4 Amendment of paragraph 18
1 Paragraph 18 (chargeable equity and liabilities of a foreign banking group) is amended as follows.
2 In sub-paragraph (8)—
(a) in paragraph (a) omit “, and N has assets which correspond to those liabilities”; and
(b) for paragraph (b) substitute—

“(b) M, or another entity within sub-paragraph (9), recognises, as assets, amounts due from N or another entity not within that sub-paragraph (“N’s liabilities”),”

.
3 In sub-paragraph (10)—
(a) in paragraph (b) for “N’s assets corresponding to those liabilities are” substitute “N recognises assets in respect of those liabilities as”;
(b) for paragraph (c) substitute—

“(c) references to amounts due from N or another entity not within sub-paragraph (9) include securities provided by M, or another entity within that sub-paragraph, to N or another entity not within sub-paragraph (9) as collateral, but only where M or that other entity within that sub-paragraph recognises those securities in its balance sheet or statement of financial position, and”

;
(c) omit paragraph (d) (and the “and” after it);
(d) in paragraph (e)(i) omit “assets which correspond to”; and
(e) after paragraph (e) insert—

“Section 556 of CTA 2009 (meaning of securities and similar securities) applies for the purposes of this sub-paragraph as it applies for the purposes of Chapter 10 of Part 6 of that Act.”

4 Omit sub-paragraph (11).