Regulation 4 Assets sold to or purchased from an approved credit institution or an approved investment firm subject to an agreement for resale or repurchase.

Regulation 47A of the 1994 Regulations^f1 (assets sold to or purchased from an approved credit institution or an approved investment firm subject to an agreement for resale or repurchase) shall be amended as follows.

In sub-paragraph (b)(i) of paragraph (3), for the words“listed securities”, substitute “securities (other than approved securities)”.

In sub-paragraph (b)(ii) of paragraph (3), omit the words“cause the company to”.

In sub-paragraph (b)(i) of paragraph 4, omit the words“cause the company to”.

After paragraph (4) insert—

“(4A)

For the purposes of this regulation, where the company has received consideration in respect of any other sale of the kind described in paragraph (1) above, in addition to any other exposure to assets or to a counterparty—

(i)

if such consideration takes the form of a letter of credit established with, or a guarantee provided by, an approved credit institution, it shall be considered to give rise to exposure to that institution by the amount of the consideration; and

(ii)

if such consideration takes the form of a charge over securities, it shall be considered to give rise to exposure to securities of the same description and to the issuer of those securities by the amount of the consideration; and

(iii)

if such consideration takes the form of cash deposited with another party for the benefit of the company, or a charge over cash deposited with another party, it shall be considered to give rise to exposure to that party by the amount of the consideration.”.

In the first line of paragraph (5), for the words“paragraph (4) above”, substitute “this regulation”.