The Uncertificated Securities Regulations 2001

• (a) on summary conviction, to a fine not exceeding the statutory maximum;

• (b) on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine or to both.

Interpretation of regulations 15, 16 and 17

Participation in respect of securities other than shares

Access to central counterparty, clearing and settlement facilities

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Fees charged by the Bank of England

Reports by skilled persons

11A

• (1) This regulation applies where the Bank of England has required or could require an Operator to provide information or produce documents under regulation 10.

• (2) The Bank of England may—

• (a) by notice in writing given to the Operator, require the Operator to provide it with a report on any matter relating to such information or documents, or

• (b) itself appoint a person to provide it with a report on any matter relating to such information or documents.

• (3) When acting under paragraph (2)(a), the Bank of England may require the report to be in such form as may be specified in the notice.

• (4) The Bank of England must give notice of an appointment under paragraph (2)(b) to the Operator.

• (5) The person appointed to make a report—

• (a) must be a person appearing to the Bank of England to have the skills necessary to make a report on the matter concerned, and

• (b) where the appointment is to be made by the Operator, must be a person nominated or approved by the Bank of England.

• (6) It is the duty of—

• (a) the Operator, and

• (b) any person who is providing (or who has at any time provided) services to the Operator in relation to the matter concerned,

to give the person appointed to prepare a report all such assistance as the appointed person may reasonably require.

• (7) The obligation imposed by paragraph (6) is enforceable, on the application of the Bank of England, by an injunction or, in Scotland, by an order for specific performance under section 45 of the Court of Session Act 1988.

• (8) The Bank of England may make rules providing for the expenses incurred by it in relation to an appointment under sub-paragraph (2)(b) to be payable as a fee by the Operator concerned.

• (9) Any fee which is owed to the Bank of England under rules made pursuant to paragraph (8) may be recovered as a debt due to the Bank of England.

Appointment of persons to carry out general investigations etc.

11B

• (1) If it appears to the Bank of England that it is desirable in the interests of the exercise of its functions under these Regulations, the Bank of England may appoint one or more competent persons (“the investigator”) to conduct an investigation on its behalf into—

• (a) the nature, conduct or state of the business of an Operator;

• (b) a particular aspect of that business; or

• (c) the ownership or control of an Operator.

• (2) An investigator may require the Operator who is the subject of the investigation—

• (a) to attend before the investigator at a specified time and place to answer questions; or

• (b) otherwise to provide such information as the investigator may require.

• (3) An investigator may also require any person to produce at a specified time and place any specified documents or documents of a specified description.

• (4) A requirement under paragraph (2) or (3) may be imposed only so far as the investigator concerned reasonably considers the question, provision of information or production of the document to be relevant for the purposes of the investigation.

International obligations

Prevention of excessive regulatory provision

Refusal of approval on ground of excessive regulatory provision

Power of the Bank of England to disallow excessive regulatory provision

Duty to notify proposal to make regulatory provision

Restriction on making provision before the Bank of England decides whether to act

Consideration by the Bank of England whether to disallow proposed provision

Power to disallow excessive regulatory provision: supplementary

Operating conditions for relevant system

9

If the Bank of England decides to give the direction, the Operator may refer the matter to the Upper Tribunal.

10

Part 9 of the 2000 Act (hearings and appeals) applies to a reference to the Upper Tribunal under paragraph 9 as it applies to a reference to the Upper Tribunal under the 2000 Act, with the following modifications—

• (a) a reference is a “disciplinary reference” for the purposes of section 133 of the 2000 Act if it is in respect of a decision to give a direction under this Schedule;

• (b) section 133(1)(a) and (c) of the 2000 Act does not apply.