Section 6

In regulation 5 “excluded securities” means— units issued by a collective investment undertaking other than the closed-end type; non-equity securities issued by— the government of any country or territory, a local or regional authority of any country or territory, a public international body of which the United Kingdom or any other State is a member, or the European Central Bank or the central bank of any State; shares in the capital of the central bank of any State; securities unconditionally and irrevocably guaranteed by the government or a local or regional authority of any country or territory; securities issued by a qualifying body; non-fungible shares of capital— the main purpose of which is to provide the holder with a right to occupy any immovable property, and which cannot be sold without that right being given up; money market instruments, as defined in Article 2(1)(25A) of the markets in financial instruments regulation, that have a maturity of less than 12 months. For the purposes of paragraph (1)(a)— “collective investment undertaking other than the closed-end type” means unit trusts and investment companies with both of the following characteristics— they raise capital from a number of investors, with a view to investing it in accordance with a defined investment policy for the benefit of those investors, and their units are, at the holder’s request, repurchased or redeemed, directly or indirectly, out of their assets; “units of a collective investment undertaking” means securities issued by a collective investment undertaking as representing the rights of the participants in such an undertaking over its assets. In paragraph (1)(e), “qualifying body” means— a charity, as defined by section 1(1) of the Charities Act 2011, a body entered in the Scottish Charity Register, a charity, as defined by section 35 of the Charities Act (Northern Ireland) 1964, a housing association within the meaning of— section 5(1) of the Housing Act 1985, section 1 of the Housing Associations Act 1985, or article 3 of the Housing (Northern Ireland) Order 1992, or a registered society that is— registered under the Co-operative and Community Benefit Societies Act 2014 as a community benefit society, a pre-commencement society within the meaning of the Co-operative and Community Benefit Societies Act 2014 that meets the condition in section 2(2)(a)(ii) of that Act, registered under section 1(1)(b) of the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969, or a pre-2016 Act society within the meaning of the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969 that meets the condition in section 1(2)(a)(ii) of that Act.

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