On November 7, 2017, HM Treasury published the Central Securities Depositories Regulations 2017, together with an explanatory memorandum. The Regulations implement, in part, certain Articles of the EU Central Securities Depositaries Regulation. The CSDR provides a harmonized regulatory and prudential regime for Central Securities Depositaries, harmonizes and increases the robustness and resilience of securities settlement arrangements and creates a single market for CSD services across the EU. The CSDR has come into full effect in stages since September 17, 2014, subject to a number of transitional provisions that have necessitated staggered implementation within UK legislation.
These latest Regulations disapply certain overlapping provisions of the domestic regime and extend the enforcement regime under the Financial Services and Markets Act 2000 to grant additional enforcement powers to the BoE and the FCA. The Regulations create a new category of recognized body, known as a Recognized Central Securities Depository, and establish the procedures to be followed by persons acquiring control over RCSDs. Recognized investment exchanges, clearing houses and CSDs will be required to have appropriate procedures in place for the reporting of infringements. The Regulations also empower the BoE to make rules codifying the requirement that central counterparties notify the BoE of a cyber-incident. The Regulations take effect from November 28, 2017.
The Central Securities Depositaries Regulations 2017 (S.I. 2017/1064) are available at: http://www.legislation.gov.uk/uksi/2017/1064/pdfs/uksi_20171064_en.pdf and the Explanatory Memorandum is available at: http://www.legislation.gov.uk/uksi/2017/1064/pdfs/uksiem_20171064_en.pdf.
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