REC 2.1 Introduction
This chapter contains the recognition requirements for UK RIEs4 (other than RAPs) 3 and sets out guidance on those requirements. Except for REC 2.5A, references to recognised body or UK recognised bodies in the rest of this chapter shall be read as referring to UK RIEs.4 This chapter also contains the MiFID implementing requirements for UK RIEs.2
4 3These recognition requirements must be satisfied by applicants for UK RIE4 status before recognition is granted and by all UK RIEs4 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 term UK RIE4 in the guidance should be taken, therefore, to refer also to an applicant when appropriate.
4 4 4-
(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 UK RIEs.4
4 -
(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 |
2.174 |
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.