Regulation 16 Circumstances in which member or designated non-member dealing as principal to be treated as acting in different capacitiesI1

England, Wales and Scotland

(1)

In this regulation “relevant transaction” means—

F1(a)

a market contract, effected as principal by a member or designated non-member of a recognised investment exchange or a member of a recognised clearing house F2or a member of a recognised CSD, in relation to which money received by the member or designated non-member is—

(i)

clients’ money for the purposes of rules relating to clients’ money, or

(ii)

would be clients’ money for the purposes of those rules were it not money which, in accordance with those rules, may be regarded as immediately due and payable to the member or designated non-member for its own account; and

(b)

a market contract which would be regarded as a relevant transaction by virtue of sub-paragraph (a) above were it not for the fact that no money is received by the member or designated non-member in relation to the contract.

F3(1A)

In addition “relevant transaction” means a market contract entered into by a recognised clearing house effected as principal in relation to which money is received by the recognised clearing house from a recognised investment exchange F4or from a recognised CSD or from another recognised clearing house.

(1B)

In addition “relevant transaction” means a market contract entered into by a recognised investment exchange effected as principal in relation to which money is received by the recognised investment exchange from a recognised clearing house F5or from a recognised CSD or from another recognised investment exchange.

(F61BA)

In addition “relevant transaction” means a market contract entered into by a recognised CSD effected as principal in relation to which money is received by the recognised CSD from a recognised clearing house or from a recognised investment exchange or from another recognised CSD.

(F71C)

Where paragraph (1A), (1B) or (1BA) applies, paragraph (1) applies to the recognised clearing house, recognised investment exchange or recognised CSD as it does to a member of the recognised clearing house, recognised investment exchange or recognised CSD, and as if the recognised clearing house, recognised investment exchange or recognised CSD were subject to the rules referred to in paragraph (1)(a)(i).

(F81D)

In paragraph (1), “rules relating to clients’ money” are rules made by the Financial Conduct Authority under sections 137A and 137B of the Financial Services and Markets Act 2000.

F9(2)

For the purposes of section 187(1) of the Act (construction of references to parties to market contracts)—

(a)

a recognised investment exchange or a member or designated non-member of a recognised investment exchange, F10...

(b)

a recognised clearing house or a member of a recognised clearing house, F11or

(c)

a recognised CSD or a member of a recognised CSD,

shall be treated as effecting relevant transactions in a different capacity from other market contracts it has effected as principal.

F12(3)

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

(4)

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

Annotations

Textual amendments

F1: Reg. 16(1)(a) substituted (15.6.2009) by The Financial Markets and Insolvency Regulations 2009 (S.I. 2009/853), regs. 1(1), 3(6)(a)
F2: Words in reg. 16(1)(a) inserted (28.11.2017) by The Central Securities Depositories Regulations 2017 (S.I. 2017/1064), reg. 1, Sch. para. 20(7)(a) (with regs. 7(4), 9(1))
F3: Reg. 16(1A)-(1D) inserted (15.6.2009) by The Financial Markets and Insolvency Regulations 2009 (S.I. 2009/853), regs. 1(1), 3(6)(b)
F4: Words in reg. 16(1A) inserted (28.11.2017) by The Central Securities Depositories Regulations 2017 (S.I. 2017/1064), reg. 1, Sch. para. 20(7)(b) (with regs. 7(4), 9(1))
F5: Words in reg. 16(1B) inserted (28.11.2017) by The Central Securities Depositories Regulations 2017 (S.I. 2017/1064), reg. 1, Sch. para. 20(7)(c) (with regs. 7(4), 9(1))
F6: Reg. 16(1BA) inserted (28.11.2017) by The Central Securities Depositories Regulations 2017 (S.I. 2017/1064), reg. 1, Sch. para. 20(7)(d) (with regs. 7(4), 9(1))
F7: Reg. 16(1C) substituted (28.11.2017) by The Central Securities Depositories Regulations 2017 (S.I. 2017/1064), reg. 1, Sch. para. 20(7)(e) (with regs. 7(4), 9(1))
F8: Reg. 16(1D) substituted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), art. 1(1), Sch. 2 para. 9
F9: Reg. 16(2) substituted (15.6.2009) by The Financial Markets and Insolvency Regulations 2009 (S.I. 2009/853), regs. 1(1), 3(6)(c)
F10: Word in reg. 16(2)(a) omitted (28.11.2017) by virtue of The Central Securities Depositories Regulations 2017 (S.I. 2017/1064), reg. 1, Sch. para. 20(7)(f)(i) (with regs. 7(4), 9(1))
F11: Reg. 16(2)(b) and word inserted (28.11.2017) by The Central Securities Depositories Regulations 2017 (S.I. 2017/1064), reg. 1, Sch. para. 20(7)(f)(ii) (with regs. 7(4), 9(1))
F12: Reg. 16(3)(4) omitted (15.6.2009) by virtue of The Financial Markets and Insolvency Regulations 2009 (S.I. 2009/853), regs. 1(1), 3(6)(d)

Commencement

I1: Reg. 16 in force at 25.4.1991, see reg. 1