SCHEDULE 1REQUIREMENTS FOR APPROVAL OF A PERSON AS OPERATOR

Rules and practices

I125

An Operator’s rules and practices—

a

must bind system-members and participating issuers—

i

so as to ensure the efficient processing of transfers of title to uncertificated units of a security in response to Operator-instructions; and

ii

as to the action to be taken where transfer of title in response to a system-member instruction or an Operator-instruction cannot be effected;

b

must make provision as to the manner in which a system-member or the relevant participating issuer may change the form in which that system-member holds units of a participating security (other than a wholly dematerialised security);

c

must make provision for a participating issuer to cease to participate in respect of a participating security so as—

i

to minimise so far as practicable any disruption to system-members in respect of their ability to transfer the relevant security; and

ii

to provide the participating issuer with any relevant information held by the Operator relating to the uncertificated units of the relevant security held by system-members;

d

must make provision for the orderly termination of participation by system-members and system-participants whose participation is disruptive to other system-members or system-participants or to participating issuers;

e

must make provision—

i

as to which of the Operator’s records are to constitute an Operator register of securities in relation to a participating security, or a participating security of a particular kind; and

ii

as to the times at which, and the manner in which, a participating issuer may inspect an Operator register of securities in accordance with paragraph 12;

f

if they make provision for the designation of a subsidiary undertaking as a relevant nominee, must require that the relevant nominee maintain adequate records of—

i

the names of the persons who have an interest in the securities it holds; and

ii

the nature and extent of their interests; and

g

must make provision for the authentication by the Operator of any written notification given under regulation 25(3) or 32(2)(c).

Annotations:
Commencement Information
I1

Sch. 1 para. 25 in force at 26.11.2001, see reg. 1

I226

An Operator’s rules and practices must require—

a

that each system-participant is able to send and receive properly authenticated dematerialised instructions;

b

that each system-member has arrangements—

i

for properly authenticated dematerialised instructions attributable to him to be sent;

ii

for properly authenticated dematerialised instructions to be received by or for him; and

iii

with a settlement bank for payments to be made, where appropriate, for units of a security transferred by means of the relevant system; and

c

that each participating issuer is able to respond with sufficient speed to Operator-instructions.

Annotations:
Commencement Information
I2

Sch. 1 para. 26 in force at 26.11.2001, see reg. 1

I327

An Operator must have rules which require system-users and former system-users to provide him with such information in their possession as he may require in order to meet his obligations under these Regulations.