The Local Government Superannuation (Amendment) Regulations 1993

Standard rate of interest

4.—(1) Regulation P7 of the principal Regulations shall be amended by inserting after paragraph (4) the following paragraphs—

“(5) In paragraph (3) above, “the standard rate” means the rate 1% above either the base rate for the time being quoted by the reference banks or, where there is for the time being more than one such base rate, the rate which, when the base rate quoted by each bank is ranked in a descending sequence of seven, is fourth in the sequence at that time;

(6) For the purposes of paragraph (5) above—

(a) the reference banks are the seven largest institutions for the time being which—

(i) are authorised by the Bank of England under the Banking Act 1987;

(ii) are incorporated in and carrying on a deposit-taking business within the United Kingdom; and

(iii) quote a base rate in sterling;

(b) the size of an institution for the time being is to be determined by reference to its total consolidated gross assets denominated in sterling, as shown in its audited end-year accounts last published before that time;

(c) a “deposit-taking business” has the meaning given in section 6 of the Banking Act 1987 but subject to any order under section 7 of that Act; and

(d) “consolidated gross assets” of an institution is a reference to the gross assets of that institution together with any subsidiary (within the meaning of section 736 of the Companies Act 1985).”(1).

(2) Schedule 1 to the principal Regulations shall be amended by substituting for the definition of the expression “standard rate” the following—

• “The meaning given by regulation P7(5).”.

(1)

Banking Act 1987 c. 22. Companies Act 1985 c. 6; section 736 was substituted by section 144(1) of the Companies Act 1989 (c. 40).