Part XVIII

Recognised investment exchanges, clearing houses , CSDs and other parties
CHAPTER 2A

Performance of functions of recognised bodies

Certification of employees

Certification of employees by relevant recognised bodies
309Y
1
A relevant recognised body must take reasonable care to ensure that none of its employees performs a specified function in relation to the carrying on of an activity by the body, unless the employee has a valid certificate issued by the body under section
309Z
.
2
Subsection
(1)
applies only in relation to a function performed under an arrangement entered into by the body.
3
In this section, “
specified function
” means a function of a description specified in rules made by the appropriate regulator.
4
The appropriate regulator may specify a description of function under subsection
(3)
only if, in relation to the carrying on of an activity by a relevant recognised body of a particular description—
a
the function is not a designated senior management function in relation to the carrying on of that activity by a relevant recognised body of that description, and
b
the appropriate regulator is satisfied that the function is a significant-harm function.
5
A function is a “
significant-harm function
”, in relation to the carrying on of an activity by a relevant recognised body, if—
a
the function will require the person performing it to be involved in one or more aspects of the body’s affairs, so far as relating to the activity, and
b
those aspects involve, or might involve, a risk of significant harm to the body or to any of its consumers.
6
In this section, “
consumers
”, in relation to a relevant recognised body, means—
a
persons who use, have used or may use a service provided by the body, or
b
persons who have relevant rights or interests in relation to any such service.
7
A person (“
P
”) has a “
relevant right or interest
” in relation to a service provided by a relevant recognised body if P has a right or interest—
a
which is derived from, or is otherwise attributable to, the use of the service by others, or
b
which may be adversely affected by the use of the service by persons acting on P’s behalf or in a fiduciary capacity in relation to P.
8
For these purposes—
a
if a person is providing a service as a trustee, the persons who are, have been or may be beneficiaries of the trust are to be treated as persons who use, have used or may use the service;
b
a person who deals with another person (“
A
”) in the course of A providing a service is to be treated as using the service.
Pt. 18 applied in part (with modifications) (12.12.2011) by The Recognised Auction Platforms Regulations 2011 (S.I. 2011/2699), reg. 7, Sch. 2 (as amended (28.11.2017) by The Central Securities Depositories Regulations 2017 (S.I. 2017/1064), reg. 1, Sch. para. 37 (with regs. 7(4), 9(1)))
Pt. 18 heading substituted (28.11.2017) by The Central Securities Depositories Regulations 2017 (S.I. 2017/1064), regs. 1, 2(8) (with regs. 7(4), 9(1))
Words in Pt. 18 heading substituted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), ss. 18(2), 86(3); S.I. 2023/779, reg. 4(m)
Pt. 18 Ch. 2A inserted (29.6.2023 for specified purposes) by Financial Services and Markets Act 2023 (c. 29), s. 86(1)(e), Sch. 10 para. 1