# Financial Services and Markets Act 2023, Paragraph 42: Effect

Extent: E+W+S+N.I.

(1) In this paragraph “transfer” means a transfer provided for by a share transfer instrument.
(2) A transfer takes effect by virtue of the instrument (and in accordance with its provisions as to timing or other ancillary matters).
(3) A transfer takes effect despite any restriction arising by virtue of contract or legislation or in any other way.
(4) In sub-paragraph (3) “restriction” includes—
(a) any restriction, inability or incapacity affecting what can or cannot be assigned or transferred (whether generally or by a particular person), and
(b) a requirement for consent (by any name).
(5) A share transfer instrument may provide for a transfer to take effect free from any trust, liability or other encumbrance (and may include provision about their extinguishment).
(6) A share transfer instrument may extinguish rights to acquire securities falling within Class 1 or 2 in paragraph 40.

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Source: https://www.legislation.gov.uk/ukpga/2023/29/schedule/11/paragraph/42 (the official version)
Page: https://openlegislation.uk/financial-services-and-markets-act-2023/schedule-11/paragraph-42
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.