Explanatory note

These Regulations amend the National Savings Stock Register Regulations 1976.

They enable dividends and other payments payable on stock (other than National Savings Income Bonds) acquired on or after 1st January 1990 by a minor who at the date of payment is under the age of seven years to be paid to any person who satisfies the Director of Savings that he is a proper person to receive payment. (Dividends payable on stock acquired before 1st January 1990 may continue to be paid to a parent or guardian or other person who satisfies the Director that he is a proper person to receive payment.) Interest payable on National Savings Income Bonds acquired on or after 1st January 1990 by a minor under the age of seven years is payable into a bank or building society account (other than an ordinary account in the National Savings Bank) in the name of the minor or a proper person.

They enable stock (including Income Bonds) acquired on or after 1st January 1990 by a minor who at the date application for its sale or repayment is received is under the age of seven years to be sold or repaid and the proceeds paid to a proper person. Stock acquired before that date may only be paid to a person who satisfies the Director of Savings that the proceeds will be applied for the maintenance or otherwise for the benefit of the minor.

These Regulations also make certain other minor amendments to the 1976 Regulations. First, regulation 23 (payments in respect of mentally disordered persons) is revoked because the necessary provisions are contained in regulation 31. Secondly, regulation 45 is amended to make it clear that the Director is free to decide not to make payments in respect of stock from and into the National Savings Bank. Finally regulation 57 (obligation of secrecy) is amended consequent upon the amendment of section 20 of the Taxes Management Act 1970 (c. 9) (power to call for documents of taxpayer and others) by section 142 of the Finance Act 1989 (c. 26).