Article 5

In paragraph 37 (Operators) of the Schedule, for sub-paragraph (1) substitute—

“(1)

An Operator, in so far he carries on—

(a)

any regulated activity for the purposes of the performance of his functions as an Operator under the Uncertificated Securities Regulations 1995^f1; or

(b)

any other regulated activity for the purposes of operating a computer-based system and procedures which—

(i)

enable title to investments to be evidenced and transferred without a written instrument; or

(ii)

facilitate matters supplementary or incidental to those specified in sub-paragraph (i),

other than a regulated activity in respect of which a recognised clearing house is exempt from the general prohibition by virtue of section 285(3) of the Act.”.