# The Uncertificated Securities Regulations 1992, Regulation 5: Commencement of operation of system


(1) If the function of admitting securities into the system is delegated to it, the Operator shall not admit the first security into the system unless it has notified the Secretary of State that:
(a) a compensation scheme has been established in accordance with Part XIV of these Regulations;
(b) it is satisfied that it is ready and able to perform the duties specified in regulation 4 and that:
(i) there exist the facilities required under regulation 4(c), that they comply with these Regulations, that it is ready to operate them effectively and efficiently and that it has in place in relation to the facilities and their operation appropriate safeguards to reduce, so far as it is reasonably practicable to do so, the possibiity of error or fraud and of unauthorised access to, or manipulation of, data or programs for the time being on or transmitted through, the facilities;
(ii) if relevant functions in relation to the admission and supervision of participants are delegated to it, each participant is required to have in place safeguards to reduce, so far as it is reasonably practicable to do so, the possibility of unauthorised access, to or manipulation of, data or programs for the time being on, or transmitted through, the facilities of the Operator;
(iii) if the function of admitting participants is delegated to it, it has properly performed its obligations in connection with those persons whom at the date of the notification it has agreed to admit as participants
and the Secretary of State has given his consent.
(2) The Secretary of State shalll not refuse consent under paragraph (1) unless it apears to him that the Operator’s notification to him under that pararaph is not well-founded.

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Source: https://www.legislation.gov.uk/uksi/1992/225/regulation/5 (the official version)
Page: https://openlegislation.uk/uncertificated-securities-regulations-1992/regulation-5
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.