Part XVIII

Recognised investment exchanges, clearing houses , CSDs and other parties
CHAPTER 3C

Critical third parties

Power of direction
312N
1
A relevant regulator may, if it appears to the regulator to be necessary or expedient for the purpose of advancing any of its objectives, direct a critical third party to—
a
do anything specified in the direction, or
b
refrain from doing anything specified in the direction.
2
A direction under this section—
a
must be given by notice in writing,
b
may be expressed to have effect during a specified period or until revoked, and
c
may specify the way in which, and the time by which, a thing is to be done.
3
Subsection (4) applies if a direction is given to a critical third party for the purpose of resolving or reducing a threat to the stability or integrity of the UK financial system.
4
The critical third party (including the critical third party’s officers and staff) has immunity from liability in damages in respect of action or inaction in accordance with the direction.
5
A direction given for the purpose mentioned in subsection (3) must—
a
include a statement that it is given for that purpose, and
b
inform the critical third party of the effect of subsection (4).
6
An immunity conferred by this section does not extend to action or inaction—
a
in bad faith, or
b
in contravention of section 6(1) of the Human Rights Act 1998.
7
A relevant regulator may at any time revoke a direction under this section by giving notice in writing to the critical third party to which the direction relates.
8
The revocation of the direction does not affect the validity of anything previously done in accordance with it.
9
For the purposes of this section the objectives of a relevant regulator are as described in section 312M(2).
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 Ch. 3C inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), ss. 18(3), 86(3); S.I. 2023/779, reg. 4(m)
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)