REC 3.14 Products, services and normal hours of operation
Purpose
The purpose of REC 3.14 is to ensure that the FSA is informed of planned changes to the services a UK recognised body intends to provide and of the normal hours of operation of those services. Unplanned suspensions of those services, unplanned changes in hours of operation and events causing a UK recognised body to be unable to provide those services should be notified to the FSA under the rules in REC 3.15.
Products and services
Where a UK RIE proposes to admit to trading (or to cease to admit to trading) by means of its facilities:
- (1)
a specified investment (other than a security or an option in relation to a security); or
- (2)
a type of security or a type of option in relation to a security;
it must give the FSA notice of that event, and the information specified for the purposes of this rule in REC 3.14.6 R to the FSA, at the same time as that proposal is first formally communicated to its members or shareholders (or any group or class of them).
1When a UK RIE removes a financial instrument from trading on a regulated market, it must immediately give the FSA notice of that event and relevant information including particulars of that financial instrument and the reasons for the action taken.
[Note: Article 41(1), paragraph 2 of MiFID]
Where a UK recognised body proposes to provide (or to cease to provide) clearing services in respect of:
- (1)
a specified investment (other than a security or an option in relation to a security); or
- (2)
a type of security or a type of option in relation to a security;
it must, unless REC 3.14.4 R applies, give the FSA notice of that event and the information specified for the purposes of this rule in REC 3.14.6 R, at the same time as that proposal is first formally communicated to its members or shareholders (or any group or class of them).
A UK RCH is not required to give the FSA notice or information under REC 3.14.3 R where it proposes to offer (or to cease to offer) clearing services under an agreement with a UK RIE in respect of a specified investment for which that UK RIE is required to give the FSA notice under REC 3.14.2 R , provided that the UK RIE has given the FSA the information specified in REC 3.14.6 R (3).
Securities falling within the same article in Part III of the Regulated Activities Order which may be given the same generic description (for example, shares admitted to the UKofficial list) will normally be regarded as being of the same type. Options in relation to the same type of security will normally be regarded as being options of the same type.
The following information is specified for the purposes of REC 3.14.2 R and REC 3.14.3 R:
- (1)
a description of the specified investment to which the proposal relates;
- (2)
where that specified investment is a derivative, the proposed terms of that derivative; and
- (3)
in the case of a UK RIE which is admitting that specified investment to trading, the name of any RCH which will provide clearing services in respect of that specified investment under an agreement with that UK RIE.
Where:
- (1)
a UK RIE proposes to amend the standard terms of any derivative admitted to trading by means of its facilities; or
- (2)
a UK recognised body proposes to amend the standard terms relating to the provision of clearing services for any derivative in respect of which it provides clearing services;
it must give the FSA notice of that event, and written particulars of those proposed amendments, at the same time as that proposal is first formally communicated to its members or shareholders (or any group or class of them).
Where a UK recognised body proposes to make (or to cease to make) arrangements for the safeguarding and administration of assets belonging to any other person (other than an undertaking in the same group), that recognised body must give the FSA notice of that event, and the information specified for the purposes of this rule in REC 3.14.9 R, at the same time as that proposal is first formally communicated to its members or shareholders (or any group or class of them).
The following information is specified for the purposes of REC 3.14.8 R:
- (1)
a description of the assets (or types of assets) to which the proposal relates; and
- (2)
the date or dates on which arrangements referred to in REC 3.14.8 R will be made (or cease to be made).
The FSA does not need to be notified of proposals to offer (or to withdraw offers of) safeguarding and administration services for individual assets of the same type. Specified investments (other than securities) falling within the same article in Part III of the Regulated Activities Order will normally be regarded as being of the same type. Securities falling within the same article in Part III of the Regulated Activities Order which may be given the same generic description (for example, shares admitted to the UK official list) will also normally be regarded as being of the same type.
Hours of operation
Where a UK recognised body proposes to change its normal hours of operation or (for RAPs) the timing, frequency or duration of its bidding windows,2 it must give the FSA notice of that proposal, and particulars of, and the reasons for, the actions proposed, at the same time as the proposal is first formally communicated to its members or shareholders, or any group or class of them.