Part XXVIII Miscellaneous

Third countries

406 Interpretation of section 405.

(1)

For the purposes of section 405, a person (“the acquirer”) acquires a 50% stake in a UK authorised person (“A”) on first falling within any of the cases set out in subsection (2).

(2)

The cases are where the acquirer—

(a)

holds 50% or more of the shares in A;

(b)

holds 50% or more of the shares in a parent undertaking (“P”) of A;

(c)

is entitled to exercise, or control the exercise of, 50% or more of the voting power in A; or

(d)

is entitled to exercise, or control the exercise of, 50% or more of the voting power in P.

(3)

In subsection (2) “the acquirer” means—

(a)

the acquirer;

(b)

any of the acquirer’s associates; or

(c)

the acquirer and any of his associates.

(4)

“Associate”, “shares” and “voting power” have the same meaning as in section 422.