3 Minor and consequential amendments related to Article 2
1 Part IV of Schedule 1 to the Trustee Investments Act 1961 shall be amended as follows.
2 At the end of paragraph 1, there shall be inserted the words “, in the currency of a relevant state or in the european currency unit (as defined in article 1 of Council Regulation No. 3180/78/EEC))”.
OJNo. L379, 30.12.78, p.1; the relevant amending instrument is Council Regulation (EEC) No. 1971/89, OJNo. L189, 4.7.89, p.1.
3 In paragraph 2, after the words “the Financial Services Act 1986” there shall be inserted the words “or on an investment exchange which constitutes the principal or only market established in a relevant state on which securities admitted to official listing are dealt in or traded”.
4 After paragraph 2, there shall be inserted—

“2A The securities mentioned in paragraphs 16 to 21 of Part II of this Schedule, other than securities traded on a relevant money market or securities falling within paragraph 22 of Part II of this Schedule, and the securities mentioned in paragraph 4 of Part III of this Schedule do not include—
(a) securities the price for which is not quoted on a recognised investment exchange within the meaning of the Financial Services Act 1986 or on an investment exchange which constitutes the principal or only market established in a relevant state on which securities admitted to official listing are dealt in or traded;
(b) shares or debenture stock not fully paid up (except shares or debenture stock which by the terms of issue are required to be fully paid up within nine months of the date of issue or shares issued with no nominal value).”

.
5 In paragraph 3—
(a) after the words “securities mentioned in paragraph 6” there shall be inserted the words “and 21”;
(b) after the words “and paragraph 1” there shall be inserted the words “or 4”;
(c) after sub-paragraph (a), there shall be inserted—

“(ab) shares or debentures of an incorporated company of which the total issued and paid up share capital at any time on the business day before the investment is made is less than the equivalent of one million pounds in the currency of a relevant state (at the exchange rate prevailing in the United Kingdom at the close of business on the day before the investment is made);”

.
6 In paragraph 4—
(a) after the definition of “local authority” there shall be inserted—

““mutual investment society” means a credit institution which operates on mutual principles and which is authorised by the appropriate supervisory authority of a relevant state;
“relevant money market” means a money market which is supervised by a central bank or a government agency of a relevant state;
“relevant state” means Austria, Finland, Iceland, Liechtenstein, Norway, Sweden or a member state other than the United Kingdom;”

;
(b) in the definition of “securities”, after the words “units within paragraph 3” there shall be inserted the words “or 6”.
7 In paragraph 6, at the beginning there shall be inserted the words “In relation to the United Kingdom,”.
8 After paragraph 6 there shall be inserted—

“6A References in this Schedule to a UCITS are references to a collective investment scheme which is constituted in a relevant state and which complies with the conditions necessary for it to enjoy the rights conferred by Council Directive 85/611/EEC co-ordinating the laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities; and section 86(8) of the Financial Services Act 1986 (meaning of “constituted in a member state”) shall apply for the purposes of this paragraph as it applies for the purposes of that section but as if for references in that section to a member state there were substituted references to a relevant state.
OJNo. L375, 31.12.85, p.3, as amended by Council Directive 88/220/EEC (OJNo. L100, 19.4.88, p.31).”

.