2000 No. 2952

BANKS AND BANKING

The Banking Consolidation Directive (Consequential Amendments) Regulations 2000

Made1st November 2000

Laid before Parliament1st November 2000

Coming into force22nd November 2000

Whereas the Treasury are a government department designated1 for the purposes of section 2(2) of the European Communities Act 19722 in relation to measures relating to credit and financial institutions and to the taking of deposits or other repayable funds from the public;

Now, therefore, the Treasury, in exercise of the powers conferred on them by that section, hereby make the following Regulations:

Citation and commencement1.

These Regulations may be cited as the Banking Consolidation Directive (Consequential Amendments) Regulations 2000, and shall come into force on 22nd November 2000.

Amendment of the Companies Act 19852.

(1)

The Companies Act 19853 is amended as follows.

(2)

In section 220(1)4, in the definition of “authorised credit institution”, for “Council Directive 77/780/EEC” there is substituted “Directive 2000/12/EC of the European Parliament and of the Council”5.

(3)

In sections 262(1)6 and 699A(3)7, for the definition of “credit institution” there is substituted:

““credit institution” means a credit institution as defined in article 1 of Directive 2000/12/EC of the European Parliament and of the Council of 20 March 2000 relating to the taking up and pursuit of the business of credit institutions, that is to say an undertaking whose business is to receive deposits or other repayable funds from the public and to grant credits for its own account;”.

Amendment of the Building Societies Act 19863.

(1)

The Building Societies Act 19868 is amended as follows.

(2)

In section 27(8)(a)9, for “by Article 2 of Directive 89/229/EEC” there is substituted “in Section 1 of Chapter 2 of Title V of the Banking Consolidation Directive”.

(3)

In section 43(1A)(f)10, for “the Second Council Directive or” there is substituted “those provisions of the Banking Consolidation Directive which were previously comprised in Directive 89/646/EEC, or of”.

(4)

In section 45A(1)11, for “the Second Council Directive” there is substituted “those provisions of the Banking Consolidation Directive which were previously comprised in Directive 89/646/EEC”.

(5)

In section 53, in subsections (4)(a)12 and (6)(b)13, for “article 12(7) of the First Council Directive” there is substituted “article 30(9) of the Banking Consolidation Directive”.

(6)

In section 119:

(a)

in subsection (2A)14, the expressions:

(i)

“the First Council Directive;”; and

(ii)

“the Second Council Directive;”

are omitted;

(b)

for subsection (2B)15, there is substituted:

“(2B)
In this Act “The Banking Consolidation Directive” means Directive 2000/12/EC of the European Parliament and of the Council of 20 March 2000 relating to the taking up and pursuit of the business of credit institutions.”; and

(c)

in subsection (2C), for “those Regulations” there is substituted “the Financial Institutions (Prudential Supervision) Regulations 199616”.

Amendment of the Financial Services Act 19864.

In paragraph 3(2) of Schedule 11A to the Financial Services Act 198617:

(a)

in the definition of “credit institution”, for “Council Directive No 77/80/EEC” there is substituted “Directive 2000/12/EC of the European Parliament and of the Council”; and

(b)

in the definition of “financial institution”, for “Council Directive No 89/646/EEC” there is substituted “Directive 2000/12/EC of the European Parliament and of the Council”.

Amendment of the Banking Act 19875.

(1)

The Banking Act 198718 is amended as follows.

(2)

In section 11(1A)(f)19, for “the Second Council Directive or” there is substituted “those provisions of the Banking Consolidation Directive which were previously comprised in Directive 89/646/EEC, or of”.

(3)

In section 12A(1)20, for “the Second Council Directive” there is substituted “those provisions of the Banking Consolidation Directive which were previously comprised in Directive 89/646/EEC”.

(4)

In section 26A(1)21, for “article 9(4) of the Second Council Directive” there is substituted “article 23(5) of the Banking Consolidation Directive”.

(5)

In sections 52(4)(b)22 and 60(6)(b)23, for “Article 2 of Directive 89/299/EEC” there is substituted “Section 1 of Chapter 2 of Title V of the Banking Consolidation Directive”.

(6)

In section 84, in subsections (5) and (5A)24, for “article 12(7) of the First Council Directive” there is substituted “article 30(9) of the Banking Consolidation Directive”.

(7)

In section 106:

(a)

in subsection (2A)25, the expressions:

(i)

“the First Council Directive;”; and

(ii)

“the Second Council Directive;”

are omitted;

(b)

for subsection (2B)26, there is substituted:

“(2B)
In this Act “The Banking Consolidation Directive” means Directive 2000/12/EC of the European Parliament and of the Council of 20 March 2000 relating to the taking up and pursuit of the business of credit institutions.”; and

(c)

in subsection (2C), for “those Regulations” there is substituted “the Financial Institutions (Prudential Supervision) Regulations 1996”.

Amendment of the Criminal Justice Act 19936.

In section 70 of the Criminal Justice Act 199327:

(a)

in subsection 2:

(i)

in paragraph (a), for “Article 15 of the Second Banking Co-ordination Directive” there is substituted “Article 29 of Directive 2000/12/EC of the European Parliament and of the Council of 20 March 2000 relating to the taking up and pursuit of the business of credit institutions”; and

(ii)

in paragraph (b), for “Articles 3, 6 and 7 of the Supervision of Credit Institutions Directive” there is substituted “Articles 52, 55 and 56 of that Directive”; and

(b)

subsection (3) is omitted.

Amendment of the Bank of England Act 19987.

In section 17(3)(f) of the Bank of England Act 199828, for “Article 1 of Council Directive 92/30/EEC” there is substituted “Article 1(21) of Directive 2000/12/EC of the European Parliament and of the Council”.

Amendment of the Financial Services and Markets Act 20008.

(1)

The Financial Services and Markets Act 200029 is amended as follows.

(2)

In section 203(10), in the definition of “listed activity”, for “the Annex to the second banking co-ordination directive” there is substituted “Annex 1 to the banking consolidation directive”.

(3)

In section 405(5)(b), for “Article 9(4) of the second banking co-ordination directive;” there is substituted “Article 23(5) of the banking consolidation directive;”.

(4)

In section 425(1)(a), for ““second banking co-ordination directive”” there is substituted ““banking consolidation directive””.

(5)

In Schedule 3:

(a)

in paragraph 1, for sub-paragraphs (a) and (b) there is substituted:

“(a)
the banking consolidation directive;”;

(b)

for paragraph 2 there is substituted:

“2.
“The banking consolidation directive” means Directive 2000/12/EC of the European Parliament and of the Council of 20 March 2000 relating to the taking up and pursuit of the business of credit institutions;”;

(c)

in paragraph 5:

(i)

for sub-paragraph (b) there is substituted:

“(b)
a credit institution (as defined in Article 1 of the banking consolidation directive) which is authorised (within the meaning of Article 1) by its home state regulator;”; and

(ii)

for sub-paragraph (c) there is substituted:

“(c)
a financial institution (as defined in Article 1 of the banking consolidation directive) which is a subsidiary of the kind mentioned in Article 19 and which fulfils the conditions in Articles 18 and 19; or”;

(d)

in paragraph 19(6), for “second banking coordination directive” there is substituted “banking consolidation directive”;

(e)

in paragraph 20(3), for “a banking co-ordination directive” there is substituted “the banking consolidation directive”; and

(f)

in paragraph 24(1)(b), for “Article 18.2 of the second banking co-ordination directive” there is substituted “Article 19 of the banking consolidation directive”.

(6)

In paragraph 20 of Schedule 11:

(a)

in sub-paragraph (4), for “Council Directive No 77/780/EEC” there is substituted “the banking consolidation directive”; and

(b)

in sub-paragraph (5), for “Council Directive No 89/646/EEC” there is substituted “the banking consolidation directive”.

Amendment of the Terrorism Act 20009.

In Schedule 6 to the Terrorism Act 200030:—

(a)

in paragraph 6(1)(g), for “the Second Council Directive on the co-ordination of laws, regulations and administrative provisions” there is substituted “Directive 2000/12/EC of the European Parliament and of the Council”.

(b)

in paragraph 6(1)(h), for “the Annex” there is substituted “Annex 1”.

Amendment of the Banking Co-ordination (Second Council Directive) Regulations 199210.

(1)

The Banking Co-ordination (Second Council Directive) Regulations 199231 are amended as follows.

(2)

In regulation 2(1):

(a)

after the definition of “the Bank” there is inserted:

““the Banking Consolidation Directive” means Directive 2000/12/EC of the European Parliament and of the Council of 20 March 2000 relating to the taking up and pursuit of the business of credit institutions;”;

(b)

in the definition of “credit institution”, for “First Council Directive” there is substituted “Banking Consolidation Directive”;

(c)

in the definition of “financial institution”:

(i)

for “Second Council Directive” there is substituted “Banking Consolidation Directive”; and

(ii)

for “the Annex” there is substituted “Annex 1 to the Banking Consolidation Directive”;

(d)

in the definition of “initial capital”, for “article 2(1) of the Council Directive on the own funds of credit institutions (No. 89/299/EEC)” there is substituted “article 34(2) of the Banking Consolidation Directive”;

(e)

in the definition of “listed activity”, for “the Annex to the Second Council Directive” there is substituted “Annex 1 to the Banking Consolidation Directive”;

(f)

in the definition of “own funds”, for “the Council Directive on the own funds of credit institutions (No. 89/299/EEC)” there is substituted “Section 1 of Chapter 2 of Title V of the Banking Consolidation Directive”; and

(g)

the definitions of:

(i)

“the First Council Directive”;

(ii)

“the Second Council Directive”; and

(iii)

“the Solvency Ratio Directive”

are omitted.

(3)

In regulation 2, after paragraph (1) there is inserted the following paragraph:

“(1A)
Any reference in these Regulations to:
(a)
the Second Council Directive; or
(b)
the Solvency Ratio Directive,
shall be construed as a reference to the Banking Consolidation Directive, and shall be read in accordance with the correlation table in Annex VI to the Banking Consolidation Directive.”; and paragraph (2B) is omitted.

(4)

In regulation 2B(3)(a) and (b)32, for “the Annex to the Second Council Directive” there is substituted “Annex 1 to the Banking Consolidation Directive”.

(5)

In regulation 50(1)(c), for “article 18(2) of the Second Council Directive” there is substituted “article 19 of the Banking Consolidation Directive”.

(6)

In paragraph 45(3)(b) of Schedule 9, for “article 21 of the Second Council Directive” there is substituted “article 22 of the Banking Consolidation Directive”.

Amendment of the Money Laundering Regulations 199311.

(1)

The Money Laundering Regulations 199333 are amended as follows.

(2)

In regulation 2(1), after the definition of “applicant for business” there is inserted:

““the Banking Consolidation Directive” means Directive 2000/12/EC of the European Parliament and of the Council of 20 March 2000 relating to the taking up and pursuit of the business of credit institutions;”.

(3)

In regulation 4(1)(h), for “the Annex to the Second Banking Co-ordination Directive” there is substituted “Annex 1 to the Banking Consolidation Directive”.

(4)

In regulation 4(4), the definition of “the Second Banking Co-ordination Directive” is omitted.

(5)

In regulation 8(5), for the definition of “authorised credit institution” there is substituted:

““authorised credit institution” means a credit institution, as defined in Article 1 of the Banking Consolidation Directive, which is authorised to carry on the business of a credit institution by a competent authority of a member State;”.

Amendment of the Insurance Companies Regulations 199412.

(1)

The Insurance Companies Regulations 199434 are amended as follows.

(2)

In regulation 2(1), after the definition of “the Act” there is inserted:

““the Banking Consolidation Directive” means Directive 2000/12/EC of the European Parliament and of the Council of 20 March 2000 relating to the taking up and pursuit of the business of credit institutions;”.

(3)

In regulation 44(1), for the definition of “approved credit institution” there is substituted:

““approved credit institution” means an institution recognised or permitted under the law of an EEA state to carry on any of the activities set out in Annex 1 to the Banking Consolidation Directive;”.

(4)

In:–

(a)

regulation 44(1), in the definition of “approved securities”;

(b)

regulation 45(5);

(c)

regulation 55(7)(a)(iv)35;

(d)

regulation 57(5)(e)36; and

(e)

paragraph 14(b) of Schedule 1037

for “Council Directive 89/647/EEC of 18 December 1989 on a solvency ratio for credit institutions” there is substituted “the Banking Consolidation Directive”.

Amendment of the Friendly Societies (Insurance Business) Regulations 199413.

(1)

The Friendly Societies (Insurance Business) Regulations 199438 are amended as follows.

(2)

In regulation 2(1), after the definition of “authorisation” there is inserted:

““the Banking Consolidation Directive” means Directive 2000/12/EC of the European Parliament and of the Council of 20 March 2000 relating to the taking up and pursuit of the business of credit institutions;”.

(3)

In regulation 19(1), for the definition of “approved credit institution” there is substituted:

““approved credit institution” means an institution recognised or permitted under the law of an EEA state to carry on any of the activities set out in Annex 1 to the Banking Consolidation Directive;”.

(4)

In:

(a)

regulation 19(1), in the definition of “approved securities”;

(b)

regulation 20(5)39;

(c)

regulation 30(7)(a)(iv)40;

(d)

regulation 32(5)(e)41; and

(e)

paragraph 14(b) of Schedule 1042

for “Council Directive 89/647/EEC of 18 December 1989 on a solvency ratio for credit institutions” there is substituted “the Banking Consolidation Directive”.

Amendment of the Investment Services Regulations 199514.

(1)

The Investment Services Regulations 199543 are amended as follows.

(2)

In regulation 2(1):

(a)

after the definition of “the Bank”, there is inserted:

““the Banking Consolidation Directive” means Directive 2000/12/EC of the European Parliament and of the Council of 20 March 2000 relating to the taking up and pursuit of the business of credit institutions;”;

(b)

in the definition of “credit institution”, for “First Council Directive” there is substituted “Banking Consolidation Directive”;

(c)

in the definition of “European authorised institution”, for “the First Council Directive and the Second Council Directive” there is substituted “the Banking Consolidation Directive”; and

(d)

the definitions of:

(i)

“the First Council Directive”; and

(ii)

“the Second Council Directive”

are omitted.

(3)

In regulation 2, after paragraph (1) there is inserted the following paragraph:

“(1A)
Any reference in these Regulations to the Second Council Directive shall be construed as a reference to the Banking Consolidation Directive, and shall be read in accordance with the correlation table in Annex VI to the Banking Consolidation Directive.”;

and paragraph (2B) is omitted.

Amendment of the Competition Act 1998 (Small Agreements and Conduct of Minor Significance) Regulations 200015.

(1)

The Competition Act 1998 (Small Agreements and Conduct of Minor Significance) Regulations 200044 are amended as follows.

(2)

In paragraph 1 of the Schedule:–

(a)

for the difinition of “credit institution” there is substituted:

““credit institution” means a credit institution for the purposes of Article 1 of Directive 2000/12/EC of the European Parliament and of the Council of 20 March 2000 relating to the taking up and pursuit of the business of credit institutions;”; and

(b)

for the definition of “financial institution” there is substituted:–

““financial institution” means a financial institution for the purposes of Article 1 of Directive 2000/12/EC of the European Parliament and of the Council of 20 March 2000 relating to the taking up and pursuit of the business of credit institutions;”.

Amendment of the Competition Act 1998 (Determination of Turnover for Penalties) Order 200016.

(1)

The Competition Act 1998 (Determination of Turnover for Penalties) Order 200045 is amended as follows.

(2)

In paragraph 1 of the Schedule:–

(a)

for the definition of “credit institution” there is substituted:

““credit institution” means a credit institution for the purposes of Article 1 of Directive 2000/12/EC of the European Parliament and of the Council of 20 March 2000 relating to the taking up and pursuit of the business of credit institutions;”; and

(b)

for the definition of “financial institution” there is substituted:–

““financial institution” means a financial institution for the purposes of Article 1 of Directive 2000/12/EC of the European Parliament and of the Council of 20 March 2000 relating to the taking up and pursuit of the business of credit institutions;”.

Miscellaneous Amendments17.

The enactments listed in the first column of the Schedule to these Regulations are amended to the extent specified in the second column of the Schedule.

Bob Ainsworth

Greg Pope

Two of the Lords Commissioners of Her Majesty’s Treasury

1st November 2000

SCHEDULE

Regulation 16

Enactment	Commencement
The Uncertified Securities Regulations 199546	In paragraph 1(1)(b) and (2) of Schedule 2, for “Council Directive 89/646/EEC” there is substituted “Directive 2000/12/EC of the European Parliament and of the Council”.
The Cash Ratio Deposits (Eligible Liabilities) Order 199847	In regulation 2(3), for “Article 2 of Council Directive 89/299/EEC” there is substituted “Directive 2000/12/EC of the European Parliament and of the Council”.
The Cross-Border Credit Transfers Regulations 199948	In regulation 2(1), in the definition of “credit institution”, for “Council Directive No 77/780/EEC” there is substituted “Directive 2000/12/EC of the European Parliament and of the Council”.
The Financial Markets and Insolvency (Settlement Finality) Regulations 199949	In regulation 2(1), for the definition of “credit institution” there is substituted ““credit institution” means a credit institution as defined in Article 1 of Directive 2000/12/EC of the European Parliament and of the Council, including the bodies set out in the list in Article 2(3);”;

(This note is not part of the Regulations)

These Regulations make consequential amendments to give effect to Directive 2000/12/EC of the European Parliament and of the Council of 20 March 2000 relating to the taking up and pursuit of the business of credit institutions. That Directive codifies and repeals Council Directives 73/183/EEC, 77/780/EEC, 89/299/EEC, 89/646/EEC, 89/647/EEC, 92/30/EEC and 92/121/EEC. These Regulations make the necessary changes to United Kingdom enactments which refer to the repealed Directives.