The Risk Transformation Regulations 2017 No. 1212

PART 4 U.K. Protected Cell Companies

CHAPTER 9 U.K. Shares and shareholders

SECTION 2 U.K. Issue, allotment and alteration of share capital

Acquisition and redemption of shares issued by the core U.K.

107.—(1) Where a protected cell company issues a share on behalf of the core, the protected cell company—

(a) may not acquire or redeem the share on behalf of a cell; and

(b) may only acquire or redeem the share on behalf of the core if—

(i) the protected cell company has no cells; and

(ii) immediately after the acquisition or redemption, there is at least one voting share issued by the protected cell company on behalf of the core.

(2) But paragraph (1)(b)(ii) does not apply if the FCA has decided to strike the protected cell company off its register under regulation 180.

(3) Where a protected cell company acquires or redeems a share issued on behalf of the core, the protected cell company must cancel that share.