(1) Paragraphs (2) to (5) apply where relevant units of a security are transferred by means of a relevant system to a person who is to hold them thereafter in certificated form.

(2) Subject to paragraphs (3) and (4), a participating issuer shall (where appropriate) register a transfer of title to relevant units of a security on an issuer register of securities in accordance with an Operator-instruction.

(3) A participating issuer shall refuse to register a transfer of title to relevant units of a security in accordance with an Operator-instruction if he has actual notice that the transfer is -

(a) prohibited by order of a court in the United Kingdom;

(b) prohibited or avoided by or under an enactment;

(c) a transfer to a deceased person; or

(d) where the participating issuer is constituted under the law of Scotland, prohibited by or under an arrestment.