Regulation 2

in paragraph (2), by the insertion before the words “base rate” of the word “highest” and by the substitution of the words “any of the reference banks” for the words from “the committee” to the end of the paragraph;

by the insertion after paragraph (2) of the following:

“(3)

For the purposes of paragraph (2)–

(a)

the reference banks are the seven largest institutions–

(i)

authorised by the Bank of England under the Banking Act 1987^f2; and

(ii)

incorporated in and carrying on a deposit-taking business within the United Kingdom,

which quote a base rate in sterling;

(b)

the size of an institution is to be determined by reference to its total consoli-dated gross assets denominated in sterling, as shown in its audited end-year accounts last published before the due date for payment.

(4)

In paragraph (3)(b), the reference to the consolidated gross assets of an institution is a reference to the gross assets of that institution together with any subsidiary (within the meaning of section 736 of the Companies Act 1985)^f3.”.