PART II SPECIFIED ACTIVITIES

Chapter XVIIExclusions Applying to Several Specified Kinds of Activity

Activities carried on in connection with employee share schemes71

1

A person (“C"), a member of the same group as C or a relevant trustee does not carry on an activity of the kind specified by article 14 by entering as principal into a transaction the purpose of which is to enable or facilitate—

a

transactions in shares in, or debentures issued by, C between, or for the benefit of, any of the persons mentioned in paragraph (2); or

b

the holding of such shares or debentures by, or for the benefit of, such persons.

2

The persons referred to in paragraph (1) are—

a

the bona fide employees or former employees of C or of another member of the same group as C;

b

the wives, husbands, widows, widowers, or children or step-children under the age of eighteen of such employees or former employees.

3

C, a member of the same group as C or a relevant trustee does not carry on an activity of the kind specified by article 21 by entering as agent into a transaction of the kind described in paragraph (1).

4

There are excluded from article 25(1) or (2) arrangements made by C, a member of the same group as C or a relevant trustee if the arrangements in question are for, or with a view to, a transaction of the kind described in paragraph (1).

5

There is excluded from article 40 any activity if the assets in question are, or are to be, safeguarded and administered by C, a member of the same group as C or a relevant trustee for the purpose of enabling or facilitating transactions of the kind described in paragraph (1).

6

In this article—

a

“shares" and “debentures" include—

i

any investment of the kind specified by article 76 or 77;

ii

any investment of the kind specified by article 79 or 80 so far as relevant to articles 76 and 77; and

iii

any investment of the kind specified by article 89 so far as relevant to investments of the kind mentioned in paragraph (i) or (ii);

b

“relevant trustee" means a person who, in pursuance of the arrangements made for the purpose mentioned in paragraph (1), holds, as trustee, shares in or debentures issued by C.