Schedule 11: Central counterparties Part 4 – Removal of directors and senior managers Paragraphs 5 and 6: conditions
Paragraph 7 outlines the conditions that would have to be met for the powers in paragraph 5 and 6 to be exercised. Namely, that there is a significant deterioration in the financial situation of a CCP, a serious infringement by the CCP of a relevant requirement or its rules, or if director of a CCP meets the conditions in paragraph 7(5). Paragraph 7(6) defines a relevant requirement as one imposed by or under FSMA 2000, the European Market Infrastructure Regulation (EMIR), as onshored in UK law, or another enactment specified in regulations made by HM Treasury.
	Paragraph 7(2) clarifies that the conditions are met if it’s not reasonably likely that a measure taken by the Bank under its powers in section 296 or 296A of FSMA 2000 or paragraph 13 of this Schedule would reverse a financial deterioration or bring an infringement to an end.