Notes to the accounts

For the year ended 31st December 2007


40 Principal subsidiaries

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Percentage 
of equity 
Country of registration  capital held 
or incorporation  Company name  Nature of business  % 
Botswana Barclays Bank of Botswana Limited Banking 74.9
Egypt Barclays Bank Egypt SAE Banking 100
England Barclays Bank PLC Banking, holding company 100 *
England Barclays Mercantile Business Finance Limited Loans and advances including leases to customers 100 *
England Barclays Global Investors UK Holdings Limited Holding company 94.1
England Barclays Global Investors Limited Investment management 94.1 *
England Barclays Life Assurance Company Limited Life assurance 100
England Barclays Bank Trust Company Limited Banking, securities industries and trust services 100
England Barclays Stockbrokers Limited Stockbroking 100
England Barclays Capital Securities Limited Securities dealing 100
England Barclays Global Investors Pensions Management Limited Investment management 94.1 *
England FIRSTPLUS Financial Group PLC Secured loan provider 100
England Gerrard Investment Management Limited Investment management 100 *
Ghana Barclays Bank of Ghana Limited Banking 100
Ireland Barclays Insurance (Dublin) Limited Insurance provider 100
Ireland Barclays Assurance (Dublin) Limited Insurance provider 100 *
Isle of Man Barclays Private Clients International Limited a Banking 100 *
Japan Barclays Capital Japan Limited Securities dealing 100 *
Jersey Barclays Private Bank & Trust Limited Banking, trust company 100 *
Kenya Barclays Bank of Kenya Limited Banking 68.5
South Africa Absa Group Limited Banking 58.8
Spain Barclays Bank SA Banking 99.7
Switzerland Barclays Bank (Suisse) S.A. Banking and trust services 100 *
USA Barclays Capital Inc. Securities dealing 100 *
USA Barclays Financial Corporation Holding company for US credit card issuer 100 *
USA Barclays Global Investors, National Association Investment management and securities industry 94.1 *
Zimbabwe Barclays Bank of Zimbabwe Limited Banking 67.8 *

In accordance with Section 231(5) of the Companies Act 1985, the above information is provided solely in relation to principal subsidiaries.

The country of registration or incorporation is also the principal area of operation of each of the above subsidiaries. Investments in these subsidiaries are held directly by Barclays Bank PLC except where marked *.

Full information of all subsidiaries will be included in the Annual Return to be filed at Companies House.

Note
a
BBPLC is the beneficial owner of 38.1% of shares and Barclays Holdings (Isle of Man) Limited is the beneficial owner of 61.9% of shares.

41 Other entities

There are a number of entities that do not qualify as subsidiaries under UK Law but which are consolidated when the substance of the relationship between the Group and the entity (usually a Special Purpose Entity (SPE)) indicates that the entity is controlled by the Group. Such entities are deemed to be controlled by the Group when relationships with such entities gives rise to benefits that are in substance no different from those that would arise were the entity a subsidiary.

The consolidation of such entities may be appropriate in a number of situations, but primarily when:

  • – the operating and financial polices of the entity are closely defined from the outset (i.e. it operates on an ‘autopilot’ basis) with such policies being largely determined by the Group;
  • – the Group has rights to obtain the majority of the benefits of the entity and/or retains the majority of the residual or ownership risks related to the entity; or
  • – the activities of the entity are being conducted largely on behalf of the Group according to its specific business objectives.

Such entities are created for a variety of purposes including securitisation, structuring, asset realisation, intermediation and management.

Entities may have a different reporting date from that of the parent of 31st December. Dates may differ for a variety of reasons including local reporting regulations or tax laws. In accordance with our accounting policies, for the purpose of inclusion in the consolidated financial statements of Barclays PLC, entities with different reporting dates are made up until 31st December.

Entities may have restrictions placed on their ability to transfer funds, including payment of dividends and repayment of loans, to their parent entity. Reasons for the restrictions include:

  • – Central bank restrictions relating to local exchange control laws.
  • – Central bank capital adequacy requirements.
  • – Company law restrictions relating to treatment of the entities as going concerns.

Although the Group’s interest in the equity voting rights in certain entities exceeds 50%, or it may have the power to appoint a majority of their Boards of Directors, they are excluded from consolidation because the Group either does not direct the financial and operating policies of these entities, or on the grounds that another entity has a superior economic interest in them. Consequently, these entities are not deemed to be controlled by Barclays.

The table below includes information in relation to such entities as required by the Companies Act 1985, Section 231(5).

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Equity 
Percentage of  share-  Retained 
ordinary share  holders’  profit for 
Country of registration  capital held  funds  the year 
or incorporation  Name  %  £m  £m 
UK  Oak Dedicated Limited  100  (3) 4 
UK  Oak Dedicated Two Limited  100  (3) 2 
UK  Oak Dedicated Three Limited  100  1  1 
UK  Fitzroy Finance Limited  100  –  – 
Cayman Islands  St James Fleet Investments Two Limited  100  2  – 
Cayman Islands  BNY BT NewCo Limited  –  –  – 

Notes to the accounts

For the year ended 31st December 2007


42 Related party transactions and Directors’ remuneration

(a) Related party transactions

Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial or operation decisions, or one other party controls both. The definition includes subsidiaries, associates, joint ventures and the Group’s pension schemes, as well as other persons.

Subsidiaries

Transactions between Barclays PLC and subsidiaries also meet the definition of related party transactions. Where these are eliminated on consolidation, they are not disclosed in the Group financial statements. Transactions between Barclays PLC and its subsidiary, Barclays Bank PLC are fully disclosed directly in its balance sheet and income statement. A list of the Group’s principal subsidiaries is shown in Note .

Associates, joint ventures and other entities

The Group provides banking services to its associates, joint ventures and the Group pension funds (principally the UK Retirement Fund), providing loans, overdrafts, interest and non-interest bearing deposits and current accounts to these entities as well as other services. Group companies, principally within Barclays Global Investors, also provide investment management and custodian services to the Group pension schemes. The Group also provides banking services for unit trusts and investment funds managed by Group companies and are not individually material. All of these transactions are conducted on the same terms as third-party transactions.

Amounts included in the accounts, in aggregate, by category of related party entity are as follows:

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For the year ended and as at 31st December 2007
Pension 
Entities  funds unit 
under  trusts and 
Joint  common  investment 
Associates  ventures  directorships  funds  Total 
£m  £m  £m  £m  £m 
Income statement: 
Interest received  5  75  1  –  81 
Interest paid  (1) (58) (1) –  (60)
Fees received for services rendered (including investment management and 
custody and commissions) 1  34  –  26  61 
Fees paid for services provided  (52) (78) –  –  (130)
Principal transactions  (24) 47  (16) –  7 
Assets: 
Loans and advances to banks and customers  142  886  40  –  1,068 
Derivative transactions  –  4  36  –  40 
Other assets  19  18  –  14  51 
Liabilities: 
Deposits from banks  11  –  –  –  11 
Customer accounts  –  61  33  12  106 
Derivative transactions  –  10  50  –  60 
Other liabilities  4  125  –  –  129 

42 Related party transactions and Directors’ remuneration (continued)

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For the year ended and as at 31st December 2006
Pension 
Entities  funds unit 
under  trusts and 
Joint  common  investment 
Associates  ventures  directorships  funds  Total 
£m  £m  £m  £m  £m 
Income statement: 
Interest received  45  38  –  2  85 
Interest paid  (31) (57) –  –  (88)
Fees received for services rendered (including investment management and 
custody and commissions) 14  7  –  28  49 
Fees paid for services provided  (115) (51) –  (1) (167)
Principal transactions  3  –  (2) –  1 
Assets: 
Loans and advances to banks and customers  784  146  65  –  995 
Derivative transactions  –  –  –  –  – 
Other assets  19  3  –  17  39 
Liabilities: 
Deposits from banks  9  –  –  3  12 
Customer accounts  19  18  5  34  76 
Derivative transactions  –  –  2  –  2 
Other liabilities  13  8  –  –  21 

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For the year ended and as at 31st December 2005
Pension