Related provisions for DTR 6.2.9
Schedule to the Recognition Requirements Regulations, Paragraph 1
2(1) The [UK RIE] must have financial resources sufficient for the proper performance of its [ relevant functions] as a [UK RIE]. |
(2) In considering whether this requirement is satisfied, the [FCA]5must (without prejudice to the generality of regulation 6(1)) take into account all the circumstances, including the [UK RIE's] connection with any person , and any activity carried on by the [UK RIE], whether or not it is anexempt activity. 5 |
Schedule to the Recognition Requirements Regulations, paragraphs 3 – 3H4
Paragraph 3 – Systems and controls4 |
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(1) |
The [UK RIE] must ensure that the systems and controls, including procedures and arrangements,4 used in the performance of its functions and the functions of the trading venues it operates are adequate, effective4 and appropriate for the scale and nature of its business. |
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(2) |
Sub-paragraph (1) applies in particular to systems and controls concerning - |
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(a) |
the transmission of information; |
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(b) |
the assessment, mitigation and management of risks to the performance of the [UK RIE'srelevant functions]; |
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(c) |
the effecting and monitoring of transactions on the [UK RIE]; |
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(ca) |
the technical operation of the [UK RIE], including contingency arrangements for disruption to its facilities; |
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(d) |
the operation of the arrangements mentioned in paragraph 4(2)(d); and |
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(e) |
(where relevant) the safeguarding and administration of assets belonging to users of the [UK RIE's] facilities. |
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4(f) |
the resilience of its trading systems; |
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4[Note:MiFID RTS 7 contains requirements on the resilience of trading systems operated by trading venues that enable algorithmic trading] |
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4(g) |
the ability to have sufficient capacity to deal with peak order and message volumes; |
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4[Note:MiFID RTS 7 contains requirements on the adequacy of capacity of trading systems operated by trading venues that enable algorithmic trading] |
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4(h) |
the ability to ensure orderly trading under conditions of severe market stress; |
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4(i) |
the effectiveness of business continuity arrangements to ensure the continuity of the [UK RIE’s] services if there is any failure of its trading systems including the testing of the [UK RIE’s] systems and controls; |
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4(j) |
the ability to reject orders that exceed predetermined volume or price thresholds or which are clearly erroneous; |
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4(k) |
the ability to ensure algorithmic trading systems cannot create or contribute to disorderly trading conditions on trading venues operated by the [UK RIE]; |
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4(l) |
the ability to ensure disorderly trading conditions which arise from the use of algorithmic trading systems, including systems to limit the ratio of unexecuted orders to transactions that may be entered into the [UK RIE’s] trading system by a member or participant are capable of being managed; |
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[Note:MiFID RTS 9 contains requirements on the ratio of unexecuted orders to transactions to be taken into account by a trading venue that operates electronic continuous auction order book, quote-driven or hybrid trading systems] |
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4(m) |
the ability to ensure the flow of orders is able to be slowed down if there is a risk of system capacity being reached; |
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4(n) |
the ability to limit and enforce the minimum tick size which may be executed on its trading venues; and |
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4(o) |
the requirement for members and participants to carry out appropriate testing of algorithms. |
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4[Note:MiFID RTS 7 contains requirements on the appropriate testing of algorithms to ensure that trading systems, when they enable algorithmic trading, cannot create or contribute to disorderly trading conditions] |
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4(3) |
For the purposes of sub-paragraph 2(c), the [UK RIE] must - |
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4(a) |
establish and maintain effective arrangements and procedures including the necessary resource for the regular monitoring of the compliance by members or participants with its rules; and |
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4(b) |
monitor orders sent including cancellations and the transactions undertaken by its members or participants under its systems in order to identify infringements of those rules, disorderly trading conditions or conduct that may indicate behavior that is prohibited under the market abuse regulation or system disruptions in relation to a financial instrument. |
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4(4) |
For the purpose of sub-paragraph (2)(o) the [UK RIE] must provide environments to facilitate such testing. |
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4(5) |
The [UK RIE] must be adequately equipped to manage the risks to which it is exposed, to implement appropriate arrangements and systems to identify all significant risks to its operation, and to put in place effective measures to mitigate those risks. |
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4Paragraph 3A – Market making arrangements |
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4(1) |
The [UK RIE] must - |
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4(a) |
have written agreements with all investment firms pursuing a market making strategy on trading venues operated by it (“market making agreements”); |
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4(b) |
have schemes, appropriate to the nature and scale of a trading venue, to ensure that a sufficient number of investment firms enter into such agreements which require them to post firm quotes at competitive prices with the result of providing liquidity to the market on a regular and predictable basis; |
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4(c) |
monitor and enforce compliance with the market making agreements; |
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4(d) |
inform the FCA of the content of its market making agreements; and |
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4(e) |
provide the FCA with any information it requests which is necessary for the FCA to satisfy itself that the market making agreements comply with paragraphs (c) and (d) of this sub-paragraph and sub-paragraph 2. |
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4(2) |
A market making agreement must specify- |
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4(a) |
the obligations of the investment firm in relation to the provision of liquidity; |
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4(b) |
where applicable, any obligations arising from the participation in a scheme mentioned in sub-paragraph (1)(b); |
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4(c) |
any incentives in terms of rebates or otherwise offered by the [UK RIE] to the investment firm in order for it to provide liquidity to the market on a regular and predictable basis; and |
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4(d) |
where applicable, any other rights accruing to the investment firm as a result of participation in the scheme referred to in sub-paragraph (1)(b). |
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4(3) |
For the purposes of this paragraph, an investment firm pursues a market making strategy if - |
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4(a) |
the firm is a member or participant of one or more trading venues; |
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4(b) |
the firm’s strategy, when dealing on own account, involves posting firm, simultaneous two-way quotes of comparable size at competitive prices relating to one or more financial instruments on a single trading venue, across different trading venues; and |
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4(c) |
the result is providing liquidity on a regular and frequent basis to the overall market. |
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4Paragraph 3B – Halting trading |
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4(1) |
The [UK RIE] must be able to - |
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4(a) |
temporarily halt or constrain trading on any trading venue operated by it if there is a significant price movement in a financial instrument on such a trading venue or a related trading venue during a short period; and |
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4(b) |
in exceptional cases be able to cancel, vary, or correct any transaction. |
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4(2) |
For the purposes of sub-paragraph (1), the [UK RIE] must ensure that the parameters for halting trading are appropriately calibrated in a way which takes into account - |
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4(a) |
the liquidity of different asset classes and subclasses; |
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4(b) |
the nature of the trading venue market model; and |
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4(c) |
the types of users, |
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4to ensure the parameters are sufficient to avoid significant disruptions to the orderliness of trading. |
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4(3) |
The [UK RIE] must report the parameters mentioned in sub-paragraph (2) and any material changes to those parameters to the FCA in a format to be specified by the FCA. |
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4(4) |
If a trading venue operated by the [UK RIE] is material in terms of liquidity of the trading of a financial instrument and it halts trading in an EEA State in that instrument it must have systems and procedures in place to ensure that it notifies the FCA. |
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4[Note:MiFID RTS 12 contains requirements for when a regulated market is material in terms of liquidity in a financial instrument for purposes of trading halt notifications] |
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4Paragraph 3C – Direct electronic access |
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4Where the [UK RIE] permits direct electronic access to a trading venue it operates, it must - |
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4(1) |
(a) |
ensure that a member of, or participant in that trading venue is only permitted to provide direct electronic access to the venue if the member or participant - |
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4(i) |
is an investment firm, as defined by Article 4.1.1 of the markets in financial instruments directive (definitions), authorised in accordance with the directive; |
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4(ii) |
is a credit institution authrised in accordance with the capital requirements directive; |
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4(iii) |
comes within Article 2.1(a), (e), (i), or (j) of the markets in financial instruments directive (exemptions) and has a Part 4A permission relating to investment services and activities; |
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4(iv) |
is a third country firm providing the direct electronic access in the course of exercising rights under Article 46.1 (general provisions) or 47.3 (equivalence decision) of the markets in financial instruments regulation; |
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4(v) |
is a third country firm and the provision of the direct electronic access by that firm is subject to the exclusion in Article 72 of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001; or |
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4(vi) |
is a third country firm which does not come within paragraph (iv) or (v) and is otherwise permitted to provide the direct electronic access under the Act; |
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4(b) |
ensure that appropriate criteria are set and applied for the suitability of persons to whom direct electronic access services may be provided; |
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4(c) |
ensure that a member of, or participant in, the trading venue retains responsibility for adherence to the requirements of the markets in financial instruments directive in respect of orders and trades executed using the direct electronic access service; |
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4(d) |
set appropriate standards regarding risk controls and thresholds on trading through direct electronic access; |
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4(e) |
be able to distinguish and if necessary stop orders or trading on that trading venue by a person using direct electronic access separately from - |
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4(i) |
other orders; or |
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4(ii) |
trading by the member or participant providing the direct electronic access; and |
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4(f) |
have arrangements in place to suspend or terminate the provision to a client of direct electronic access to that trading venue by a member of, or participant in, the trading venue in the case of non-compliance with this paragraph. |
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4[Note:MiFID RTS 7 contains requirements on direct electronic access permitted through a trading venue’s systems] |
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4Paragraph 3D – Co-location services |
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4(1) |
The [UK RIE’s] rules on colocation services must be transparent, fair and nondiscriminatory. |
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4[Note:MiFID RTS 10 contains requirements to ensure co-location services are transparent, fair and non-discriminatory] |
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4Paragraph 3E – Fee structures |
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4(1) |
The [UK RIE’s] fee structure, for all fees it charges including execution fees and ancillary fees and rebates it grants, must - |
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4(a) |
be transparent, fair and non-discriminatory; |
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4[Note:MiFID RTS 10 contains requirements to ensure fee structures are transparent, fair and non-discriminatory] |
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4(b) |
not create incentives to place, modify or cancel orders, or execute transactions, in a way which contributes to disorderly trading conditions or market abuse; and |
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4[Note:MiFID RTS 10 contains requirements concerning prohibited fee structures] |
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4(c) |
impose market making obligations in individual shares or suitable baskets of shares for any rebates that are granted. |
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4(2) |
Nothing in sub-paragraph (1) prevents the [UK RIE] from - |
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4(a) |
adjusting its fees for cancelled orders according to the length of time for which the order was maintained; |
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4(b) |
calibrating its fees to each financial instrument to which they apply; |
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4(c) |
imposing a higher fee - |
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4(i) |
for placing an order which is cancelled than an order which is executed; |
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4(ii) |
on participants placing a high ratio of cancelled orders to executed orders; or |
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4(iii) |
on a person operating a high-frequency algorithmic trading technique, |
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4in order to reflect the additional burden on system capacity. |
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4Paragraph 3F – Algorithmic trading |
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4(1) |
The [UK RIE] must require members of and participants in trading venues operated by it to flag orders generated by algorithmic trading in order for it to be able to identify the - |
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4(a) |
the different algorithms used for the creation of orders; and |
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4(b) |
the persons initiating those orders. |
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4Paragraph 3G – Tick size regimes |
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4(1) |
The [UK RIE] must adopt tick size regimes in respect of trading venues operated by it in - |
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4(a) |
shares, depositary receipts, exchange-traded funds, certificates and other similar financial instruments traded on each trading venue; and |
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4[Note:MiFID RTS 11 contains requirements on the tick size regime for shares, depositary receipts, exchange traded funds and certificates5] |
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4(b) |
any financial instrument for which regulatory technical standards are adopted by the European Commission pursuant to Article 49.3 or 4 of the markets in financial instruments directive which is traded on that trading venue. |
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[Note:MiFID RTS 11] |
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4 (2) |
The tick size regime must - |
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4(a) |
be calibrated to reflect the liquidity profile of the financial instrument in different markets and the average bid-ask spread taking into account desirability of enabling reasonably stable prices without unduly constraining further narrowing of spreads; and |
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4(b) |
adapt the tick size for each financial instrument appropriately. |
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4(3) |
The tick size regime must comply with any regulatory technical standards adopted by the European Commission pursuant to Article 49.3 or 4 of the markets in financial instruments directive. |
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4[Note:MiFID RTS 11] |
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4Paragraph 3H – Syncronisation of business clocks |
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4(1) |
The [UK RIE] must synchronise the business clocks it uses to record the date and time of any reportable event in accordance with regulatory technical standards adopted by the European Commission pursuant to Article 50 of the markets in financial instruments directive. |
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4[Note:MiFID RTS 25] |
Table of applicable rules containing data items4, frequency and submission periods
(1) |
(2) |
(3) |
(4) |
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RAGnumber |
Provisions containing: |
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applicabledata items |
reporting frequency/ period |
due date32 32 |
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271212 | 37 | |||
RAG 1 |
• accepting deposits • meeting of repayment claims76 managing dormant account funds (including the investment of such funds)76 |
RAG 1 firms should complete their prudential reporting requirements as set out in the PRA Rulebook.76 |
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RAG 2.1 |
• effecting contracts of insurance • carrying out contracts of insurance • entering as provider into a funeral plan contract |
2 | 2 | 2 |
RAG 2.2 |
• managing the underwriting capacity of a Lloyds syndicate as a managing agent at Lloyds • advising on syndicate participation at Lloyds • arranging deals in contracts of insurance written at Lloyds |
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RAG 3 |
• dealing in investment as principal • dealing in investments as agent • advising on investments (except P2P agreements) 67 (excluding retail investment activities) • arranging (bringing about) deals in investments (excluding retail investment activities) • advising on P2P agreements (when carried on exclusively with or for professional clients)67 |
SUP 16.12.11 R78except FSA001 and FSA002 on consolidated basis for FINREP firms37 37 |
SUP 16.12.10 R2SUP 16.12.12 R78 37 |
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RAG 4 |
• managing investments • establishing, operating or winding up a collective investment scheme • establishing, operating or winding up a stakeholder pension scheme • establishing, operating or winding up a personal pension scheme2 • operating an electronic system in relation to lending (FCA-authorised persons only)48 3838 |
SUP 16.12.15 R78, except FSA001 and FSA002 on consolidated basis for FINREP firms37 37 |
SUP 16.12.14 R2SUP 16.12.16 R78 37 |
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RAG 5 |
• home finance administration or home finance providing activity11 11 |
76SUP 16.12.18BR 37 and SUP 16.12.18C R58 258 |
76SUP 16.12.18BR 37 and SUP 16.12.18C R58 258 |
76SUP 16.12.18BR 37 and SUP 16.12.18C R58 258 |
RAG 6 |
• safeguarding and administration of assets (without arranging) • arranging safeguarding and administration of assets • acting as trustee or depositary of an AIF38 • acting as trustee or depositary of a UCITS38 384038 |
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RAG 7 |
• retail investment activities • advising on P2P agreements (except when carried on exclusively with or for professional clients)67 • advising on pensions transfers & opt-outs • arranging (bringing about deals) in retail investments |
SUP 16.12.22A R78except FSA001 and FSA002 on consolidated basis for FINREP firms37 37 |
3737 | |
RAG 8 |
• making arrangements with a view to transactions in investments • operating a multilateral trading facility4 • operating an organised trading facility35 |
SUP 16.12.25A R except FSA001 and FSA002 on consolidated basis for FINREP firms7837 37 |
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RAG 9 |
• home finance mediation activity14 • insurance mediation activity (non-investment insurance contracts) 14 |
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RAG 10 |
97 | |||
2The applicable data items referred to in SUP 16.12.4 R are set out according to type of firm in the table below:
Firms' prudential category and applicable data item (note 1) |
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Exempt CAD firmssubject toIPRU(INV)Chapter 13 |
Firms(other thanexempt CAD firms) subject toIPRU(INV)Chapter 13 |
Firmsthat are also in one or more ofRAGs1 to 6 and not subject toIPRU(INV)Chapter 13 |
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Solvency statement |
No standard format (note 11) |
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Balance Sheet |
FSA001/FINREP (Notes 2 and 29) |
FSA001 (Note 2) |
FSA029 |
Section A RMAR |
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Income Statement |
FSA002/FINREP (Notes 2 and 29) |
FSA002 (Note 2) |
FSA030 |
Section B RMAR |
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Capital Adequacy |
COREP (Note 29) |
FSA003 (Note 2) |
FSA032 |
Section D1 62 RMAR (Note 23) 5050 |
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Credit risk |
COREP (Note 29) |
FSA004 (Notes 2, 3) |
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Market risk |
COREP (Note 29) |
FSA005 (Notes 2, 4) |
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Market risk - supplementary |
FSA006 (note 5) |
FSA006 (Note 5) |
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Operational risk |
COREP (Note 29) |
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Large exposures |
COREP (Note 29) |
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Exposures between core UK group and non-core large exposures group |
FSA018 (note 12) |
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Solo consolidation data |
FSA016 |
FSA016 |
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Pillar 2 questionnaire |
FSA019 (note 8) |
FSA019 (Note 8) |
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Non-EEA sub-group |
COREP (Note 29) |
FSA028 (Note 9) |
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Professional indemnity insurance (note 15) |
Section E RMAR |
Section E RMAR |
Section E RMAR |
Section E RMAR |
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Threshold Conditions |
Section F RMAR |
Section F RMAR |
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Training and Competence |
Section G RMAR |
Section G RMAR |
Section G RMAR |
Section G RMAR |
Section G RMAR |
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COBS data |
Section H RMAR |
Section H RMAR |
Section H RMAR |
Section H RMAR |
Section H RMAR |
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Client money and client assets |
Section C RMAR |
Section C RMAR |
Section C RMAR |
Section C RMAR |
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Fees and levies |
Section J RMAR |
Section J RMAR |
Section J RMAR |
Section J RMAR |
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Section K RMAR (Note 26) |
Section K RMAR (Note 26) |
Section K RMAR (Note 26) |
Section K RMAR (Note 26) |
Section K RMAR (Note 26) |
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IRB portfolio risk |
FSA045 (note 13) |
FSA045 (Note 13) |
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Securitisation: non-trading book |
COREP (note 29) |
FSA046 (Note 14) |
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Daily Flows |
FSA047/COREP (Notes 16, 19, 21, 24 and 29) |
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Enhanced Mismatch Report |
FSA048/COREP (Notes 16, 19, 21, 24 and 29) |
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Liquidity Buffer Qualifying Securities |
FSA050/COREP (Notes 17, 20, 21, 24 and 29) |
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Funding Concentration |
FSA051/COREP (Notes 17, 20, 21, 24 and 29) |
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Pricing data |
FSA052/COREP (Notes 17, 20, 21, 24 and 29) |
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Retail and corporate funding |
FSA053/COREP (Notes 17, 20, 21, 24 and 29) |
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Currency Analysis |
FSA054/COREP (Notes 17, 20, 21, 24 and 29) |
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Systems and Controls Questionnaire |
FSA055/COREP (Notes 18, 24 and 29) |
FSA055 (Notes 18 and 24) |
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Securitisation: trading book |
COREP (Note 29) |
FSA058 (Note 22) |
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Supplementary capital data for collective portfolio management investment firms |
FIN067 (Note 28) |
FIN068 (Note 28) |
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Note 1 |
When submitting the completed data item required, a firm must use the format of the data item set out in SUP 16 Annex 24 R, or SUP 16 Annex 18A R in the case of the RMAR. Guidance notes for completion of the data items are contained in SUP 16 Annex 25 G, or SUP 16 Annex 18B G in the case of the RMAR. |
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Note 2 |
Firms that are members of a UK consolidation group are also required to submit this report on a UK consolidation group basis. |
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Note 3 |
This applies to a firm that is required to submit data item FSA003 and, at any time55within the 12 months up to its latest accounting reference date ("the relevant period"), was reporting data item FSA004 ("Firm A") or not reporting this item ("Firm B"). In the case of Firm A it must report this data item if one or both of its last two submissions in the relevant period show that the threshold was exceeded. In the case of Firm B it must report this item if both the last two submissions in the relevant period show that the threshold has been exceeded. The threshold is exceeded where data element 77A in data item FSA003 is greater than £10 million, or its currency equivalent, at the relevant reporting date for the firm. 55 |
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Note 4 |
This applies to a firm that is required to submit data item FSA003 and, at any time within the 12 months up to its latest accounting reference date ("the relevant period"), was reporting data item FSA005 ("Firm A") or not reporting this item ("Firm B"). In the case of Firm A it must report this data item if one or both of its last two submissions in the relevant period show that the threshold was exceeded. In the case of Firm B it must report this item if both the last two submissions in the relevant period show that the threshold has been exceeded. The threshold is exceeded where data element 93A in data item FSA003 is greater than £50 million, or its currency equivalent, at the relevant reporting date for the firm. |
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Note 5 |
Only applicable to firms with a VaR model permission. |
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Note 6 |
[deleted] |
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Note 7 |
[deleted] |
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Note 8 |
Only applicable to IFPRU investment firms and BIPRU firms that: (a) are subject to consolidated supervision under BIPRU 8, except those that are either included within the consolidated supervision of a group that includes a UK credit institution, or that have been granted an investment firm consolidation waiver; or (b) have been granted an investment firm consolidation waiver; or (c) are not subject to consolidated supervision under BIPRU 8. An IFPRU investment firm and a BIPRU firm under (a) must complete the report on the basis of its UK consolidation group. An IFPRU investment firm and a BIPRU firm under (b) or (c) must complete the report on the basis of its solo position. |
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Note 9 |
This will be applicable to firms that are members of a UK consolidation group on the reporting date. |
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Note 10 |
[deleted]55 55 |
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Note 11 |
Only applicable to a firm that is a sole trader or a partnership, when the report must be submitted by each partner. |
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Note 12 |
Only applicable to a firm that has both a core UK group and a non-core large exposures group. |
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Note 13 |
Only applicable to firms that have an IRB permission. |
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Note 14 |
Only applicable to firms that hold securitisation positions, or are the originator or sponsor of securitisations of non-trading bookexposures. |
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Note 15 |
This item only applies to firms that are subject to an FCA requirement to hold professional indemnity insurance and are not exempt CAD firms. |
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Note 16 |
A firm must complete this item separately on each of the following bases (if applicable). (1) It must complete it on a solo basis. Therefore even if it has a solo consolidation waiver it must complete the item on an unconsolidated basis by reference to the firm alone. (2) If it is a group liquidity reporting firm in a DLG by default and is a UK lead regulated firm, it must complete the item on the basis of that group. (3) If it is a group liquidity reporting firm in a UK DLG by modification, it must complete the item on the basis of that group. (4) If it is a group liquidity reporting firm in a non-UK DLG by modification, it must complete the item on the basis of that group. |
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Note 17 |
A firm must complete this item separately on each of the following bases that are applicable. (1) It must complete it on a solo basis unless it is a group liquidity reporting firm in a UK DLG by modification. Therefore even if it has a solo consolidation waiver it must complete the item on an unconsolidated basis by reference to the firm alone. (2) If it is a group liquidity reporting firm in a UK DLG by modification, it must complete the item on the basis of that group. |
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Note 18 |
If it is a non-ILAS BIPRU firm, it must complete it on a solo basis. Therefore even if it has a solo consolidation waiver it must complete the item on an unconsolidated basis by reference to the firm alone. |
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Note 19 |
(1) This item must be reported in the reporting currency. (2) If any data element is in a currency or currencies other than the reporting currency, all currencies (including the reporting currency) must be combined into a figure in the reporting currency. (3) In addition, all material currencies (which may include the reporting currency) must each be recorded separately (translated into the reporting currency). However if: (a) the reporting frequency is (whether under a rule or under a waiver) quarterly or less than quarterly; or (b) the only material currency is the reporting currency; (3) does not apply. (4) If there are more than three material currencies for this data item, (3) only applies to the three largest in amount. A firm must identify the largest in amount in accordance with the following procedure. (a) For each currency, take the largest of the asset or liability figure as referred to in the definition of material currency. (b) Take the three largest figures from the resulting list of amounts. (5) The date as at which the calculations for the purposes of the definition of material currency are carried out is the last day of the reporting period in question. (6) The reporting currency for this data item is whichever of the following currencies the firm chooses, namely USD (the United States Dollar), EUR (the euro), GBP (sterling), JPY (the Japanese Yen), CHF (the Swiss Franc), CAD (the Canadian Dollar) or SEK (the Swedish Krona). |
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Note 20 |
Note 19 applies, except that paragraphs (3), (4) and (5) do not apply, meaning that material currencies must not be recorded separately. |
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Note 21 |
Any changes to reporting requirements caused by a firm receiving an intra-group liquidity modification (or a variation to one) do not take effect until the first day of the next reporting period applicable under the changed reporting requirements for the data item in question if the firm receives that intra-group liquidity modification or variation part of the way through such a period. If the change is that the firm does not have to report a particular data item or does not have to report it at a particular reporting level, the firm must nevertheless report that item or at that reporting level for any reporting period that has already begun. This paragraph is subject to anything that the intra-group liquidity modification says to the contrary. |
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Note 22 |
Only applicable to firms that hold securitisation positions in the trading book and/ or are the originator or sponsor of securitisations held in the trading book. |
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Note 23 |
Where a firm submits data items for both RAG 7 and RAG 9, the firm must complete Section D1.73 |
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Note 24 |
FSA047, FSA048, FSA050, FSA051, FSA052, FSA053 and FSA054 must be completed by an ILAS BIPRU firm. An ILAS BIPRU firm does not need to complete FSA055. A non-ILAS BIPRU firm must complete FSA055 and does not need to complete FSA047, FSA048, FSA050, FSA051, FSA052, FSA053 and FSA054. |
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Note 25 |
This data item must be reported only in the currencies named in FSA052, so that liabilities in GBP are reported in GBP in rows 1 to 4, those in USD are reported in USD in rows 5 to 8, and those in Euro are reported in Euro in rows 9 to 12. Liabilities in other currencies are not to be reported. |
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Note 26 |
This item only applies to firms that provide advice on retail investment products and P2P agreements67. |
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Note 27 |
[deleted]51 |
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Note 28 |
Only applicable to firms that are collective portfolio management investment firms. |
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Note 29 |
Requirements under COREP and FINREP should be determined with reference to the EU CRR and applicable technical standards. |
Table: FCA-prescribed senior management responsibilities for third-country relevant authorised persons.
FCA-prescribed senior management responsibility in relation to the branch |
Explanation |
Equivalent PRA-prescribed UK branch senior management responsibility |
(1) Responsibility for the firm’s performance of its obligations under the senior management regime |
The senior management regime means the requirements of the regulatory system applying to relevant authorised persons insofar as they relate to SMF managers performing designated senior management functions, including SUP 10C (FCA senior management regime for approved persons in relevant authorised persons). This responsibility includes: (1) compliance with conditions and time limits on approval; (2) compliance with the requirements about the statements of responsibilities (but not the allocation of responsibilities recorded in them);3 (3) compliance by the firm with its obligations under section 60A of the Act (Vetting of candidates by relevant authorised persons); and3 3(4) compliance by the firm with the requirements in SYSC 22 (Regulatory references) so far as they relate to the senior management regime, including the giving of references to another firm about an SMF manager or former SMF manager. |
PRA-prescribed UK branch senior management responsibility 6.2(1) |
(2) Responsibility for the firm’s performance of its obligations under the employee certification regime |
The employee certification regime means the requirements of sections 63E and 63F of the Act (Certification of employees) and all other requirements of the regulatory system about the matters dealt with in those sections, including:3 3(1) SYSC 5.2 (Certification Regime); 3(2) the requirements in SYSC 22 (Regulatory references) so far as they relate to the employee certification regime, including the giving of references to another firm about a certification employee or former certification employee; and |
PRA-prescribed UK branch senior management responsibility 6.2(2) |
(3) Responsibility for compliance with the requirements of the regulatory system about the management responsibilities map |
This responsibility does not include allocating responsibilities recorded in it. |
PRA-prescribed UK branch senior management responsibility 6.2(3) |
(4) Responsibility for management of the firm’s risk management processes in the UK |
PRA-prescribed UK branch senior management responsibility 6.2(4) |
|
(5) Responsibility for the firm’s compliance with the UKregulatory system applicable to the firm |
PRA-prescribed UK branch senior management responsibility 6.2(5) |
|
(6) Responsibility for the escalation of correspondence from the PRA, FCA and other regulators4 in respect of the firm to the governing body and/or the management body of the firm or, where appropriate, of the parent undertaking or holding company of the firm’sgroup |
This includes taking steps to ensure that the senior management of the firm and, where applicable, the group, are made aware of any views expressed by the regulatory bodies and any steps taken by them in relation to the branch, firm or group. |
PRA-prescribed UK branch senior management responsibility 6.2(6) |
(7) Local responsibility for the firm’s policies and procedures for countering the risk that the firm might be used to further financial crime |
(A) This includes the function in SYSC 6.3.8R (a firm must allocate overall responsibility to a director or senior manager within the firm for the establishment and maintenance of effective anti-money laundering systems and controls), if that rule applies to the firm. (B) The firm may allocate this FCA-prescribed senior management responsibility to the MLRO but does not have to. (C) If the firm does not allocate this FCA-prescribed senior management responsibility to the MLRO, this FCA-prescribed senior management responsibility includes responsibility for supervision of the MLRO. (D) Local responsibility is defined in SYSC 4.8.10R (Local responsibility for a branch’s activities, business areas and management functions). |
None |
(8) Local responsibility for the firm’s compliance with CASS |
(A) This responsibility only applies to a firm to which CASS applies. (B) A firm may include in this FCA-prescribed senior management responsibility whichever of the following functions apply to the firm: (1) CASS 1A.3.1R (certain CASS compliance functions for a CASS small firm); (2) CASS 1A.3.1AR (certain CASS compliance functions for a CASS medium firm or a CASS large firm); (3) CASS 11.3.1R (certain CASS compliance functions for certain CASS small debt management firms); or (4) CASS 11.3.4R (certain CASS compliance functions for a CASS large debt management firm); but it does not have to. (C) If the firm does not include the functions in (B) in this FCA-prescribed senior management responsibility, this FCA-prescribed senior management responsibility includes responsibility for supervision of the person performing the functions in (B) that apply to the firm. (D) Local responsibility is defined in SYSC 4.8.10R (Local responsibility for a branch’s activities, business areas and management functions). |
None |
Information and supporting documentation (see REC 5.2.4 G).
(1) |
Details of the applicant's constitution, structure and ownership, including its memorandum and articles of association (or similar or analogous documents ) and any agreements between the applicant, its owners or other persons relating to its constitution or governance (if not contained in the information listed in REC 5.2.3A G)1. An applicant for RAP status must provide details of the relationship between the governance arrangements in place for the UK RIE and the RAP.3 |
(2) |
Details of all business to be conducted by the applicant, whether or not a regulated activity (if not contained in the information listed in REC 5.2.3A G)1. |
(3) |
Details of the facilities which the applicant plans to operate, including details of the trading platform or (for an RAP) auction platform,3 settlement arrangements, clearing facilitation services5 and custody services which it plans to supply. An applicant for RAP status must provide details on the relationship between the auction platform and any secondary market in emissions auction products4 which it operates or plans to operate.3 54 |
(4) |
Copies of the last three annual reports and accounts and, for the current financial year, quarterly management accounts. |
(5) |
Details of its business plan for the first three years of operation as a UK recognised body (if not contained in the information listed in REC 5.2.3A G)1. |
(6) |
A full organisation chart and a list of the posts to be held by key individuals (with details of the duties and responsibilities) and the names of the persons proposed for these appointments when these names are available (if not contained in the information listed in REC 5.2.3A G)1. |
(7) |
Details of its auditors, bankers, solicitors and any persons providing corporate finance advice or similar services (such as reporting accountants) to the applicant. |
(8) |
Details of any relevant functions to be outsourced or delegated, with copies of relevant agreements. |
(9) |
Details of information technology systems and of arrangements for their supply, management, maintenance and upgrading, and security. |
(10) |
Details of all plans to minimise disruption to operation of its facilities in the event of the failure of its information technology systems. |
(11) |
Details of internal systems for financial control, arrangements for risk management and insurance arrangements to cover operational and other risks. |
(12) |
Details of its arrangements for managing any counterparty risks. 5 |
(13) |
Details of internal arrangements to safeguard confidential or privileged information and for handling conflicts of interest. |
(14) |
Details of arrangements for complying with the notification rules and other requirements to supply information to the FCA5. 5 |
(15) |
Details of the arrangements to be made for monitoring and enforcing compliance with its rules and with its clearing, settlement and default arrangements. |
(16) |
A summary of the legal due diligence carried out in relation to ascertaining the enforceability of its rules (including default rules) and the results and conclusions reached. 5 |
(17) |
Details of the procedures to be followed for declaring a member in default, and for taking action after that event to close out positions, protect the interests of other members and enforce its default rules. |
(18) |
Details of membership selection criteria, rules and procedures, including (for an RAP) details of how the rules of the UK RIE will change in order to reflect RAP status.3 |
(19) |
Details of arrangements for recording transactions effected by, or cleared through, its facilities. |
(20) |
Details of arrangements for detecting financial crime and market abuse , including arrangements for complying with money laundering law. |
(21) |
Details of criteria, rules and arrangements for selecting specified investments to be admitted to trading on (or cleared by) an RIE and, where relevant, details of how information regarding specified investments will be disseminated to users of its facilities. 5 |
(22) |
Details of arrangements for cooperating with the FCA5 and other appropriate authorities, including draft memoranda of understanding or letters. 5 |
(23) |
Details of the procedures and arrangements for making and amending rules, including arrangements for consulting on rule changes. |
(24) |
Details of disciplinary and appeal procedures, and of the arrangements for investigating complaints. |