The Personal Equity Plan (Amendment No. 2) Regulations 1991

Amendments to the principal Regulations

7.—(1) In regulation 6(1) for the words “(“qualifying investments”)” there shall be substituted the words “(“qualifying investments for general plans”) ” and before the word “plan” there shall be inserted the word “general”.

(2) In regulation 6(2)—

(a) after the word “investments” there shall be inserted the words “for general plans”;

(b) after sub-paragraph (a) there shall be inserted–

“(aa) subject to the conditions specified in paragraph (2A), shares (“qualifying EC shares”) which–

(i) have been issued by a company which is incorporated in a member State other than the United Kingdom, and

(ii) are officially listed on a recognised stock exchange in a member State;”

(c) sub-paragraph (ba) shall be omitted;

(d) in sub-paragraph (c) after the words “qualifying investments” there shall be inserted the words “for general plans” and for the words “sub-paragraph (a) or (b)” there shall be substituted the words “sub-paragraph (a), (aa) or (b)”.

(3) After regulation 6(2) there shall be inserted–

“(2A) The conditions specified in this paragraph are–

(a) that the shares–

(i) form part of the authorised share capital of the company;

(ii) carry no preferential rights to dividends or to the property of the company in a liquidation;

(iii) are not shares which carry no right to share in the profits of the company except a right to dividends of a fixed amount or at a fixed rate per cent. of their nominal value;

(iv) are not shares which carry no such right as is mentioned in paragraph (iii) but carry a right to conversion into shares which carry such a right;

(v) do not carry fixed, guaranteed or secured rights of redemption; and

(b) that the company which issued the shares–

(i) is not an open-ended investment company as defined in section 75(8) of the Financial Services Act 1986(1);

(ii) does not derive the principal part of its income from holdings of shares in other companies where each such holding represents 15 per cent. or less by value of the investing company’s investments.”

(4) In regulation 6(3)(a) for the words “, investment trusts and paired shares” there shall be substituted the words “and investment trusts”.

(5) In regulation 6(3)(b)–

(a) in paragraph (i)–

(i) after the words “United Kingdom” there shall be inserted the words “or qualifying EC shares”, and

(ii) after the words “such ordinary shares” there shall be substituted the words “or qualifying EC shares”;

(b) in paragraph (ii) after the words “United Kingdom” there shall be added the words “or qualifying EC shares”.

(6) Regulation 6(5) shall be omitted.

(1)

1986 c. 60.