Regulation 4

in paragraph (1), by the substitution for the words from “the arithmetic mean” to the end of the paragraph of the words “the standard rate.”;

by the substitution for paragraph (2) of the following:

“(2)

For the purposes of paragraph (1)—

(a)

the standard rate, in relation to a year or part of a year, is the base rate quoted by the reference banks and effective on 15th March (or, if that day is not a business day, the next business day) of the preceding year; or, if different base rates are quoted and so effective, the rate which, when the base rate quoted by each bank is ranked in a descending sequence of seven, is fourth in the sequence;

(b)

the reference banks, in relation to any 15th March, are the seven largest institutions—

(i)

authorised by the Bank of England under the Banking Act 1987^f1 and

(ii)

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

which quote a base rate in sterling effective as mentioned in subparagraph (a); and

(c)

the size of an institution is to be determined by reference to its total consolidated gross assets denominated in sterling, as shown in its audited end-year accounts last published before the relevant 15th March.

(3)

In paragraph 2(c), 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)^f2.”.