The Banking Act 1987 (Advertisements) Regulations 1988

Application of Regulations

2.—(1) Subject to paragraphs (2) to (5) of this regulation these Regulations apply to a deposit advertisement unless it contains an invitation to make deposits only with offices of the deposit-taker in the United Kingdom or another member State.

(2) These Regulations do not apply to a deposit advertisement which does not indicate the offices with which the deposits are invited to be made if the deposit-taker carries on a deposit-taking business in the United Kingdom or another member State.

(3) These Regulations do not apply to a deposit advertisement which invites the making of deposits with an institution or unincorporated institution which is a body for the time being authorised under section 3 or 4 of the Insurance Companies Act 1982(1) to carry on insurance business of a class specified in Schedule 1 or 2 to that Act.

(4) These Regulations do not apply—

(a) in relation to any issue of a prospectus to which section 56 of the Companies Act 1985(2) applies or would apply if not excluded by paragraph (a) or (b) of subsection (5) of that section;

(b) in relation to any issue of a prospectus to which section 72 of that Act applies or would apply if not excluded by paragraph (a) or (b) of subsection (6) of that section or by section 76 of that Act;

(c) in relation to any issue of a form of application for shares in, or debentures of, a company, together with—

(i) a prospectus which complies with the requirements of the said section 56, or is not required to comply therewith because excluded by paragraph (a) or (b) of subsection (5) of that section, or

(ii) a prospectus which complies with the requirements of Chapter II of Part III of the said Act relating to prospectuses;

(d) in relation to any issue of a form of application for shares in, or debentures of, a company where the form of application was issued either—

(i) in connection with a bona fide invitation to a person to enter into an underwriting agreement with respect to the shares or debentures; or

(ii) in relation to shares or debentures which were not offered to the public;

(e) in relation to any issue of a form of application for any securities, if such form is issued with a document which either sets out the approved listing particulars for the purposes of any listing rules made pursuant to section 142(6) of the Financial Services Act 1986(3) or indicates where such particulars can be obtained or inspected;

(f) in relation to any issue of documents to which the corresponding Northern Ireland legislation applies (or would apply if not excluded by that legislation).

(5) These Regulations do not apply to a deposit advertisement which invites the making of deposits on terms involving the issue by the deposit-taker of debt securities which have been admitted to official listing within a member State other than the United Kingdom.

(6) These Regulations do not apply to a deposit advertisement which is an investment business advertisement regulated by rules (made by the appropriate authority or a recognised organisation) of the kind described in section 48(2)(e) of the Financial Services Act 1986 (rules as to the form and content of advertisements in respect of investment business).

(7) For the purposes of this regulation—

(a) “company” means—

(i) any company which is a company within the meaning of section 735(1) of the Companies Act 1985,

(ii) any body corporate to which the prospectus and allotment provisions of that Act are applied by regulations made under section 718 of that Act,

(iii) any company of a kind described in section 72 of that Act, or

(iv) any company or body corporate in respect of which the corresponding Northern Ireland legislation has effect;

(b) “investment business advertisement” means an advertisement—

(i) which is issued or caused to be issued by or on behalf of a person authorised under Chapter III of Part I of the Financial Services Act 1986 or an appointed representative within the meaning of section 44 of that Act,

(ii) which contains an invitation to make a deposit which will be accepted by the deposit-taker in the course of or for the purpose of engaging in any permitted dealing activity with or on behalf of the person by whom or on whose behalf the deposit is made or in any permitted service activity on behalf of that person, and

(iii) which contains no other invitation to make a deposit;

(c) “dealing activity” means an activity falling within paragraph 12 of Schedule 1 to the Financial Services Act 1986 construed without reference to Parts III and IV of that Schedule;

(d) “service activity” means an activity falling within paragraph 13, 14 or 16 of Schedule 1 to the Financial Services Act 1986 construed without reference to Parts III and IV of that Schedule;

(e) “permitted” in relation to a dealing activity or a service activity means an activity in which the deposit-taker may engage without any contravention occurring of—

(i) any rules (made by the appropriate authority or a recognised organisation) of the kind described in section 48(2)(a) and (b) of that Act (rules as to the type of business carried on or the persons in relation to whom business is carried on), or

(ii) any prohibition of the kind described in section 65 of that Act;

(f) “appropriate authority” means the Secretary of State, a designated agency within the meaning of section 114(3) of the Financial Services Act 1986, the Chief Registrar of friendly societies, the Registrar of Friendly Societies for Northern Ireland or a transferee body within the meaning of paragraph 28(4) of Schedule 11 to that Act; and

(g) “recognised organisation” means a body which is a recognised professional body, a recognised self-regulating organisation or a recognised self-regulating organisation for friendly societies within the meaning of section 207(1) of the Financial Services Act 1986.

(8) In this regulation references to rules made by a recognised organisation include rules (whether or not laid down by the organisation itself) which the organisation has power to enforce.

(9) In this regulation “the corresponding Northern Ireland legislation” means those provisions of the Companies (Northern Ireland) Order 1986(4) which correspond to any of the provisions of the Companies Act 1985 specified in this regulation.

(1)

1982 c. 50.

(2)

1985 c. 6.

(3)

1986 c. 60.

(4)

S.I. 1986/1032 (N.I. 6).