The Uncertificated Securities (Amendment) Regulations 2000

Explanatory Note

(This note is not part of the Regulations)

These Regulations amend the Uncertificated Securities Regulations 1995 to allow for securities which have been transferable through the medium of the CGO Service being transferred instead in accordance with those Regulations by means of a relevant system operated by an Operator, currently only CRESTCo Limited.

The securities affected are the securities specified in the list in Schedule 1 to the Stock Transfer Act 1982 (c. 41). Relevant amendments to the Schedule have been made by S.I. 1985/1144 (amended by S.I. 1990/1027), 1987/1294, 1988/232, 1989/880, 1990/1211, 1990/2547 and 1991/1145.

Regulations 2(2) and 2(7)(c) insert provisions to enable securities to be migrated from the CGO Service to a relevant system operated by an Operator.

Regulations 2(3) and 2(7)(a) insert provisions relating to the protections of a donee of an authority and a third person.

Regulation 2(4) inserts provisions relating to the determination of actual notice, the disabling of transfers of participating securities under the CGO Service and, together with Regulation 2(7)(b), securities which may only be held in uncertificated form.

Regulation 2(5) inserts a provision for the Bank of England to be liable for certain defaults in respect of securities for which it is registrar by or under any enactment.

Regulation 2(6) inserts a provision which gives exemption from liability under certain regulations to the Crown, any person acting on its behalf, the Bank of England and in respect of a security which has migrated from the CGO Service to a relevant system operated by an Operator, a participating issuer.

Regulation 2(8) inserts a new schedule listing securities affected by new provisions inserted by Regulations 2(4) and 2(7)(b).