Regulation 6 Amendments to the principal Regulations

In regulation 6(2)(a) for the words “quoted in the official list of a recognised stock exchange in the United Kingdom” there shall be substituted “officially listed on a recognised stock exchange in a member State”.

For regulation 6(2)(b)^f1 there shall be substituted—

“(b)

units in an authorised unit trust or a fund of funds or shares in an investment trust which, except in the circumstances described in paragraph (4), satisfy the relevant condition specified in paragraph (3);”

For regulation 6(2A)(b)(ii)^f2 there shall be substituted—

“(ii)

does not derive the principal part of its income from holdings of shares in other companies where each such holding represents 10 per cent. or less of the voting power in the company in which the shares are held.”

For regulation 6(3)^f3 and (4)^f4 there shall be substituted—

“(3)

The conditions specified in this paragraph are that—

(a)

in the case of a unit trust scheme which is an authorised unit trust, at least 50 per cent. in value of the investments subject to the trusts of the scheme are—

(i)

ordinary shares (not being shares in an investment trust) issued by companies which are incorporated in the United Kingdom or qualifying EC shares, or

(ii)

shares in an investment trust where at least 50 per cent. in value of the investments held by that trust are such ordinary shares or qualifying EC shares;

(b)

in the case of a unit trust scheme which is a fund of funds, at least 50 per cent. in value of the investments subject to the trusts of the unit trust schemes, the units in which are subject to the trusts of the scheme, are ordinary shares (not being shares in an investment trust) issued by companies which are incorporated in the United Kingdom or qualifying EC shares;

(c)

in the case of an investment trust, at least 50 per cent. in value of the investments held by that trust are—

(i)

ordinary shares (not being shares in an investment trust) issued by companies which are incorporated in the United Kingdom or qualifying EC shares, or

(ii)

units in an authorised unit trust where at least 50 per cent. in value of the investments subject to the trusts of the scheme are such ordinary shares or qualifying EC shares, or

(iii)

shares in an investment trust where at least 50 per cent. in value of the investments held by that trust are such ordinary shares or qualifying EC shares.

(4)

The circumstances described in this paragraph are where—

(a)

the total amount of the cash subscription to the plan invested in authorised unit trusts, funds of funds and investment trusts which do not satisfy the relevant condition specified in paragraph (3), but satisfy that relevant condition as modified for the purposes of this paragraph by paragraph (5), and

(b)

any sum payable on such an application as is referred to in regulation 4(2A)(a)^f5 for the allotment or allocation of shares in an investment trust,

do not together in any year exceed one quarter of the subscription limit.

(5)

Paragraph (3) shall be modified for the purposes of paragraph (4) by substituting the words “other qualifying shares” for the words “qualifying EC shares” wherever they occur.

(6)

In paragraph (3) as modified by paragraph (5) “other qualifying shares” means shares in a company wherever incorporated which are officially listed on a recognised stock exchange, where those shares satisfy the conditions specified in paragraph (2A)(a) and the company which issued the shares satisfies the condition specified in paragraph (2A)(b).”