48.—(1) Section 7 of the Financial Services Act (authorisation by membership of recognised self-regulating organisation) shall have effect as if it included provision that an institution which—
(a)is a European institution or quasi-European authorised institution; and
(b)is a member of a recognised self-regulating organisation,
is not, by virtue of its membership of that organisation, an authorised person as respects any home-regulated investment business.
(2) Paragraph 2 of Schedule 2 to that Act(1) (requirements for recognition of self-regulating organisations) shall have effect as if it included provision that the rules and practices of the organisation must be such as to secure that where—
(a)a UK authorised institution applies for admission as a member of the organisation; and
(b)the institution states in its application that it proposes to carry on investment business which consists of or includes a listed activity,
the institution shall not be admitted as a member unless the UK authority has notified the organisation that, were the institution so admitted, the UK authority would not by reason of that proposal exercise any of its relevant powers.
(3) In this regulation “relevant powers” means—
(a)in relation to the Bank, the powers conferred on it by section 11 or 12 of the Banking Act (power to revoke or restrict authorisations);
(b)in relation to the Commission, the powers conferred on it by section 42 or 43 of the Building Societies Act (power to impose conditions on or revoke authorisations).
1986 c. 60; Schedule 2 has been amended by sections 203, 204 and 206 of, and Schedule 23 to, the Companies Act 1989 (c. 40).