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Section 296A Additional power to direct recognised central counterpartiesF1F5

United Kingdom

(1)

The Bank of England may direct a F2recognised central counterparty to take, or refrain from taking, specified action if the Bank is satisfied that it is necessary to give the direction, having regard to the public interest in—

(a)

protecting and enhancing the stability of the UK financial system,

(b)

maintaining public confidence in the stability of the UK financial system,

(c)

maintaining the continuity of the F3... clearing services provided by the F4recognised central counterparty, and

(d)

maintaining and enhancing the financial resilience of the recognised central counterparty.

(2)

The direction may, in particular—

(a)

specify the time for compliance with the direction,

(b)

require the rules of the recognised central counterparty to be amended, and

(c)

override such rules (whether generally or in their application to a particular case).

(3)

The direction may not require the recognised central counterparty—

(a)

to take any steps for the purpose of securing its compliance with—

(i)

the recognition requirements, or

(ii)

any obligation of a kind mentioned in section 296(1)(b) or (1A), or

(b)

to accept a transfer of property, rights or liabilities of another recognised central counterparty.

(4)

If the direction is given in reliance on section 298(7) the Bank must, within a reasonable time of giving the direction, give the recognised central counterparty a statement of its reasons—

(a)

for giving the direction, and

(b)

for relying on section 298(7).

(5)

The direction is enforceable, on the application of the Bank, by an injunction or, in Scotland, by an order for specific performance under section 45 of the Court of Session Act 1988.

(6)

The Bank may revoke a direction given under this section.

Annotations

Textual amendments

F1

S. 296A inserted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 31, 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F2

Words in s. 296A(1) substituted (1.4.2013) by The Financial Services and Markets Act 2000 (Over the Counter Derivatives, Central Counterparties and Trade Repositories) Regulations 2013 (S.I. 2013/504), regs. 1(2), 3(11)(b)(i) (with regs. 52-58)

F3

Words in s. 296A(1)(c) omitted (1.4.2013) by The Financial Services and Markets Act 2000 (Over the Counter Derivatives, Central Counterparties and Trade Repositories) Regulations 2013 (S.I. 2013/504), regs. 1(2), 3(11)(b)(ii) (with regs. 52-58)

F4

Words in s. 296A(1)-(4) substituted (1.4.2013) by The Financial Services and Markets Act 2000 (Over the Counter Derivatives, Central Counterparties and Trade Repositories) Regulations 2013 (S.I. 2013/504), regs. 1(2), 3(11)(c) (with regs. 52-58)

F5

Words in s. 296A heading substituted (1.4.2013) by The Financial Services and Markets Act 2000 (Over the Counter Derivatives, Central Counterparties and Trade Repositories) Regulations 2013 (S.I. 2013/504), regs. 1(2), 3(11)(a) (with regs. 52-58)

Notes on Part XVIII

Textual amendments

F1

Pt. 18 heading substituted (28.11.2017) by The Central Securities Depositories Regulations 2017 (S.I. 2017/1064), regs. 1, 2(8) (with regs. 7(4), 9(1))

F2

Words in Pt. 18 heading substituted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), ss. 18(2), 86(3); S.I. 2023/779, reg. 4(m)

Modifications

C1

Pt. 18 applied in part (with modifications) (12.12.2011) by The Recognised Auction Platforms Regulations 2011 (S.I. 2011/2699), reg. 7, Sch. 2 (as amended (28.11.2017) by The Central Securities Depositories Regulations 2017 (S.I. 2017/1064), reg. 1, Sch. para. 37 (with regs. 7(4), 9(1)))