The Financial Services and Markets Act 2000 (Recognition Requirements for Investment Exchanges , Clearing Houses and Central Securities Depositories ) Regulations 2001

[F1 Portability of accounts: default rules going beyond requirements of EMIR U.K.

Textual Amendments

F1 Sch. Pts. 5, 6 inserted (1.4.2013) by The Financial Services and Markets Act 2000 (Over the Counter Derivatives, Central Counterparties and Trade Repositories) Regulations 2013 (S.I. 2013/504), regs. 1(2), 5(6) (with regs. 52-58)

34.— (1) Sub-paragraph (2) applies to any provisions of the default rules which— U.K.

(a) provide for the transfer of the positions or assets of a defaulting clearing member;

(b) are not necessary for the purposes of complying with the minimum requirements of Articles 48(5) and (6) of the EMIR Level 1 Regulation; and

(c) may be relevant to a question falling to be determined in accordance with the law of a part of the United Kingdom.

(2) Where this sub-paragraph applies to any provisions of the default rules, the default rules must—

(a) include a summary of how a transfer under the provisions will work and its main legal implications (including information on the applicable insolvency law in the relevant jurisdictions), or a clear and prominent reference to the place where such a summary can be directly and easily accessed by the public;

(b) ensure that a position or asset cannot be transferred under the provisions without the consent of—

(i) the person for whose account the position or asset is held; and

(ii) the clearing member to whom the position or asset is transferred;

(c) ensure that any transfer under the provisions is fair to clients and indirect clients; and

(d) specify a pre-defined transfer period within which a transfer under the provisions must take place.

(3) For the purposes of sub-paragraph (2)(a), a clear and prominent reference to a place where a summary can be directly and easily accessed by the public may be provided by way of a direct internet link to an appropriate internet site.

(4) For the purposes of sub-paragraph (2)(b), consent may be given in advance of a default (such as by means of suitable provision in the default rules).]