Information concerning groups
- Include group information in CSD authorisation application
Retained EU Law
2017
United Kingdom
Commission Delegated Regulation (EU) 2017/392 of 11 November 2016 supplementing Regulation (EU) No 909/2014 of the European Parliament and of the Council with regard to regulatory technical standards on authorisation, supervisory and operational requirements for central securities depositories (Text with EEA relevance)
At a glance
What's here
48 compliance obligations
Who this Act binds
Plus 1 non-business duty on Crown ministers, regulators, local authorities or tribunals — shown collapsed under each section below.
What this Act requires
Sections that create concrete duties on businesses or carry penalties. Procedural and definitional sections are folded into the “Browse other sections” expander at the bottom of each group. Click any section title to read the source text on legislation.gov.uk.
Risk monitoring tools and governance arrangements
- Include governance and risk monitoring details in CSD authorisation application
Transparency
- Include pricing policy and accounting information in authorisation application
Cash settlement
- Include cash settlement procedures in your CSD authorisation application
Legal risks
- Provide clear and enforceable rules and contracts across all jurisdictions
General business risks
- Describe your risk-management systems and IT tools to the regulator
Information to be provided to the competent authority
- Provide information and compliance report to the competent authority
Periodic information relevant for the reviews
- Provide periodic information to the competent authority for reviews
Statistical data to be delivered for each review and evaluation
- Provide statistical data to the competent authority each review period
Content of the application
- Submit recognition application in durable medium, paper and electronic, with unique reference numbers
Risk monitoring tools of CSDs
- Set up documented risk management policies and procedures
Risk monitoring committees
- Establish risk, audit and remuneration committees
Responsibilities of key personnel in respect to the risks
- Ensure staffing, governance, and appointment of risk, tech, and compliance officers
Conflicts of interest
- Put in place and maintain a conflicts of interest policy
Audit methods
- Establish and maintain a compliant internal audit function
Sharing audit findings with the user committee
- Share audit findings with your user committee when they relate to certain matters
General requirements
- Maintain full and accurate records of all activities
Transaction/settlement instruction (Flow) records
- Maintain detailed records of all settlement instructions and transactions
Position (Stock) records
- Keep detailed records of securities positions, accounts and settlement fails
Ancillary Services Records
- Keep accurate records of your ancillary services
Business Records
- Maintain adequate business records including specified documents
Additional records
- Keep additional records requested by the regulator
General reconciliation measures
- Perform daily reconciliation for each securities issue and maintain accurate records
Reconciliation measures for corporate actions
- Complete reconciliation before determining corporate action entitlements and update accounts after processing
Reconciliation measures for the common depository model
- Reconcile securities balances daily with the common depository
Additional measures where other entities are involved in the reconciliation process
- Reconcile records daily and provide account data to participants
Problems related to reconciliation
Other duties (1) — Crown / regulator
- CSD must analyse and resolve reconciliation mismatches — and report repeated errors Statutory regulator
General operational risks and their assessment
- Identify and assess operational risks including pandemics and cyber-attacks
Operational risks that may be posed by key participants
- Identify and manage operational risks from key participants
Operational risks that may be posed by critical utilities and critical service providers
- Manage risks from critical utilities and service providers
Operational risks that may be posed by other CSDs or market infrastructures
- Ensure reliable and secure arrangements with other CSDs or market infrastructures
Operational risk-management system and framework
- Have a documented operational risk management framework with clear roles and IT controls
Integration of and compliance with the operational and enterprise risk-management system
- Integrate operational risk management and report incidents
Audit and testing
- Audit and test operational risk management framework every two years
IT tools
- Maintain resilient, secure, and tested IT systems
Strategy and policy
- Maintain business continuity policy and ensure settlement resilience
Business impact analysis
- Conduct and maintain a business impact analysis and risk analysis
Disaster recovery
- Maintain a disaster recovery plan with a two-hour recovery target for critical operations
Testing and monitoring
- Monitor and test your business continuity and disaster recovery plans at least annually
Maintenance
- Regularly review and update business continuity policy and disaster recovery plan
Highly liquid instruments with minimal market and credit risk
- Use defined and objective methodology for internal risk assessment of financial instruments
Appropriate timeframe for access to assets
- Implement procedures for timely access to assets and notify regulator of changes
Concentration limits to individual entities
- Hold financial assets within acceptable concentration limits
Conditions for the adequate protection of linked CSDs and of their participants
- Meet all conditions when linking your CSD to another CSD
Monitoring and management of additional risks resulting from the use of indirect links or intermediaries to operate CSD links
- Manage risks when using intermediaries for CSD links
Reconciliation procedures for linked CSDs
- Reconcile securities accounts daily with linked CSDs
Risks to be taken into account by CSDs and competent authorities
- CSDs must consider legal, financial and operational risks when assessing access requests
Standard forms and templates for the application
- Submit authorisation application in standard format with supporting documents
Browse 49 other sections — procedural / definitional / commencement
uri:annex/iii/division/templates/division/2
Definitions
Determination of most relevant currencies
Practical arrangements for the consultation of the relevant authorities referred to in Article 12(1)(b) and (c) of Regulation (EU) No 909/2014
Identification and legal status of applicant CSDs
General information concerning policies and procedures
Information concerning services and activities of the CSD
Financial reports, business plan, and recovery plan
Organisational chart
Staffing policies and procedures
Compliance, internal control and internal audit functions
Senior management, management body and shareholders
Management of conflicts of interest
Confidentiality
User committee
Record-keeping
Goals and objectives
Handling of complaints
Requirements for participation
Communication procedures with participants and other market infrastructures
Book-entry form
Intended settlement dates and measures for preventing and addressing settlement fails
Integrity of the issue
Protection of participants' and their clients' securities
Settlement finality
Participant default rules and procedures
Transfer of participants and clients' assets in case of a withdrawal of authorisation
Operational risks
Investment policy
Capital requirements
CSD links
Access rules
Request for additional information
Criteria for participation of a CSD
Other information
Information to be supplied to the authorities referred to in Article 22(7) of Regulation (EU) No 909/2014
Exchange of information between the competent authorities referred to in Article 22(8) of Regulation (EU) No 909/2014
Reconciliation measures for the registrar model
Reconciliation measures for the transfer agent model
Operational risk-management function
Mitigation of operational risk through insurance
DVP settlement through CSD links
Receiving and requesting parties
Procedure
CSDs offering banking-type ancillary services themselves
CSDs offering banking-type ancillary services through a designated credit institution
Specific requirements
Transitional provisions
Entry into force and application
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