Migration of Participating Securities Bill 2019

Public bill · Government · Presented

It would let certain companies move their shares from the CREST system to a different securities settlement system if needed, especially in case the UK-based system could no longer be used after 30 March 2021. To do that, a company would need shareholder approval, detailed notice to members, and filings with the company registry and the market authority; once the move happens, ownership would be recorded electronically rather than by paper transfer or share certificates. It matters because it creates a legal backup route to keep trading and settlement working smoothly if the current system is disrupted.

Formal long title

Bill entitled an Act to make, in the public interest, provision with respect to the contingency that a substitute securities settlement system, compatible with the law of the European Union, may be required, on or after 30 March 2021, for the securities settlement system commonly known as “CREST”; for that purpose to enable issuers of certain securities to avail themselves of the procedures hereafter provided whereby such a substitute securities settlement system will, by virtue of the operation of this Act, become available in respect of those securities and to provide for related matters.

Last updated 2 July 2021