(This note is not part of the Regulations)
Regulation 2 of the Regulations defines the expression “private investor” for the purposes of section 62A(1) of the Financial Services Act 1986. Section 62A was inserted into the Financial Services Act 1986 by the Companies Act 1989 so that, except in specified circumstances, only private investors could bring actions under section 62 of that Act. Section 62A(2) of the Financial Services Act 1986 gives the Secretary of State power to define the expression “private investor” for these purposes and section 62A(1) gives him power to specify circumstances in which actions under section 62 lie at the suit of a person who is not a private investor.
Regulation 3 of the Regulations specifies the circumstances in which a person who is not a private investor retains the right to bring an action under section 62.