Banking Act 1987 (Exempt Transactions) (Amendment) Regulations 1989
| Jurisdiction | UK Non-devolved |
1989No. 465
BANKS AND BANKING
The Banking Act 1987 (Exempt Transactions) (Amendment)
Regulations 1989
14thMarch1989
14thMarch1989
4thApril1989
The Treasury, in exercise of the powers conferred upon them by section 4(4), (5) and (6) of the Banking Act 1987 ( a) and of all other powers enabling them in that behalf, hereby make the following Regulations:
Citation and commencement
1. These Regulations may be cited as the Banking Act 1987 (Exempt Transactions) (Amendment) Regulations 1989 and shall come into force on 4th April 1989.
Interpretation
2. In these Regulations "the principal Regulations" means the Banking Act 1987 (Exempt Transactions) Regulations 1988 ( b) .
Amendment of principal Regulations
3. The principal Regulations shall be amended as follows:
(a) in regulation 1(2) of the principal Regulations-(i) by inserting after the definition of "exempt transaction" the following new definition-" "financial year" has the meaning ascribed to it by section 742 of the Companies Act 1985; " ;
(ii) by inserting after the definition of "the Official List" the following new definition-" "Recognised Overseas Exchange" means an exchange, market place or association for the time being included in the list published by the Council for the purposes of rule 535.4a of the Rules of The Stock Exchange (permitted dealings in foreign securities) (or any rule of The Stock Exchange having substantially the same effect) ( c) ; " ; and
(iii) by substituting for the definition of "successor to the British Steel Corporation" the following new definition-" "successor" , in relation to a body, means any company in which property, rights and liabilities of the body shall have become vested by virtue of an Act; and " ;
(a) 1987 c.22.
(b) S.I. 1988/646.
(c) The list and the Rules may be obtained from the Quotations Department, The Stock Exchange, London EC2N 1HP.
(b) in regulation 10(2) by deleting the words "to the British Steel Corporation" ;(c) by substituting for regulation 13 of the principal Regulations the following new regulation-" 13. The acceptance of a deposit by a person (not being a body listed in Schedule 2 to these Regulations) on terms involving the issue of any sterling commercial paper is an exempt transaction if-
(a) the person accepting the deposit is-(i) a company whose shares or debt securities have been admitted to the Official List (and are not the subject of a notice issued by the Council cancelling or suspending the listing or suspending dealings) or are dealt in on the Unlisted Securities Market (and are not the subject of a Council notice cancelling or suspending dealings); or(ii) a company not falling within sub-paragraph (a)(i) above which is incorporated in the United Kingdom or whose shares or debt securities have been admitted to listing on a Recognised Overseas Exchange (and are not the subject of official action taken in accordance with the rules of the Recognised Overseas Exchange cancelling or suspending the listing or suspending dealings), which has complied with the requirements of Schedule 3 to these Regulations; or(iii) the government of any country or territory, or a public authority, outside the United Kingdom the debt securities of which are admitted to trading on The Stock Exchange or on a Recognised Overseas Exchange (and are not the subject of a notice issued by the Council or official action taken in accordance with the rules of the Recognised Overseas Exchange (as the case may be) cancelling or suspending the admission to trading or suspending dealings); or(iv) a person who does not fall within sub-paragraphs (a)(i) to (iii) above, if either a company which falls within sub-paragraph (a)(i) or an authorised institution has guaranteed to the holder of the sterling commercial paper the repayment of the principal and the payment of any interest or premium in connection therewith;(b) in the case of a company falling within sub-paragraph (a)(i) or (ii) above, its net assets or, in the case of a person falling within sub-paragraph (a)(iv) above where the guarantor is not an authorised institution, the guarantor's net assets were shown in its last audited individual or group accounts (as the case may be) to be not less than £25 million (or an amount of equivalent value denominated wholly or partly otherwise than in sterling);(c) in consideration of the deposit a single debt security is issued, in the form of sterling commercial paper, which has a redemption value of not less than £100,000, the whole or part of which may be transferred only if the aggregate redemption value of sterling commercial paper being transferred is not less than £100,000; and(d) the sterling commercial paper-(i) is issued and payable in the United Kingdom,(ii) bears the rubric "sterling commercial paper issued in accordance with regulations made under section 4 of the Banking Act 1987" ,(iii) states the name of the issuer and that the issuer is not an authorised institution and either states that repayment of the principal and the payment of any interest or premium in connection with the sterling commercial paper have not been guaranteed, or, if they have been guaranteed, states that this is the case, the name of the guarantor and whether or not the guarantor is an authorised institution, and(iv) if it is issued by a company falling within sub-paragraph (a)(i) or (ii) above, or guaranteed by a company falling within sub-paragraph (a)(i) above, and is not offered by a prospectus to which section 56 or 72 of the Companies Act 1985 or the corresponding Northern Ireland legislation applies, includes a statement made by the company accepting the deposit or the guarantor (as the case may be) that the relevant company has complied with its obligations under the relevant rules and that, since the last publication in compliance with the relevant rules of information about the...To continue reading
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