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Version status: In force | Document consolidation status: Assimilated law updated to reflect all known changes
Version date: 31 December 2020 - onwards
Version 2 of 2

Article 85 Monitoring and management of additional risks resulting from the use of indirect links or intermediaries to operate CSD links

1. In addition to complying with the requirements under Article 84, where a CSD is a  requesting CSD that uses an indirect link or an intermediary to operate a CSD link, it shall ensure that:

(a) the intermediary is one of the following:

(i) a credit institution with permission to accept deposits under Part 4A of the Financial Services and Markets Act 2000 that complies with the following requirements:

- it complies with Article 38(5) and (6) of Regulation (EU) No 909/2014 or with segregation and disclosure requirements at least equivalent to those laid down in Article 38(5) and (6) of Regulation (EU) No 909/2014 where the link is established with a third-country CSD,

- it ensures prompt access by the requesting CSD to the securities of the requesting CSD when required,

- it has low credit risk, which shall be established in an internal assessment by the requesting CSD by employing a defined and objective methodology that does not exclusively rely on external opinions;

(ii) a third-country financial institution that complies with the following requirements:

- it is subject to and complies with prudential rules at least equivalent to those laid down in Regulation (EU) No 575/2013,