SCHEDULES
SCHEDULE 9Regulated sector and supervisory authorities
Part 1Regulated sector
Business in the regulated sector
1
1
A business is in the regulated sector to the extent that it engages in any of the following activities—
a
accepting deposits by a person with permission under Part 4 of the Financial Services and Markets Act 2000 (c. 8) to accept deposits (including, in the case of a building society, the raising of money from members of the society by the issue of shares);
b
the business of the National Savings Bank;
c
business carried on by a credit union;
d
any home-regulated activity carried on by a European institution in respect of which the establishment conditions in paragraph 13 of Schedule 3 to the Financial Services and Markets Act 2000, or the service conditions in paragraph 14 of that Schedule, are satisfied;
e
any activity carried on for the purpose of raising money authorised to be raised under the National Loans Act 1968 (c. 13) under the auspices of the Director of Savings;
f
the activity of operating a bureau de change, transmitting money (or any representation of monetary value) by any means or cashing cheques which are made payable to customers;
g
any activity falling within sub-paragraph (2);
h
any of the activities in points 1 to 12 or 14 of Annex 1 to the Banking Consolidation Directive, ignoring an activity described in any of sub-paragraphs (a) to (g) above;
i
business which consists of effecting or carrying out contracts of long term insurance by a person who has received official authorisation pursuant to Article 6 or 27 of the First Life Directive.
2
An activity falls within this sub-paragraph if it constitutes any of the following kinds of regulated activity in the United Kingdom—
a
dealing in investments as principal or as agent;
b
arranging deals in investments;
c
managing investments;
d
safeguarding and administering investments;
e
sending dematerialised instructions;
f
establishing (and taking other steps in relation to) collective investment schemes;
g
advising on investments.
3
Paragraphs (a) and (i) of sub-paragraph (1) and sub-paragraph (2) must be read with section 22 of the Financial Services and Markets Act 2000, any relevant order under that section and Schedule 2 to that Act.
2
1
This paragraph has effect for the purposes of paragraph 1.
2
“Building society” has the meaning given by the Building Societies Act 1986 (c. 53).
3
“Credit union” has the meaning given by the Credit Unions Act 1979 (c. 34) or the Credit Unions (Northern Ireland) Order 1985 (S.I. 1985/1205 (N.I. 12)).
4
“European institution” means an EEA firm of the kind mentioned in paragraph 5(b) or (c) of Schedule 3 to the Financial Services and Markets Act 2000 (c. 8) which qualifies for authorisation for the purposes of that Act under paragraph 12 of that Schedule.
5
“Home-regulated activity” in relation to a European institution, means an activity—
a
which is specified in Annex 1 to the Banking Consolidation Directive and in respect of which a supervisory authority in the home State of the institution has regulatory functions, and
b
if the institution is an EEA firm of the kind mentioned in paragraph 5(c) of Schedule 3 to the Financial Services and Markets Act 2000, which the institution carries on in its home State.
6
“Home State”, in relation to a person incorporated in or formed under the law of another member State, means that State.
7
The Banking Consolidation Directive is the Directive of the European Parliament and Council relating to the taking up and pursuit of the business of credit institutions (No. 2000/12 EC).
8
The First Life Directive is the First Council Directive on the co-ordination of laws, regulations and administrative provisions relating to the taking up and pursuit of the business of direct life assurance (No. 79/267/EEC).
3Excluded activities
A business is not in the regulated sector to the extent that it engages in any of the following activities—
a
the issue of withdrawable share capital within the limit set by section 6 of the Industrial and Provident Societies Act 1965 (c. 12) by a society registered under that Act;
b
the acceptance of deposits from the public within the limit set by section 7(3) of that Act by such a society;
c
the issue of withdrawable share capital within the limit set by section 6 of the Industrial and Provident Societies Act (Northern Ireland) 1969 by a society registered under that Act;
d
the acceptance of deposits from the public within the limit set by section 7(3) of that Act by such a society;
e
activities carried on by the Bank of England;
f
any activity in respect of which an exemption order under section 38 of the Financial Services and Markets Act 2000 has effect if it is carried on by a person who is for the time being specified in the order or falls within a class of persons so specified.
Part 2Supervisory authorities
4
1
Each of the following is a supervisory authority—
a
the Bank of England;
b
the Financial Services Authority;
c
the Council of Lloyd's;
d
the Director General of Fair Trading;
e
a body which is a designated professional body for the purposes of Part 20 of the Financial Services and Markets Act 2000 (c. 8).
2
The Secretary of State is also a supervisory authority in the exercise, in relation to a person carrying on a business in the regulated sector, of his functions under the enactments relating to companies or insolvency or under the Financial Services and Markets Act 2000.
3
The Treasury are also a supervisory authority in the exercise, in relation to a person carrying on a business in the regulated sector, of their functions under the enactments relating to companies or insolvency or under the Financial Services and Markets Act 2000.
Part 3Power to amend
5
The Treasury may by order amend Part 1 or 2 of this Schedule.