Banking Act 1979

2 Exceptions from prohibition in section 1(1)

(1) The prohibition in section 1(1) above on the acceptance of a deposit does not apply to—

(a) the Bank; or

(b) a recognised bank; or

(c) a licensed institution; or

(d) a person for the time being specified in Schedule 1 to this Act;

and does not apply to a transaction prescribed for the purposes of this section by regulations made by the Treasury.

(2) The Treasury may from time to time by order made by statutory instruments—

(a) add a person to the list set out in Schedule 1 to this Act, or

(b) remove a person from that list (whether that person was included in the list as originally enacted or was added to it by virtue of this subsection).

(3) A statutory instrument containing an order under paragraph (a) of subsection (2) above shall be subject to annulment in pursuance of a resolution of either House of Parliament and no order under paragraph (b) of that subsection shall be made unless a draft of it has been laid before Parliament and approved by a resolution of each House.

(4) In the case of a body which on the appointed day was carrying on a deposit-taking business in the United Kingdom, the prohibition in section 1(1) above on the acceptance of a deposit does not apply—

(a) at any time during the period of six months beginning on that day; nor

(b) if within that period the body makes an application for recognition or a licence, at any time after the end of that period and before the date on which the body is granted recognition or, as the case may be, a licence or on which the Bank notifies the body of its decision to refuse to grant it recognition or a licence.

(5) Regulations under subsection (1) above may prescribe transactions by reference to any factors appearing to the Treasury to be appropriate and, in particular, by reference to all or any of the following, namely.—

(a) the amount of the deposit;

(b) the total liability of the body concerned to its depositors;

(c) the circumstances in which or the purpose for which the deposit is made ; and

(d) the identity of the person by whom the deposit is made or accepted.

(6) The power to make regulations under subsection (1) above shall be exercisable by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.