Part XVIII

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

Performance of functions of recognised bodies

Rules of conduct

Rules of conduct
309Z1
1
If it appears to the appropriate regulator to be necessary or expedient for the purposes of advancing a relevant objective, the appropriate regulator may make rules about the conduct of the following persons in relation to the performance by them of qualifying functions—
a
persons in relation to whom the appropriate regulator has given its approval under section
309G
(“Part 18 approved persons”);
b
directors of relevant recognised bodies;
c
employees of relevant recognised bodies.
2
Rules under subsection
(1)
may include provision requiring a relevant recognised body to—
a
notify persons mentioned in subsection
(1)
of the rules that apply to them;
b
take specified steps to secure that such persons understand how those rules apply in relation to them.
3
Rules under subsection
(1)
may include provision requiring a relevant recognised body to notify the appropriate regulator if the body takes specified disciplinary action in relation to a person mentioned in subsection
(1)
.
4
In this section—
- “
qualifying function
” means a function relating to the carrying on of activities by the following—
  1. in the case of a Part 18 approved person, the relevant recognised body on whose application approval was given;
  2. in the case of a director or employee of a relevant recognised body, who is not a Part 18 approved person, the relevant recognised body;
- “
relevant objective
” means—
  1. if the appropriate regulator is the FCA, any of its operational objectives;
  2. if the appropriate regulator is the Bank of England, the Financial Stability Objective.
- “
specified
” means specified in the rules.
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