Explanatory note

These Regulations further amend the Personal Equity Plan Regulations 1986 (“the Principal Regulations”). First, they limit the type of authorised unit trusts which, following the coming into force of the relevant part of the Financial Services Act 1986 on 29th April 1988, will be qualifying investments for the purposes of regulation 6 of the Principal Regulations. Secondly, they increase certain monetary limits in the Principal Regulations. Thirdly, they revoke certain of the qualifications for plan managers which will no longer be relevant on and after 29th April 1988.

Regulation 1 provides for the citation and commencement of the Regulations and regulation 2 contains definitions.

Regulation 3 substitutes new definitions for those in regulation 2(1)(b) of the Principal Regulations and secures that only those authorised unit trusts that are authorised securities schemes within the meaning of the Authorised Unit Trust Scheme (Investment and Borrowing Powers) Regulations 1988 are qualifying investments for the purposes of regulation 6 of the Principal Regulations.

Regulation 4 increases the annual limit on an individual’s cash subscription to £3,000.

Regulation 5 increases the limit on the amount of a subscription that can be invested in an investment trust or an authorised unit trust to £540.

Regulation 6 increases the limit on the amount of cash that can be held in a plan after the end of the first year to £300.

Regulation 7 contains revocations.