Explanatory note

These Regulations amend the Local Authority (Stocks and Bonds) Regulations 1974 to enable stock and bonds which have been tranferable through the medium of the CGO Service (referred to below) by means of an exempt transfer (referred to below) to be transferred instead in accordance with the Uncertificated Securities Regulations 1995 by means of a relevant system (within the meaning of the 1995 Regulations) operated by a person currently only CRESTCo Limited, who has been approved under the 1995 Regulations Under the 1995 Regulations title to stock may be evidenced otherwise than by a certificate and transferred without a written instrument.

The stock concerned is any stock (other than stock transerable by deliver) issued before 1st April 1990 which is registered at the Bank of England and was issued by, or for which liability is vested in, any of the local authorities specified in Schedule 2 to the Principal Regulations.

Regulation 2(6)(c) inserts new paragraph (4) into Regulation 7 of the Principal Regulations. This provides that no stock or bond may be transferred through the CGO Service if it is permitted to be transferred in accordance with the 1995 Regulations.

Regulations 2(8) and 2(11) insert new paragraphs into respectively Regulation 9 and Regulation 14 of the Principal Regulations. This is to make the Principal Regulations consistent with the 1995 Regulations in relation to stock and bonds held in uncertificated form.

The CGO Service referred to above is a computer-based system established by the Bank of England and the London Stock Exchange under the Stock Transfer Act 1982 (c41) to facilitate the transfer of specified securities within the meaning of that Act. An exempt transfer referred to in that Act is a transfer made through the medium of the CGO Service.