PART 13

Auction Surveillance, Remedial Measures and Sanctions

Monitoring the relationship with bidders
37
1
The appointed auction platform must monitor the relationship with bidders admitted to bid in its auctions throughout its subsistence, by—
a
scrutinising bids made throughout the course of that relationship to ensure that the bidding behaviour of bidders is consistent with the auction platform's knowledge of the customer, its business and risk profile, including, where necessary, the source of funds;
b
maintaining effective arrangements and procedures for the regular monitoring of the compliance by persons admitted to bid pursuant to regulation 17(1) and (2) with the market conduct rules of the appointed auction platform;
c
monitoring transactions undertaken by persons admitted to bid pursuant to regulation 17(1) and (2) and by politically exposed persons (within the meaning of regulation 35 of the Money Laundering Regulations) using its systems in order to identify breaches of the rules referred to in sub-paragraph (b), unfair or disorderly auctioning conditions or conduct that may invoke market abuse.
2
Where scrutinising bids in accordance with paragraph (1)(a), the appointed auction platform must pay particular attention to any activity which it regards as particularly likely, by its nature, to be related to money laundering, terrorist financing or other criminal activity.
3
The appointed auction platform must ensure that the documents, data or information it holds on a bidder are kept up-to-date, and for this purpose, the auction platform may—
a
request any information of the bidder, pursuant to regulation 17(2) and (3) and regulation 18(7) and (8), it requires for the purposes of monitoring the relationship with that bidder following its admission to bid in the auctions, throughout the subsistence of that relationship and for a period of 5 years following its termination;
b
require any person admitted to bid to re-submit an application for admission to bid at regular intervals;
c
require any person admitted to bid to promptly notify the auction platform concerned of any changes to the information submitted to it pursuant to regulation 17(2) and (3) and regulation 18(7) and (8).
4
The appointed auction platform must keep records of—
a
the application for admission to bid submitted by an applicant, pursuant to regulation 17(2), including any amendments thereto;
b
the checks carried out in—
i
processing the application for admission to bid submitted, pursuant to regulations 17 and 18;
ia
refusing to grant admission to bid and revoking or suspending any admission to bid under regulation 19;
ii
scrutinising and monitoring the relationship, pursuant to paragraph (1)(a) and (c), following an applicant's admission to bid;
c
all information relating to a given bid submitted by a given bidder in an auction, including any withdrawal or modification of such bids, pursuant to regulation 5 ...;
d
all information relating to the conduct of each auction in which a bidder has submitted a bid.
5
The appointed auction platform must keep the records referred to in paragraph (4) for as long as a bidder is admitted to bid in its auctions and for at least 5 years following the termination of the relationship with that bidder.
Reg. 37 in force at 22.4.2021, see reg. 1(2)
Reg. 37(4)(b)(ia) inserted (25.8.2021) by The Greenhouse Gas Emissions Trading Scheme Auctioning (Amendment) (No. 2) Regulations 2021 (S.I. 2021/917), regs. 1(2), 12(2)(a)
Words in reg. 37(4)(c) omitted (25.8.2021) by virtue of The Greenhouse Gas Emissions Trading Scheme Auctioning (Amendment) (No. 2) Regulations 2021 (S.I. 2021/917), regs. 1(2), 12(2)(b)