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Status: You are viewing the version of the handbook as on 2009-03-31.

REC 6.6 Supervision

REC 6.6.1GRP

An overseas recognised body is required to notify the FSA 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 overseas recognised body to provide the FSA, the Treasury and the Director General of Fair Trading with a report (at least once a year) which contains:

  1. (1)

    a statement as to whether any events have occurred which are likely:

    1. (a)

      to affect the assessment of whether it is satisfied that the overseas recognised body continues to satisfy the recognition requirements set out in section 292(3) of the Act (Overseas investment exchanges and overseas clearing houses)(see REC 6.3); and

    2. (b)

      to have any effect on competition;

  2. (2)

    the information specified in the FSA'snotification rules for overseas recognised bodies (see REC 6.7).

REC 6.6.2GRP

The following events are examples of events likely to affect an assessment of whether an overseas recognised body is continuing to satisfy the recognition requirements, or to have an effect on competition:

  1. (1)

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

    1. (a)

      governing exchanges or 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 overseas recognised body, or of a class of bodies which includes the overseas recognised body;

    4. (d)

      which affect:

      1. (i)

        the ability of the overseas recognised body 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;

      2. (ii)

        which affect the ability of the overseas recognised body to pass such information, on request, to UK authorities;

  2. (2)

    significant changes to its internal organisation or structure;

  3. (3)

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

  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 overseas recognised body, or its supervisor in its home territory, and the FSA; or

    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 6.6.3GRP

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 the overseas recognised body as such, and ends on the date specified in the report or, if no date is specified, on the date of the report.

REC 6.6.4GRP

If an overseas recognised body 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.

REC 6.6.5GRP

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

REC 6.6.6GRP

Copies of the report should be sent to the FSA, the Treasury and the Director General of Fair Trading within two months after the end of the period to which it relates.