Citation and commencement

1. These Regulations may be cited as the Premium Savings Bonds (Amendment etc) Regulations 2010 and come into force on 2nd November 2010.

Amendments to the Premium Savings Bonds Regulations 1972

2.The Premium Savings Bonds Regulations 1972( 3 ) are amended as set out below.

3. In regulation 2(1)—

(a) omit the entry for “the adjudicator”;

(b) after the entry for “deputy”, insert—

“ “electronic transfer” means transferring money by electronic or automated processes, which do not involve the delivery and collection of a payable instrument or the delivery of cash, to a bank or building society account to which payment is capable of being made by those processes; ” .

4. In regulation 3(2), omit the words “in writing”.

5. After regulation 3(3), insert—

“ (3A) Notwithstanding any requirement in the terms and conditions applicable to bonds, the Director of Savings need not issue certificates evidencing title to bonds.

(3B) Where an applicant purchases a bond, or a holder receives repayment in respect of a bond, the Director of Savings shall make available to that person a record of the entries on the register relating to that purchase or repayment. ” .

6. After regulation 3B, insert—

“ Notification of winners

3C. The holders of winning bonds will be notified—

(a) by post at the last address furnished to the Director of Savings; or

(b) by such other means of communication as—

(i) are provided for in the terms and conditions applicable to their bonds, or

(ii) the Director of Savings may direct. ” .

7. In regulation 7(1), omit the words “in writing”.

8. In regulation 8(1A)—

(a) in sub-paragraph (a), omit the words “subject to the terms and conditions subject to which the bond is held,”;

(b) in sub-paragraph (b), after “as may be provided for in those terms and conditions”, insert “(except to the extent that those terms and conditions provide for payment by uncrossed warrant)”.

9. Regulation 8(4) is revoked.

10. After regulation 8, insert—

“ Payment by electronic transfer

8A. —(1) Any payment made in accordance with the terms and conditions applicable to a bond, by electronic transfer to the bank or building society account specified in the application for payment, is deemed to be a payment duly made to a person entitled to receive payment in respect of that bond.

(2) Neither the Treasury nor the Director of Savings will be liable for any delay in the completion of any payment by electronic transfer, or for any failure in the operation of any system through which an electronic transfer is conducted, which is outside the direct control of the Director of Savings. ” .

11. For regulation 19, substitute—

“ Terminating investment in bonds

19. —(1) The Director of Savings may terminate a holder’s investment in a bond where the Director of Savings thinks fit, including in circumstances where—

(a) that holder purchases or holds that bond in contravention of regulation 4 or regulation 5; or

(b) the Director of Savings reasonably suspects that the holder—

(i) has provided false information to the Director of Savings, or

(ii) holds a bond in connection with an illegal purpose.

(2) Where the Director of Savings terminates a holder’s investment in a bond under paragraph (1)—

(a) the purchase price of the bond shall be repaid to the holder, and

(b) any other money payable in respect of the bond may be paid to the holder if the Director of Savings thinks fit,

by such means as the Director of Savings may direct, which may include crediting such amounts to an account in the name of the holder at the National Savings Bank.

(3) For the purposes of any order under section 4 of the National Savings Bank Act 1971 ( 4 ) (which empowers the Treasury by order to limit the amount of deposits in the National Savings Bank) or any order having effect as if made under that section, any sum credited to a person under this regulation shall, if the Director of Savings so directs, be disregarded.

(4) The Director of Savings may require the delivery of any document relating to a bond in order to give effect to this regulation. ” .

12. Regulation 22 is revoked.

13. In regulation 28—

(a) for the word “documents” in the heading, substitute “applications”;

(b) omit the words—

(i) “the document in which”, and

(ii) “is made”;

(c) after “and any such”, for the word “document”, substitute “application”.

Repeals

14. In Schedule 18 to the Finance Act 1968( 5 )—

(a) the words in paragraph 7 from the beginning to “expiration of those three months.”, and

(b) the words in paragraph 11 from “and the registered holders” to the end,

are repealed.