Article 3 Amendment of paragraph 16

(1)

Paragraph 16 (chargeable equity and liabilities of a UK banking group or a building society group) is amended as follows.

(2)

In sub-paragraph (1)—

(a)

in paragraph (a) omit “and N has assets which correspond to those liabilities”; and

(b)

for paragraph (b) substitute—

“(b)
M, or another member of the relevant group, recognises, as assets, amounts due from N or another entity which is not a member of the group (“N’s liabilities”),”.

(3)

In sub-paragraph (2)——

(a)

for paragraph (b) substitute—

“(b)
references to amounts due from N or another entity which is not a member of the relevant group include securities provided by M, or another member of the relevant group, to N or another entity which is not a member of the relevant group as collateral, but only where M or another member of the relevant group recognises those securities in its balance sheet or statement of financial position, and”;

(b)

omit paragraph (c) (and the “and” after it);

(c)

in paragraph (d)(i) omit “assets which correspond to”; and

(d)

after paragraph (d) insert—

“Section 556 of CTA 2009 (meaning of securities and similar securities)^f1 applies for the purposes of this sub-paragraph as it applies for the purposes of Chapter 10 of Part 6 of that Act.”

(4)

Omit sub-paragraph (3).

Annotations

Footnotes

f1: 2009 c. 4.