Part XVIII

Recognised Investment Exchanges and Clearing Houses
CHAPTER 1A

CONTROL OVER RECOGNISED INVESTMENT EXCHANGE

Acquiring and increasing control

Acquiring and increasing control
301B
1
For the purposes of this Chapter, a person (“
the acquirer
”) acquires control over a recognised investment exchange (“E”) on first falling within any of the cases in subsection (2).
2
The cases are where the acquirer—
a
holds 20% or more of the shares in E;
b
is able to exercise significant influence over the management of E by virtue of his shareholding in E;
c
holds 20% or more shares in a parent undertaking (“P”) of E;
d
is able to exercise significant influence over the management of P by virtue of his shareholding in P;
e
is entitled to exercise, or control the exercise of, 20% or more of the voting power in E;
f
is able to exercise significant influence over the management of E by virtue of his voting power in E;
g
is entitled to exercise, or to control the exercise of, 20% or more of the voting power in P; or
h
is able to exercise significant influence over the management of P by virtue of his voting power in P.
3
In subsection (2) “
the acquirer
” means—
a
the acquirer,
b
any of his associates, or
c
the acquirer and any of his associates.
4
For the purposes of this Chapter, each of the following is to be regarded as a kind of control—
a
control arising as a result of the holding of shares in E;
b
control arising as a result of the holding of shares in P;
c
control arising as a result of the entitlement to exercise, or control the exercise of, voting power in E;
d
control arising as a result of the entitlement to exercise, or control the exercise of, voting power in P.
5
For the purposes of this Chapter, a controller of E increases his control over E if—
a
the percentage of shares held by the controller in E increases by the step mentioned in subsection (6);
b
the percentage of shares held by the controller in P increases by the step mentioned in subsection (6);
c
the percentage of voting power which the controller is entitled to exercise, or control the exercise of, in E increases by the step mentioned in subsection (6);
d
the percentage of voting power which the controller is entitled to exercise, or control the exercise of, in P increases by the step mentioned in subsection (6); or
e
the controller becomes a parent undertaking of E.
6
The step is from 20% or more (but less than 50%) to 50% or more.
7
In the rest of this Chapter “acquiring control” or “
having control
” includes—
a
acquiring or having an additional kind of control; or
b
acquiring an increase in a relevant kind of control, or having increased control of a relevant kind.
Pt. 18 Ch. 3A (ss. 312A-312D) inserted (1.4.2007 for certain purposes and 1.11.2007 otherwise) by The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2007 (S.I. 2007/126), regs. 1(2), 3(2), Sch. 2 para. 15 (with reg. 5)
Pt. 18 Ch. 1A (ss. 301A-301G) inserted (1.4.2007 for certain purposes and 1.11.2007 otherwise) by The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2007 (S.I. 2007/126), regs. 1(2), 3(2), Sch. 2 para. 10