Related provisions for INSPRU 1.5.4
Schedule to the Recognition Requirements Regulations, Paragraph 4(2)(a)
Without prejudice to the generality of sub-paragraph [4(1)], the [UK RIE] must ensure that - |
access to the [UK RIE's ]facilitiesis subject to criteria designed to protect the orderly functioning of the market and the interests of investors;1 |
The Companies Act 1989: section 166
The FSA may issue a "positive" direction (to take action) under section 166(2)(a) of the Companies Act 1989: |
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Where in any case a [UK RIE] or [UK RCH] has not taken action under itsdefault rules- if it appears to [the FSA] that it could take action, [the FSA may direct it to do so, |
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but under section 166(3)(a) of the Companies Act 1989: |
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Before giving such a direction the [FSA] shall consult the [UK RIE] or [UK RCH] in question; and [the FSA] shall not give a direction unless [the FSA] is satisfied, in the light of that consultation that failure to take action would involve undue risk to investors or other participants in the market, |
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The FSA may issue a "negative" direction (not to take action) under section 166(2)(b) of the Companies Act 1989: |
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Where in any case a [UK RIE] or [UK RCH] has not taken action under its default rules - if it appears to the [FSA] that it is proposing to take or may take action, [the FSA] may direct it not to do so. |
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but under section 166(3)(b) of the Companies Act 1989: |
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Before giving such a direction the [FSA] shall consult the [UK RIE] or [UK RCH] in question; and the [FSA] shall not give a direction unless [the FSA] is satisfied, in the light of that consultation that the taking of action would be premature or otherwise undesirable in the interests of investors or other participants in the market. |
Schedule to the Recognition Requirements Regulations, Paragraph 6
(1) The [UK RIE] must be able and willing to promote and maintain high standards of integrity and fair dealing in the carrying on ofregulated activities by persons in the course of using the facilities provided by the [UK RIE]. |
(2) The [UK RIE] must be able and willing to cooperate by the sharing of information or otherwise, with the [FSA], with any other authority, body orperson having responsibility in theUnited Kingdom for the supervision or regulation of anyregulated activity or other financial service, or with anoverseas regulator within the meaning of section 195 of theAct.1 |
Schedule to the Recognition Requirements Regulations, paragraph 7
(1) The [UK RIE] must ensure that appropriate procedures are adopted for it to make rules, for keeping its rules under review and for amending them. |
(2) The procedures must include procedures for consulting users of the [UK RIE's ] facilities in appropriate cases. |
(3) The [UK RIE ] must consult users of itsfacilities on any arrangements it proposes to make for dealing with penalty income in accordance with paragraph 8(3) ... (or on any changes it proposes to make to those arrangements).1 |
Schedule to the Recognition Requirements Regulations, Paragraph 8
(1) |
The [UK RIE] must have effective arrangements for monitoring and enforcing compliance with - |
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(a) |
its rules (including rules in relation to the provision of clearing services in respect of transactions other than transactions effected on the [UK RIE]); and |
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(b) |
the arrangements made by it as mentioned in paragraph 4(2)(d) . . |
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(2) |
Arrangements made pursuant to sub-paragraph (1) must include procedures for - |
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(a) |
investigating complaints made to the [UK RIE] about the conduct ofpersonsin the course of using the [UK RIE's ] facilities; and |
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(b) |
the fair, independent and impartial resolution of appeals against decisions of the [UK RIE]. |
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(3) |
Where arrangements made pursuant to sub-paragraph (1) include provision for requiring the payment of financial penalties, they must include arrangements for ensuring that any amount so paid is applied only in one or more of the following ways - |
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(a) |
towards meeting expenses incurred by the [UK RIE] in the course of the investigation of the breach in respect of which the penalty is paid, or in the course of any appeal against the decision of the [UK RIE] in relation to that breach; |
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(b) |
for the benefit of users of the [UK RIE's ] facilities; |
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(c) |
for charitable purposes.1 |
Schedule to the Recognition Requirements Regulations, Paragraph 2
(1) The [UK RIE] must be a fit and properpersonto perform the [ relevant functions ] of a [ UK RIE ]. |
(2) In considering whether this requirement is satisfied, the [FSA] may (without prejudice to the generality of regulation 6(1)) take into account all the circumstances, including the [UK RIE's] connection with anyperson.1 |