
2Paragraph 7E |
Suspension and removal of financial instruments from trading |
2.6 |
|
Paragraph 8 |
Discipline |
2.15 |
|
Paragraph 9 |
Complaints |
2.16 |
|
2Paragraph 9A |
Operation of a multilateral trading facility |
2.16A |
|
Part II of the Schedule |
UK RIE default rules in respect of market contracts |
2.17 |
|
Part III of the Schedule |
UK RCH recognition requirements |
|
|
Paragraph 16 |
Financial resources |
2.3 |
|
Paragraph 17 |
Suitability |
2.4 |
|
Paragraph 18 |
Systems and controls |
2.5 |
|
Paragraph 19(1) |
General safeguards for investors |
2.6 |
|
Paragraph 19(2)(a) |
Access to facilities |
2.7 |
|
Paragraph 19(2)(b) |
Clearing services |
2.8 |
|
Paragraph 19(2)(c) |
Transactions recording |
2.9 |
|
Paragraph 19(2)(d) |
Financial crime and market abuse |
2.10 |
|
Paragraph 19(2)(e) |
Custody |
2.11 |
|
Paragraph 20 |
Promotion and maintenance of standards |
2.13 |
|
Paragraph 21 |
Rules |
2.14 |
|
Paragraph 22 |
Discipline |
2.15 |
|
Paragraph 23 |
Complaints |
2.16 |
|
Part IV of the Schedule |
UK RCH default rules in respect of market contracts |
2.17 |
2Recitals and articles from the MiFID Regulation (and the associated guidance) relevant to market transparency are set out in REC 2.6. Articles from the MiFID Regulation relevant to admission to trading are set out in REC 2.12.