Regulation 3 Interests of investors in licensed providers

(1)

For the purposes of the definition of “investor” in section 67(6) of the Act (more about investors), a person has ownership or control of the licensed provider or a material interest in it if the person—

(a)

is entitled to exercise, or control the exercise of, any voting or equivalent rights in the licensed provider;

(b)

would be entitled to receive, if all of the income of the licensed provider were to be distributed among the members, any share of the amount so distributed; or

(c)

would be entitled to receive, if all of the assets of the licensed provider were to be distributed among the members (for example, on the winding-up or dissolution of the licensed provider), any share of the amount so distributed.

(2)

In the operation of paragraph (1)—

(a)

any rights that a person has as a loan creditor are to be disregarded; and

(b)

the references to “members” are to be construed as—

(i)

in relation to a company, the holders of shares in the company;

(ii)

in relation to a limited liability partnership, the members;

(iii)

in relation to a partnership, the partners; and

(iv)

in relation to any other body or association, the members of that body or association.