REC 1 Introduction

1. (1)

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

2. (2)

   UK RIEs 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/MiFIR requirements. RAPs must satisfy the recognition requirements prescribed by the Treasury in the RAP regulations, under the UK auctioning regulations and must also be UK RIEs and so are subject to the MiFID/MiFIR requirements. ROIEs must satisfy recognition requirements laid down in section 292 of the Act (Overseas investment exchanges and overseas clearing houses).

3. (3)

   UK RIEs must also comply with the following:

   1. (a)

      notification requirements in, and notification rules made under, sections 293 (Notification requirements) and 295 (Notification: overseas investment exchanges and clearing houses) of the Act; and

   2. (b)

      any rules made under the FCA’s rule-making power in regulation 11 of the Recognition Requirements Regulations.

1. (1)

   The recognition requirements for UK recognised bodies are set out, with guidance, in REC 2. The RAP recognition requirements (other than requirements under the UK auctioning regulations which are not reproduced in REC) are set out, with guidance, in REC 2A.

2. (1A)

   Key relevant MiFID/MiFIR requirements directly applicable to UK recognised bodies are signposted as “Notes”.

3. (2)

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

4. (3)

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

5. (4)

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

6. (5)

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

7. (5A)

   [deleted]

8. (6)

   The fees rules for recognised bodies and applicants are set out in FEES 1, 2, 3 and 4.

The purpose of the guidance in this sourcebook is to give information on the recognised body requirements. Explanations of the purposes of the rules in this sourcebook are given in the chapters concerned.

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 UK statute or statutory instruments are marked with the letters "UK" unless they form part of a piece of guidance. Other informative text regarding provisions of EU directives or onshored regulations which is meant to be for the convenience of readers but is not part of the legislative material is preceded by the word “Note”. For a discussion of the status of provisions marked with a letter, see Chapter 6 of the Reader's Guide.

2. (2)

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

3. (3)

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

1. (1)

   This sourcebook contains quotations from the Act, the Recognition Requirements Regulations, the RAP regulations, the Companies Act 1989 and, 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 FCA.

5. (5)

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