Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.

REC Sch 2 Notification requirements

REC Sch 2.1G

The following table summarises the notification requirements applicable to all recognised bodies. The notification rules are set out in detail in REC 3 (Notification rules for UK recognised bodies)5 and REC 6.7 and, to avoid unnecessary repetition, are not set out in detail here. 6The notification rules for RAPs differ in some respects from the notification rules for UK RIEs (for example, due to requirements contained in the UK auctioning regulations).7

3

For completeness, summary details of the main notification requirements in the Act itself and the Companies Act5 1989 are also included in the table. The summary of these statutory provisions here should not be taken to imply that these are obligations imposed by the FCA4 under its powers nor that the following summary supersedes or alters the meaning of these provisions.

4

Guidance on the statutory notification requirements for ROIEs4 is given in REC 6.6.

4
REC Sch 2.2G

Reference to legislation or Handbook3

3

Matter to be notified

Contents of notification

Trigger event

Time allowed

UK RIEs4

334

The Acts5 293(5)

223

Changes to rules and guidance

Details of change

Change to rule or guidance

Without delay3

5

2

5

5

5

5

Companies Act 1989 s157

Proposed changes to default rules

Details of proposed change

Proposal to change default rules

14 days in advance of change

The Act s293(6)(a)

Changes to arrangements for clearing facilitation services in respect of4 on-exchange transactions

4

Details of change

Change to arrangements

Without delay

The Act5 s293(6)(b)5

Changes to criteria determining to whom it will provide clearing facilitation services4

4

Details of change

Change to criteria

Without delay

5The Act s300B(1)

Proposal to make regulatory provision

Details of proposal

Proposal to make regulatory provision

Without delay

RAPs76

3

Regulation 7(4) and 7(6) of the UK auctioning regulations76

3

Either a methodology or a modification to that methodology as specified by the UK auctioning regulations76

See REC 3.2776

Event concerned76

Without delay76

7Regulation 10(2) of the UK auctioning regulations

Adjustment to the auction calendar where the modification manner is not already provided for in the UK auctioning regulations

See REC 3.27

Event concerned

Without delay

7Regulation 11 of the UK auctioning regulations

Cancellation of an auction in the circumstances set out in regulation 11 of the UK auctioning regulations

See REC 3.15

Event concerned

Without delay

7Regulation 23(3) of the UK auctioning regulations

Submission of exit strategy

See REC 3.14A

Date of appointment as a RAP

Within 3 months from the date of appointment

7Regulation 40 of the UK auctioning regulations

Restriction on maximum bid size or other remedial measures

See REC 3.22.2

Proposal to take action

Immediately

Notification rules for UK recognised bodies (see REC 3 (Notification rules for UK recognised bodies))5

REC 3.4

Members of the management body 5 and internal organisation

Details of change

See REC 3.41

1

See REC 3.41

1

REC 3.5

Disciplinary action and events relating to members of the management body 5

Details of disciplinary action or event

Disciplinary action or awareness of event

Immediately

REC 3.6

Constitution and governance

Details of proposals to amend constitution, amendments to constitution and agreements relating to constitution

Communication of proposal to amend constitution, making amendment to constitution or awareness of agreement relating to constitution

Immediately

REC 3.7

Auditors

Details of removal or appointment of auditors

Removal or appointment of auditors

Immediately

REC 3.8

Financial and other information

See REC 3.8

See REC 3.8

See REC 3.8

REC 3.9

Fees and incentive schemes

Summary of proposals to change fees and charges and changes to fees and charges

Communication to members

Immediately

REC 3.10

Complaints

Copy of adverse report and details of recommendations from complaints investigator

Availability of report or recommendations

Immediately

REC 3.11

Insolvency events

Notice of insolvency event

Insolvency event

Immediately

REC 3.12

Legal proceedings

Details of legal proceedings commenced against UK recognised body

Institution of proceedings

Immediately

REC 3.13

Delegation of relevant functions

Details of offers or agreements to delegate relevant functions and offers or agreements to undertake relevant functions on behalf of another recognised body

Making offer or agreement to delegate

Immediately

REC 3.14

Products, services and normal hours of operation6 or (for RAPs) the timing, frequency or duration of its bidding windows

3

See REC 3.141

1

See REC 3.141

1

Immediately

1REC 3.14A

Operation of a trading venue5 or (for RAPs) their exit strategy7

Details of proposal to operate a new trading venue5 or close an existing trading venue5 or (for RAPs) their exit strategy7

Communication of proposal to members or shareholders or (for RAPs) date of appointment7

Immediately or (for RAPs) within 3 months from the date of appointment7

REC 3.15

Suspension of services and inability to operate facilities6 or (for RAPs) the cancellation of an auction7

3

See REC 3.153

3

Event concerned

Immediately

REC 3.16

Information technology systems

Details of business continuity plans and details of failure of reserve information technology system

Changes to business continuity plans and failure of reserve information technology system

Immediately

REC 3.17

Inability to discharge regulatory functions

Details of inability to discharge a regulatory functions

Event concerned

Immediately

REC 3.18

Membership

Information regarding new types of member and reasons for considering the3 recognition requirements 6 or (for RAPs) the RAP recognition requirement in regulation 20 of the RAP regulations7 can still be met

3

Admission of new type of non-authorised person or person from new non-UK jurisdiction to membership

Immediately

REC 3.19

Investigations

Notice of appointment of person to investigate use of facilities or provision of services

Awareness of appointment

Immediately

REC 3.20

Disciplinary action

Details of person against whom disciplinary action taken

Taking disciplinary action

Immediately

REC 3.21

Criminal offences and civil prohibitions

Evidence tending to suggest contraventions of the general prohibition, certain criminal offences or market abuse

Having evidence concerned

Immediately

REC 3.22

Restriction on open position or instruction to close out6

3

Details of decision to restrict member's open position or instruction to close out position6

3

Decision to take action6

3

Immediately

REC 3.23

Default

Notice of decision to put member into default

Communicating decision to member concerned or any other member

Immediately

1REC 3.24

Transfers of ownership

Details of transfer of ownership

When the UK RIE becomes aware of the transfer of ownership

Immediately

1REC 3.25

Significant breaches of rules and disorderly trading conditions

Significant breaches of rules and disorderly trading conditions

Significant breaches of rules and disorderly trading conditions

Immediately

2REC 3.26

Proposal to make regulatory provision

Details of proposal

Proposal to make regulatory provision

Without delay

7REC 3.27

For RAPs: Auction clearing price methodology and manner to modify auction calendar

See REC 3.27

Event concerned

Immediately

ROIEs4

4

The Act s295

Report to FCA4

4

Statement as to whether events have occurred which would affect the FCA's4 assessment of whether the recognition requirements are met

44

Not applicable

Once a year

Notification rules for ROIEs4 (see REC 6.7)

4

REC 6.7.3 R

Events which might affect the FCA's4 assessment of whether the recognition requirements are met

4

Particulars of event

Not applicable

Include in report under s295

REC 6.7.4 R

Inclusion of certain matters in report

See REC 6.7.4 R

Not applicable

Include in report under s295

REC 6.7.5 R

First report

See REC 6.7.5 R

Not applicable

Include in report under s295

REC 6.7.7 R

Changes of address

Details of new addresses

Decision to change address

14 days in advance of change of address

REC 6.7.8 R and REC 6.7.9 R

Revocation or modification of home territory licence etc

Details of revocation or modification

Awareness of revocation or modification

Immediately