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6.—(1) In Regulation 4(1)(c) before the words “the individual’s cash subscription” there shall be inserted “subject to regulation 13A,”.
(2) In Regulation 4(1)(d) before the words “the individual may not subscribe” there shall be inserted “subject to Regulation 13A,”.
(3) In Regulation 7(1) after the words “the provisions of this Regulation” there shall be inserted “and of Regulation 13A”.
(4) In Regulation 12(1) for the words “This Regulation” there shall be substituted “Subject to Regulation 13A, this Regulation”.
(5) In Regulation 13(1) for the words “This Regulation” there shall be substituted “Subject to Regulation 13A, this Regulation”.
(6) After Regulation 13 there shall be inserted—
13A.—(1) This Regulation prescribes the circumstances in which—
(a)notwithstanding Regulation 4(1)(c) an individual’s cash subscription may exceed £2,400 in any year,
(b)notwithstanding Regulation 4(1)(d) an individual may subscribe further to a plan after the end of the year in which his subscription to that plan began,
(c)notwithstanding Regulation 7 a plan manager may hold cash as a plan investment in excess of the cash investment limit (to which that Regulation refers) for a period in excess of 31 days,
(d)notwithstanding Regulation 12(3) the minimum period specified in paragraph (1) of Regulation 12 may begin earlier than the date of payment of a first instalment,
(e)notwithstanding Regulation 13 the maximum amount of investment which may be made under a plan may exceed the total of the amounts specified in paragraphs (2) and (3) of that Regulation, and
(f)notwithstanding Regulation 14 a plan investor may withdraw a sum of cash before the end of the minimum holding period so as to comply with paragraph (3)(b)(iii) of this Regulation and so that, in such circumstances, Regulation 14 shall not apply.
(2) The prescribed circumstances are circumstances in which—
(a)on the occasion of a new issue of shares a plan manager is entitled, by virtue of a plan investor’s beneficial ownership of shares which are plan investments (in this Regulation referred to as “original shares”), to subscribe for shares (in this Regulation referred to as “new shares”) (being qualifying investments) which are offered to shareholders in proportion to (or as nearly as may be in proportion to) their shareholdings; and
(b)the conditions contained in paragraph (3) are fulfilled.
(3) The conditions to which paragraph (2) refers are—
(a)that the plan investor—
(i)was the beneficial owner of the original shares at the end of the day immediately before that on which the right to subscribe for the new shares was announced; and
(ii)subscribes cash not exceeding the total sum payable to acquire the new shares (in this Regulation referred to as “the rights subscription”); and
(b)that the rights subscription shall—
(i)be treated as a subscription to the plan under which the original shares are held,
(ii)be expanded only on a subscription for new shares to which paragraph (2) refers, and
(iii)to the extent that it is not so expended, be transferred to the plan investor together with interest (if any) thereon within 14 days after the date by which the rights subscription is payable by the plan manager under the terms of the offer to subscribe for the new shares.”.
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