Paragraph 94 Continuity obligations: onward share transfersI1 I2

United Kingdom

(1)

In this paragraph “onward transfer” means a transfer (whether or not under a power in this Schedule) of securities issued by a CCP where—

(a)

securities issued by the CCP were earlier transferred by a share transfer instrument under paragraph 29(3) or 30(2), or

(b)

the CCP was the transferee under a property transfer instrument under paragraph 29(3).

(2)

The Bank may—

(a)

provide for an obligation under paragraph 92 to apply in respect of the CCP after the onward transfer;

(b)

extend paragraph 93 so as to permit action to be taken under paragraph 93(2) to enable the CCP to operate effectively after the onward transfer.

(3)

Sub-paragraph (2) may be relied on to impose obligations on—

(a)

the CCP,

(b)

anything which is or was a group undertaking (within the meaning of section 1161(5) of the Companies Act 2006) of the CCP,

(c)

anything which is or was a group undertaking of the residual CCP (in a case to which sub-paragraph (1)(b) applies), or

(d)

any combination of the above.

(4)

Sub-paragraph (2) may be used to impose obligations—

(a)

in addition to obligations under or by virtue of paragraph 92 or 93, or

(b)

replacing obligations under or by virtue of either of those paragraphs to a specified extent.

(5)

A power under sub-paragraph (2) is exercisable by giving a notice to each person—

(a)

on whom a continuity obligation is to be imposed under the power, or

(b)

who is expected to benefit from a continuity obligation under the power.

(6)

Paragraphs 92(4) to (10) and 94(3) and (4) apply to an obligation as applied under sub-paragraph (2) with any necessary modification.

(7)

The Bank may act under or by virtue of sub-paragraph (2) only with the consent of the Treasury.

Annotations