Regulation 6 Meaning of “excluded securities” in regulation 5I1

United Kingdom

(1)

In regulation 5 “excluded securities” means—

(a)

units issued by a collective investment undertaking other than the closed-end type;

(b)

non-equity securities issued by—

(i)

the government of any country or territory,

(ii)

a local or regional authority of any country or territory,

(iii)

a public international body of which the United Kingdom or any other State is a member, or

(iv)

the European Central Bank or the central bank of any State;

(c)

shares in the capital of the central bank of any State;

(d)

securities unconditionally and irrevocably guaranteed by the government or a local or regional authority of any country or territory;

(e)

securities issued by a qualifying body;

(f)

non-fungible shares of capital—

(i)

the main purpose of which is to provide the holder with a right to occupy any immovable property, and

(ii)

which cannot be sold without that right being given up;

(g)

money market instruments, as defined in Article 2(1)(25A) of the markets in financial instruments regulation^f1, that have a maturity of less than 12 months.

(2)

For the purposes of paragraph (1)(a)—

(a)

“collective investment undertaking other than the closed-end type” means unit trusts and investment companies with both of the following characteristics—

(i)

they raise capital from a number of investors, with a view to investing it in accordance with a defined investment policy for the benefit of those investors, and

(ii)

their units are, at the holder’s request, repurchased or redeemed, directly or indirectly, out of their assets;

(b)

“units of a collective investment undertaking” means securities issued by a collective investment undertaking as representing the rights of the participants in such an undertaking over its assets.

(3)

In paragraph (1)(e), “qualifying body” means—

(a)

a charity, as defined by section 1(1) of the Charities Act 2011^f2,

(b)

a body entered in the Scottish Charity Register^f3,

(c)

a charity, as defined by section 35 of the Charities Act (Northern Ireland) 1964^f4,

(d)

a housing association within the meaning of—

(i)

section 5(1) of the Housing Act 1985^f5,

(ii)

section 1 of the Housing Associations Act 1985^f6, or

(iii)

article 3 of the Housing (Northern Ireland) Order 1992^f7, or

(e)

a registered society that is—

(i)

registered under the Co-operative and Community Benefit Societies Act 2014^f8 as a community benefit society,

(ii)

a pre-commencement society within the meaning of the Co-operative and Community Benefit Societies Act 2014 that meets the condition in section 2(2)(a)(ii) of that Act,

(iii)

registered under section 1(1)(b) of the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969^f9, or

(iv)

a pre-2016 Act society within the meaning of the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969 that meets the condition in section 1(2)(a)(ii) of that Act.

Annotations

Commencement

I1: Reg. 6 in force at 30.1.2024, see reg. 2(1)(a)

Footnotes

f1: Section 417(1) of the Financial Services and Markets Act 2000 (c. 8) contains a definition of “markets in financial instruments regulation” for the purposes of that Act.
f2: 2011. c. 25.
f3: See section 3 of the Charities and Trustee Investment (Scotland) Act 2005 (asp 10).
f4: 1964 c. 33 (N.I.).
f5: 1985 c. 68.
f6: 1985 c. 69.
f7: S.I. 1992/1725 (N.I. 15).
f8: 2014 c. 14.
f9: 1969 c. 24 (N.I.). Section 1 was substituted, and the short tile of the Act amended, by section 8 of the Credit Unions and Co-operative and Community Benefit Societies Act (Northern Ireland) 2016 (c. 16).