Article 7 Amendment of paragraph 25

(1)

Paragraph 25 (definition of “UK allocated equity and liabilities”) is amended as follows.

(2)

In sub-paragraph (1)—

(a)

in paragraph (a) omit—

(i)

“(“N”)”; and

(ii)

“, and N has assets which correspond to those liabilities”; and

(b)

for paragraph (b) substitute—

“(b)
the bank recognises, as assets, amounts due from that other entity (“N”) to the bank (“N’s liabilities”),”.

(3)

In sub-paragraph (3)—

(a)

for paragraph (b) substitute—

“(b)
references to amounts due from N include securities provided by the relevant foreign bank to N as collateral, but only where the bank recognises those securities in its balance sheet or statement of financial position, and”;

(b)

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

(c)

after paragraph (d) insert—

“Section 556 of CTA 2009 (meaning of securities and similar securities) 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 (4).