Preparation well underway for re-authorization of NCDCP

(Created: 16.06.2017 12:15, Source: NCDCP)

National Central Securities Depository is preparing to file an application for relicensing with Národná banka Slovenska in order to bring its activities into line with the legal framework established by Regulation (EU) No 909/2014 of the European Parliament and of the Council of 23 July 2014 on improving securities settlement in the European Union and on central securities depositories and amending Directives 98/26/EC and 2014/65/EU and Regulation (EU) No 236/2012 (CSDR), the related regulatory technical standards (RTS) and other regulations of the European Commission. This will demonstrate that it satisfies all the requirements laid down by European legislation for the management and operation of a central depository.

CSDR lays down the legal framework for the operation of central depositories in the European Union including certain aspects of the activities that were previously regulated in detail on the national level. Because Regulation No 909/2014 is fully binding and directly enforceable in EU Member States, Slovak law was brought into line with it through an amendment of Act No 566/2001 on securities and investment services and amending certain acts (the Act on Securities), as amended.  Article 69(2) of Regulation No 909/2014 requires the re-licensing of all current central depositories, meaning the acquisition of authorisation from the competent body of an EU Member State to act as a central depository in accordance with the regulation and, in relevant cases, central depositories are obliged to obtain additional authorisations under the regulation subject to the procedures and conditions that it lays down.

In the final preparatory phase of the relicensing process, NCDCP was applying the new rules to its various areas of activity based on an analysis comparing the current situation with Regulation No 909/2014, focussing on its staff, the readiness of its information and security systems and its provision of services. In practical terms, this means adapting existing processes and internal methods to comply with the requirements of the Regulation. NCDCP has set up an internal project team made up of experienced and competent professionals to ensure the effective implementation of CSDR and its related RTS.

National Central Securities Depository submited an application for its CSDR license to the Central Bank of the Slovak Republic on 19 June 2017 with authorisation expected to be granted in January 2018.