# The Banking Act 1987 (Exempt Transactions) (Amendment) Regulations 1990, Note: Explanatory note


(This note is not part of the Regulations)
These Regulations amend the Banking Act 1987 (Exempt Transactions) Regulations 1988 (the 1988 Regulations).
First they extend from one to five years the maximum redemption period of debt securities which may be issued under the 1988 Regulations, consequent on the amendment by section 202 of the Companies Act 1989 (c. 40) of section 195 of the Financial Services Act 1986 (offers of short-dated debentures). Instruments with a maturity of one year or less are referred to in these Regulations as “commercial paper” and instruments with a maturity of between one and five years are referred to as “medium term notes”; the two together are referred to as “relevant debt securities”. These Regulations also remove the requirement that instruments coming within the 1988 Regulations must be denominated in sterling. Regulation 12 of the 1988 Regulations (sterling debt securities) is revoked.
Apart from changes throughout in nomenclature resulting from the extension of the maximum redemption period, the changes are as follows. Regulation 13(c) of the 1988 Regulations is amended to permit the redemption value to be denominated otherwise than in sterling; regulation 13(c) is also amended to make it clear that where a relevant debt security is capable of being split prior to transfer the exemption will be available only if the redemption value of each relevant debt security being transferred is not less than £100,000 (or foreign currency equivalent). Now that foreign currency issues are embraced, the requirement in regulation 13(d)(i) that the relevant debt security be issued and payable in the United Kingdom has been deleted. In paragraph 2(x) of Schedule 3 of the 1988 Regulations (information to have been notified to The Stock Exchange concerning paying and managing agents) there is no longer any reference to the paying agent being in the United Kingdom.
Regulation 13(d)(i) and (ii) now specifies that different rubrics must be used on commercial paper and medium term notes; otherwise the only places where the Regulations distinguish between the two types of instrument (apart from the definitions) are paragraphs 2(w) (information to have been notified to the Stock Exchange concerning the amount to be raised by the issue of relevant debt securities), 8 and 9 (information to have been notified to the Bank of England) of Schedule 3. Paragraphs 8 and 9 of that Schedule are also amended to require information notified to the Bank of England to distinguish between issues of relevant debt securities denominated in sterling and issues denominated in other currencies.
Secondly, these Regulations incorporate changes made to the Co-operative Deposit Protection Scheme at a meeting of Participating Societies on 29th May 1989 and Schedule 1 to the 1988 Regulations (deed establishing the Co-operative Deposit Protection Scheme) is set out in full as amended.

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Source: https://www.legislation.gov.uk/uksi/1990/20/note (the official version)
Page: https://openlegislation.uk/banking-act-1987-exempt-transactions-amendment-regulations-1990/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.