CHAPTER XIV

AUTHORISATION TO PROVIDE BANKING TYPE OF ANCILLARY SERVICES

(Article 55(1) and (2) of Regulation (EU) No 909/2014)

CSDs offering banking-type ancillary services themselves
Article 91
An application for authorisation in accordance to point (a) of Article 54(2) of Regulation (EU) No 909/2014 shall include the following information:
1. a copy of the decision of the management body of the applicant CSD to apply for authorisation and the minutes from the meeting where the management body approved the content of the application file and its submission;
2. the contact details of the person responsible for the application for authorisation, where that person is not the one submitting the application for authorisation referred to under Article 17 of Regulation (EU) No 909/2014;
3. evidence that proves the existence of an authorisation referred to in point (a) of Article 54(3) of Regulation (EU) No 909/2014;
4. evidence that the applicant CSD meets the prudential requirements referred to in Article 59(1), (3) and (4) of Regulation (EU) No 909/2014 and the supervisory requirements referred to in Article 60 of that Regulation;
5. evidence, containing any relevant documents including articles of incorporation, financial statements, audit reports, reports from risk committees, which proves that the applicant CSD complies with point (d) of Article 54(3) of Regulation (EU) No 909/2014;
6. details concerning the recovery plan referred to in point (f) of Article 54(3) of Regulation (EU) No 909/2014;
7. a programme of operations that fulfils the following conditions:
  1. it includes a list of the banking-type ancillary services referred to in Section C of the Annex to Regulation (EU) No 909/2014 that the CSD intends to provide;
  2. it includes an explanation of how the banking-type ancillary services referred to in Section C of the Annex to Regulation (EU) No 909/2014 are directly related to any core or ancillary services referred to in Sections A and B of the Annex to Regulation (EU) No 909/2014 that the CSD is authorised to provide;
  3. it is structured following the list of banking-type ancillary services referred to in Section C of the Annex to Regulation (EU) No 909/2014;
8. evidence supporting the reasons for not settling the cash payments of the CSD's securities settlement system through accounts opened with a central bank of issue of the currency of the country where the settlement takes place;
9. detailed information on the arrangements which ensure that the provision of banking-type ancillary services intended to be provided does not affect the smooth provision of the core CSD services referred to in Section A of the Annex to Regulation (EU) No 909/2014, including:
  1. the IT platform used for the settlement of the cash leg of securities transactions, including an overview of the IT organisation and an analysis of the related risks and how they are mitigated;
  2. the operation and legal arrangements of the DVP process and, in particular, the procedures used to address the credit risk resulting from the settlement of the cash leg of securities transactions;
  3. the selection, monitoring, legal documentation and management of interconnections with any other third parties involved in the process of cash transfers, in particular the relevant arrangements with third parties involved in the process of cash transfers;
  4. the detailed analysis contained in the recovery plan of the applicant CSD of regarding any impact of the provision of banking-type ancillary services on the provision of core CSD services;
  5. the disclosure of possible conflicts of interests in the governance arrangements resulting from the provision of banking-type ancillary services, and the measures taken to address them.

CSDs offering banking-type ancillary services through a designated credit institution
Article 92
An application for authorisation in accordance with point (b) of Article 54(2) of Regulation (EU) No 909/2014 shall contain the following information:
1. a copy of the decision of the management body of the applicant CSD to apply for authorisation and the minutes from the meeting where the management body approved the content of the application file and its submission;
2. the contact details of the person responsible for the application for authorisation, where the person is not the same person as the one submitting the application for authorisation referred to in Article 17 of Regulation (EU) No 909/2014;
3. the corporate name of the credit institution to be designated in accordance with point (b) of Article 54(2) of Regulation (EU) No 909/2014, its legal status and registered address in the Union;
4. evidence that the credit institution referred to in point (c) has obtained an authorisation referred to in point (a) of Article 54(4) of Regulation (EU) No 909/2014;
5. the articles of incorporation and other relevant statutory documentation of the designated credit institution;
6. the ownership structure of the designated credit institution, including the identity of its shareholders;
7. the identification of any common shareholders of the applicant CSD and the designated credit institution and any participations between the applicant CSD and the designated credit institution;
8. evidence that the designated credit institution meets the prudential requirements referred to in Article 59(1), (3) and (4) of Regulation (EU) No 909/2014 and the supervisory requirements referred to in Article 60 of that Regulation;
9. evidence, including a memorandum of association, financial statements, audit reports, reports from risk committees, or other documents, which proves that the designated credit institution complies with point (e) of Article 54(4) of Regulation (EU) No 909/2014;
10. the details of the recovery plan referred to in point (g) of Article 54(4) of Regulation (EU) No 909/2014;
11. a programme of operations that fulfils the following conditions:
  1. it includes a list of the banking-type ancillary services referred to in Section C of the Annex to Regulation (EU) No 909/2014 that the designated credit institution intends to provide;
  2. it includes an explanation of how the banking-type ancillary services referred to in Section C of the Annex to Regulation (EU) No 909/2014 are directly related to any core or ancillary services referred to in Sections A and B of the Annex to Regulation (EU) No 909/2014 that the applicant CSD is authorised to provide;
  3. it is structured following the list of banking-type ancillary services referred to in Section C of the Annex to Regulation (EU) No 909/2014;
12. evidence supporting the reasons for not settling the cash payments of the CSD's securities settlement system through accounts opened with a central bank of issue of the currency of the country where the settlement takes place;
13. detailed information concerning the following aspects of the relation between the CSD and the designated credit institution:
  1. the IT platform used for the settlement of the cash leg of securities transactions, including an overview of the IT organisation and an analysis of the related risks and how they are mitigated;
  2. the applicable rules and procedures that ensure compliance with the requirements concerning settlement finality referred to in Article 39 of Regulation (EU) No 909/2014;
  3. the operation and the legal arrangements of the DVP process, including the procedures used to address the credit risk resulting from the cash leg of a securities transaction;
  4. the selection, monitoring and management of the interconnections with any other third parties involved in the process of cash transfers, in particular the relevant arrangements with third parties involved in the process of cash transfers;
  5. the service level agreement establishing the details of functions to be outsourced by the CSD to the designated credit institution or from the designated credit institution to the CSD and any evidence that demonstrates compliance with the outsourcing requirements set out in Article 30 of Regulation (EU) No 909/2014;
  6. the detailed analysis contained in the recovery plan of the applicant CSD about any impact of the provision of banking-type ancillary services on the provision of core CSD services;
  7. the disclosure of possible conflicts of interests in the governance arrangements resulting from the banking-type ancillary services, and the measures taken to address them;
  8. evidence that demonstrates that the credit institution has the necessary contractual and operational ability to have prompt access to the securities collateral located in the CSD and related to the provision of intraday credit and, as the case may be, short-term credit.

Specific requirements
Article 93
1
Where the CSD applies for authorisation to designate more than one credit institution to provide banking-type ancillary services, its application shall include the following information:
a
the information referred to Article 91 for each of the designated credit institution;
b
a description of the role of each designated credit institution and the relations between them.
2
Where the application to be authorised in accordance with point (a) or (b) of Article 54(2) of Regulation (EU) No 909/2014 is submitted after the authorisation referred to in Article 17 of that Regulation has been obtained, the applicant CSD shall identify and inform the competent authority of substantive changes referred to in Article 16(4) of Regulation (EU) No 909/2014 unless it has already provided the information in the process of review and evaluation referred to in Article 22 of that Regulation.

Standard forms and templates for the application
Article 94
1
An applicant CSD shall provide an application for the authorisations referred to in points (a) and (b) of Article 54(2) of Regulation (EU) No 909/2014 in the format provided in Annex III to this Regulation.
2
An applicant CSD shall submit the application referred to in paragraph 1 in a durable medium.
3
An applicant CSD shall provide a unique reference number for each document that it submits in the application referred to in paragraph 1.
4
An applicant CSD shall ensure that the information submitted in the application referred to in paragraph 1 clearly identifies to which specific requirement of this Chapter that information refers to and in which document that information is provided.
5
An applicant CSD shall provide its competent authority with a list of all the documents provided in the application referred to in paragraph 1 accompanied by their reference number.
6
All information shall be submitted in the language indicated by the competent authority. The competent authority may ask the CSD to submit the same information in a language customary in the sphere of international finance.