S.I. No. 221/1977:

EUROPEAN COMMUNITIES (FREEDOM OF ESTABLISHMENT AND FREEDOM TO PROVIDE SERVICES) (FINANCIAL INSTITUTIONS) REGULATIONS, 1977.

EUROPEAN COMMUNITIES (FREEDOM OF ESTABLISHMENT AND FREEDOM TO PROVIDE SERVICES) (FINANCIAL INSTITUTIONS) REGULATIONS, 1977.

I, JUSTIN KEATING, Minister for Industry and Commerce in exercise of the powers conferred on me by section 3 of the European Communities Act, 1972 (No. 27 of 1972), and for the purpose of giving effect to Council Directive No. 73/183/EEC of 28 June, 1973,¹ hereby make the following regulations:

¹ OJ No. L 194, 16/7/1973. P1/10.

1. These Regulations may be cited as the European Communities (Freedom of Establishment and Freedom to Provide Services) (Financial Institutions) Regulations, 1977.

2. These Regulations shall come into operation on the 11th day of July, 1977.

3. Section 3 (1) of the Unit Trusts Act, 1972 (No. 17 of 1972), is hereby amended in respect of beneficiaries, within the meaning of Council Directive No. 73/183/EEC of 28th June, 1973, by--

( a ) in paragraph (b), the deletion of "incorporated in and" and the substitution of "incorporated under the law of the State or of any other state that is a member of the European Economic Community," the deletion of "," after "State", the insertion after "State" of "and" and the insertion after "£25,000" of "or its equivalent in any other currency", and

( b ) in paragraph (c), the deletion of "incorporated in" and the substitution of "incorporated under the law of the State or of any other state that is a member of the European Economic Community" and the insertion after "£500,000" and "£250,000" of "or its equivalent in any other currency",

and the said paragraphs (b) and (c), as so amended, are set out in the Table to this Regulation.

TABLE

( b ) the manager under the scheme is a body corporate that is incorporated under the law of the State or of any other state that is a member of the European Economic Community, has a place of business in the State and the amount of the capital of which that is paid up in cash is not less than £25,000 or its equivalent in any other currency and the assets of which are sufficient to meet its liabilities (including liabilities in respect of its paid up capital),

( c ) the trustee under the scheme is a body corporate that is incorporated under the law of the State or of any other state that is a member of the European Economic Community and has a place of business in the State, and--

(i) has assets that are sufficient to meet its liabilities (including liabilities in respect of the repayment of its paid up capital) and has a capital (in stock or shares) for the time being issued of not less than £500,000 or its equivalent in any other currency of which an amount of not less than £250,000 or its equivalent in any other currency has been paid up in cash, or

(ii) (I) is wholly owned by a body corporate (in this paragraph referred to as the parent body) in relation to which the conditions as to capital and assets specified in subparagraph (i) of this paragraph are complied with, and

(II) the discharge of the liabilities of which is guaranteed by the parent body.

GIVEN under my Official Seal, this 4th day of July, 1977.

JUSTIN KEATING,

Minister for Industry and Commerce.

EXPLANATORY NOTE.

The purpose of these Regulations is to give effect to the Council Directive of the European Communities of 28th June, 1973 (73/183/EEC) insofar as it applies to unit trust schemes registered under the Unit Trusts Act, 1972 . The Regulations amend the Act to provide that a body corporate incorporated under the laws of any Member State of the European Economic Community may act as manager or trustee of a unit trust scheme registered under the Act provided that it complies with the other provisions of the Act. The Regulations also provide that the minimum amounts of capital which the manager and trustee must have, and which were heretofore expressed in pounds, may be the equivalent amounts in any other currency.