PART 2THE OPERATOR

APPROVAL AND COMPLIANCE

Applications for approval4.

(1)

Any person may apply to the F1Bank of England for its approval of him as Operator of a relevant system.

(2)

The application shall be made in such manner as the F2Bank of England may direct and shall be accompanied by—

(a)

a copy of the rules and any guidance to be issued by the applicant; and

(b)

such other information as the F2Bank of England may reasonably require for the purpose of determining the application.

(3)

At any time after receiving an application and before determining it, the F3Bank of England may require the applicant to provide such further information as it reasonably considers necessary to enable it to determine the application.

(4)

Information which the F4Bank of England requires under this regulation shall, if it so requires, be provided in such form, or verified in such manner, as it may direct.

(5)

Different directions may be given, or requirements imposed, by the F5Bank of England with respect to different applications.

Grant and refusal of approval5.

(1)

If, on an application made under regulation 4, it appears to the F6Bank of England that the requirements of Schedule 1 (which imposes requirements which must appear to the F6Bank of England to be satisfied with respect to an Operator, his rules and practices and the relevant system) are satisfied with respect to the application, F7it may—

(a)

subject to the payment of any fee charged by virtue of regulation 6(1); and

(b)

subject to the provisions of Schedule 2,

approve the applicant as Operator of a relevant system.

(2)

In considering an application, the F8Bank of England may have regard to any information which F9it considers is relevant to the application.

(3)

An approval under this regulation shall be by instrument in writing and shall state the date on which it is to take effect.

(4)

Schedule 3 shall have effect in relation to a decision to refuse an application made under regulation 4 as if references to an Operator were to the applicant.

(5)

Provided that it had not been withdrawn before these Regulations came into force, an approval granted to a person under regulation 5 of the 1995 Regulations shall be treated as having been granted under this regulation.

Fees charged by the F10Bank of England6.

(1)

The F11Bank of England may charge a fee to a person seeking approval as Operator of a relevant system.

(2)

The F12Bank of England may charge an Operator a periodical fee.

(3)

Any fee chargeable by the F13Bank of England under this regulation shall not exceed an amount which reasonably represents the amount of costs incurred—

(a)

in the case of a fee charged to a person seeking approval, in determining whether to grant approval; and

(b)

in the case of a periodical fee, in satisfying F14itself that the Operator, his rules and practices and the relevant system continue to meet the requirements of Schedule 1 and that the Operator is complying with any obligations imposed on him by or under these Regulations.

(4)

For the purposes of paragraph (3), the costs incurred by the F15Bank of England shall be determined on the basis that they include such proportion of the following matters as are properly attributable to the performance of the relevant function—

(a)

expenditure on staff, equipment, premises, facilities, research and development;

F16(b)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)

any notional interest incurred on any capital expended on or in connection with the performance of the function F17...; and

(d)

any other matter which, in accordance with generally accepted accounting principles, may properly be taken account of in ascertaining the costs properly attributable to the performance of the function.

(5)

For the purposes of paragraph (4)(c)—

(a)

“notional interest” means any interest which that person might reasonably have been expected to have been liable to pay had the sums expended been borrowed at arm’s length; F18...

F18(b)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F19(6)

Any fee which is owed to the Bank of England under this regulation may be recovered as a debt due to the Bank of England.

F20(7)

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