Explanatory note

These Regulations, which come into force on 1st January 1992, further amend the Personal Equity Plan Regulations 1989 (“the principal Regulations”). The amendments have two main effects. The first is to provide for an additional kind of plan, called a single company plan, to which a plan investor can subscribe in any year in addition to subscribing to a plan under the Regulations as they were before these amendments, which is now called a general plan. The subscription limit for a single company plan is half that for a general plan and its distinguishing features are that only one company is designated for the purposes of the plan by the plan manager and that, in general, only shares in the designated company may be held under the plan.

The second main effect of these amendments is to extend the range of qualifying investments for both general plans and single company plans to include shares in companies incorporated in an EC State other than the United Kingdom which are broadly comparable to ordinary shares in a United Kingdom company and are listed on a recognised stock exchange in a member State (“qualifying EC shares”).

Regulation 1 provides for citation and commencement.

Regulation 2 contains definitions.

Regulation 3 inserts new definitions in regulation 2 of the principal Regulations.

Regulation 4 amends the general conditions for plans and subscriptions to plans in regulation 4 of the principal Regulations by inserting provisions relating to single company plans.

Regulation 5 inserts a new regulation 4A in the principal Regulations providing special conditions for single company plans.

Regulation 6 amends the general investment rules in regulation 5 of the principal Regulations.

Regulation 7 amends the descriptions of qualifying investments specified in regulation 6 of the principal Regulations by applying those descriptions to general plans and specifying new descriptions of qualifying EC shares.

Regulation 8 inserts a new regulation 6B in the principal Regulations specifying the kinds of investments that may be held under single company plans.

Regulations 9 to 12 contain amendments to the principal Regulations which are consequential on the introduction of single company plans.

Regulation 13 contains an amendment to regulation 27(3) of the principal Regulations which is consequential on the extension of qualifying investments to include qualifying EC shares.