Regulation 11 Interpretation

In Schedule 11 (interpretation of schedules)—

(a)

in paragraph 9(3)—

(i)

for “provisions for liabilities and charges” substitute “provisions for liabilities”, and

(ii)

for “or loss” substitute “the nature of which is clearly defined and”;

(b)

after paragraph 12 (amounts repayable), insert—

“Financial instruments

12A.

References to “derivative financial instruments” are deemed to include commodity-based contracts that give either contracting party the right to settle in cash or some other financial instrument, except where such contracts—

(a)

were entered into and continue in order to meet the society’s expected purchase, sale or usage requirements;

(b)

were designated for such purpose at their inception; and

(c)

are expected to be settled by delivery of the commodity.”;

(c)

in paragraph 13 (other definitions)—

(i)

after the definition of “EEA State”, insert—

““fair value reserve” has the meaning given by paragraph 31E of Schedule 7;”; and

(ii)

omit the definition of “financial fixed assets”;

(d)

after paragraph 13, insert—

“14.

(1)

The expressions listed in sub-paragraph (2) have the same meaning as they have in Council Directive 78/660/EC on the annual accounts of certain types of companies, as amended^f1; and for the purposes of those expressions, it shall be assumed that a society is subject to the provisions of that Directive.

(2)

“Available for sale financial asset”, “business combination”, “cash flow risk”, “commodity-based contracts”, “credit risk”, “equity instrument”, “exchange difference”, “fair value hedge accounting system”, “financial fixed asset”, “financial instrument”, “foreign entity”, “hedge accounting”, “hedge accounting system”, “hedged items”, “hedging instrument”, “held to maturity”, “held for trading purposes”, “liquidity risk”, “monetary item”, “price risk”, “receivables”, “reliable market”, and “trading portfolio”.”.

Annotations

Footnotes

f1: O.J. L222 of 14.8.1978 page 11, as amended in particular by Directives 2001/65/EEC and 2003/51/EEC of the European Parliament and of the Council (O.J. L238 of 27.12.2001, page 28, and O.J. L178 of 17.7.2003, page 16).