Paragraph 2

United Kingdom

(1)

A transaction falls within this paragraph if it is in respect of an investment specified in sub-paragraph (2) below and—

(a)

in the case of an investment within any of paragraphs (a) to (d) of that sub-paragraph, the transaction is not regulated by the rules of a recognised investment exchange; and

(b)

in the case of any other investment specified in that sub-paragraph, the transaction is not made on such an exchange or expressed to be as so made.

C1(2)

The investments referred to above are—

F1(a)

a debenture or other instrument falling within paragraph 2 of Schedule 1 to this Act which is issued on terms requiring repayment not later than five years from the date of issue;

(c)

loan stock, or any other instrument, falling within paragraph 3 of Schedule 1 to this Act which is issued on terms requiring repayment not later than one year or, if issued by a local authority in the United Kingdom, five years from the date of issue;

(d)

a warrant or other instrument falling within paragraph 4 of Schedule 1 to this Act which entitles the holder to subscribe for an investment within F2paragraph (a) or (c) above;

(e)

any certificate or other instrument falling within paragraph 5 or 11 of Schedule 1 to this Act and relating to an investment within paragraph (a) or (c) above;

(f)

an option falling within paragraph 7 of Schedule 1 to this Act and relating to—

(i)

an investment within paragraph (a) or (c)above;

(ii)

currency of the United Kingdom or of any other country or territory; or

(iii)

gold or silver;

(g)

rights under a contract falling within paragraph 8 of Schedule 1 to this Act for the sale of—

(i)

an investment within paragraph (a) or (c) above;

(ii)

currency of the United Kingdom or of any other country or territory; or

(iii)

gold or silver;

(h)

rights under a contract falling within paragraph 9 of Schedule 1 to this Act by reference to fluctuations in—

(i)

the value or price of any investment falling within any of the foregoing paragraphs; or

(ii)

currency of the United Kingdom or of any other country or territory; or

(iii)

the rate of interest on loans in any such currency or any index of such rates;

(i)

an option to acquire or dispose of an investment within paragraph (f), (g) or (h) above.

Annotations

Textual amendments

F1: Sch. 5 para. 2(2)(a) substituted (3.4.1997) for Sch. 5 para. 2(2)(a)(b) by S.I. 1996/816, art. 2(a)
F2: Words in Sch. 5 para. 2(2)(d)(e)(f)(i)and(g)(i) substituted (3.4.1997) by S.I. 1996/816, art. 2(b)

Modifications

C1: Sch. 5 Pt. I para. 2(2) amended (1.1.1993) by S.I. 1992/3218, reg. 82(1), Sch. 10 Pt. I para. 23.

Notes on the whole Act

Textual amendments

F1: Act repealed (1.12.2001) by The Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001 (S.I. 2001/3649), arts. 1, 3(1)(c) (with savings in art. 292)

Notes on Schedule 5

Modifications

C1: Sch. 5 amended by S.I. 1990/696, art. 2