The Government Stock Regulations 2004

Explanatory Note

(This note is not part of the Regulations)

These Regulations make provision in respect of the administration of Government stock.

Part 2 of these Regulations provides for the Treasury from time to time to appoint a person for the administration of Government stock and bonds, including the registration of holders. The person so appointed is to be known as the Registrar of Government Stock and these Regulations deem the Bank of England to be appointed as the first Registrar of Government Stock. Regulation 2 defines the stocks and registered bonds to which these Regulations apply.

Regulations 4 to 6 make provision in respect of what happens on the appointment of a new registrar. They provide that when a new person is appointed to become the Registrar (the new registrar), the previous registrar must transfer to the new registrar the registers of the different descriptions of stock and bonds (that is, the different types of stock as defined in regulation 2) and the record of uncertificated general public sector securities, which is required to be kept under the Uncertificated Securities Regulations 2001 (S.I. 2001/3755), as they stand at the close of the last business day preceding the transfer day. The previous registrar must also transfer relevant records, in accordance with regulation 6.

These Regulations also revoke the Government Stock Regulations 1965 (S.I. 1965/1420), which have been substantially amended, and re-enact in Part 3 with minor modifications their provisions for the transfer and registration of Government stock and registered bonds.

The principal modification is that these Regulations refer to the Registrar in place of the Bank of England. Under the 1965 Regulations, the registers of stock and bonds had to be kept by the Bank of England but that is not the case under these Regulations, although the Bank is deemed to be appointed as the first Registrar of Government Stock.

The other main modifications are that when the Bank ceases to be Registrar stock certificates will be signed by an officer of the Treasury (regulation 9); that when applications for the sale or purchase of stock are made under these Regulations, the Treasury will effect the purchase or sale (regulations 12 and 13); and that some transitional provisions, which referred to old legislation, have been dropped and replaced by shorter and more general transitional provisions (regulation 35).

A full regulatory impact assessment has not been produced for this instrument as it has no impact on the costs of business.