Part 7Miscellaneous
Investment banks
232Definition
(1)
In this group of sections “investment bank” means an institution which satisfies the following conditions.
(2)
Condition 1 is that the institution has permission under Part 4 of the Financial Services and Markets Act 2000 to carry on the regulated activity of—
(a)
safeguarding and administering investments,
(b)
dealing in investments as principal, or
(c)
dealing in investments as agent.
(3)
Condition 2 is that the institution holds client assets.
(4)
In this group of sections “client assets” means assets which an institution has undertaken to hold for a client (whether or not on trust and whether or not the undertaking has been complied with).
(5)
Condition 3 is that the institution is incorporated in, or formed under the law of any part of, the United Kingdom.
(6)
The Treasury may by order—
(a)
provide that a specified class of institution, which has a permission under Part 4 of the Financial Services and Markets Act 2000 to carry on a regulated activity, is to be treated as an investment bank for the purpose of this group of sections;
(b)
provide that a specified class of institution is not to be treated as an investment bank for the purpose of this group of sections;
(c)
provide that assets of a specified kind, or held in specified circumstances, are to be or not to be treated as client assets for the purpose of this group of sections;
(d)
amend a provision of this section in consequence of provision under paragraph (a), (b) or (c).