PART VIUNCERTIFICATED SECURITIES

CHAPTER IUncertificated Securities: General Provisions

Trustees holding units of an uncertificated security50

1

A provision in any instrument or enactment which authorises:

a

the holding and investment of trust property in units of a security; or

b

the variation of investments in units of a security comprising trust property,

shall be deemed to authorise investment of trust property in units of any uncertificated security which, if the security had been in certificated form, would have been an authorised investment for the purposes of the provision or rule of law.

2

Paragraph (1) shall be without prejudice to:

a

any other condition which is imposed by the instrument, enactment or rule of law relating to the investment of trust property in units of a security; and

b

any express provision of any instrument which prohibits the investment of trust property in units of an uncertificated security.

3

Any provision of any instrument or enactment or any rule of law relating to the employment of agents by trustees shall not be taken as precluding the holding of, or investment of trust property in, units of an uncertificated security by virtue only of the reason that the power to transfer the units is under these Regulations held for the trustees by a controller and a trustee shall not be answerable for the insufficiency or deficiency of any securities or any income threrfrom, or for any other loss due to the acts, neglects or defaults of the controller unless the same happens through the trustee’s own wilful default or neclect.

4

For the purpose of this regulation“trustee” (in England and Wales and Northern Ireland) shall include a personal representative and any other person acting in a fiduciary capacity and (in Scotland) any person who is a trustee for the purposes of the Trusts (Scotland) Act 192113 and“trust peropery” shall include all property held by persons acting in such capacities.