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REC 1.1 Application

[Note: ESMA has also issued guidelines under article 16(3) of the ESMA Regulation covering various topics relating to automated trading and direct electronic access. See

4 www.esma.europa.eu/system/files/esma_2012_122_en.pdf]4
REC 1.1.1G

The rules and guidance in this sourcebook apply to recognised bodies and to applicants for recognition as RIEs4 under Part XVIII of the Act (Recognised Investment Exchanges and Clearing Houses) and (as RAPs)4 under the RAP regulations.3

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REC 1.1.1AG

The guidance in REC 6A applies to EEA market operators exercising passporting rights in the United Kingdom. 2

REC 1.1.2G
  1. (1)

    UK RIEs4 are exempt persons under section 285 of the Act (Exemption for recognised investment exchanges and clearing houses).

    4
  2. (2)

    UK RIEs4 must satisfy recognition requirements prescribed by the Treasury (in certain cases with the approval of the Secretary of State) in the Recognition Requirements Regulations. UK RIEs must also satisfy the MiFID implementing requirements in the MiFID Regulation.2RAPs must satisfy the recognition requirements prescribed by the Treasury in the RAP regulations, under the auction regulation and must also be UK RIEs and so are subject to requirements under the MiFID Regulation.3ROIEs4 must satisfy recognition requirements laid down in section 292 of the Act (Overseas investment exchanges and overseas clearing houses).

    4344
  3. (3)

    UK RIEs4 must also comply with notification requirements in, and with notification rules made under, sections 293 (Notification requirements) and 295 (Notification: overseas investment exchanges and clearing houses) of the Act.

    4
REC 1.1.3G
  1. (1)

    The recognition requirements for UK recognised bodies and the MiFID implementing requirements2are set out, with guidance, in REC 2. The RAP recognition requirements (other than requirements under the auction regulation which are not reproduced in REC) are set out, with guidance, in REC 2A.3

  2. (2)

    The notification rules for UKrecognised bodies are set out in REC 3 together with guidance on those rules.

  3. (3)

    Guidance on the FCA's4 approach to the supervision of recognised bodies is given in REC 4.

    4
  4. (4)

    Guidance for applicants (and potential applicants) for UK recognised body status is given in REC 5.

  5. (5)

    The recognition requirements, notification rules, and guidance for ROIEs4 and guidance for applicants (and potential applicants) for ROIE4 status are set out in REC 6.

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  6. (5A)

    Guidance for EEA market operators exercising their passporting rights in the United Kingdom is set out in REC 6A.2

  7. (6)

    The fees rules for recognised bodies and applicants are set out in 1FEES 1, 2, 3 and 41.

REC 1.2 Purpose, status and 2quotations

Purpose

REC 1.2.1 G

The purpose of the guidance (other than in REC 6A) 2in this sourcebook is to give information on the recognised body requirements.3 The purpose of the guidance3 in REC 6A is to give EEA market operators information about their passporting rights in the United Kingdom2. Explanations of the purposes of the rules in this sourcebook are given in the chapters concerned.

2 2 3 3

Status

REC 1.2.2 G
  1. (1)

    Most of the provisions in this sourcebook are marked with a G (to indicate guidance) or an R (to indicate a rule). Quotations from UK2statute or statutory instruments are marked with the letters "UK"2 unless they form part of a piece of guidance. Quotations from the directly applicable MiFID Regulation are marked with the letters "EU". 2For a discussion of the status of provisions marked with a letter, see Chapter 6 of the Reader's Guide.

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  2. (2)

    Where the guidance states that the FCA4 may have regard to any factor in assessing or determining whether a recognised body requirement3 is satisfied, 2it means that the FCA4 will take that factor into account so far as it is relevant.

    4234
  3. (3)

    In determining whether a recognised body satisfies the recognised body requirements,3 the FCA4 will have regard to any relevant factor, including, but not limited to, the factors specifically discussed in the guidance.1

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2Quotations

REC 1.2.3 G
  1. (1)

    This sourcebook contains quotations from the Act, the Recognition Requirements Regulations, the RAP regulations3 and the Companies Act 1989 and the MiFID Regulation2and, where necessary, words have been added to, or substituted for, the text of these provisions to facilitate understanding.

  2. (2)

    The additions and substitutions are enclosed in square brackets ([ ]). The omission of words within a quotation is indicated by three dots (...).

  3. (3)

    Any words in these quotations which have the same meaning as Handbook defined terms are shown in italics and their definitions may be found in the Glossary.

  4. (4)

    As these quotations contain provisions which impose obligations, they are printed in bold type. The use of bold type is not intended to indicate that these quotations are rules made by the FCA4.

    4
  5. (5)

    None of the editorial changes made by the FCA4 in these quotations can supersede or alter the meaning of the provision concerned.

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