{
  "url": "https://openlegislation.uk/financial-services-and-markets-act-2023-digital-securities-sandbox-regulations-2023/schedule/part-3/enacted",
  "json_url": "https://openlegislation.uk/financial-services-and-markets-act-2023-digital-securities-sandbox-regulations-2023/schedule/part-3/enacted.json",
  "legislation": "uksi/2023/1398",
  "legislation_title": "The Financial Services and Markets Act 2023 (Digital Securities Sandbox) Regulations 2023",
  "legislation_url": "https://openlegislation.uk/financial-services-and-markets-act-2023-digital-securities-sandbox-regulations-2023/enacted",
  "path": "schedule/part/3",
  "kind": "part",
  "number": "3",
  "heading": null,
  "text": "This Part sets out modifications made to the Financial Services and Markets Act 2000 (FSMA 2000) and the version so modified is referred to in this Part as “DSS FSMA”. The provisions specified in the first column are modified as provided for in the corresponding entry in the second column.\nProvisionModification\nSection 20Treat a reference to a “regulated activity”, in relation to a digital securities depository, as excluding such regulated activity that the digital securities depository carries on in connection with any of the FMI activities under regulation 3(5)(b) or ancillary FMI activities for which it has approval under its SAN;\nSection 55LTreat the power conferred by subsection (3) as exercisable by the Bank of England to impose requirements on a sandbox entrant where the Bank of England is the appropriate regulator.\nTreat that power as exercisable only if it appears to the Bank of England that any of the following conditions is met—\nit is desirable to exercise the power in order to advance the Bank of England’s financial stability objective or implement the FMI sandbox arrangements under s13(1) of the Act;\nthe sandbox entrant has failed, or is likely to fail, to satisfy a requirement or condition in its SAN, or has failed to comply with any other obligation imposed on it by or under these Regulations.\nTreat the powers conferred by subsection (5) as exercisable by the Bank of England to impose requirements on a sandbox entrant on the application of that entity.\nTreat the powers in subsections (3) and (5) of DSS FSMA as exercisable whether or not there is a relationship between the entity in relation to which it is exercised and the persons whose interests will be protected by its exercise.\nTreat the following provisions as applying in relation to requirements imposed by the Bank of England under this section of DSS FSMA as they apply in relation to requirements imposed by the FCA, with the following modifications—\nsub-section (6) (power to refuse an application);\nsection 55N (further provision);\nsection 55P (prohibitions and restrictions);\nsection 55R(1) (persons connected with an applicant);\nsection 55U(3) to (8) (applications under this part);\nsection 55V(1) to (6) (determination of applications);\nsection 55X(2) and (4)(f) (determination of applications: warning notices and decision notices on refusal of applications);\nsection 55Y (exercise of own-initiative power: procedure).\nThe modifications are—\na reference to the FCA is to be read as a reference to the Bank of England;\nreferences to own-initiative powers are to be read as a reference to the power conferred by section 55L(3) of DSS FSMA;\nreferences to an authorised person are to be read as a reference to a sandbox entrant;\nin section 55L(6), the reference to the FCA’s operational objectives is to be read as a reference to the Bank of England’s Financial Stability Objective or implementing and operating the FMI sandbox arrangements;\nsection 55N has effect as if the reference to regulated activities in subsection (2) is a reference to FMI activities carried out in the DSS by a sandbox entrant.\nSection 128Treat references to a recognised CSD in subsections (1) and (2) as including a reference to a digital securities depository.\nSection 137TTreat the reference in paragraph (a) to “authorised persons” as including a reference to a sandbox entrant and a person participating under regulation 3(4).\nTreat sub-paragraph (b) as also including a reference to “guidance” where reference is made to “rules”.\nTreat the reference to “regulator” in sub-paragraph (b) as a reference to the appropriate regulator under regulation 3(8)(a) and (b).\nSection 138BTreat the references to “regulator” under subsections (1), (3), (4) and (5) as including a reference to the FCA as having a power to give directions under regulation 7.\nSection 138GTreat the powers conferred on “either regulator” referred to in subsections (1) and (2) as including an appropriate regulator.\nSection 138ITreat this section as disapplied.\nSection 138IATreat this section as disapplied.\nSection 138IBTreat this section as disapplied.\nSection 138LTreat this section as disapplied.\nSection 138QTreat subsection (5) as disapplied.\nSection 138RTreat this section as disapplied.\nSection 138STreat subsection (2)(f)-(i) as disapplied.\nSection 139ATreat subsections (3), (4) and (5) as disapplied.\nSection 165Treat the references to “authorised person” in subsections (1), (3), (7), (8) and (11) as including a reference to a sandbox entrant and reference to “either regulator” as including a reference to an appropriate regulator.\nTreat subsection (4) as including—\nin relation to the exercise by an appropriate regulator of the powers conferred by subsections (1), (2) and (3) in exercising functions conferred by these Regulations”.\nTreat subsection (7) as including a person participating under regulation 3(4).\nSection 166Treat the reference to “authorised person” in subsection (2)(a) as including a sandbox entrant and a person participating under regulation 3(4).\nTreat the reference to “either regulator” in subsection (1) as including a reference to the appropriate regulator.\nSection 166ATreat the references to “either regulator” in subsection (1) as including a reference to the appropriate regulator.\nTreat the reference to “authorised person” in subsections (1) to (4) and (7) to (9) as including a reference to a sandbox entrant and a person participating under regulation 3(4).\nSection 167Treat the references to an “authorised person” in subsections (1A) and (4A) as including a reference to a sandbox entrant and a person participating under regulation 3(4).\nTreat the reference to an “investigating authority” in subsection (5A) as including a reference to an appropriate regulator.\nSection 168Treat subsection (4) as including when a sandbox entrant, or a person participating under regulation 3(4) has failed to comply with a provision of these Regulations.\nTreat subsection (6) (investigating authority) as including the appropriate regulator if that regulator appointed the investigator.\nSection 170Treat subsection (10) (investigating authority) as including the appropriate regulator if that regulator appointed the investigator.\nSection 171Treat subsection (1A) as including a sandbox entrant, and a person participating under regulation 3(4).\nSection 175Treat “either regulator” under subsection (1) as including reference to an appropriate regulator.\nSection 176Treat subsection (3A) as including a reference to a sandbox entrant and a person participating under regulation 3(4).\nSection 204ATreat subsection (2) and (6) as each including—\n“(ab) by or under the Financial Services and Markets Act 2023”.\nSection 205Treat the reference to an “authorised person” as including a sandbox entrant and a person participating under regulation 3(4).\nSection 206Treat the reference to an “authorised person” as including a reference to a sandbox entrant and a person participating under regulation 3(4).\nSection 207(1)Treat the references to an “authorised person” as including a sandbox entrant and a person participating under regulation 3(4).\nSection 208Treat the references to an “authorised person” in subsections (1) and (4) as including a sandbox entrant and a person participating under regulation 3(4).\nSection 209Treat the reference to an “authorised person” as including a sandbox entrant and a person participating under regulation 3(4).\nSection 211Treat this section as disapplied.\nSection 285(3D)Treat a digital securities depository as exempt from the general prohibition in respect of any regulated activities carried on in connection with any of the FMI activities under regulation 3(5)(b) or ancillary FMI activities (as defined in these Regulations) for which it has approval under its SAN.\nSection 285ATreat the definition of “appropriate regulator” in subsection (2) as including a reference to the Bank of England.\nSection 296(1)Treat subsection (1) as modified so that—\nthe reference to “appropriate regulator” includes a reference to the appropriate regulator under regulation 3(8)(a) and (b),\nthe reference to “recognised body” includes a reference to a digital securities depository, and\nparagraph (b) includes a reference to obligations imposed by or under these Regulations.\nSection 298In this section treat a reference to—\nthe “appropriate regulator” as including a reference to the Bank of England;\na “recognised body” as including a reference to a digital securities depository;\na “direction under section 296” as including a direction given under that section in relation to a digital securities depository.\nIn subsection (7A) treat a reference to “recognised CSD” as a reference to a digital securities depository.\nSection 299Treat a reference to “recognised body” as including a reference to a digital securities depository.\nSection 312EIn subsection (1) treat the reference to “recognised body” as including a reference to a digital securities depository.\nIn subsection (3)—\ntreat the reference to “appropriate regulator” as including a reference to the Bank of England;\ntreat the reference to “relevant requirement” as including a requirement (which may include a requirement imposed by a SAN) that is imposed by or under these Regulations.\nSection 312FTreat the reference to “appropriate regulator” as including a reference to the Bank of England.\nTreat the reference to “recognised body” as including a digital securities depository.\nSection 312FATreat the reference to “recognised CSD” as including a reference to a digital securities depository.\nTreat subsections (2)(c) and (3)-(4) as disapplied.\nSection 312GTreat the reference to “appropriate regulator” as including a reference to the Bank of England.\nTreat the reference to “recognised body” as including a reference to a digital securities depository.\nSection 312HTreat the reference to “appropriate regulator” as including a reference to the Bank of England.\nTreat the reference to “recognised body” as including a reference to a digital securities depository.\nSection 312ITreat the reference to “appropriate regulator” as including a reference to the Bank of England.\nSection 312JTreat the reference to “appropriate regulator” as including a reference to the Bank of England.\nSection 312KTreat this section as disapplied.\nSection 380Treat subsection (6)(a) as including a reference to “(vii) imposed by or under the Financial Services and Markets Act 2023.”\nTreat subsection (6)(b) as including a reference to “by or under the Financial Services and Markets Act 2023” after the word “Act”.\nTreat the references in subparagraphs (1) to (3), (6), and (9) to (11) to “appropriate regulator” as including a reference to an appropriate regulator.\nSection 382Treat subsection (9)(a) as including a reference to “(v) by or under the Financial Services and Markets Act 2023.”.\nTreat subsection (9)(b) a including a reference to “by or under the Financial Services and Markets Act 2023”.\nTreat the references to “appropriate regulator” in sub-paragraphs (1), (7), (9) and (12) to (14) as including a reference to an appropriate regulator.\nSection 384Treat the reference to an “authorised person” in subparagraph (1) as including a reference to a sandbox entrant and a person participating under regulation 3(4).\nTreat the references to “appropriate regulator” in subparagraph (1), (7) to (8) and (12) to (14) as including a reference to the FCA.\nTreat subsection (7) as including a reference to a requirement imposed by or under the Financial Services and Markets Act 2023.\nSection 396Treat this section as disapplied.\nSection 398Treat subsection (1A) as including a reference to the Financial Services and Markets Act 2023.\nSection 401Treat subsection (1) as including an offence under the Financial Services and Markets Act 2023.\nTreat the reference to “appropriate regulator” in subsection (3A)(i) as including a reference to the Bank of England.\nTreat the reference to “appropriate regulator” in subsection (3AB) as including a reference to the Bank of England.\nSection 403Treat subsection (7) as including a reference to the Financial Services and Markets Act 2023.\nSection 413(1)Treat the reference to “this Act” as including a reference to these Regulations.\nSection 417Treat the reference to rules in subsection (1) as including rules made by or under the Financial Services and Markets Act 2023.\nSchedule 17A—\nPart 1\nParagraphs 1 to 6Treat these paragraphs as disapplied.\nParagraphs 7Treat reference to a “recognised CSD” as including a reference to a digital securities depository.\nParagraph 8Treat this paragraph as disapplied.\nParagraph 9(2)Treat this sub-paragraph as modified so that a reference to the Bank of England includes the definition under regulation 3(8)(b);\nParagraph 10(1)Treat sub-paragraph (1) as modified so that\nthe reference to rules made by the Bank of England under any provision made by or under the Financial Services and Markets Act 2000 includes in relation to a reference to rules made by the Bank of England under regulation 7.\nTreat paragraphs (b), (c), (i) and (j) as disapplied.\nParagraph 10(2)Treat a reference to “recognised CSD” as including a reference to a digital securities depository.\nParagraph 10(3)Treat this sub-paragraph as disapplied.\nParagraph 10(4)Treat this sub-paragraph as disapplied.\nParagraph 10ATreat this paragraph as disapplied.\nParagraph 11(1)Treat a reference to “recognised CSD” as including a reference to a digital securities depository.\nParagraph 11(2)Treat paragraph (a) as including a reference to information or documents reasonably required in connection with the exercise by the Bank of England of functions conferred on it in connection with these Regulations.\nTreat paragraph (d)(i) as including a reference to these Regulations.\nParagraph 11(3)In consequence of the modifications made to paragraph 11(2) by this Schedule, section 165(4) is disapplied in relation to sections 165(1) and (3), as modified under this paragraph 11.\nParagraph 12Treat the reference to a “recognised CSD” in this paragraph as including a reference to a digital securities depository.\nParagraph 13(1)Treat the reference to a “recognised CSD” in this subparagraph as including a reference to a digital securities depository.\nParagraph 14(2)Treat this subparagraph as modified to include a power that allows the Bank of England to exercise powers conferred by section 168(5) if it appears to the Bank of England that there are circumstances suggesting a digital securities depository may—\nbe guilty of an offence under section 398(1) or an offence under prescribed regulations relating to money laundering;\nhave contravened a provision made by or under these Regulations;\nmay have contravened its SAN; or\nmay have breached the general prohibition; and\ntreat sub-paragraphs (2)(e) to (o) as disapplied.\nParagraph 15Treat this paragraph as disapplied.\nParagraph 17(1)Treat paragraphs (e) and (f) as disapplied, and paragraph (h) as modified to refer to “sections 192K to 192M”.\nParagraph 17(2)Treat this subparagraph as including a reference to a digital securities depository.\nParagraph 17(3)Treat this subparagraph as modified to include—\nthe general condition in subsection (2) were that the Bank of England considers it is desirable to give the direction for the effective regulation of the FMI sandbox arrangements; and\ntreat a reference to a “recognised CSD” as including a digital securities depository.\nParagraph 17(4)Treat a reference to a “recognised CSD” as including a reference to a digital securities depository.\nParagraphs 18Treat a reference to a “recognised CSD” as including a reference to a digital securities depository.\nTreat subparagraph (1)(c) as disapplied.\nParagraph 19Treat a reference to a “recognised CSD” as including a reference to a digital securities depository.\nParagraph 20Treat a reference to a “recognised CSD” as including a reference to a digital securities depository.\nParagraph 21Treat a reference to a “recognised CSD” as including a reference to a digital securities depository.\nTreat a reference to section 345E in this paragraph as disapplied.\nParagraph 22Treat this paragraph as disapplied.\nParagraph 23Treat this paragraph as modified so that—\nsection 348 (restrictions on disclosure of confidential information by FCA, PRA etc) is modified so that subsections (2)(b) and (5) include a reference to the disclosure of confidential information to the Bank of England in connection with the DSS;\nsection 349 (exemptions from section 348) is modified so that subsection (2)(c) includes a reference to the Bank of England in connection with the FMI sandbox arrangements;\nsection 350 (disclosure of information by the Inland Revenue) is modified so that subsection (1)(a) includes reference to the Bank of England in connection with the FMI sandbox arrangements.\nTreat a reference to a “recognised CSD” in this paragraph as including a reference to a digital securities depository.\nParagraph 24(2)Treat a reference to a “recognised CSD” in this sub-paragraph as including a reference to a digital securities depository.\nParagraph 25(2)Treat this sub-paragraph as including a reference to the Bank of England.\nParagraph 26(2)Treat this subparagraph as modified so that for the purposes of the application under regulation 4, any reference in section 380 of FSMA 2000 as modified by this Part to a relevant requirement includes a requirement that is imposed under these Regulations—\nin connection with a digital securities depository; or\na contravention of which constitutes an offence that the appropriate regulator has the power to prosecute by or under these Regulations.\nParagraph 28Treat this paragraph as modified as follows.\nThe power conferred by section 384(5) of FSMA 2000 is exercisable by the Bank of England where conditions A and B are met.\nCondition A is that the Bank is satisfied that a digital securities depository has contravened a relevant requirement, or been knowingly concerned in the contravention of a relevant requirement.\nCondition B is that—\nprofits have accrued to the digital securities depository as a result of the contravention; or\none or more persons have suffered loss or been otherwise adversely affected as a result of the contravention.\nFor these purposes a reference to “relevant requirement” has the meaning given in paragraph 26(2) as modified by this Part.\nWhere this paragraph applies, section 384(5) and (6) of FSMA 2000 are to have effect as if—\nany reference to the person concerned were to a digital securities depository; and\nany reference to subsection (1) were a reference to the second sentence of this modified version of paragraph 28.\nParagraph 29Treat this paragraph as modified so that—\na reference to a “recognised body” in the sections of FSMA 2000 referred to in this paragraph shall include a reference to a digital securities depository or a sandbox entrant;\nthe provisions of Part 26 (notices) apply in relation to a warning or decision notice given by the Bank of England under section 55X(2) or (4), section 312G or 312H, as they apply to those sections under this table.\nParagraph 30Treat this paragraph as modified so that section 398 (misleading FCA: residual cases) applies to information given to the Bank of England in purported compliance with a requirement that is imposed by or under any provision of these Regulations that apply to a digital securities depository.\nParagraph 32Treat this paragraph as modified so that paragraph 17 of Schedule 1ZB (records) applies in relation to the recording of decisions made by the Bank of England in the exercise of its functions relating to a digital securities depository.\nParagraph 33Treat this paragraph as disapplied.\nParagraph 34Treat a reference to a “recognised CSD” in this paragraph as including a reference to a digital securities depository.\nParagraph 35Treat a reference to a “recognised CSD” in this paragraph as including a reference to a digital securities depository.\nParagraph 36Treat paragraph (1) as modified to provide that the Bank of England may, in connection with the discharge of any of its functions by or under these Regulations, require a sandbox entrant or any person applying to participate in the DSS as a sandbox entrant, to pay fees to the Bank. of England.\nTreat paragraph (2) as disapplied.\nTreat paragraph (3) as providing the appropriate regulator under regulation 3(8)(b) with a power to set fees for the purpose of meeting expenses incurred by it or the FCA—\nin preparation for the exercise of functions by the Bank of England in connection with the discharge of any of its functions relating to the DSS; or\nfor the purpose of facilitating the exercise by the Bank of England of those functions or otherwise in connection with their exercise by it.\nParagraph 37Treat this paragraph as providing the appropriate regulator under regulation 3(8)(b) with a power in connection with the FMI sandbox arrangements.",
  "extent": null,
  "status": null,
  "version": "enacted",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Words in Sch. Pt. 3 Table inserted (3.3.2025) by The Financial Services and Markets Act 2023 (Digital Securities Sandbox) (Amendment) Regulations 2025 (S.I. 2025/93), regs. 1(2), 6(1)(a)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Words in Sch. Pt. 3 Table inserted (3.3.2025) by The Financial Services and Markets Act 2023 (Digital Securities Sandbox) (Amendment) Regulations 2025 (S.I. 2025/93), regs. 1(2), 6(1)(b)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/2023/1398/schedule/part/3",
    "retrieved_at": "2026-10-28T21:36:44.479087+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."
}