The Building Societies (Designation of Qualifying Bodies) Order 1995

Amendment of earlier Orders

4.—(1) The Building Societies (Designation of Qualifying Bodies) Order 1993(1) shall be amended—

(a) in paragraph 1 of Part II of Schedule 1 (meaning of “specified type of body corporate”) by the insertion after sub-paragraph (a) of the following sub-paragraph—

“(aa) a company or industrial and provident society,”;

(b) by the substitution for paragraph 4(2)(b) of that Part of that Schedule (which currently restricts a funding body from carrying on a deposit-taking business in the United Kingdom) of the words “it carries on the business of trading in derivatives”; and

(c) by the substitution for paragraph 6 of that Part of that Schedule (definitions) of the following—

“Other definitions

6.   In this Schedule—

• “market maker” means—

  (a)

  in relation to the United Kingdom, a person who—

  (i)

  holds himself out at all normal times in compliance with the rules of the Stock Exchange as willing to buy and sell securities of a particular kind at a price specified by him, and

  (ii)

  is recognised as doing so by the Council of the Stock Exchange; or

  (b)

  in relation to any country or territory outside the United Kingdom, a person who holds himself out at all normal times as willing to buy and sell at a price specified by him securities of a particular kind which are traded on any exchange in that country or territory;

• “the Stock Exchange” means The International Stock Exchange of the United Kingdom and the Republic of Ireland Limited; and

• “trading in derivatives” means trading as principal in any investment of a description falling within one or more of paragraphs 4 (instruments entitling to shares or securities), 7 (options), 8 (futures) and 9 (contracts for differences) of Part I of Schedule 1 to the Financial Services Act 1986(2).”.

(2) The Building Societies (Designation of Qualifying Bodies) (No. 3) Order 1993(3) shall be amended—

(a) in column 4 of item 9 of Part I of the Schedule (purposes for which investment and support of a lending body is permitted) by the insertion of the words “and to accept deposits” after the words “this item”;

(b) by the substitution for paragraph 6(2)(b) of Part II of the Schedule (which currently restricts designated bodies from carrying on a deposit-taking business in the United Kingdom) of the words “it carries on the business of trading in derivatives”; and

(c) in paragraph 14 of the Schedule—

(i) by the deletion of the definitions of “investment” and “market maker in securities of a particular kind”;

(ii) by the substitution for the definition of “market maker” of the following—

• ““market maker” means—

  (a)

  in relation to the United Kingdom, a person who—

  (i)

  holds himself out at all normal times in compliance with the rules of the Stock Exchange as willing to buy and sell securities of a particular kind at a price specified by him, and

  (ii)

  is recognised as doing so by the Council of the Stock Exchange; or

  (b)

  in relation to any country or territory outside the United Kingdom, a person who holds himself out at all normal times as willing to buy and sell at a price specified by him securities of a particular kind which are traded on any exchange in that country or territory.”;

(iii) by the insertion after the definition of “relevant investment business” of the following definition—

““the Stock Exchange” means The International Stock Exchange of the United Kingdom and the Republic of Ireland Limited;”; and

(iv) by the insertion after the definition of “subsidiary” and “subsidiary undertaking” of the following further definition—

““trading in derivatives” means trading as principal in any investment of a description falling within one or more of paragraphs 4 (instruments entitling to shares or securities), 7 (options), 8 (futures) and 9 (contracts for differences) of Part I of Schedule 1 to the Financial Services Act 1986.”.

(1)

S.I. 1993/985, amended by S.I.s 1993/2706 and 1994/2457.

(2)

1986 c. 41, Part I of Schedule 1 was amended by S.I.s 1988/496, 1990/349 and 1991/1104.

(3)

S.I. 1993/2706, amended by S.I. 1994/2457.