The Personal Equity Plan (Amendment) Regulations 2001

Amendments to the principal Regulations

3.—(1) Regulation 2(1) shall be amended as follows.

(2) In paragraph (1)(a)—

(a) in the definition of “approved profit sharing scheme” and “approved share option scheme” for the words from “and” to “have” there shall be substituted the word “has”;

(b) for the definitions of “building society” and “company” there shall be substituted the following definitions—

““building society” means a building society within the meaning of the Building Societies Act 1986(2), or the Irish Building Societies Act 1989(3);

“company”, except in regulation 6(4), means any body corporate having a share capital other than—

(i)

an open-ended investment company, within the meaning given by section 75(8) of the Financial Services Act 1986(4),

(ii)

a UCITS,

(iii)

an industrial and provident society, or

(iv)

a body corporate which is a 51 per cent. subsidiary of any industrial and provident society;”

(c) the definitions of “general plan”, “ordinary share”, “portfolio”, “single company plan” and “venture capital trust” shall be omitted;

(d) in the definition of “investment trust” there shall be added at the end the words “, and references to the “eligible rental income” of an investment trust have the same meaning as in that section”;

(e) for the definition of “plan investment” there shall be substituted the following definition—

• “a “plan investment” is an investment under the plan which is a qualifying investment for plans within the meaning of regulation 6;”;

(f) in the definition of “security” before the word “means” there shall be inserted the words “, except in regulations 6(2)(c) to (e) and 27(3),”;

(g) there shall be inserted in the appropriate places the following definitions—

• ““the former regulation 4(2A)”(5) and “the former regulation 4A(2)”(6) mean, respectively, the former provisions of these Regulations bearing those numbers, as they had effect immediately before the coming into force of the Personal Equity Plan (Amendment) Regulations 2001;

• “gilt-edged securities” has the meaning given by paragraphs 1 and 1A of Schedule 9 to the Taxation of Chargeable Gains Act 1992;

• an “industrial and provident society” means a society registered or deemed to be registered under the Industrial and Provident Societies Act 1965(7) or under the Industrial and Provident Societies (Northern Ireland) Act 1969(8);

• “qualifying distribution” has the same meaning as in section 832(1) of the Taxes Act;”.

(3) In paragraph (1)(b)—

(a) in the definition of “depositary interest” for the words from “which—” to “5(6)(b)” there shall be substituted the words “which are exclusively qualifying investments for plans falling within any of regulation 6(2)(a) to (j) and (l)”;

(b) in the definition of “fund of funds” for the words from “do not” to the end there shall be substituted the words “comply with the first condition or the second condition”;

(c) there shall be inserted in the appropriate places the following definitions—

• ““the first condition”, and references to the terms of a scheme complying with that condition, mean that the terms of the scheme do not permit any of the investments subject to the trusts of the scheme to consist of units in authorised unit trusts or parts of umbrella schemes which are not securities funds or warrant funds, or of shares in open-ended investment companies or parts of umbrella companies which are not securities companies or warrant companies;

• “the second condition”, and references to the terms of a scheme complying with that condition, mean that the terms of the scheme only permit any of the investments subject to the trusts of the scheme to consist of units or shares in—

  (i)

  a collective investment scheme which is a “recognised scheme” by virtue of section 87 or 88 of the Financial Services Act 1986, or

  (ii)

  a part of a scheme mentioned in paragraph (i) which would be a part of an umbrella company, or a part of an umbrella scheme, if the definitions of “umbrella company”, “umbrella scheme” and a part thereof in either case applied to a scheme mentioned in paragraph (i),

  where the terms of the scheme mentioned in paragraph (i) identify that scheme, or the part thereof, as the case may be, as a scheme or part that would belong to one of the categories of securities fund, warrant fund, securities company or warrant company, if that scheme or part, as the case may be, were independently an authorised unit trust or an open-ended investment company in respect of which an authorisation order made by the Financial Services Authority was in force;

• a “relevant UCITS” means—

  (i)

  a UCITS, situated in a member state other than the United Kingdom, which has been authorised by the competent authorities of the member state in which it is situated, and which is a “recognised scheme” by virtue of section 86 of the Financial Services Act 1986, and

  (ii)

  a part of a UCITS mentioned in paragraph (i), which would be a part of an umbrella company, or a part of an umbrella scheme, if the definitions of “umbrella company”, “umbrella scheme” and a part thereof in either case applied to a relevant UCITS,

  where the terms of the UCITS mentioned in paragraph (i) identify that UCITS, or the part thereof, as the case may be, as a scheme or part that would belong to one of the categories of securities fund, warrant fund, securities company or warrant company, if that UCITS or part, as the case may be, were independently an authorised unit trust or an open-ended investment company in respect of which an authorisation order made by the Financial Services Authority was in force;

• “UCITS” means undertakings for collective investment in transferable securities within the meaning of Article 1 of Council Directive 85/611(9), and references to—

  (i)

  “the member state in which a UCITS is situated”, and

  (ii)

  a UCITS which has been “authorised by the competent authorities of the member state in which it is situated”,

  shall have the same meanings as in Articles 3 and 4 respectively of that Directive;

• “units in, or shares of, a relevant UCITS” means the rights or interests (however described) of the holders of the units or shares in that relevant UCITS;

• “warrant company” means—

  (i)

  an open-ended investment company which according to its instrument of incorporation is a warrant company belonging to the category under that name established by the Financial Services Authority and in respect of which an authorisation order made by that Authority is in force, and

  (ii)

  a part of an umbrella company which according to the instrument of incorporation of the company is a part which would belong to that category if it were itself an open-ended investment company, in respect of which an authorisation order made by the Financial Services Authority is in force;

• “warrant fund” means—

  (i)

  an authorised unit trust which according to the terms of the scheme is a warrant fund belonging to the category under that name established by the Financial Services Authority, and

  (ii)

  a part of an umbrella scheme which the terms of the scheme identify as a part that would belong to that category if it were itself an authorised unit trust.”

(4) In paragraph (1)(c) in the definition of “open-ended investment company” before the word “has” there shall be inserted the words “except in sub-paragraph (a)”.

(5) In paragraph (2)—

(a) the following terms (with their indexed regulation numbers) shall be omitted—

• “Designated company

• Other qualifying shares

• Paired shares

• Qualifying EC shares

• Qualifying investments for single company plans

• Subscription limit”;

(b) for the term “Qualifying investments for general plans” (and its indexed regulation number) there shall be substituted—

• “Qualifying investments for plans

  6(1)”;

(c) in the term “qualifying securities” for the indexed regulation number “6(2)(ac)” there shall be substituted “6(2)(b)”.

(1)

Regulation 2 was amended by S.I. 1990/678, 1991/2774, 1995/1539, 1996/846, 1997/1716 and 2000/3109.

(2)

1986 c. 53.

(3)

Number 17 of 1989.

(4)

1986 c. 60.

(5)

Regulation 4(2A) was inserted by S.I. 1990/678 and amended by S.I. 1992/623 and 1997/511.

(6)

Regulation 4A was inserted by S.I. 1991/2774 and amended by S.I. 1992/623, 1997/511 and 2000/3109.

(7)

1965 c. 12.

(8)

1969 c. 24.

(9)

O.J. No. L3–352, 31.12.1985, p. 3–18, amended by Council Directive 88/220/EEC (O.J. No. L100, 19.04.1988, p. 31–32).