Under the CSDR, an institution is considered to be a settlement internaliser if it settles transfer orders on behalf of clients on its own account rather than through a Central Securities Depository (CSD).
This will apply to firms that have the regulatory permissions necessary to carry out the following activity:
- arranging safeguarding and administration of assets
- safeguarding and administration of assets (without arranging)
Reports are required to be sent to the Bank of England, as the designated competent authority under the Central Securities Depositories Regulations 2014. The first reports are due by 12 July 2019, covering the period from April 2019 until the end of June 2019.
What firms should do
Firms should refer to the Bank of England’s website for further information. Firms should complete the survey (details of which can be found in a letter to UK firms) if they think they will be captured by the reporting obligation.