In paragraph 37 (Operators) of the Schedule, for sub-paragraph (1) substitute -

"(1) An Operator, in so far he carries on -

(a) any regulated activity for the purposes of the performance of his functions as an Operator under the Uncertificated Securities Regulations 1995 [S.I. 1995/3272; amended by S.I. 1996/2827, S.I. 1999/506, S.I. 2000/311 and S.I. 2000/1682.]; or

(b) any other regulated activity for the purposes of operating a computer-based system and procedures which -

(i) enable title to investments to be evidenced and transferred without a written instrument; or

(ii) facilitate matters supplementary or incidental to those specified in sub-paragraph (i),

other than a regulated activity in respect of which a recognised clearing house is exempt from the general prohibition by virtue of section 285(3) of the Act.".