The National Savings Stock Register (Amendment) Regulations 2013

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the National Savings Stock Register Regulations 1976 (S.I. 1976/2012) (the Principal Regulations).

Regulation 3 amends the definition of “new stock” to include variable interest stock. Variable interest stock will be subject to the changes made to the Principal Regulations by the National Savings Stock Register (Amendment) Regulations 2012 (S.I. 2012/1877). These changes included replacing the requirement to issue a certificate or subscription book with an obligation to issue a record. The changes also included making different provision for the forfeiture of stock.

Regulation 4 amends the conditions under which variable interest stock is subscribed for to include provision that the Treasury may amend at any time the conditions under which the variable interest stock was subscribed for. This amendment applies both to variable interest stock issued before these regulations came into force and variable interest stock issued after these regulations came into force.

Regulation 5 makes consequential amendments to the requirement to issue records to take account of the fact that variable interest stock does not offer a fixed rate of interest for a term.

Regulations 6 and 7 provide for the manner in which interest is to accrue on a daily basis on variable interest stock.

Regulation 8 amends regulation 22 of the Principal Regulations to omit provisions concerning when and where warrants issued by the Director of Savings are payable.

Regulations 9 to 12 amend the Principal Regulations to provide that only persons aged 16 or over may subscribe for new stock. Provision is also made to allow those persons who are under 16 years of age and who already hold stock to continue to do so, and for the management of such stock.

A full impact assessment has not been produced for this instrument as no impact on the costs of business or the voluntary sector is foreseen.