5(1)The Secretary of State may by order made by statutory instrument designate an eligible person to be a counterparty for investment contracts.U.K.
(2)A person is eligible if the person is—
(a)a company formed and registered under the Companies Act 2006, or
(b)a public authority, including any person any of whose functions are of a public nature.
(3)A designation may be made only with the consent of the person designated.
(4)The Secretary of State may exercise the power to designate so that more than one designation has effect under this paragraph, but only if the Secretary of State considers it necessary for the purpose of ensuring that—
(a)liabilities under an investment contract are met,
(b)arrangements entered into for purposes connected to an investment contract continue to operate, or
(c)directions given to an investment contract counterparty continue to have effect.
(5)A designation ceases to have effect if—
(a)the Secretary of State by order made by statutory instrument revokes the designation, or
(b)the person withdraws consent to the designation by giving not less than 3 months' notice in writing to the Secretary of State.
(6)As soon as reasonably practicable after a designation ceases to have effect the Secretary of State must make a transfer scheme under paragraph 16 to ensure the transfer of all rights and liabilities under any investment contract to which the person who has ceased to be an investment contract counterparty was a party.
(7)If necessary for the purposes of a transfer scheme required to be made by virtue of sub-paragraph (6), the Secretary of State must, so far as reasonably practicable, exercise the power to designate so as to ensure that at least one designation has effect under this paragraph.
(8)Regulations may include provision about the period of time for which, and the circumstances in which, a person who has ceased to be an investment contract counterparty is to continue to be treated as an investment contract counterparty for the purposes of the regulations.