Amendment of paragraph 257

1

Paragraph 25 (definition of “UK allocated equity and liabilities”) is amended as follows.

2

In sub-paragraph (1)—

a

in paragraph (a) omit—

i

“(“N”)”; and

ii

“, and N has assets which correspond to those liabilities”; and

b

for paragraph (b) substitute—

b

the bank recognises, as assets, amounts due from that other entity (“N”) to the bank (“N’s liabilities”),

3

In sub-paragraph (3)—

a

for paragraph (b) substitute—

b

references to amounts due from N include securities provided by the relevant foreign bank to N as collateral, but only where the bank recognises those securities in its balance sheet or statement of financial position, and

b

omit paragraph (c) (and the “and” after it); and

c

after paragraph (d) 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 (4).