Regulation 5 Limitation on acquisition of influential stake
Regulation 16(1)(b)(ii) of the Principal Regulations shall be deleted and the following substituted–
“(b)(ii)any investment falling within paragraph 2 of Schedule 1 to the Act issued by the same issuer being an investment which is neither a Government and other public security nor an investment which is convertible into an investment falling within paragraph 1 of that Schedule; or”.
The following paragraph shall be inserted after regulation 16(1) of the Principal Regulations–
“(1A)Subject to the provisions of paragraph (2), no investment which falls within paragraph 2 of Schedule 1 to the Act which is convertible into an investment falling within paragraph 1 of that Schedule shall be acquired for the property of an authorised securities scheme if the effect of the acquisition would be that the property of the scheme included more than 10% of any investment, other than a Government and other public security, which falls within paragraph 2 of Schedule 1 to the Act and is issued by the same issuer.”.
Regulation 16(2) of the Principal Regulations shall be deleted and the following substituted–
“(2)Neither the provisions of sub-paragraphs (a) and (b)(ii) of paragraph (1) nor those of paragraph (1A) shall have effect in any case in which it was not possible, at the time transferable securities were acquired, to ascertain whether the acquisition would contravene those provisions.”.
Regulation 25 of the Principal Regulations shall be deleted and the following substituted–
“25The provisions of regulation 16(1)(b)(ii) and (1)(A) and those of regulation 16(2) insofar as they relate to the provisions of regulation 16(1)(b)(ii) and (1A) shall apply in relation to a money market fund in the same way as they apply in relation to an authorised securities scheme.”.