http://www.legislation.gov.uk/id/uksi/1996/1469

http://www.legislation.gov.uk/uksi/1996/1469/regulation/3/made

The Financial Markets and Insolvency Regulations 1996

Capital and financial markets

King's Printer of Acts of Parliament

2015-03-11

FINANCIAL SERVICES

The Regulations apply with modifications certain provisions of Part VII of the Companies Act 1989 (c. 40) (“Part VII”) to certain charges (and to property subject to those charges) granted in favour of those who undertake assured payment obligations in connection with the settlement of transactions through a relevant system in respect of which an Operator has been approved under the Uncertificated Securities Regulations 1995 (S.I. 1995/3272). The provisions applied are ones which modify the way in which the charges in question are treated in the event of an administration or certain kinds of receivership under the Insolvency Act 1986 (c. 45) and ones which modify the way in which rights of persons other than the chargee may be exercised in relation to property subject to those charges.

The Financial Markets and Insolvency Regulations 1996

specified amended provision(s)

The Proceeds of Crime Act 2002 (Commencement No. 4, Transitional Provisions and Savings) Order 2003

art. 2

Sch.

commencement order for 2002 c. 29

The Financial Markets and Insolvency Regulations 1996

reg. 6(1A)

The Enterprise Act 2002 (Insolvency) Order 2003

Sch.

para. 62(b)

art. 6

art. 1(1)

The Financial Markets and Insolvency Regulations 1996

reg. 6(5A)

The Enterprise Act 2002 (Insolvency) Order 2003

Sch.

para. 62(e)

art. 6

art. 1(1)

The Financial Markets and Insolvency Regulations 1996

reg. 7(1A)

The Enterprise Act 2002 (Insolvency) Order 2003

Sch.

para. 63(b)

art. 6

art. 1(1)

The Financial Markets and Insolvency Regulations 1996

reg. 8(1A)

The Enterprise Act 2002 (Insolvency) Order 2003

Sch.

para. 64(a)

art. 6

art. 1(1)

The Financial Markets and Insolvency Regulations 1996

Regulations

The Payment and Electronic Money Institution Insolvency (Amendment) Regulations 2023

reg. 4

reg. 1(2)

The Financial Markets and Insolvency Regulations 1996

Regulations

The Investment Bank Special Administration Regulations 2011

Sch. 6

Pt. 1

reg. 27(a)

reg. 1

The Financial Markets and Insolvency Regulations 1996

Regulations

The Payment and Electronic Money Institution Insolvency Regulations 2021

Sch. 3

para. 2

reg. 5

reg. 2

The Financial Markets and Insolvency Regulations 1996

Regulations

The Banking Act 2009 (Parts 2 and 3 Consequential Amendments) Order 2009

art. 3

Sch.

art. 1

The Financial Markets and Insolvency Regulations 1996

reg. 6(5A)(a)

The Enterprise Act 2002 (Insolvency) Order 2004

art. 3

art. 1

PART IISYSTEM-CHARGES

Application of Part VII of the Act in relation to system-charges3

1

Subject to the provisions of these Regulations, Part VII of the Act4 shall apply in relation to—

a

a charge to which paragraph (2) applies (“a system-charge”) and any action taken to enforce such a charge; and

b

any property subject to a system-charge,

in the same way as it applies in relation to a market charge, any action taken to enforce a market charge and any property subject to a market charge.

2

This paragraph applies in relation to a charge granted in favour of a settlement bank for the purpose of securing debts or liabilities arising in connection with any of the following—

a

a transfer of uncertificated units of a security to a system-member by means of a relevant system whether the system-member is acting for himself or on behalf of a system-beneficiary;

b

a transfer, by one system-beneficiary to another and by means of a relevant system, of his interests in relation to uncertificated units of a security held by a relevant nominee where the relevant nominee will continue to hold the units;

c

an agreement to make a transfer of the kind specified in paragraph (a);

d

an agreement to make a transfer of the kind specified in paragraph (b); and

e

an issue of uncertificated units of a security to a system-member by means of a relevant system whether the system-member is acting for himself or on behalf of a system-beneficiary.

3

In its application, by virtue of these Regulations, in relation to a system-charge, section 173(2) of the Act shall have effect as if the references to “purposes specified” and “specified purposes” were references to any one or more of the purposes specified in paragraph (2).