Regulation 2

For regulation 6 of the Stock Transfer (Gilt-edged Securities) (CGO Service) Regulations 1985^f1 (which protects the Bank of England in relation to recognition of trusts) there shall be substituted—

“6

The Bank shall not be bound by or compelled to recognise any express, implied or constructive trust in respect of—

(a)

securities which are for the time being transferable by means of an exempt transfer, or

(b)

any amount of stock held within the CGO Service for the account of a person, being stock in respect of which there is no present entry on the register, but which is of like description to securities that are, or will be, transferable on registration by means of an exempt transfer,

even if it has actual or constructive notice of such trust.”.