FACTBOX- How political donations are regulated

(LONDON) - Work and Pensions Secretary Peter Hain has resigned over the row over political donations to his campaign to become deputy leader of the Labour party last year.

The Political Parties, Elections and Referendums Act of 2000, which regulates party donations, was largely the result of an inquiry into standards in public life set up by former Conservative Prime Minister John Major.

The Act set up an Electoral Commission to regulate and adjudicate upon funding arrangements.

It required parties to submit regular accounts, prohibited accepting funds from overseas or anonymous donors and limited the amount parties could spend on election campaigns.

Among the detailed requirements:

-- Donations of 5,000 pounds or more made at a national level have to be declared.

-- At the local level, donations of 1,000 pounds or more must be registered.

-- Donors themselves must tell the Commission about gifts they make of over 5,000 pounds to a party and of over 1,000 pounds to a party member.

-- Parties on the separate register for Northern Ireland are exempt from the controls.

(Reporting by Steve Addison; Editing by Astrid Zweynert)