Rule 3 Interpretation

In this Part, the expression—

• “authorised unit trust scheme” has the meaning assigned by section 237(3) of the Financial Services and Markets Act 2000;

• “debenture” includes debenture stock and bonds, whether constituting a charge on assets or not, and loan stock or notes;

• “fixed-interest securities” means securities which under the terms of issue bear a fixed rate of interest;

• “gilt unit trust scheme” means an authorised unit trust scheme, or a recognised scheme, the objective of which is—

  1. (a)

     to invest at least 90% of the property of the scheme in loan stock, bonds or other instruments creating indebtedness which—

     1. (i)

        are transferable; and

     2. (ii)

        are issued or guaranteed by the Government of the United Kingdom or of any other country or territory, by a local authority in the United Kingdom F1..., or by an international organisation the members of which include the United Kingdom ...;

  2. (b)

     to invest the remainder of the property of the scheme in shares, debentures or other instruments creating or acknowledging indebtedness, certificates representing securities or units in a collective investment scheme.

  Sub-paragraphs (a) and (b) must be read with—

  1. (i)

     section 22 of the Financial Services and Markets Act 2000;

  2. (ii)

     any relevant Order under that section; and

  3. (iii)

     Schedule 2 to that Act;

• “investment trust company” has the meaning assigned by section 842 of the Income and Corporation Taxes Act 1988;

• “securities” includes shares, debentures, Treasury Bills and Tax Reserve Certificates;

• “share” includes stock;

• “Treasury Bills” includes bills issued by Her Majesty’s Government in the United Kingdom and Northern Ireland Treasury Bills;

• “variable-interest securities” means securities which under the terms of issue bear a variable rate of interest.

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