SCHEDULE 1Amendments to primary legislation

Financial Services and Markets Act 20001

1

The Financial Services and Markets Act 2000 is amended as follows.

2

In section 297 M1 (revoking recognition) after subsection (2C) insert—

2D

If it appears to the Bank of England that a recognised central counterparty has failed, or is likely to fail, to comply with an obligation imposed on it by or under Article 4 or 15 of the SFT regulation it may make an order revoking the recognition order for that body even though the body does not wish the order to be made.

3

In section 298 M2 (directions and revocation: procedure)—

a

in subsection (1) for “or (2A)” substitute “ , (2A) or (2D) ”;

b

after subsection (6) insert—

6A

If the appropriate regulator—

a

gives a direction under section 296 to a recognised body because it has failed, or is likely to fail, to comply with an obligation imposed on it by or under Article 4 or 15 of the SFT regulation;

b

makes a revocation order under section 297(2A)(c) because a recognised body has failed, or is likely to fail, to comply with an obligation imposed on it by or under Article 4 or 15 of the SFT regulation; or

c

makes a revocation order under section 297(2D),

the body concerned may refer the matter to the Tribunal.

4

In section 391 (publication) M3 after subsection (8B) insert—

8C

Where a decision notice, final notice or supervisory notice relates to any decision or action under a provision of this Act in relation to the contravention of a requirement imposed by or under Article 4 or 15 of the SFT regulation, this section has effect subject to Article 26 of the SFT regulation (publication of decisions).

5

In section 417 M4 (definitions), in subsection (1) insert at the appropriate place—

“SFT regulation” means Regulation (EU) 2015/2365 of the European Parliament and of the Council of 25 November 2015 on transparency of securities financing transactions and of reuse and amending Regulation (EU) No 648/2012;

6

In Schedule 17A (further provision in relation to exercise of Part 18 functions by Bank of England)—

a

in paragraph 11 (documents the Bank may require to be provided) M5 in sub-paragraph (2)(d) after “the EMIR regulation,” insert “ Article 4 or 15 of the SFT regulation, any directly applicable regulation made under those articles, ”;

b

in paragraph 27 M6 (Bank's power to apply for a restitution order)—

i

at the end of sub-paragraph (2) insert “ (subject to sub-paragraph (3)). ”;

ii

after sub-paragraph (2) insert—

3

The power to make an application under section 382(1) is not exercisable by the Bank in respect of the contravention of a requirement imposed by or under Article 4 or 15 of the SFT regulation.

c

in paragraph 28 M7 (Bank's power to require restitution)—

i

at the end of sub-paragraph (3) insert “ (subject to sub-paragraph (3A)). ”;

ii

after sub-paragraph (3) insert—

3A

The power conferred by section 384(5) is not exercisable by the Bank in respect of the contravention of a requirement imposed by or under Article 4 or 15 of the SFT regulation.