(This note is not part of the Regulations)

1. These Regulations make provision for the transfer without a written instrument, and the evidencing otherwise than by a certificate, of title to a unit of a security, in accordance with a computer-based system and procedures known as the "relevant system". The relevant system centres on a person known as the "Operator". The legal framework underlying the operation of the relevant system, together with the criteria which the Operator and the relevant system must meet, are enshrined in these Regulations.

2. Regulations 2 and 3 set out the purposes of and definitions used in the Regulations. A unit of a security which may be transferred by means of the relevant system is referred to as an "uncertificated" unit. A security, the units of which may become uncertificated, is referred to as a "participating security". An issuer who issues a participating security is, in relation to that security, referred to as a "participating issuer". Instructions sent by means of the relevant system are referred to as "dematerialised instructions".