Regulation 11 Amendments to the principal Regulations

After regulation 7 there shall be added—

“Conditions relating to an arrangement mentioned in subsection (2A)

8

(1)

The conditions specified in this regulation in relation to an arrangement mentioned in paragraph (a) of subsection (2A) (in this regulation referred to as an “additional arrangement”) are—

(a)

that the securities to be transferred under any arrangement in the chain of arrangements referred to in subsection (2A) are overseas securities;

(b)

that the person referred to as A in the principal section is an approved borrower, and the persons referred to as B and C in the principal section are approved intermediaries;

(c)

that, subject to sub-paragraph (d), where there is more than one additional arrangement in a chain of arrangements, any person who, in addition to C, is a party to any such arrangement, is an approved intermediary;

(d)

that the initial lender in the chain is an approved lender, and any person acting for the initial lender in connection with an additional arrangement as an agent or nominee is an approved agent or, as the case may be, an approved nominee;

(e)

that each arrangement in the chain is approved, or takes a form approved, by the Board.

(2)

In this regulation—

(a)

“approved borrower”, “approved intermediary” and “approved lender” have the same meanings as in regulation 7;

(b)

“approved agent” and “approved nominee” have the same meanings as in regulation 5.”