REC 2A
Recognised Auction Platforms
REC 2A.1
Introduction
- 22/12/2011
REC 2A.1.1
See Notes
- 22/12/2011
REC 2A.1.2
See Notes
The RAP
recognition requirements must be satisfied by an RAP applicant for recognition to be granted.
These requirements apply both on initial recognition and throughout the period
that RAP status is held. Therefore,
the term RAP in the guidance should be understood to also refer
to an applicant where appropriate and where not otherwise stated.
- 22/12/2011
REC 2A.1.3
See Notes
The RAP
regulations apply modified provisions of the Act to
an RAP. For example, an RAP is an exempt
person in respect of its business as an auction
platform due to the application of section 285 of the Act as modified by the the RAP
regulations. Similarly, section 293 of the Act is
applied and modified by the RAP regulations to
provide for notification rules and
notification requirements in relation to RAPs.
- 22/12/2011
REC 2A.2
Method of satisfying the RAP recognition requirements
- 22/12/2011
REC 2A.2.1
See Notes
Recognised Auction Platforms Regulations, regulation 13
| (1) | In considering whether [an RAP] or applicant satisfies the [RAP recognition requirements], the [FSA] may- | |
| (a) | treat compliance by the [RAP] or applicant with the [recognition requirements or MiFID implementing requirements] applying to it as a [UK RIE] as conclusive evidence that the [RAP] or applicant satisfies any equivalent [RAP recognition requirements] applying to it under these [RAP regulations], taking into account any arrangements that would be necessary to meet the [RAP recognition requirements], and | |
| (b) | take into account all relevant circumstances including the constitution of the person concerned. | |
| (2) | Without prejudice to the generality of paragraph (1), [an RAP] or applicant may satisfy [RAP recognition requirements] by making arrangements for functions to be performed on its behalf by any other person. | |
| (3) | Where [an RAP] or applicant makes arrangements of the kind mentioned in paragraph (2), the arrangements do not affect the responsibility imposed by these [RAP regulations] on the [RAP] or applicant to satisfy the [RAP recognition requirements], but it is in addition [an RAP recognition requirement] applying to the [RAP] or applicant that the person who performs (or is to perform) the functions is a fit and proper person who is able and willing to perform them. | |
- 22/12/2011
REC 2A.2.2
See Notes
The
FSA
will request information from an RAP or RAP applicant in order to determine whether
it meets the RAP recognition requirements.
- 22/12/2011
REC 2A.3
Guidance on RAP recognition requirements
- 22/12/2011
REC 2A.3.1
See Notes
In assessing compliance with the RAP recognition requirements, the
FSA
will
have regard to relevant guidance in REC 2 on the equivalent requirements set out in the Recognition Requirement Regulations. The
FSA
may
also take into account compliance by the RAP or RAP applicant with the recognition
requirements (see REC 2A.2.1 UK). The
FSA
will not make a separate assessment of compliance with the recognition requirements during the course
of examining an application to become an RAP or
as part of its ongoing supervision of an RAP,
unless there is a specific reason to do so.
- 22/12/2011
REC 2A.3.2
See Notes
The guidance in relation to the recognition requirements in the sections of REC 2 listed in Column A of the table below applies to an RAP in relation to the equivalent RAP recognition requirements listed in Column C and (if shown) with the modifications in Column B.
Table: Guidance on RAP recognition requirements
Table: Guidance on RAP recognition requirements
| Column A REC 2 guidance which applies to an RAP |
Column B Modification to REC 2 guidance for an RAP |
Column C Relevant RAP recognition requirement |
| REC 2.2.2 G to REC 2.2.7 G (Relevant circumstances and Outsourcing) | Reg 13 | |
| REC 2.3.3 G to REC 2.3.9 G (Financial resources) | Reg 14 | |
| REC 2.4.3 G to REC 2.4.6 G (Suitability) | In addition to the matters set out in REC 2.4.3 G to REC 2.4.6 G, the FSA will have regard to whether a key individual has been allocated responsibility for overseeing the auction platform of the UK recognised body. | Reg 15 |
| REC 2.5.3 G to REC 2.5.20 G (Systems and controls and conflicts) and REC 2.5A (Guidance on Public Interest Disclosure Act: Whistleblowing) | Reg 16 and 17(2)(f) | |
| REC 2.6.26 G to REC 2.6.34 G (Safeguards for investors) | Reg 17 | |
| REC 2.7.3 G to REC 2.7.4 G (Access to facilities) | The FSA shall have regard to whether an RAP provides access to bid at auctions only to those persons eligible to bid under article 18 of the auction regulation. | Reg 17(2)(a) and 20 |
| REC 2.8.3 G to REC 2.8.4 G (Settlement and clearing services) | Reg 17(2)(d) and 21 | |
| REC 2.9.3 G to REC 2.9.4 G (Transaction recording) | Reg 17(2)(e) | |
| REC 2.10.3 G to REC 2.10.4 G (Financial crime and market abuse) | Reg 17(2)(g) | |
| REC 2.11.3 G to REC 2.11.4 G (Custody) | REC 2.11.4 G is replaced with the following for an RAP: Where an RAP arranges for other persons to provide services for the safeguarding and administration services of assets belonging to users of its facilities, it will also need to satisfy the RAP recognition requirement in regulation 17(2)(h) of the RAP regulations (see REC 2A.2.1 UK). |
Reg 17(2)(h) |
| REC 2.12.11 G to REC 2.12.12 G (Availability of relevant information) | REC 2.12.11 G to REC 2.12.12 G are replaced with the following for an RAP: REC 2.12.11 G In determining whether appropriate arrangements have been made to make relevant information available to persons engaged in dealing in auction products, the FSA may have regard to: (1) the extent to which auction bidders are able to obtain information in a timely fashion about the terms of those auction products and the terms on which they will be auctioned, either through accepted channels for dissemination of information or through other regularly and widely accessible communication media; (2) what restrictions, if any, there are on the dissemination of relevant information to auction bidders; and (3) whether relevant information is, or can be, kept to restricted groups of persons in such a way as to facilitate or encourage market abuse. REC 2.12.12 G An RAP does not need to maintain its own arrangements for providing information on the terms of auction products to auction bidders where it has made adequate arrangements for other persons to do so on its behalf or there are other effective and reliable arrangements for this purpose. |
Reg 17(2)(c) |
| REC 2.13.3 G to REC 2.13.6 G (Promotion and maintenance of standards) | Reg 18 | |
| REC 2.14.3 G to REC 2.14.6 G (Rules and consultation) | Reg 19 | |
| REC 2.15.3 G to REC 2.15.6 G (Discipline) | Reg 22 | |
| REC 2.16.3 G to REC 2.16.4 G (Complaints) | Reg 23 |
- 01/04/2012