Part XXVIII Miscellaneous

Third countries

406 Interpretation of section 405.

1

For the purposes of section 405, a person (“the acquirer”) acquires a 50% stake in a UK authorised person (“A”) on first falling within any of the cases set out in subsection (2).

2

The cases are where the acquirer—

a

holds 50% or more of the shares in A;

b

holds 50% or more of the shares in a parent undertaking (“P”) of A;

c

is entitled to exercise, or control the exercise of, 50% or more of the voting power in A; or

d

is entitled to exercise, or control the exercise of, 50% or more of the voting power in P.

3

In subsection (2) “the acquirer” means—

a

the acquirer;

b

any of the acquirer’s associates; or

c

the acquirer and any of his associates.

4

“Associate”, “shares” and “voting power” have the same meaning as in section 422.