3. In the principal Regulations, in regulation 11 —(a) | in paragraph (1)(c), after “the Authority”, insert “, that will have an impact on the approved clearing house”; | (b) | in paragraph (1), replace sub‑paragraph (f) with —“(f) | the approved clearing house becomes aware of any development (including any development in relation to any associate of the approved clearing house, or any other entity treated as part of the approved clearing house’s group of companies according to the accounting standards applicable to the approved clearing house) that has occurred or is likely to occur which the approved clearing house has reasonable grounds to believe has materially and adversely affected, or is likely to materially and adversely affect —(i) | the financial soundness or reputation of the approved clearing house; or | (ii) | the approved clearing house’s ability to conduct its business; |
| (g) | the approved clearing house becomes aware that its chairperson, chief executive officer or director or a person who holds an appointment mentioned in section 71(2) of the Act is, in accordance with the Guidelines on Fit and Proper Criteria, no longer fit and proper to hold that office or appointment; | (h) | the approved clearing house becomes aware that a substantial shareholder, 12% controller or 20% controller of the approved clearing house is, in accordance with the Guidelines on Fit and Proper Criteria, no longer fit and proper to be a substantial shareholder, 12% controller or 20% controller (as the case may be) of the approved clearing house; | (i) | the approved clearing house becomes aware that it is not likely to be able to conduct its business prudently or to comply with the provisions of the Act and directions made thereunder, having regard to the likely influence over the approved clearing house of a substantial shareholder, 12% controller or 20% controller of the approved clearing house.”; |
|
| (c) | after paragraph (1), insert —“(1A) In paragraph (1), “12% controller” and “20% controller” have the meanings given by section 70(3) of the Act. |
(1B) For the purposes of section 58(4) of the Act, an approved clearing house must notify the Authority of the following matters:(a) | any disruption, suspension or termination of, or delay in, any clearing or settlement procedure of the approved clearing house (including any disruption, suspension, termination or delay resulting from any system failure) that —(i) | has a severe and widespread impact on the approved clearing house’s operations; or | (ii) | materially impacts the approved clearing house’s service to its participants; |
| (b) | any other disruption, suspension or termination of, or delay in, any clearing or settlement procedure of the approved clearing house (including any disruption, suspension, termination or delay resulting from any system failure). |
|
(1C) For the purposes of section 58(4) of the Act, an approved clearing house must notify the Authority —(a) | of a matter mentioned in paragraph (1B)(a) no later than one hour after the discovery by the approved clearing house of the disruption, suspension, termination or delay; and | (b) | of a matter mentioned in paragraph (1B)(b) no later than one day after the discovery by the approved clearing house of the disruption, suspension, termination or delay.”; |
|
|
| (d) | in paragraph (2), replace “, (e) or (f) has occurred, the approved clearing house shall, in addition to the notice required under paragraph (1)” with “or (e) or (1B)(a) or (b), or a development mentioned in paragraph (1)(f), has occurred, the approved clearing house shall, in addition to the notice required under paragraph (1) or (1B) (as the case may be)”; and | (e) | in paragraph (2), after “the occurrence of the circumstance”, insert “or development,”. |
|