The Stock Transfer (Gilt-edged Securities) (CGO Service) (Amendment) Regulations 1999

Explanatory Note

(This note is not part of the Regulations)

These Regulations amend the Stock Transfer (Gilt-edged Securities) (CGO Service) Regulations 1985 to reflect the transfer of the responsibility for operating the CGO Service from the Bank of England to CRESTCo Limited. This is intended to occur on a contractual basis on 24th May 1999 but, if notice is given in the London, Edinburgh and Belfast Gazettes that the transfer of responsibility will not occur until a later date, the commencement of these Regulations is postponed until the day on which the responsibility is transferred (which will be specified in either the original notice or a subsequent notice published in the same Gazettes prior to the specified day).

Provisions in the principal Regulations relating to representations by the Bank (regulation 3), notification of transfer by the Central Gilts Office of the Bank to the registrar (regulation 4), and the protection of the Bank in relation to trusts (regulation 6), will apply to CRESTCo Limited instead of to the Bank or its Central Gilts Office. The representations implied by regulation 3 will no longer include any representation that prima facie evidence of title has been produced. The provisions relating to the protection of the Bank in relation to certain transfers of strips (regulation 7) will apply to CRESTCo Limited in addition to the Bank (the Bank will continue to be the registrar of strips, and a transfer of the legal title to a strip will continue to be completed only when the Bank amends the register – see regulation 9 of the Government Stock Regulations 1965, S.I. 1965/1420 and the definition of “stock” in regulation 23 as amended to include strips for that purpose by S.I. 1997/1709).