{
  "url": "https://openlegislation.uk/draft-uncertificated-securities-regulations-2001/schedule-1/paragraph-21",
  "json_url": "https://openlegislation.uk/draft-uncertificated-securities-regulations-2001/schedule-1/paragraph-21.json",
  "legislation": "ukdsi/2001/0110387449",
  "legislation_title": "The Uncertificated Securities Regulations 2001",
  "legislation_url": "https://openlegislation.uk/draft-uncertificated-securities-regulations-2001",
  "path": "schedule/1/paragraph/21",
  "kind": "paragraph",
  "number": "21",
  "heading": null,
  "text": "(1) Subject to subparagraphs (2) to (5), a relevant system must comprise procedures which provide that an Operator only registers a transfer of title to uncertificated units of a security or generates an Operator-instruction requiring a participating issuer to register such a transfer, and only generates an Operator-instruction informing a settlement bank of its payment obligations in respect of such a transfer, if—\n(a) it has—\n(i) received a system-member instruction which is attributable to the transferor; or\n(ii) been required to do so by a court in the United Kingdom or by or under an enactment;\n(b) it has—\n(i) established that the transferor has title to such number of units as is in aggregate at least equal to the number to be transferred; or\n(ii) established that the transfer is one of two or more transfers which may be registered in accordance with regulation 30(2);\n(c) in the case of a transfer to a system-member for value, it has established that a settlement bank has agreed to make payment in respect of the transfer, whether alone or taken together with another transfer for value; and\n(d) the transfer is not in excess of any limit which by virtue of paragraph 15(a)(ii) the transferor has set on an authority given by him to a sponsoring system-participant.\n(2) Subparagraph (1)(a) shall not prevent the registration by an Operator of a transfer of title to uncertificated units of a security, or the generation of an Operator-instruction, in accordance with procedures agreed between the Operator and the transferor to enable the transfer by means of a relevant system of uncertificated units of a security provided that such transfer is for the purpose of, or relates to, facilitating the provision of financial credit or financial liquidity to the transferor by a settlement bank, the Bank of England, the European Central Bank, any other central bank, or any other body having functions as a monetary authority.\n(3) A relevant system must comprise procedures which provide that—\n(a) the Operator may amend an Operator register of securities; and\n(b) an Operator-instruction requiring a participating issuer to register a transfer of uncertificated units of a security, or informing a settlement bank of its payment obligations in respect of such a transfer, may be generated,\nif necessary to correct an error and if in accordance with the rules made and practices instituted by the Operator in order to comply with this Schedule.\n(4) A relevant system must comprise procedures which provide that—\n(a) the Operator may amend an Operator register of securities; and\n(b) an Operator-instruction requiring a participating issuer to register a transfer of units of a wholly dematerialised security, or informing a settlement bank of its payment obligations in respect of such a transfer, may be generated,\nif necessary to effect a transfer of such units, on the termination of participation in the relevant system by the system-member by whom those units are held and if in accordance with the rules made and practices instituted by the Operator in order to comply with this Schedule, to a person nominated under the Operator’s rules.\n(5) Subparagraph (1)(a) shall not prevent the registration by an Operator of a transfer of title to uncertificated units of a security, or the generation of an Operator-instruction, in order to give effect to the procedures referred to in subparagraph (3) or (4).",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukdsi/2001/0110387449/schedule/1/paragraph/21",
    "retrieved_at": "2026-10-30T15:26:35.791495+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}