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REC 6.6 Supervision

REC 6.6.1G

An ROIE1 is required to notify the FCA1 of certain events and give information to it on a regular basis and when certain specified events occur. Section 295 of the Act (Notification: overseas investment exchanges and overseas clearing houses) requires each ROIE1 to provide the FCA1 with a report (at least once a year) which contains:

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  1. (1)

    a statement as to whether any events have occurred which are likely to affect the FCA's assessment of whether it is satisfied that the ROIE continues to satisfy the recognition requirements set out in the section 292(3) of the Act (Overseas investment exchanges and overseas clearing houses) (see REC 6.3);1

  2. (2)

    the information specified in the FCA's notification rules1 for ROIEs1 (see REC 6.7).

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REC 6.6.2G

The following events are examples of events likely to affect an assessment of whether an ROIE1 is continuing to satisfy the recognition requirements

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  1. (1)

    significant changes to any relevant law or regulation in its home territory, including laws or regulations:

    1. (a)

      governing exchanges or, if relevant to an ROIE's satisfaction of the recognition requirements,1 clearing houses;

    2. (b)

      designed to prevent insider dealing, market manipulation or other forms of market abuse or misconduct;

    3. (c)

      designed to protect the interests of clients of members of the ROIE1, or of a class of bodies which includes the ROIE1;

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    4. (d)

      which affect:

      1. (i)

        the ability of the ROIE1 to seek information (whether compulsorily or voluntarily) from its members, including information relating to the price and volume of transactions, the identity of parties to transactions, and the movement of funds associated with transactions;

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      2. (ii)

        the ability of theROIE1 to pass such information, on request, to UK authorities;

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  2. (2)

    significant changes to its internal organisation or structure;

  3. (3)

    significant changes to the practices of the ROIE1 applying to any regulated activities carried on by it in the United Kingdom;

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  4. (4)

    any other event or series of events in relation to the body which:

    1. (a)

      affects or may significantly affect cooperation between the ROIE1, or its supervisor in its home territory, and the FCA1; or

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    2. (b)

      has or may have a substantial effect on the structure of the markets in which the body operates; or

    3. (c)

      brings about or may bring about a substantial change in the nature and composition of its membership in the United Kingdom; or

    4. (d)

      brings about or may bring about a substantial change in the regulated activities undertaken by it in the United Kingdom.

REC 6.6.3G

The period covered by a report submitted under section 295(1) of the Act starts on the day after the period covered by its last report or, if there is no such report, after the making of the recognition order recognising theROIE1 as such, and ends on the date specified in the report or, if no date is specified, on the date of the report.

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REC 6.6.4G

If an ROIE1 changes the period covered by its report, it should ensure that the first day of the period covered by a report is the day immediately following the last day of the period covered by the previous report.

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REC 6.6.5G

The period covered by a report submitted under section 295(1) of the Act would most conveniently be one year.

REC 6.6.6G

Copies of the report should be sent to the FCA1 within two months after the end of the period to which it relates.

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