The Regulation (EU) No. 909/2014 on improving securities settlement in the European Union and on central securities depositories (the “CSDR”) lays down uniform requirements for the settlement of financial instruments in the European Union and rules on the organisation and conduct of central securities depositories (“CSDs”) to promote safe, efficient and smooth settlement.
On 18th June 2019, the European Securities and Markets Authority (“ESMA”) has updated its Questions and Answers (“Q&A”) on the implementation of the CSDR. This updated Q&A focuses on clarifying aspects in relation to the passporting of notary or central maintenance services across Member States. In this regard, the Q&A document contains the following:
Discussion about the main authorisation procedure and the passporting procedure of a CSD;Determination of the meaning of a change in the services provided by an CSD;
Clarification on the interpretation of Article 23(3)(e) of the CSDR which provides that “where relevant, an assessment of the measures the CSD intends to take to allow its users to comply with the national law referred to in Article 49(1)”; and
Tackles instances where the host Member State refuses to approve the assessment of the measures the CSD intends to take.
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