Schedule 5, paragraph 13

A company is excluded from being eligible if, on the filing date— it is a party to an agreement which is or forms part of a capital market arrangement (see sub-paragraph (2)), a party has incurred, or when the agreement was entered into was expected to incur, a debt of at least £10 million under the arrangement (at any time during the life of the capital market arrangement), and the arrangement involves the issue of a capital market investment (see paragraph 14). For the purposes of this paragraph, an arrangement is a “capital market arrangement” if any of the following applies— it involves a grant of security to a person holding it as trustee for a person who holds a capital market investment issued by a party to the arrangement; at least one party guarantees the performance of obligations of another party; at least one party provides security in respect of the performance of obligations of another party; the arrangement involves an investment of a kind described in articles 83 to 85 of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544) (options, futures and contracts for differences). For the purposes of sub-paragraph (2)— a reference to holding a security as trustee includes a reference to holding it as nominee or agent, a reference to holding for a person who holds a capital market investment includes a reference to holding for a number of persons at least one of whom holds a capital market investment, and a reference to holding a capital market investment is to holding a legal or beneficial interest in it. For the purposes of sub-paragraph (1)(b), where a debt is denominated wholly or partly in a foreign currency, the sterling equivalent is to be calculated as at the time when the arrangement is entered into.

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Source: legislation.gov.uk · retrieved 2026-09-04