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The Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001

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Statutory Instruments

2001 No. 3649

FINANCIAL SERVICES AND MARKETS

The Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001

Made

9th November 2001

Laid before Parliament

9th November 2001

Coming into force in accordance with article 1

The Treasury in exercise of their powers under sections 426 and 427 of the Financial Services and Markets Act 2000(1) hereby make the following Order:—

PART 1INTRODUCTORY

Citation, commencement and transitional provisions

1.  This Order may be cited as the Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001 and comes into force on 1st December 2001.

Interpretation

2.  In this Order “the Act” means the Financial Services and Markets Act 2000.

The principal repeals and revocations

3.—(1) The following enactments are repealed—

(a)the Policyholders Protection Act 1975(2);

(b)the Insurance Companies Act 1982(3);

(c)the Financial Services Act 1986(4);

(d)the Banking Act 1987(5);

(e)the Insurance Companies (Reserves) Act 1995(6); and

(f)the Policyholders Protection Act 1997(7).

(2) The following instruments are revoked—

(a)the Banking Co-ordination (Second Council Directive) Regulations 1992(8);

(b)the Insurance Companies (Third Insurance Directives) Regulations 1994(9); and

(c)the Investment Services Regulations 1995(10).

PART 2AMENDMENTS TO THE COMPANIES LEGISLATION

Companies Act 1985 (c. 6)

Membership of holding company

4.—(1) Section 23 (membership of holding company) of the Companies Act 1985(11) is amended as follows.

(2) In paragraph (b) of subsection (3B), for “section 75 of the Financial Services Act 1986” substitute “section 236 of the Financial Services and Markets Act 2000”.

(3) For paragraphs (d) and (e) of that subsection substitute—

(d)“insurance business” means business which consists of the effecting or carrying out of contracts of insurance;

(e)“securities” includes—

(i)options,

(ii)futures, and

(iii)contracts for differences,

and rights or interests in those investments;.

(4) In paragraph (f) of that subsection, for “section 75(8) of the Financial Services Act 1986” substitute “section 237(2) of the Financial Services and Markets Act 2000”.

(5) After that subsection, insert—

(3BA) Subsection (3B) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Meaning of “offer to the public”

5.  Sections 59 and 60 of the 1985 Act(12) (so far as those sections continue to have effect) are repealed.

Purchase by company of its own shares: definition of “off-market” and “market” purchase

6.—(1) Section 163 of the 1985 Act (meaning of “off-market” and “market” purchase)(13) is amended as follows.

(2) In subsection (2)(a) for “Part IV of the Financial Services Act 1986” substitute “Part 6 of the Financial Services and Markets Act 2000”.

(3) For subsection (4) substitute—

(4) “Recognised investment exchange” means a recognised investment exchange other than an overseas investment exchange.

(5) Expressions used in the definition contained in subsection (4) have the same meaning as in Part 18 of the Financial Services and Markets Act 2000..

Duty of company as to issue of certificates

7.  For subsection (4) of section 185 of the 1985 Act (duty of company to issue certificates in relation to shares allotted or transferred)(14) substitute—

(4) Subsection (4A) applies in relation to a company—

(a)of which shares or debentures are allotted to a financial institution,

(b)of which debenture stock is allotted to a financial institution, or

(c)with which a transfer for transferring shares, debentures or debenture stock to a financial institution is lodged.

(4A) The company is not required, in consequence of that allotment or transfer, to comply with subsection (1).

(4B) “Financial institution” means—

(a)a recognised clearing house acting in relation to a recognised investment exchange; or

(b)a nominee of—

(i)a recognised clearing house acting in that way; or

(ii)a recognised investment exchange.

(4C) No person may be a nominee for the purposes of this section unless he is a person designated for those purposes in the rules of the recognised investment exchange in question.

(4D) Expressions used in subsections (4B) and (4C) have the same meaning as in Part 18 of the Financial Services and Markets Act 2000..

Disclosure of interests in shares: interests to be disclosed

8.—(1) Section 199 of the 1985 Act (interests in shares required to be disclosed)(15) is amended as follows.

(2) In subsection (2A), in paragraph (a) for “authorised to” substitute “who may lawfully”.

(3) For subsections (6) and (7) substitute—

(6) For the purposes of subsection (2A), a person (“A”) may lawfully manage investments belonging to another if—

(a)A can manage those investments in accordance with a permission which A has under Part 4 of the Financial Services and Markets Act 2000;

(b)A is an EEA firm of the kind mentioned in sub-paragraph (a) or (b) of paragraph 5 of Schedule 3 to that Act, and can manage those investments in accordance with its EEA authorisation;

(c)A can, in accordance with section 327 of that Act, manage those investments without contravening the prohibition contained in section 19 of that Act; or

(d)A can lawfully manage those investments in another Member State and would, if he were to manage those investments in the United Kingdom, require permission under Part 4 of that Act.

(7) References in this section to the management of investments must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

(4) In subsection (8)—

(a)in paragraph (b) for the words from the beginning to “conferred” substitute “is certified by the competent authority in that member State as complying with the conditions imposed”; and

(b)for “subsection (8) of section 86 of the Financial Services Act 1986” substitute “subsection (5) of section 264 of the Financial Services and Markets Act 2000”.

Disclosure of interests in shares: interests to be disregarded

9.  For section 209(2) of the 1985 Act (interests in shares to be disregarded for purposes of disclosure requirements)(16) substitute—

(2) An interest in shares is an exempt security interest for the purposes of subsection (1)(c) if the condition mentioned in subsection (2A) is satisfied and it is held by—

(a)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits;

(b)an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act;

(c)a person authorised under the law of a member State other than the United Kingdom to accept deposits who—

(i)would not qualify for authorisation under paragraph 12 of Schedule 3 to that Act; and

(ii)would require permission under another provision of that Act to accept such deposits in the United Kingdom;

(d)an authorised insurance undertaking;

(e)a person authorised under the law of a member State to deal in securities or derivatives, who deals in securities or derivatives on a relevant stock exchange or a relevant investment exchange, whether as a member or otherwise;

(f)a relevant stock exchange;

(g)a relevant investment exchange;

(h)a recognised clearing house;

(i)the Bank of England; or

(j)the central bank of a member State other than the United Kingdom.

(2A) The condition is that the interest in the shares must be held by way of security only for the purposes of a transaction entered into in the ordinary course of his or its business as a person or other body falling within any of paragraphs (a) to (j) of subsection (2).

(2B) Paragraphs (a) to (c) of subsection (2) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act.

(2C) But paragraph (a) of subsection (2) does not include—

(a)a building society incorporated, or deemed to be incorporated, under the Building Societies Act 1986; or

(b)a credit union, within the meaning of the Credit Unions Act 1979 of the Credit Unions (Northern Ireland) Order 1985..

Disclosure of interests in shares: interpretation

10.—(1) Subsection (1) of section 220 of the 1985 Act (interpretation of Part 6)(17) is amended in accordance with paragraphs (2) to (8).

(2) The definitions of “authorised credit institution” and “designated agency” are repealed.

(3) In the definition of “authorised unit trust scheme” for “Chapter VIII of Part I of the Financial Services Act 1986” substitute “Part 17 of the Financial Services and Markets Act 2000”.

(4) For the definition of “derivatives” substitute—

“derivatives” means options and futures in relation to shares;.

(5) After the definition of “derivatives” insert—

“EEA authorisation” has the same meaning as in paragraph 6 of Schedule 3 to the Financial Services and Markets Act 2000;.

(6) In the definition of “operator” for “section 75(8) of the Financial Services Act 1986” substitute “section 237(2) of the Financial Services and Markets Act 2000”.

(7) For the definition which begins ““recognised clearing house”,” substitute—

“recognised clearing house” has the same meaning as in the Financial Services and Markets Act 2000;

“recognised scheme” has the same meaning as in Part 17 of the Financial Services and Markets Act 2000;.

(8) In the definition of “units” for “section 75 of the Financial Services Act 1986” substitute “section 237(2) of the Financial Services and Markets Act 2000”.

(9) After section 220(1) of the 1985 Act insert—

(1A) References in subsection (1) to contracts of insurance (of any description), options and futures must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Limitations on exemptions for small and medium-sized companies in relation to accounts etc.

11.—(1) Section 247A of the 1985 Act (limitations on exemptions for small and medium-sized companies in relation to accounts etc.)(18) is amended as follows.

(2) In subsection (1), for paragraph (a) substitute—

(a)the company is, or was at any time within the financial year to which the accounts relate—

(i)a public company,

(ii)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to carry on one or more regulated activities, or

(iii)a person who carries on insurance market activity;.

(3) In subsection (2), for paragraphs (b) to (d) substitute—

(b)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to carry on a regulated activity, or

(c)a person who carries on an insurance market activity..

Limitations on exemptions for small and medium-sized groups

12.  In subsection (2) of section 248 of the Act (exemption for small and medium-sized groups), for paragraphs (b) to (d) substitute—

(b)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to carry on a regulated activity, or

(c)a person who carries on an insurance market activity..

Limitations on exemptions for dormant companies

13  In subsection (3) of section 249AA of the Act (dormant companies)(19), for paragraphs (a) and (b) substitute—

(a)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to carry on one or more regulated activities; or

(b)a person who carries on insurance market activity.

Cases where exemptions not available

14.—(1) Subsection (1) of section 249B of the Act (cases where exemptions not available) is amended as follows.

(2) For paragraph (b) substitute—

(b)it was a person who had permission under Part 4 of the Financial Services and Markets Act 2000 to carry on a regulated activity,.

(3) After paragraph (b) insert—

(bb)it carried on an insurance market activity,.

(4) For paragraph (d) substitute—

(d)it was an appointed representative, within the meaning of section 39 of the Financial Services and Markets Act 2000,.

Summary financial statements by listed public companies

15.  In section 251(1) of the 1985 Act (summary financial statements by listed public companies)(20), for the definition of “listed”, and the word “and” preceding it, substitute—

“listed” means included in the official list by the competent authority for the purposes of Part 6 of the Financial Services and Markets Act 2000 (official listing); and

“the official list” has the meaning given in section 103(1) of that Act..

Meaning of “banking partnership”

16.—(1) For subsection (2) of section 255D of the 1985 Act (power to apply provisions to banking)(21) substitute—

(2) A “banking partnership” means a partnership which has permission under Part 4 of the Financial Services and Markets Act 2000.

(2A) But a partnership is not a banking partnership if it has permission to accept deposits only for the purpose of carrying on another regulated activity in accordance with that permission..

(2) After subsection (4) of that section insert—

(5) Subsections (2) and (2A) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Other distributions by investment companies

17.—(1) Section 265 of the 1985 Act (other distributions by investment companies)(22) is amended as follows.

(2) In subsection (4)(a) the words “within the meaning of the Financial Services Act 1986” are repealed.

(3) After subsection (4) insert—

(4A) In subsection (4)(a) “recognised investment exchange” and “overseas investment exchange” have the same meaning as in Part 18 of the Financial Services and Markets Act 2000..

Realised profits of an insurance company with long term business

18.—(1) Section 268 of the 1985 Act (realised profits of insurance company with long term business) is amended as follows.

(2) In subsection (1)—

(a)for “an insurance company to which Part II of the Insurance Companies Act 1982 applies” substitute “an authorised insurance company”; and

(b)in paragraph (a), for “in accordance with section 30(1) of that Act or carried forward unappropriated as mentioned in section 30(7) of that Act” substitute “or, as the case may be, carried forward unappropriated, in accordance with asset identification rules made under section 142(2) of the Financial Services and Markets Act 2000”.

(3) In subsection (3)—

(a)for paragraph (a) substitute—

(a)“actuarial investigation” means—

(i)an investigation made into the financial condition of an authorised insurance company in respect of its long term business, carried out once in every period of twelve months in accordance with rules made under Part 10 of the Financial Services and Markets Act 2000 by an actuary appointed as actuary to that company; or

(ii)an investigation made into the financial condition of an authorised insurance company in respect of its long term business carried out in accordance with a requirement imposed under section 166 of that Act by an actuary appointed as actuary to that company;;

(b)for paragraph (b) substitute—

(b)“long term business” means business which consists of effecting or carrying out contracts of long term insurance..

(4) After subsection (3) insert—

(4) The definition of “long term business” in subsection (3) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Exceptions to rules relating to substantial property transactions involving directors

19.  In section 321(4) of the 1985 Act (exceptions to rules in section 320: transactions through independent broker on recognised investment exchange)(23), for “Financial Services Act 1986” substitute “Financial Services and Markets Act 2000”.

Duty of company to notify recognised investment exchange of certain matters concerning directors notified to the company

20.—(1) Section 329 of the 1985 Act (duty of company to notify recognised investment exchange of matters notified to it under sections 324 or 328)(24) is amended as follows.

(2) In subsection (1) the words “within the meaning of the Financial Services Act 1986” are repealed.

(3) After subsection (3) insert—

(4) In subsection (1) “recognised investment exchange” and “overseas investment exchange” have the same meaning as in Part 18 of the Financial Services and Markets Act 2000..

Investigation of share dealing

21.  In section 446 of the 1985 Act (investigation of share dealing)(25), for subsection (4) substitute—

(4) Sections 434 to 436 apply for the purposes of an investigation under this section to the following persons as they apply to officers of the company or of the other body corporate—

(a)an authorised person;

(b)a relevant professional;

(c)a person not falling within paragraph (a) or (b) who may carry on a regulated activity without contravening the prohibition imposed by section 19 of the Financial Services and Markets Act 2000; and

(d)in relation to an authorised person, to a relevant professional or to a person falling within paragraph (c)—

(i)if it is a body corporate, any person who is or has been an officer of it;

(ii)if it is a partnership, any person who is or has been a partner in it;

(iii)if it is an unincorporated association, any person who is or has been a member of its governing body or an officer of it.

(4A) In subsection (4)—

“authorised person” has the meaning given in section 31(2) of the Financial Services and Markets Act 2000;

“relevant professional” means a member of a profession in relation to which a body has been designated under section 326(1) of that Act, and, in relation to such a profession, “member” has the meaning given in section 325(2) of that Act..

Provision for security of information obtained

22.—(1) Section 449 of the 1985 Act (provision for security of information obtained under section 447 of that Act)(26) is amended as follows.

(2) In subsection (1), the following are repealed—

(a)in paragraph (c), the words “, or under section 94 or 177 of the Financial Services Act 1986,”;

(b)in paragraph (d), the words “the Insurance Companies Act 1982,”;

(c)paragraphs (de) and (df); and

(d)paragraph (i).

(3) In subsection (1)(cc), for the words from “or appointed” to “Financial Services Act 1986” substitute “section 447 of this Act”.

(4) After subsection (1)(cc) insert—

(cd)for the purposes of enabling or assisting a person appointed under—

(i)section 167 of the Financial Services and Markets Act 2000 (general investigations),

(ii)section 168 of that Act (investigations in particular cases),

(iii)section 169(1)(b) of that Act (investigation in support of overseas regulator),

(iv)section 284 of that Act (investigations into affairs of certain collective investment schemes), or

(v)regulations made as a result of section 262(2)(k) of that Act (investigations into open-ended investment companies),

to conduct an investigation to discharge his functions;.

(5) In subsection (1)(d), for words from “the Financial Services Act 1986” to the end substitute “, Part 2, 3 or 7 of the Companies Act 1989 or the Financial Services and Markets Act 2000;”.

(6) For paragraphs (fa) to (h) of subsection (1) substitute—

(fa)for the purposes of enabling or assisting the Financial Services Authority to discharge its functions under the legislation relating to friendly societies or to industrial and provident societies, under the Building Societies Act 1986, under Part 7 of the Companies Act 1989 or under the Financial Services and Markets Act 2000;

(fb)for the purposes of enabling or assisting the competent authority for the purposes of Part 6 of the Financial Services and Markets Act 2000 to discharge its functions under that Part;

(g)for the purposes of enabling or assisting a body corporate established in accordance with section 212(1) of the Financial Services and Markets Act 2000 (compensation scheme manager) to discharge its functions;

(h)for the purposes of any proceedings before the Financial Services Tribunal by virtue of the Financial Services and Markets Act 2000 (Transitional Provisions) (Partly Completed Procedures) Order 2001;

(ha)with a view to the institution of, or otherwise for the purposes of, proceedings before the Financial Services and Markets Tribunal;

(hb)for the purpose of enabling or assisting a recognised investment exchange or a recognised clearing house to discharge its functions as such;

(hc)for the purpose of enabling or assisting a body designated under section 326(1) of the Financial Services and Markets Act 2000 (designated professional bodies) to discharge its functions in its capacity as a body designated under that section;.

(7) In subsection (1A), before paragraph (a) insert—

(aa)in paragraph (hb) “recognised investment exchange” and “recognised clearing house” has the same meaning as in section 285 of the Financial Services and Markets Act 2000;.

(8) Subsection (1D) is repealed.

(9) In subsection (3)(b)(27), the words “or under section 94 or 177 of the Financial Services Act 1986” are repealed.

(10) After subsection (3)(b) insert—

(ba)a person appointed under—

(i)section 167 of the Financial Services and Markets Act 2000 (general investigations),

(ii)section 168 of that Act (investigations in particular cases),

(iii)section 169(1)(b) of that Act (investigation in support of overseas regulator),

(iv)section 284 of that Act (investigations into affairs of certain collective investment schemes), or

(v)regulations made as a result of section 262(2)(k) of that Act (investigations into open-ended investment companies),

to conduct an investigation;.

(11) In subsection (3), in paragraph (c), for the words from “under” to “Financial Services Act 1986” substitute “under section 447 of this Act”.

(12) In subsection (3), for paragraphs (ha) to (k)(28) substitute—

(ha)the Financial Services Authority;.

Punishment for destroying etc documents of an authorised insurance company

23.—(1) Section 450 of the 1985 Act (punishment for destroying, mutilating etc company documents) is amended as follows.

(2) In subsection (1)(29) the words “, or of an insurance company to which Part II of the Insurance Companies Act 1985 applies,” are repealed.

(3) After that subsection insert—

(1A) Subsection (1) applies to an officer of an authorised insurance company which is not a body corporate as it applies to an officer of a company..

Disclosure of information by inspectors

24.  For subsection (3) of section 451A of the 1985 Act (disclosure of information by inspectors)(30) substitute—

(3) Information to which this section applies may also be disclosed by an inspector appointed under this Part to—

(a)another inspector appointed under this Part;

(b)a person appointed under—

(i)section 167 of the Financial Services and Markets Act 2000 (general investigations),

(ii)section 168 of that Act (investigations in particular cases),

(iii)section 169(1)(b) of that Act (investigation in support of overseas regulator),

(iv)section 284 of that Act (investigations into affairs of certain collective investment schemes), or

(v)regulations made as a result of section 262(2)(k) of that Act (investigations into open-ended investment companies),

to conduct an investigation; or

(c)a person authorised to exercise powers under—

(i)section 447 of this Act; or

(ii)section 84 of the Companies Act 1989 (exercise of powers to assist overseas regulatory authority)..

Production of documents subject to customer confidentiality

25.—(1) Section 452 of the 1985 Act (privileged information) is amended as follows.

(2) In subsection (3)(31), for the words from “or the customer is a person on whom a requirement has been imposed under that section,” to the end of that subsection, substitute

or the customer is—

(a)a person on whom a requirement has been imposed under that section, or

(b)a person on whom a requirement to produce information or documents has been imposed by the Secretary of State, or by a person appointed by the Secretary of State to conduct an investigation, under section 171 or 173 of the Financial Services and Markets Act 2000..

Companies to which section 460 applies

26.  For subsection (1) of section 460 of the 1985 Act (order on application of the Secretary of State) substitute—

(1) If it appears to the Secretary of State that—

(a)the affairs of a company to which this subsection applies are being or have been conducted in a manner which is unfairly prejudicial to the interests of its members generally or of some part of its members, or

(b)any actual or proposed act or omission of a company to which this subsection applies, including an act or omission on its behalf, is or would be so prejudicial,

he may himself (in addition to or instead of presenting a petition for the winding up of the company) apply to the court by petition for an order under this Part.

(1A) Subsection (1) applies to a company in respect of which—

(a)the Secretary of State has received a report under section 437 of this Act;

(b)the Secretary of State has exercised his powers under section 447 or 448 of this Act;

(c)the Secretary of State or the Financial Services Authority has exercised his or its powers under Part 11 of the Financial Services and Markets Act 2000; or

(d)the Secretary of State has received a report from an investigator appointed by him or the Financial Services Authority under that Part..

Application of section 720 to insurers

27.—(1) Section 720 of the 1985 Act (certain companies to publish periodical statement) is amended as follows.

(2) In subsection (1) for “insurance company” substitute “insurer”.

(3) In subsection (5) for “insurance company” substitute “insurer”.

(4) For subsection (6) substitute—

(6) This section does not apply to an insurer which is—

(a)an insurance company which is subject to, and complies with, rules made by the Financial Services Authority under Part 10 of the Financial Services and Markets Act 2000 as to the accounts and balance sheet to be prepared annually and deposited; or

(b)an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to the Financial Services and Markets Act 2000, if the firm complies with the provisions of law of its home State as to the accounts and balance sheets to be prepared annually and deposited..

(5) After subsection (7) insert—

(8) For the purposes of this section—

(a)“insurer” means a person who effects or carries out contracts of insurance in the United Kingdom; and

(b)“contract of insurance” includes a contract of insurance under which the benefits provided by the insurer are exclusively or primarily benefits in kind in the event of accident to or breakdown of a vehicle.

(9) Subsection (8) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that Schedule; and

(c)Schedule 2 to that Act..

References to the Companies Acts in certain provisions to include references to the Financial Services and Markets Act 2000

28.  In section 735B of the 1985 Act (construction of certain references to the Companies Acts)(32) for “Parts IV and V of the Financial Services Act 1986” substitute “Part 6 of the Financial Services and Markets Act 2000”.

Meaning of “offer to the public”, “banking company”, “insurance company” and “authorised insurance company”

29.  After section 742 of the 1985 Act, insert—

Meaning of “offer to the public”

742A.(1) Any reference in Part IV (allotment of shares and debentures) or Part VII (accounts) to offering shares or debentures to the public is to be read as including a reference to offering them to any section of the public, however selected.

(2) This section does not require an offer to be treated as made to the public if it can properly be regarded, in all the circumstances—

(a)as not being calculated to result, directly or indirectly, in the shares or debentures becoming available for subscription or purchase by persons other than those receiving the offer; or

(b)as being a domestic concern of the persons receiving and making it.

(3) An offer of shares in or debentures of a private company (other than an offer to which subsection (5) applies) is to be regarded (unless the contrary is proved) as being a domestic concern of the persons making and receiving it if—

(a)it is made to—

(i)an existing member of the company making the offer,

(ii)an existing employee of that company,

(iii)the widow or widower of a person who was a member or employee of that company,

(iv)a member of the family of a person who is or was a member or employee of that company, or

(v)an existing debenture holder; or

(b)it is an offer to subscribe for shares or debentures to be held under an employee’s share scheme.

(4) Subsection (5) applies to an offer—

(a)which falls within paragraph (a) or (b) of subsection (3); but

(b)which is made on terms which permit the person to whom it is made to renounce his right to the allotment of shares or issue of debentures.

(5) The offer is to be regarded (unless the contrary is proved) as being a domestic concern of the persons making and receiving it if the terms are such that the right may be renounced only in favour—

(a)of any person mentioned in subsection (3)(a); or

(b)in the case of an employee’s share scheme, of a person entitled to hold shares or debentures under the scheme.

(6) For the purposes of subsection (3)(a)(iv), the members of a person’s family are—

(a)the person’s spouse and children (including step-children) and their descendants, and

(b)any trustee (acting in his capacity as such) of a trust the principal beneficiary of which is the person him or herself or of any of those relatives.

(7) Where an application has been made to the competent authority in any EEA State for the admission of any securities to official listing, then an offer of those securities for subscription or sale to a person whose ordinary business it is to buy or sell shares or debentures (whether as principal or agent) is not to be regarded as an offer to the public for the purposes of this Part.

(8) For the purposes of subsection (7)—

(a)“competent authority” means a competent authority appointed for the purposes of the Council Directive of 28 May 2001 on the admission of securities to official stock exchange listing and on information to be published on those securities; and

(b)“official listing” means official listing pursuant to that directive.

Meaning of “banking company”

742B(1) Subject to subsection (2), “banking company” means a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits.

(2) A banking company does not include—

(a)a person who is not a company, and

(b)a person who has permission to accept deposits only for the purpose of carrying on another regulated activity in accordance with that permission.

(3) This section must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act.

Meaning of “insurance company” and “authorised insurance company”

742C(1) For the purposes of this Act, “insurance company” has the meaning given in subsection (2) and “authorised insurance company” has the meaning given in subsection (4).

(2) Subject to subsection (3), “insurance company” means a person (whether incorporated or not)—

(a)who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of insurance; or

(b)who carries on insurance market activity; or

(c)who may effect or carry out contracts of insurance under which the benefits provided by that person are exclusively or primarily benefits in kind in the event of accident to or breakdown of a vehicle, and does not fall within paragraph (a).

(3) An insurance company does not include a friendly society, within the meaning of section 116 of the Friendly Societies Act 1992.

(4) An “authorised insurance company” means a person falling within paragraph (a) of subsection (2).

(5) References in this section to contracts of insurance and the effecting or carrying out of such contracts must be read with -

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Interpretation of the 1985 Act

30.  In section 744 of the 1985 Act (interpretation)(33)—

(a)the definitions of “banking company” and “insurance company” are repealed;

(b)after the definition of “the insider dealing legislation” insert—

“insurance market activity” has the meaning given in section 316(3) of the Financial Services and Markets Act 2000;; and

(c)before the definition of “the registrar of companies” insert—

“regulated activity” has the meaning given in section 22 of the Financial Services and Markets Act 2000;.

Table of defined expressions

31.  In the Table in section 744A (index of defined expressions)(34)—

(a)after the entry relating to “articles” insert—

authorised insurance companysection 742C

(b)in the second column of the entry relating to “banking company”, for “section 744” substitute “section 742B”;

(c)in the second column of the entry relating to “insurance company”, for “section 744” substitute “section 742C”;

(d)after the entry relating to “insurance company” insert—

insurance market activitysection 744;

(e)after the entry relating to “registrar and registrar of companies” insert—

regulated activitysection 744.

Form and content of company accounts

32.  For paragraph 84 of Schedule 4 to the 1985 Act (form and content of company accounts: listed investments)(35) substitute—

84.(1) “Listed investment” means an investment as respects which there has been granted a listing on—

(a)a recognised investment exchange other than an overseas investment exchange; or

(b)a stock exchange of repute outside Great Britain.

(2) “Recognised investment exchange” and “overseas investment exchange” have the meaning given in Part 18 of the Financial Services and Markets Act 2000..

Disclosure of information: emoluments and other benefits of directors and others

33.—(1) Paragraph 1(5) of Schedule 6 to the 1985 Act (disclosure of information: emoluments and other benefits of directors and others)(36) is amended as follows.

(2) For the definition of “listed company” substitute—

“listed company” means a company—

(a)

whose securities have been admitted to the official list in accordance with the provisions of Part 6 of the Financial Services and Markets Act 2000; or

(b)

dealings in whose securities are permitted on any recognised investment exchange approved by the Treasury in accordance with regulations made under section 2(2) of the European Communities Act 1972 with respect to dealings in unlisted securities;.

(3) After the definition of “net value” insert—

“the official list” has the meaning given in section 103(1) of the Financial Services and Markets Act 2000;.

(4) After the definition of “qualifying services” insert—

“recognised investment exchange” has the same meaning as in the Financial Services and Markets Act 2000;.

Form and content of company accounts: small companies

34.  For paragraph 54 of Schedule 8 to the 1985 Act (form and content of company accounts for small companies: listed investments)(37) substitute—

54.(1) “Listed investment” means an investment as respects which there has been granted a listing on—

(a)a recognised investment exchange other than an overseas investment exchange; or

(b)a stock exchange of repute outside Great Britain.

(2) “Recognised investment exchange” and “overseas investment exchange” have the meaning given in Part 18 of the Financial Services and Markets Act 2000..

Meaning of “deposit-taking business”, “chief executive” and “manager”

35.—(1) Schedule 9 to the 1985 Act (special provisions for banking companies and groups) is amended as follows.

(2) In Part II (consolidated accounts)(38), in paragraph 1 (undertakings to be included in consolidation)—

(a)in sub-paragraph (1) for “banking business” substitute “deposit-taking business”; and

(b)for sub-paragraph (2) substitute—

(2) For the purposes of this paragraph “deposit-taking business” means the activity of accepting deposits by way of business, but does not include accepting deposits only for the purpose of carrying on another regulated activity.;

(c)after sub-paragraph (2) insert—

(3) References in sub-paragraph (2) to deposits and their acceptance, and to regulated activities must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

(3) In Part IV of that Schedule (additional disclosure: emoluments and other benefits of directors and others), in sub-paragraph (1)(b) of paragraph 3 (other transactions and agreements) for “within the meaning of the Banking Act 1987” substitute “within the meaning of the Financial Services and Markets Act 2000”.

Form and content of accounts of insurance companies and groups

36.—(1) Schedule 9A to the 1985 Act (form and content of accounts of insurance companies and groups)(39) is amended in Part I (individual accounts) as follows.

(2) In paragraph 6—

(a)the existing text is numbered sub-paragraph (1);

(b)for “to business within Classes 1 and 2 of Schedule 2 to the 1982 Act” substitute “to business which consists of effecting or carrying out relevant contracts of general insurance”;

(c)after sub-paragraph (1) insert—

(2) For the purposes of paragraph (1), a contract of general insurance is a relevant contract if the risk insured against relates to—

(a)accident; or

(b)sickness.

(3) Sub-paragraph (2) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

(3) In Part I, in paragraph 9—

(a)the existing text is numbered sub-paragraph (1);

(b)in sub-paragraph (1)(a), for “business within the classes of insurance specified in Schedule 2 to the 1982 Act” substitute “business which consists of effecting or carrying out contracts of general insurance”;

(c)in sub-paragraph (1)(b), for “business within the classes of insurance specified in Schedule 1 to that Act” substitute “business which consists of effecting or carrying out contracts of long term insurance”; and

(d)after sub-paragraph (1) insert—

(2) In sub-paragraph (1), references to—

(a)contracts of general or long term insurance; and

(b)the effecting or carrying out of such contracts,

must be read with section 22 of the Financial Services and Markets Act 2000, any relevant order under that section, and Schedule 2 to that Act..

(4) In Section B (the required format for accounts), in note (24) (Equalisation provision)(40) of the Notes on the balance sheet format for “the amount of any reserve maintained by the company under section 34A of the Insurance Companies Act 1982” substitute “the amount of any equalisation reserve maintained in respect of general business by the company, in accordance with rules made by the Financial Services Authority under Part X of the Financial Services and Markets Act 2000”.

(5) In paragraph 11 (managed funds), for sub-paragraph (1)(a) substitute—

(a)the management of which constitutes long term insurance business, and.

(6) In Part I, for paragraph 50 (equalisation reserves)(41) substitute—

50.  The amount of any equalisation reserve maintained in respect of general business, in accordance with rules made by the Financial Services Authority under Part X of the Financial Services and Markets Act 2000, shall be determined in accordance with such rules..

(7) In paragraph 81 (interpretations of Part I), in sub-paragraph (1)—

(a)omit the definition of “the 1982 Act”;

(b)for the definition of “general business” substitute—

“general business” means business which consists of effecting or carrying out contracts of general insurance;;

(c)for the definition of “long term business” substitute—

“long term business” means business which consists of effecting or carrying out contracts of long term insurance;;

(d)in the definition of “long term fund” for “in accordance with the provisions of the 1982 Act” substitute “in accordance with rules made by the Financial Services Authority under Part X of the Financial Services and Markets Act 2000”; and

(e)for the definition of “policy holder” substitute—

“policy holder” has the meaning given in any relevant order under section 424(2) of the Financial Services and Markets Act 2000;.

Share dealing by directors etc.: supplementary provision

37.—(1) Paragraph 11 of Schedule 13 to the 1985 Act (share dealing by directors etc.: provision supplementary to sections 324 to 328)(42) is amended as follows.

(2) The existing provision becomes sub-paragraph (1).

(3) In that sub-paragraph, in paragraph (a), the words “within the meaning of the Financial Services Act 1986” are repealed.

(4) After that sub-paragraph, insert—

(2) “Unit trust scheme” and “authorised unit trust scheme” have the meaning given in section 237 of the Financial Services and Markets Act 2000..

Companies Consolidation (Consequential Provisions) Act 1985 (c. 9)

Repeal of spent provisions

38.  The following provisions of the Companies Consolidation (Consequential Provisions) Act 1985 are repealed—

(a)section 25; and

(b)in Schedule 2, the entries relating to—

(i)the Policyholders Protection Act 1975;

(ii)the Insurance Brokers (Registration) Act 1977; and

(iii)the Insurance Companies Act 1982.

Company Directors Disqualification Act 1986 (c. 46)

Disqualification after investigation of company

39.  In section 8 of the Company Directors Disqualification Act 1986 (disqualification after company investigation)(43), for subsection (1) substitute—

(1) If it appears to the Secretary of State from investigative material that it is expedient in the public interest that a disqualification order should be made against a person who is, or has been, a director or shadow director of a company, he may apply to the court for such an order.

(1A) “Investigative material” means—

(a)a report made by inspectors under—

(i)section 437 of the Companies Act 1985;

(ii)section 167, 168, 169 or 284 of the Financial Services and Markets Act 2000; or

(iii)where the company is an open-ended investment company (within the meaning of that Act) regulations made as a result of section 262(2)(k) of that Act; and

(b)information or documents obtained under—

(i)section 447 or 448 of the Companies Act 1985;

(ii)section 2 of the Criminal Justice Act 1987;

(iii)section 28 of the Criminal Law (Consolidation)(Scotland) Act 1995;

(iv)section 83 of the Companies Act 1989; or

(v)section 165, 171, 172, 173 or 175 of the Financial Services and Markets Act 2000..

Companies (Northern Ireland) Order 1986 (S.I. 1986/1032 (N.I. 6))

Interpretation of the 1986 Order

40.  In Article 2(3) of the Companies (Northern Ireland) Order 1986 (“the 1986 Order”) (interpretation)(44)—

(a)the definitions of “banking company” and “insurance company” are revoked; and

(b)after the definition of “the insider dealing legislation” insert—

“insurance market activity” has the meaning given in section 316(3) of the Financial Services and Markets Act 2000;

(c)before the definition of “the registrar of companies” insert—

regulated activity has the meaning given in section 22 of the Financial Services and Markets Act 2000;.

Table of defined expressions

41.  In the Table in Article 2A of the 1986 Order (index of defined expressions)(45)—

(a)after the entry relating to “articles” insert—

authorised insurance companyArticle 10C

(b)in the second column of the entry relating to “banking company”, for “Article 2(3)” substitute “Article 10B”;

(c)in the second column of the entry relating to “insurance company”, for “Article 2(3)” substitute “Article 10C”;

(d)after the entry relating to “insurance company” insert—

insurance market activityArticle 2(3);

(e)after the entry relating to “registrar and registrar of companies” insert—

regulated activityArticle 2(3).

References to the Companies Orders in certain provisions to include references to the Financial Services and Markets Act 2000

42.  In Article 2B of the 1986 Order (construction of certain references to the Companies Orders)(46) for “Parts IV and V of the Financial Services Act 1986” substitute “Part 6 of the Financial Services and Markets Act 2000”.

Meaning of “offer to the public”, “banking company”, “insurance company” and “authorised insurance company”

43.  After Article 10(47) of the 1986 Order, insert—

Meaning of “offer to the public”

10A.(1) Any reference in Part V (allotment of shares and debentures) or Part VIII (accounts) to offering shares or debentures to the public is to be read as including a reference to offering them to any section of the public, however selected.

(2) This Article does not require an offer to be treated as made to the public if it can properly be regarded, in all the circumstances—

(a)as not being calculated to result, directly or indirectly, in the shares or debentures becoming available for subscription or purchase by persons other than those receiving the offer; or

(b)as being a domestic concern of the persons receiving and making it.

(3) An offer of shares in or debentures of a private company (other than an offer to which paragraph (5) applies) is to be regarded (unless the contrary is proved) as being a domestic concern of the persons making and receiving it if—

(a)it is made to—

(i)an existing member of the company making the offer;

(ii)an existing employee of that company;

(iii)the widow or widower of a person who was a member or employee of that company;

(iv)a member of the family of a person who is or was a member or employee of that company; or

(v)an existing debenture holder; or

(b)it is an offer to subscribe for shares or debentures to be held under an employee’s share scheme.

(4) Paragraph (5) applies to an offer—

(a)which falls within sub-paragraph (a) or (b) of paragraph (3); but

(b)which is made on terms which permit the person to whom it is made to renounce his right to the allotment of shares or issue of debentures.

(5) The offer is to be regarded (unless the contrary is proved) as being a domestic concern of the persons making and receiving it if the terms are such that the right may be renounced only in favour—

(a)of any person mentioned in paragraph (3)(a); or

(b)in the case of an employee’s share scheme, of a person entitled to hold shares or debentures under the scheme.

(6) For the purposes of paragraph (3)(a)(iv), the members of a person’s family are—

(a)the person’s spouse and children (including step-children) and their descendants, and

(b)any trustee (acting in his capacity as such) of a trust the principal beneficiary of which is the person him or herself or of any of those relatives.

(7) Where an application has been made to the competent authority in any EEA State for the admission of any securities to official listing, then an offer of those securities for subscription or sale to a person whose ordinary business it is to buy or sell shares or debentures (whether as principal or agent) is not to be regarded as an offer to the public for the purposes of this Part.

(8) For the purposes of paragraph (7)—

(a)“competent authority” means a competent authority appointed for the purposes of the Council Directive of 28 May 2001 on the admission of securities to official stock exchange listing and on information to be published on those securities; and

(b)“official listing” means official listing pursuant to that directive.

Meaning of “banking company”

10B(1) Subject to paragraph (2), “banking company” means a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits.

(2) A banking company does not include—

(a)a person who is not a company, and

(b)a person who has permission to accept deposits only for the purpose of carrying on another regulated activity in accordance with that permission.

(3) This Article must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act.

Meaning of “insurance company” and “authorised insurance company”

10C(1) For the purposes of this Order, “insurance company” has the meaning given in paragraph (2) and “authorised insurance company” has the meaning given in paragraph (4).

(2) Subject to paragraph (3), “insurance company” means a person (whether incorporated or not)—

(a)who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of insurance;

(b)who carries on insurance market activity; or

(c)who may effect or carry out contracts of insurance under which the benefits provided by that person are exclusively or primarily benefits in kind in the event of accident to or breakdown of a vehicle, and does not fall within sub-paragraph (a).

(3) An insurance company does not include a friendly society, within the meaning of section 116 of the Friendly Societies Act 1992.

(4) An “authorised insurance company” means a person falling within sub-paragraph (a) of paragraph (2).

(5) References in this Article to contracts of insurance and the effecting or carrying out of such contracts must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Membership of holding company

44.—(1) Article 33 of the 1986 Order (membership of holding company)(48) is amended as follows.

(2) In paragraph (3)(a) the words “(within the meaning of the Financial Services Act 1986)” are repealed.

(3) After paragraph (3) insert—

(3A) In paragraph (3)(a) “recognised investment exchange” and “overseas investment exchange” have the same meaning as in Part 18 of the Financial Services and Markets Act 2000..

Repeal of unnecessary provisions

45.  Articles 69 and 70 of the 1986 Order (so far as those Articles continue to have effect) are repealed.

Purchase by company of its own shares: definition of “off-market” and “market” purchase

46.—(1) Article 173 of the 1986 Order (meaning of “off-market” and “market” purchase) is amended as follows.

(2) In paragraph (2)(a)(49) for “Part IV of the Financial Services Act 1986” substitute “Part 6 of the Financial Services and Markets Act 2000”.

(3) For paragraph (4)(50) substitute—

(4) “Recognised investment exchange” means a recognised investment exchange other than an overseas investment exchange.

(5) Expressions used in the definition contained in paragraph (4) have the same meaning as in Part 18 of the Financial Services and Markets Act 2000..

Duty of company as to issue of certificates

47.  For paragraph (4) of Article 195 of the 1986 Order (duty of company to issue certificates in relation to shares allotted or transferred)(51) substitute—

(4) Paragraph (4A) applies in relation to a company—

(a)of which shares or debentures are allotted to a financial institution,

(b)of which debenture stock is allotted to a financial institution, or

(c)with which a transfer for transferring shares, debentures or debenture stock to a financial institution is lodged.

(4A) The company is not required, in consequence of that allotment or transfer, to comply with paragraph (1).

(4B) “Financial institution” means—

(a)a recognised clearing house acting in relation to a recognised investment exchange; or

(b)a nominee of—

(i)a recognised clearing house acting in that way; or

(ii)a recognised investment exchange.

(4C) No person may be a nominee for the purposes of this Article unless he is a person designated for those purposes in the rules of the recognised investment exchange in question.

(4D) Expressions used in paragraphs (4B) and (4C) have the same meaning as in Part 18 of the Financial Services and Markets Act 2000..

Disclosure of interests in shares: interests to be disclosed

48.—(1) Article 207 of the 1986 Order (interests in shares required to be disclosed) is amended as follows.

(2) In paragraph (2A)(52), in sub-paragraph (a) for “authorised to” substitute “who may lawfully”.

(3) In that paragraph, in sub-paragraph (b), for paragraphs (ii) and (iii) substitute—

or

(ii)a recognised scheme;.

(4) For paragraphs (6) and (7)(53) substitute—

(6) For the purposes of paragraph (2A), a person (“A”) may lawfully manage investments belonging to another if—

(a)A can manage those investments in accordance with the permission which A has under Part 4 of the Financial Services and Markets Act 2000;

(b)A is an EEA firm of the kind mentioned in sub-paragraph (a) or (b) of paragraph 5 of Schedule 3 to that Act, and can manage those investments in accordance with its EEA authorisation;

(c)A can, in accordance with section 327 of that Act, manage those investments without contravening the prohibition contained in section 19 of that Act; or

(d)A can lawfully manage those investments in another Member State and would, if he were to manage those investments in the United Kingdom, require permission under Part 4 of that Act.

(7) References in this Article to the management of investments must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

(5) In paragraph (8)—

(a)in sub-paragraph (b) for the words from the beginning to “conferred” substitute “is certified by the competent authority in that member State as complying with the conditions imposed”; and

(b)for “subsection (8) of section 86 of the Financial Services Act 1986” substitute “subsection (5) of section 264 of the Financial Services and Markets Act 2000”.

Disclosure of interests in shares: interests to be disregarded

49.  For paragraph (2) of Article 217(54) of the 1986 Order (interests in shares to be disregarded for purposes of disclosure requirements) substitute—

(2) An interest in shares is an exempt security interest for the purposes of paragraph (1)(c) if the condition mentioned in paragraph (2A) is satisfied and the interest is held by—

(a)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits;

(b)an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to accept deposits;

(c)a person authorised under the law of a member State other than the United Kingdom to accept deposits who—

(i)would not qualify for authorisation under paragraph 12 of Schedule 3 to that Act, and

(ii)would require permission under another provision of that Act to accept such deposits in the United Kingdom;

(d)an authorised insurance undertaking;

(e)a person authorised under the law of a member State to deal in securities or derivatives, who deals in securities or derivatives on a relevant stock exchange or a relevant investment exchange, whether as a member or otherwise;

(f)a relevant stock exchange;

(g)a relevant investment exchange;

(h)a recognised clearing house;

(i)the Bank of England; or

(j)the central bank of a member State other than the United Kingdom.

(2A) The condition is that the interest in the shares must be held by way of security only for the purposes of a transaction entered into in the ordinary course of his or its business as a person or other body falling within any of sub-paragraphs (a) to (j) of paragraph (2).

(2B) Sub-paragraphs (a) to (c) of paragraph (2) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act.

(2C) But sub-paragraph (a) of paragraph (2) does not include—

(a)a building society incorporated, or deemed to be incorporated, under the Building Societies Act 1986; or

(b)a credit union, within the meaning of the Credit Unions Act 1979 or the Credit Unions (Northern Ireland) Order 1985..

Disclosure of interests in shares: interpretation

50.—(1) Paragraph (1) of Article 228(55) of the 1986 Order (interpretation of Part 7) is amended in accordance with sub-paragraphs (2) to (8).

(2) The definitions of “authorised credit institution” and “designated agency” are repealed.

(3) In the definition of “authorised unit trust scheme” for “Chapter VIII of Part I of the Financial Services Act 1986” substitute “Part 17 of the Financial Services and Markets Act 2000”.

(4) For the definition of “derivatives” substitute—

“derivatives” means options and futures in relation to shares;.

(5) After the definition of “derivatives” insert—

“EEA authorisation” has the meaning given in paragraph 6 of Schedule 3 to the Financial Services and Markets Act 2000;

(6) In the definition of “operator” for “section 75(8) of the Financial Services Act 1986” substitute “section 237(2) of the Financial Services and Markets Act 2000”.

(7) For the definition which begins ““recognised clearing house”, substitute—

“recognised clearing house” has the same meaning as in the Financial Services and Markets Act 2000;

“recognised scheme” has the same meaning as in Part 17 of the Financial Services and Markets Act 2000;.

(8) In the definition of “units” for “section 75 of the Financial Services Act 1986” substitute “section 237(2) of the Financial Services and Markets Act 2000”.

(9) After paragraph (1) of Article 228 of the 1986 Order insert—

(1A) References in paragraph (1) to contracts of insurance (of any description), options and futures must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Limitations on exemptions for small and medium-sized companies in relation to accounts etc.

51.—(1) Article 255A of the 1986 Order (limitations on exemptions for small and medium-sized companies in relation to accounts etc.)(56) is amended as follows.

(2) In paragraph (1), for sub-paragraph (a) substitute—

(a)the company is, or was at any time within the financial year to which the accounts relate—

(i)a public company,

(ii)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to carry on one or more regulated activities, or

(iii)a person who carries on insurance market activity;.

(3) In paragraph (2), for sub-paragraphs (b) to (d) substitute—

(b)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to carry on a regulated activity, or

(c)a person who carries on insurance market activity..

Limitations on exemptions for small and medium-sized groups

52.  In paragraph (2) of Article 256 of the 1986 Order (exemption for small and medium-sized groups)(57), for sub-paragraphs (b) to (d) substitute—

(b)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to carry on a regulated activity,

(c)a person who carries on insurance market activity..

Limitations on exemptions for dormant companies

53.  In paragraph (3) of Article 257AA of the 1986 Order (dormant companies)(58), for sub-paragraphs (a) and (b) substitute—

(a)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to carry on one or more regulated activities;

(b)a person who carries on insurance market activity..

Cases where exemptions not available

54.—(1) Paragraph (1) of Article 257B of the 1986 Order (cases where exemptions not available)(59) is amended as follows.

(2) For sub-paragraph (b) substitute—

(b)it was a person who had permission under Part 4 of the Financial Services and Markets Act 2000 to carry on a regulated activity,.

(3) After sub-paragraph (b) insert—

(bb)it carried on an insurance market activity,.

(4) For sub-paragraph (d) substitute—

(d)it was an appointed representative, within the meaning of section 39 of the Financial Services and Markets Act 2000,.

Summary financial statements by listed public companies

55.  In Article 259(1) of the 1986 Order (summary financial statements by listed public companies)(60), for the definition of “listed”, and the word “and” preceding it, substitute—

“listed” means included in the official list by the competent authority for the purposes of Part 6 of the Financial Services and Markets Act 2000 (official listing); and

“the official list” has the meaning given in section 103(1) of that Act..

Meaning of “banking partnership”

56.—(1) For paragraph (2) of Article 263D of the 1986 Order (power to apply provisions to banking)(61) substitute—

(2) A “banking partnership” means a partnership which has permission under Part 4 of the Financial Services and Markets Act 2000.

(2A) But a partnership is not a banking partnership if it has permission to accept deposits only for the purpose of carrying on another regulated activity in accordance with that permission..

(2) After paragraph ( 4) of that Article insert—

(5) Paragraphs (2) and (2A) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Other distributions by investment companies

57.—(1) Article 273 of the 1986 Order (other distributions by investment companies) is amended as follows.

(2) In paragraph (4)(a) the words “within the meaning of the Financial Services Act 1986” are repealed.

(3) After paragraph (4)(62) insert—

(4A) In paragraph (4)(a) “recognised investment exchange” and “overseas investment exchange” have the same meaning as in Part 18 of the Financial Services and Markets Act 2000..

Realised profits of an insurance company with long term business

58.—(1) Article 276 of the 1986 Order (realised profits of insurance company with long term business) is amended as follows.

(2) In paragraph (1)—

(a)for “an insurance company to which Part II of the Insurance Companies Act 1982 applies” substitute “an authorised insurance company”; and

(b)in sub-paragraph (a), for “in accordance with section 30(1) of that Act or carried forward unappropriated as mentioned in section 30(7) of that Act” substitute “or, as the case may be, carried forward unappropriated, in accordance with asset identification rules made under section 142(2) of the Financial Services and Markets Act 2000”.

(3) In paragraph (3)—

(a)for sub-paragraph (a) substitute—

(a)“actuarial investigation” means—

(i)an investigation made into the financial condition of an authorised insurance company in respect of its long term business, carried out once in every period of twelve months in accordance with rules made under Part 10 of the Financial Services and Markets Act 2000 by an actuary appointed as actuary to that company; or

(ii)an investigation made into the financial condition of an authorised insurance company in respect of its long term business carried out in accordance with a requirement imposed by the Financial Services Authority under section 166 of that Act by an actuary appointed as actuary to that company;

(b)for sub-paragraph (b) substitute—

(b)“long term business” means business which consists of effecting or carrying out contracts of long term insurance..

(4) After paragraph (3) insert—

(4) The definition of “long term business” in paragraph (3) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Exceptions to rules relating to substantial property transactions involving directors

59.  In Article 329(4)(63) of the 1986 Order (exceptions to rules in Article 328: transactions through independent broker on recognised investment exchange), for “Financial Services Act 1986” substitute “Financial Services and Markets Act 2000.”.

Duty of company to notify recognised investment exchange of certain matters concerning directors notified to the company

60.  In Article 337 of the 1986 Order (duty of company to notify recognised investment exchange of matters notified to it under Articles 332 or 336), after paragraph (3) insert—

(4) In paragraph (1) “recognised investment exchange” has the same meaning as in Part 18 of the Financial Services and Markets Act 2000..

Investigation of share dealing

61.  In Article 439 of the 1986 Order (investigation of share dealing), for paragraph (3)(64) substitute—

(3) Articles 427 to 429 apply for the purposes of an investigation under this Article to the following persons as they apply to officers of the company or of the other body corporate—

(a)an authorised person;

(b)a relevant professional;

(c)a person not falling within sub-paragraph (a) or (b) who may carry on a regulated activity without contravening the prohibition imposed by section 19 of the Financial Services and Markets Act 2000; and

(d)in relation to an authorised person, to a relevant professional or to a person falling within sub-paragraph (c)—

(i)if it is a body corporate, any person who is or has been an officer of it,

(ii)if it is a partnership, any person who is or has been a partner in it,

(iii)if it is an unincorporated association, any person who is or has been a member of its governing body or an officer of it.

(3A) In paragraph (3)—

“authorised person” has the meaning given in section 31(2) of the Financial Services and Markets Act 2000;

“relevant professional” means a member of a profession if a body has been designated under section 326(1) of that Act in relation to that profession, and, in relation to such a profession, “member” has the meaning given in section 325(2) of that Act..

Provision for security of information obtained

62.—(1) Article 442 of the 1986 Order (provision for security of information obtained under Article 440 of that Order) is amended as follows.

(2) In paragraph (1), the following are repealed—

(a)in sub-paragraph (c), the words “or section 94 of the Financial Services Act 1986”;

(b)in sub-paragraph (d), the words “the Insurance Companies Act 1982”;

(c)sub-paragraphs (de) and (df);

(d)sub-paragraph (i).

(3) In paragraph (1)(cc), for the words from “or appointed” to “Financial Services Act 1986” substitute “Article 440 of this Order”.

(4) After paragraph (1)(cc) insert—

(cd)for the purposes of enabling or assisting a person appointed under—

(i)section 167 of the Financial Services and Markets Act 2000 (general investigations),

(ii)section 168 of that Act (investigations in particular cases),

(iii)section 169(1)(b) of that Act (investigation in support of overseas regulator),

(iv)section 284 of that Act (investigations into affairs of certain collective investment schemes), or

(v)regulations made as a result of section 262(2)(k) of that Act (investigations into open-ended investment companies),

to conduct an investigation to discharge his functions;.

(5) In paragraph (1)(d), for “the Insurance Companies Act 1982” substitute “the Financial Services and Markets Act 2000”.

(6) For sub-paragraphs (fa) to (i) of paragraph (1) substitute—

(fa)for the purposes of enabling or assisting the Financial Services Authority to discharge its functions under the legislation relating to friendly societies or to industrial and provident societies, under the Building Societies Act 1986, under Part 7 of the Companies Act 1989 or under the Financial Services and Markets Act 2000;

(g)for the purposes of enabling or assisting a body corporate established in accordance with section 212(1) of the Financial Services and Markets Act 2000 (compensation scheme manager) to discharge its functions;

(h)for the purposes of any proceedings before the Financial Services Tribunal by virtue of the Financial Services and Markets Act 2000 (Transitional Provisions) (Partly Completed Procedures) Order 2001;

(ha)with a view to the institution of or otherwise for the purposes of proceedings before the Financial Services and Markets Tribunal;

(hb)for the purpose of enabling or assisting a recognised investment exchange or a recognised clearing house to discharge its functions as such;

(hc)for the purpose of enabling or assisting a body designated under section 326(1) of the Financial Services and Markets Act 2000 (designated professional bodies) to discharge its functions in its capacity as a body designated under that section;.

(7) In paragraph (1A)(65), before sub-paragraph (a) insert—

(aa)in sub-paragraph (hb) “recognised investment exchange” and “recognised clearing house” have the same meaning as in section 285 of the Financial Services and Markets Act 2000;.

(8) Paragraph (1D) is repealed.

(9) In paragraph (3)(b)(66), the words “or section 94 of the Financial Services Act 1986” are repealed.

(10) After paragraph (3)(b) insert—

(ba)a person appointed under—

(i)section 167 of the Financial Services and Markets Act 2000 (general investigations),

(ii)section 168 of that Act (investigations in particular cases),

(iii)section 169(1)(b) of that Act (investigation in support of overseas regulator),

(iv)section 284 of that Act (investigations into affairs of certain collective investment schemes), or

(v)regulations made as a result of section 262(2)(k) of that Act (investigations into open-ended investment companies),

to conduct an investigation;.

(11) In paragraph (3), in sub-paragraph (c), for the words from “under” to “Financial Services Act 1986” substitute “under Article 440 of this Order”.

(12) In paragraph (3), for sub-paragraphs (ha) to (k) substitute—

(ha)the Financial Services Authority;.

Punishment for destruction etc. of company documents

63.—(1) Article 443 of the 1986 Order (punishment for destroying, mutilating etc company documents) is amended as follows.

(2) In paragraph (1)(67) the words “, or of an insurance company to which Part II of the Insurance Companies Act 1982 applies,” are repealed.

(3) After that paragraph insert—

(1A) Paragraph (1) applies to an officer of an authorised insurance company which is not a body corporate as it applies to an officer of a company..

Disclosure of information by inspectors

64.  For paragraph (3) of Article 444A(68) of the 1986 Order (disclosure of information by inspectors) substitute—

(3) Information to which this Article applies may also be disclosed by an inspector appointed under this Part to—

(a)another inspector appointed under this Part;

(b)a person appointed under—

(i)section 167 of the Financial Services and Markets Act 2000 (general investigations),

(ii)section 168 of that Act (investigations in particular cases),

(iii)section 169(1)(b) of that Act (investigation in support of overseas regulator),

(iv)section 284 of that Act (investigations into affairs of certain collective investment schemes), or

(v)regulations made as a result of section 262(2)(k) of that Act (investigations into open-ended investment companies),

to conduct an investigation; or

(c)a person authorised to exercise powers under—

(i)Article 440 of this Order; or

(ii)section 84 of the Companies Act 1989 (exercise of powers to assist overseas regulatory authority)..

Production of documents subject to customer confidentiality

65.—(1) Article 445 of the 1986 Order (privileged information) is amended as follows.

(2) In paragraph (3)(69), for the words from “or the customer is a person on whom a requirement has been imposed under that Article,” to the end of that paragraph, substitute

or the customer is—

(a)a person on whom a requirement has been imposed under that Article, or

(b)an authorised insurance company on whom a requirement to produce information or documents has been imposed by or on behalf of the Secretary of State under Part XI of the Financial Services and Markets Act 2000..

Companies to which Article 453 applies

66.  For paragraph (1)(70) of section 453 of the 1986 Order (order on application of the Department) substitute—

(1) If it appears to the Department that—

(a)the affairs of a company to which this paragraph applies are being or have been conducted in a manner which is unfairly prejudicial to the interests of its members generally or of some part of its members, or

(b)any actual or proposed act or omission of a company to which this paragraph applies, including an act or omission on its behalf, is or would be so prejudicial,

the Department may (in addition to or instead of presenting a petition for the winding up of the company) apply to the court by petition for an order under this Part.

(1A) Paragraph (1) applies to a company in respect of which—

(a)the Department has received a report under Article 430;

(b)the Department has exercised its powers under Article 440 or 441;

(c)the Secretary of State or the Financial Services Authority has exercised his or its powers under Part 11 of the Financial Services and Markets Act 2000; or

(d)the Secretary of State has received a report from an investigator appointed by him or by the Financial Services Authority under that Part..

Application of Article 669 to insurers

67.—(1) Article 669 of the 1986 Order (certain companies to publish periodical statement) is amended as follows.

(2) In paragraph (1) for “insurance company” substitute “insurer”.

(3) In paragraph (5) for “insurance company” substitute “insurer”.

(4) For paragraph (6) substitute—

(6) This Article does not apply to an insurer which is—

(a)an insurance company which is subject to, and complies with, rules made by the Financial Services Authority under Part 10 of the Financial Services and Markets Act 2000 as to the accounts and balance sheet to be prepared annually and deposited; or

(b)an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to the Financial Services and Markets Act 2000, if the firm complies with the provisions of law of its home State as to the accounts and balance sheets to be prepared annually and deposited..

(5) After paragraph (7) insert—

(8) For the purposes of this Article—

(a)“insurer” means a person who effects or carries out contracts of insurance in the United Kingdom; and

(b)“contract of insurance” includes a contract of insurance under which the benefits provided by the insurer are exclusively or primarily benefits in kind in the event of accident to or breakdown of a vehicle.

(9) Paragraph (8) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that Schedule; and

(c)Schedule 2 to that Act..

Form and content of company accounts

68.  For paragraph 83(71) of Schedule 4 to the 1986 Order (form and content of company accounts: listed investments) substitute—

83.(1) “Listed investment” means an investment as respects which there has been granted a listing on—

(a)a recognised investment exchange other than an overseas investment exchange; or

(b)a stock exchange of repute outside Northern Ireland.

(2) “Recognised investment exchange” and “overseas investment exchange” have the meaning given in Part 18 of the Financial Services and Markets Act 2000..

Disclosure of information: emoluments and other benefits of directors and others

69.—(1) Paragraph 1(5) of Schedule 6(72) to the 1986 Order (disclosure of information: emoluments and other benefits of directors and others) is amended as follows.

(2) For the definition of “listed company” substitute—

“listed company” means a company—

(a)

whose securities have been admitted to the official list in accordance with the provisions of Part 6 of the Financial Services and Markets Act 2000; or

(b)

dealings in whose securities are permitted on any recognised investment exchange approved by the Treasury in accordance with regulations made under section 2(2) of the European Communities Act 1972 with respect to dealings in unlisted securities;.

(3) After the definition of “net value” insert—

“the official list” has the meaning given in section 103(1) of the Financial Services and Markets Act 2000;.

(4) After the definition of “qualifying services” insert—

“recognised investment exchange” has the same meaning as in the Financial Services and Markets Act 2000;.

Form and content of company accounts: small companies

70.  For paragraph 54 of Schedule 8(73) to the 1986 Order (form and content of company accounts for small companies: listed investments) substitute—

54.(1) “Listed investment” means an investment as respects which there has been granted a listing on—

(a)a recognised investment exchange other than an overseas investment exchange; or

(b)a stock exchange of repute outside Northern Ireland.

(2) “Recognised investment exchange” and “overseas investment exchange” have the meaning given in Part 18 of the Financial Services and Markets Act 2000..

Meaning of deposit-taking business, chief executive and manager

71.—(1) Schedule 9 to the 1986 Order (special provisions for banking companies and groups) is amended as follows.

(2) In Part II (consolidated accounts)(74), in paragraph 1 (undertakings to be included in consolidation)—

(a)in sub-paragraph (1) for “banking business” substitute “deposit-taking business”;

(b)for sub-paragraph (2) substitute—

(2) For the purposes of this paragraph “deposit-taking business” means the activity of accepting deposits by way of business, but does not include accepting deposits only for the purpose of carrying on another regulated activity.;

(c)after sub-paragraph (2) insert—

(3) References in sub-paragraph (2) to deposits and their acceptance, and to regulated activities must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

(3) In Part IV of that Schedule (additional disclosure: emoluments and other benefits of directors and others)(75), in sub-paragraph (1)(b) of paragraph 3 (other transactions and agreements) for “within the meaning of the Banking Act 1987” substitute “within the meaning of the Financial Services and Markets Act 2000”.

Form and content of accounts of insurance companies and groups

72.—(1) In Schedule 9A to the 1986 Order (form and content of accounts of insurance companies and groups)(76) Part I (individual accounts) is amended as follows.

(2) In paragraph 6—

(a)the existing text is numbered sub-paragraph (1);

(b)for “to business within Classes 1 and 2 of Schedule 2 to the 1982 Act” substitute “to business which consists of effecting or carrying out relevant contracts of general insurance”;

(c)after sub-paragraph (1) insert—

(2)For the purposes of sub-paragraph (1), a contract of general insurance is a relevant contract if the risk insured against relates to—

(a)accident; or

(b)sickness.

(3) Sub-paragraph (2) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

(3) In paragraph 9—

(a)the existing text is numbered sub-paragraph (1);

(b)in paragraph (a) of that sub-paragraph, for “business within the classes of insurance specified in Schedule 2 to the 1982 Act” substitute “business which consists of effecting or carrying out contracts of general insurance”;

(c)in paragraph (b) of that sub-paragraph, for “business within the classes of insurance specified in Schedule 1 to that Act” substitute “business which consists of effecting or carrying out contracts of long term insurance”; and

(d)after sub-paragraph (1) insert—

(2) In sub-paragraph (1), references to—

(a)contracts of general or long term insurance; and

(b)the effecting or carrying out of such contracts,

must be read with section 22 of the Financial Services and Markets Act 2000, any relevant order under that section, and Schedule 2 to that Act..

(4) In Section B (the required format for accounts), in note (24) (Equalisation provision)(77) of the Notes on the balance sheet format for “the amount of any reserve maintained by the company under section 34A of the Insurance Companies Act 1982” substitute “the amount of any equalisation reserve maintained in respect of general business by the company, in accordance with rules made by the Financial Services Authority under Part X of the Financial Services and Markets Act 2000”.

(5) In paragraph 11 (managed funds), for sub-paragraph (1)(a) substitute—

(a)the management of which constitutes long term insurance business, and.

(6) For paragraph 50 (equalisation reserves)(78) substitute—

50.  The amount of any equalisation reserve maintained in respect of general business, in accordance with rules made by the Financial Services Authority under Part X of the Financial Services and Markets Act 2000, shall be determined in accordance with such rules..

(7) In paragraph 81 (interpretations of Part I), in sub-paragraph (1)—

(a)omit the definition of “the 1982 Act”;

(b)for the definition of “general business” substitute—

“general business” means business which consists of effecting or carrying out contracts of general insurance;;

(c)for the definition of “long term business” substitute—

“long term business” means business which consists of effecting or carrying out contracts of long term insurance;;

(d)in the definition of “long term fund” for “in accordance with the provisions of the 1982 Act” substitute “in accordance with rules made by the Financial Services Authority under Part X of the Financial Services and Markets Act 2000”; and

(e)for the definition of “policy holder” substitute—

“policy holder” has the meaning given in any relevant order under section 424(2) of the Financial Services and Markets Act 2000;.

Share dealing by directors etc.: supplementary provision

73.—(1) Paragraph 11 of Schedule 13 to the 1986 Order (share dealing by directors etc.: provision supplementary to Articles 332 to 336) is amended as follows.

(2) The existing provision becomes sub-paragraph (1).

(3) In that sub-paragraph, in paragraph (a), the words “within the meaning of the Financial Services Act 1986” are repealed.

(4) After that sub-paragraph, insert—

(2) “Unit trust scheme” and “authorised unit trust scheme” have the meaning given in section 237 of the Financial Services and Markets Act 2000..

Companies Consolidation (Consequential Provisions)(Northern Ireland) Order 1986 (S.I. 1986/1035 (N.I. 9))

Repeal of spent provisions

74.  The following provisions of the Companies Consolidation (Consequential Provisions)(Northern Ireland) Order 1986 are repealed—

(a)Article 22; and

(b)in Part 2 of Schedule 1, the entries relating to-

(i)the Policyholders Protection Act 1975;

(ii)the Insurance Brokers (Registration) Act 1977; and

(iii)the Insurance Companies Act 1982.

The Companies' Act 1989 (c. 40)

Repeal of spent or unnecessary provisions

75.  The following provisions of the Companies Act 1989 are repealed—

(a)sections 72 to 77;

(b)section 79;

(c)section 81;

(d)section 119(3);

(e)section 156;

(f)section 168;

(g)section 169(1) and (4);

(h)section 171;

(i)sections 192 to 197;

(j)section 200(1);

(k)sections 201 to 206;

(l)in section 213, subsections (5)(b) and (6);

(m)section 214;

(n)in Schedule 10, paragraphs 36 and 37;

(o)in Schedule 20, paragraph 26;

(p)Schedule 21;

(q)Schedule 22; and

(r)Schedule 23.

Requests for assistance by overseas regulatory authorities

76.—(1) Section 82 of the Companies Act 1989 (requests for assistance by overseas regulatory authorities) is amended as follows.

(2) In subsection (2), for paragraph (a)(79) substitute—

(a)any function corresponding to—

(i)any function of the Secretary of State under the Companies Act 1985;

(ii)any function of the Financial Services Authority under the Financial Services and Markets Act 2000;

(iii)any function exercised by the competent authority under Part VI of that Act in relation to the listing of shares;.

(3) In subsection (3), for “he is” substitute “he and the Financial Services Authority are”.

(4) In subsection (5)(80), in the definition of “banking supervisor”, for “under the Banking Act 1987” substitute “in relation to authorised persons with permission under the Financial Services and Markets Act 2000 to accept deposits”.

(5) After that subsection, insert—

(5A) In subsection (5), “authorised person” has the meaning given in the Financial Services and Markets Act 2000 and the references to deposits and their acceptance must be read with—

(a)section 22 of that Act;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Exceptions from restrictions on disclosure of information

77.—(1) Section 87 of the Companies Act 1989 (exceptions from restrictions on disclosure of information) is amended as follows.

(2) In subsection (2), for paragraph (b) substitute—

(b)civil proceedings arising under or by virtue of the Financial Services and Markets Act 2000 and proceedings before the Financial Services and Markets Tribunal;.

(3) In subsection (4), the table is amended in accordance with paragraphs (4) to (11).

(4) The entries relating to the following are repealed—

  • A designated agency within the meaning of the Financial Services Act 1986;

  • A transferee body or the competent authority within the meaning of the Financial Services Act 1986;

  • The body administering a scheme under section 54 of the Financial Services Act 1986;

  • A recognised self-regulating organisation, recognised professional body, recognised investment exchange, recognised clearing house or recognised self-regulating organisation for friendly societies (within the meaning of the Financial Services Act 1986);

  • The Chief Registrar of friendly societies, and the Assistant Registrar of Friendly Societies for Scotland;

  • The Friendly Societies Commission(81);

  • The Deposit Protection Board;

  • The Industrial Assurance Commissioner and the Industrial Assurance Commissioner for Northern Ireland; and

  • The Building Societies Commission.

(5) For the entry relating to the Secretary of State substitute—

The Secretary of State

Functions under—

(a)

the enactments relating to companies or insolvency;

(b)

Part 2, this Part or Part 7 of this Act;

(c)

the Financial Services and Markets Act 2000..

(6) For the entry relating to the Treasury(82) substitute—

The Treasury.

Functions under—

(a)

this Part or Part 7 of this Act;

(b)

the Financial Services and Markets Act 2000..

(7) For the entry relating to an inspector substitute—

An inspector appointed under Part 14 of the Companies Act 1985.Functions under that Part.

(8) For the entry which begins “A person authorised to exercise powers”(83) substitute—

A person authorised to exercise powers under section 447 of the Companies Act 1985 or section 84 of this Act.

Functions under that section.

A person appointed under—

(a)

section 167 of the Financial Services and Markets Act 2000 (general investigations),

(b)

section 168 of that Act (investigations in particular cases),

(c)

section 169(1)(b) of that Act (investigation in support of overseas regulator),

(d)

section 284 of that Act (investigations into affairs of certain collective investment schemes), or

(e)

regulations made as a result of section 262(2)(k) of that Act (investigations into open-ended investment companies),

to conduct an investigation.

Functions in relation to the investigation..

(9) For the entry relating to the Financial Services Authority(84) substitute—

The Financial Services Authority.Functions under the enactments relating to friendly societies, under the Building Societies Act 1986 and under the Financial Services and Markets Act 2000..

(10) After that entry insert—

A body corporate established in accordance with section 212(1) of that Act.Functions under the Financial Services Compensation Scheme, established in accordance with section 213 of that Act.
A recognised investment exchange or a recognised clearing house (as defined by section 285 of that Act).Functions in its capacity as an exchange or clearing house recognised under that Act.
A body designated under section 326(1) of the Financial Services and Markets Act 2000.Functions in its capacity as a body designated under that section..

(11) In the entry relating to the Director General of Fair Trading, for “Financial Services Act 1986” substitute “Financial Services and Markets Act 2000”.

Exercise of powers in relation to Northern Ireland

78.  In section 88 of the Companies Act 1989 (exercise of powers in relation to Northern Ireland), in subsection (3), for paragraph (b) substitute—

(b)section 449 of the Companies Act 1985 and sections 86 and 87 above (restrictions on disclosure of information);.

Change in default rules of recognised investment exchange and clearing house

79.  In section 157(1) of the Companies Act 1989 (notification of change in default rules), for “Secretary of State”, in both places, substitute “Authority”.

Duty to report on completion of default proceedings

80.—(1) Section 162 of the Companies Act 1989 (duty to report on completion of default proceedings) is amended as follows.

(2) In subsection (1)(85), for “Secretary of State” substitute “Authority”.

(3) In subsection (1A)(86), for “Secretary of State” substitute “Authority”.

(4) In subsection (4)—

(a)for “Secretary of State, he” substitute “Authority, it”;

(b)for “he”, in the second place where it occurs, substitute “it”; and

(c)for “it” substitute “the report”.

Power to give directions

81.—(1) Section 166 of the Companies Act 1989 (power to give directions to recognised investment exchanges and recognised clearing houses with head offices in the UK) is amended as follows.

(2) In subsection (2), in each of paragraphs (a) and (b)—

(a)for “Secretary of State” substitute “Authority”;

(b)for “he” substitute “the Authority”.

(3) In subsection (3)—

(a)for “Secretary of State” substitute “Authority”; and

(b)for “he”, in both places, substitute “it”.

(4) In subsection (7)—

(a)for “Secretary of State”, in both places, substitute “Authority”; and

(b)for “he is satisfied that it” substitute “it is satisfied that the direction”.

(5) In subsection (8) for “Secretary of State” substitute “Authority”.

Application to determine whether default proceedings to be taken

82.—(1) Section 167 of the Companies Act 1989 (application to determine whether default proceedings to be taken) is amended as follows.

(2) In subsection (1) for “Secretary of State” substitute “Authority”.

(3) In subsection (3), for “Secretary of State”, in both places, substitute “Authority”.

(4) In subsection (4) for “Secretary of State” substitute “Authority”.

(5) In subsection (5) for “Secretary of State”, in both places, substitute “Authority”.

Application of certain provisions for purposes of Part 7

83.—(1) Section 169 of the Companies Act 1989 (Part 7: supplementary provisions) is amended as follows.

(2) In subsection (2) for the words from the beginning to “apply” substitute “Sections 296 and 297 of the Financial Services and Markets Act 2000 apply”.

(3) In subsection (3)—

(a)for “Financial Services Act 1986, the Secretary of State” substitute “Financial Services and Markets Act 2000, the appropriate authority”; and

(b)for “he” substitute “it”.

(4) After that subsection insert—

(3A) “The appropriate authority” means—

(a)in the case of an overseas investment exchange or clearing house, the Treasury; and

(b)in the case of a UK investment exchange or clearing house, the Authority..

(5) In subsection (5)—

(a)for the words from the beginning to “applies” substitute “Regulations under section 414 of the Financial Services and Markets Act 2000 (service of notices) may make provision”; and

(b)for “Secretary of State” substitute “Treasury or the Authority”.

Application of Part 7 in relation to overseas investment exchanges and clearing houses

84.—(1) Section 170 of the Companies Act 1989 (power to make provision in relation to certain overseas investment exchanges and clearing houses) is amended as follows.

(2) In subsection (1)—

(a)after “Secretary of State” insert “and the Treasury”; and

(b)for “him” substitute “the Treasury”.

(3) In subsection (2)—

(a)for “Secretary of State” substitute “Treasury”; and

(b)for “he is” substitute “they are”.

(4) In subsections (4), (5)(a) and (6) for “Financial Services Act 1986” substitute “Financial Services and Markets Act 2000”.

Power to make provision about certain charges other than market charges

85.—(1) Section 176 of the Companies Act 1989 (power to make provision about certain other charges) is amended as follows.

(2) In paragraph (b) of subsection (2)—

(a)the words “Financial Services” are repealed(87); and

(b)for “section 171” substitute “section 301 of the Financial Services and Markets Act 2000”.

(3) For paragraphs (d) and (e) of that subsection substitute—

(d)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to carry on a relevant regulated activity, or

(e)an international securities self-regulating organisation approved for the purposes of an order made under section 22 of the Financial Services and Markets Act 2000,.

(4) In subsection (6)(88)—

(a)the words “Financial Services” are repealed; and

(b)for “section 171” substitute “section 301 of the Financial Services and Markets Act 2000”.

(5) After subsection (7) insert—

(8) For the purposes of subsection (2)(d), “relevant regulated activity” means—

(a)dealing in investments as principal or as agent;

(b)arranging deals in investments;

(c)managing investments;

(d)safeguarding and administering investments;

(e)sending dematerialised instructions; or

(f)establishing etc. a collective investment scheme.

(9) Subsection (8) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Power to apply sections 177 to 180 to other cases

86.—(1) Section 181 of the Companies Act 1989 (power to apply sections 177 to 180 to other cases) is amended as follows.

(2) In subsection (1), for the words from the beginning to “includes” substitute “A power to which this subsection applies includes the”.

(3) After subsection (2) insert—

(3) Subsection (1) applies to the powers of the Secretary of State and the Treasury to act jointly under—

(a)sections 170, 172 and 176 of this Act; and

(b)section 301 of the Financial Services and Markets Act 2000 (supervision of certain contracts)..

Indemnity for certain acts

87.  In section 184(5) of the Companies Act 1989 (indemnity for certain acts), for the words from “exercising” to “procedures” substitute “to whom the exercise of any function of a recognised investment exchange or recognised clearing house is delegated under its default rules”.

Power of Treasury and Secretary of State to make further provision for purposes of Part 7

88.  After subsection (3) of section 185 of the Companies Act 1989 (power of Treasury and Secretary of State to make further provision for purposes of Part 7) insert—

(4) References in this section to the provisions of this Part include any provision made under section 301 of the Financial Services and Markets Act 2000..

Definitions for purposes of Part 7

89.—(1) Section 190 of the Companies Act 1989 (definitions for purposes of Part 7) is amended in accordance with paragraphs (2) to (6).

(2) In subsection (1), after the definition of “administrative receiver”, insert—

“the Authority” means the Financial Services Authority;.

(3) In that subsection, the definitions of “clearing house”, of “investment” and “investment exchange” and of “recognised” are repealed.

(4) In that subsection, after the definition of “overseas”, insert—

“recognised clearing house” and “recognised investment exchange” have the same meaning as in the Financial Services and Markets Act 2000;.

(5) In that subsection, for the definition of “The Stock Exchange” substitute—

“The Stock Exchange” means the London Stock Exchange Limited;.

(6) Subsection (4) is repealed.

(7) In the table in section 191 of that Act (table of defined expressions)—

(a)the entries relating to the following expressions are repealed—

  • clearing house;

  • ensuring the performance of a transaction;

  • investment;

  • investment exchange; and

  • recognised; and

(b)insert the following in the appropriate places—

the Authoritysection 190(1); and
recognised clearing house and recognised investment exchangesection 190(1).

Transfer of securities

90.  In section 207(1) of the Companies Act 1989 (transfer of securities), in paragraph (a), for “Financial Services Act 1986” substitute “Financial Services and Markets Act 2000”.

The Companies (Northern Ireland) Order 1989 (S.I. 1989/2404 (N.I. 18))

Disqualification after investigation of company

91.  In Article 11 of the Companies (Northern Ireland) Order 1989 (disqualification after company investigation), for paragraphs (1)(89) and (2) substitute—

(1) If it appears to the Department from investigative material that it is expedient in the public interest that a disqualification order should be made against a person who is, or has been, a director or shadow director of a company, the Department may apply to the High Court for such an order.

(1A) “Investigative material” means—

(a)a report made by inspectors under—

(i)Article 430 of the Companies Order; or

(ii)section 167, 168, 169 or 284 of the Financial Services and Markets Act 2000; or

(iii)where the company is an open-ended investment company (within the meaning of that Act) regulations made as a result of section 262(2)(k) of that Act; and

(b)information or documents obtained under—

(i)Article 440 or 441 of the Companies Order;

(ii)section 2 of the Criminal Justice Act 1987;

(iii)section 28 of the Criminal Law (Consolidation)(Scotland) Act 1995;

(iv)section 83 of the Companies Act 1989; or

(v)section 165, 171, 172, 173 or 175 of the Financial Services and Markets Act 2000..

The Companies (No.2)(Northern Ireland) Order 1990 (S.I. 1990/1504 (N.I. 10))

Repeal of spent or unnecessary provisions

92.  The following provisions of the Companies (No. 2) (Northern Ireland) Order 1990 are repealed—

(a)Articles 24 to 26;

(b)Article 54(3);

(c)Article 91; and

(d)Article 93.

Duty to report on completion of default proceedings

93.—(1) Article 85 of the Companies (No. 2)(Northern Ireland) Order 1990 (duty to report on completion of default proceedings) is amended as follows.

(2) In paragraph (1)(90), for “Secretary of State” substitute “Authority”.

(3) In paragraph (1A)(91), for “Secretary of State” substitute “Authority”.

(4) In paragraph (4)—

(a)for “Secretary of State, he” substitute “Authority, it”;

(b)for “he”, in the second place where it occurs, substitute “it”; and

(c)for “it” substitute “the report”.

Power to give directions

94.—(1) Article 89 of the Companies (No. 2) (Northern Ireland) Order 1990 (power to give directions to recognised investment exchanges and recognised clearing houses with head offices in the UK) is amended as follows.

(2) In paragraph (2), in each of sub-paragraphs (a) and (b)—

(a)for “Secretary of State” substitute “Authority”;

(b)for “he” substitute “the Authority”.

(3) In paragraph (3)—

(a)for “Secretary of State” substitute “Authority”; and

(b)for “he”, in both places, substitute “it”.

(4) In paragraph (7)—

(a)for “Secretary of State”, in both places, substitute “Authority”; and

(b)for “he is satisfied that it” substitute “it is satisfied that the direction”.

(5) In paragraph (8) for “Secretary of State” substitute “Authority”.

Application to determine whether default proceedings to be taken

95.—(1) Article 90 of the Companies (No. 2) (Northern Ireland) Order 1990 (application to determine whether default proceedings to be taken) is amended as follows.

(2) In paragraph (1) for “Secretary of State” substitute “Authority”.

(3) In paragraph (3), for “Secretary of State”, in both places, substitute “Authority”.

(4) In paragraph (4) for “Secretary of State” substitute “Authority”.

(5) In paragraph (5) for “Secretary of State”, in both places, substitute “Authority”.

Application of Part 5 in relation to overseas investment exchanges and clearing houses

96.  In Article 92(1) of the Companies (No. 2) (Northern Ireland) Order 1990 (power to make provision in relation to certain overseas investment exchanges and clearing houses)—

(a)after “Department” insert “and the Treasury”; and

(b)for “Secretary of State” substitute “the Treasury”.

Power to make provision about certain charges other than market charges

97.—(1) Article 98 of the Companies (No.2) (Northern Ireland) Order 1990 (power to make provision about certain other charges) is amended as follows.

(2) In sub-paragraph (b) of paragraph (2)—

(a)the words “Financial Services” are repealed; and

(b)for “section 171” substitute “section 301 of the Financial Services and Markets Act 2000”.

(3) For sub-paragraphs (d) and (e) of that paragraph substitute—

(d)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to carry on a relevant regulated activity, or

(e)an international securities self-regulating organisation approved for the purposes of an order made under section 22 of the Financial Services and Markets Act 2000,.

(4) In paragraph (6)—

(a)the words “Financial Services” are repealed; and

(b)for “section 171” substitute “section 301 of the Financial Services and Markets Act 2000”.

(5)  After paragraph (7) insert—

(8) For the purposes of subsection (2)(d), “relevant regulated activity” means—

(a)dealing in investments as principal or as agent;

(b)arranging deals in investments;

(c)managing investments;

(d)safeguarding and administering investments;

(e)sending dematerialised instructions; or

(f)establishing etc. a collective investment scheme.

(9) Paragraph (8) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Power to apply Articles 99 to 102 to other cases

98.  In Article 103(1)(a) of the Companies (No. 2) (Northern Ireland) Order 1990 (power to apply Articles 99 to 102 to other cases), the words “93” are repealed.

Indemnity for certain acts

99.  In Article 105(5) of the Companies (No. 2) (Northern Ireland) Order 1990 (indemnity for certain acts), for the words from “exercising” to “procedures” substitute “to whom the exercise of any function of a recognised investment exchange or recognised clearing house is delegated under its default rules”.

Power of Secretary of State to make further provision for purposes of Part 5

100.  After paragraph (3) of Article 106 of the Companies (No. 2) (Northern Ireland) Order 1990 (power of Secretary of State to make further provision for purposes of Part 5) insert—

(4) References in paragraph (2) to the provisions of this Part include any provision made under section 301 of the Financial Services and Markets Act 2000..

Definitions for purposes of Part 5

101.—(1) Article 111 of the Companies (No. 2) (Northern Ireland) Order 1990 (definitions for purposes of Part 5) is amended in accordance with paragraphs (2) to (6).

(2) In paragraph (1), after the definition of “administrative receiver”, insert—

“the Authority” means the Financial Services Authority;.

(3) In that paragraph, the definitions of “clearing house”, of “investment” and “investment exchange” and of “recognised” are repealed.

(4) In that paragraph, after the definition of “overseas”, insert—

“recognised clearing house” and “recognised investment exchange” have the same meaning as in the Financial Services and Markets Act 2000;.

(5) In that paragraph, for the definition of “The Stock Exchange” substitute—

“The Stock Exchange” means the London Stock Exchange Limited;.

(6) Paragraph (4) is repealed.

(7) In the table in Article 112 of that Order (table of defined expressions)—

(a)the entries relating to the following expressions are repealed—

  • clearing house;

  • ensuring the performance of a transaction;

  • investment;

  • investment exchange; and

  • recognised; and

(b)insert the following in the appropriate places—

the AuthorityArticle 111(1); and
recognised clearing house and recognised investment exchangeArticle 111(1).

PART 3ENACTMENTS RELATING TO PENSIONS

Fire Services Act 1947 (c. 41)

Information in connection with firemen’s pensions

102.  In section 27A(92) of the Fire Services Act 1947 (information in connection with firemen’s pensions), in subsection (2)(a), after “section 62 of the Financial Services Act 1986” insert “or section 150 of the Financial Services and Markets Act 2000”.

Judicial Pensions Act (Northern Ireland) 1951 (c. 20)

Additional voluntary contributions

103.—(1) Section 11A(93) of the Judicial Pensions Act (Northern Ireland) 1951 (additional voluntary contributions) is amended as follows.

(2) In subsection (2)(d), for sub-paragraph (iii) substitute—

(iii)the general value of benefits available to a person under any contract of life insurance entered into by him with an insurer;.

(3) In subsection (7)—

(a)for the definition of “authorised provider” substitute—

“authorised provider”, in relation to the investment of any sums paid by way of voluntary contributions or the provision of any benefit, means—

(a)

a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to invest such sums or, as the case may be, to provide that benefit;

(b)

an EEA firm of a kind mentioned in paragraph 5(a), (b) or (c) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to invest such sums or, as the case may be, to provide that benefit and which satisfies the conditions applicable to it which are specified in subsection (7B), (7C) or (7D); or

(c)

an EEA firm of a kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to invest such sums or, as the case may be, to provide that benefit.; and

(b)after the definition of “employment” insert—

“insurer” means—

(a)

a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of long-term insurance;

(b)

an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of long-term insurance;.

(4) After subsection (7)(94) insert—

(7A) In subsection (7), the definitions of “authorised provider” and “insurer” must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act.

(7B) If the EEA firm concerned is of the kind mentioned in paragraph 5(a) of Schedule 3 to the Financial Services and Markets Act 2000, the conditions are—

(a)that, in investing of the sums in question, or in providing the benefit in question, the firm is carrying on a service falling within section A or C of the Annex to the Investment Services Directive; and

(b)that the firm is authorised by its home state authorisation to carry on that service.

(7C) If the EEA firm concerned is of the kind mentioned in paragraph 5(b) of that Schedule, the conditions are—

(a)that, in investing of the sums in question, or in providing the benefit in question, the firm is carrying on an activity falling within Annex 1 to the Banking Consolidation Directive; and

(b)that the activity in question is one in relation to which an authority in the firm’s home State has regulatory functions.

(7D) If the EEA firm concerned is of the kind mentioned in paragraph 5(c) of that Schedule, the conditions are-

(a)that, in investing of the sums in question, or in providing the benefit in question, the firm is carrying on an activity falling within Annex 1 to the Banking Consolidation Directive;

(b)that the activity in question is one in relation to which an authority in the firm’s home State has regulatory functions; and

(c)that the firm also carries on the activity in question in its home State.

(7E) Expressions used in subsections (7B) to (7D) which are also used in Schedule 3 to the Financial Services and Markets Act 2000 have the same meaning in those subsections as they have in that Schedule..

County Courts Act (Northern Ireland) 1959 (c. 25)

Additional voluntary contributions

104.—(1) Section 127A(95) of the County Courts Act (Northern Ireland) 1959 (additional voluntary contributions) is amended as follows.

(2) In subsection (2)(d), for sub-paragraph (iii) substitute—

(iii)the general value of benefits available to a person under any contract of life insurance entered into by him with an insurer;.

(3) In subsection (7)(96)—

(a)for the definition of “authorised provider” substitute—

“authorised provider”, in relation to the investment of any sums paid by way of voluntary contributions or the provision of any benefit, means—

(a)

a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to invest such sums or, as the case may be, to provide that benefit;

(b)

an EEA firm of a kind mentioned in paragraph 5(a), (b) or (c) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to invest such sums or, as the case may be, to provide that benefit and which satisfies the conditions applicable to it which are specified in subsection (7B), (7C) or (7D); or

(c)

an EEA firm of a kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to invest such sums or, as the case may be, to provide that benefit.; and

(b)after the definition of “employment” insert—

“insurer” means—

(a)

a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of long-term insurance;

(b)

an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of long-term insurance;.

(4) After subsection (7) insert—

(7A) In subsection (7), the definitions of “authorised provider” and “insurer” must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act.

(7B) If the EEA firm concerned is of the kind mentioned in paragraph 5(a) of Schedule 3 to the Financial Services and Markets Act 2000, the conditions are—

(a)that, in investing of the sums in question, or in providing the benefit in question, the firm is carrying on a service falling within section A or C of the Annex to the Investment Services Directive; and

(b)that the firm is authorised by its home state authorisation to carry on that service.

(7C) If the EEA firm concerned is of the kind mentioned in paragraph 5(b) of that Schedule, the conditions are-

(a)that, in investing of the sums in question, or in providing the benefit in question, the firm is carrying on an activity falling within Annex 1 to the Banking Consolidation Directive; and

(b)that the activity in question is one in relation to which an authority in the firm’s home State has regulatory functions.

(7D) If the EEA firm concerned is of the kind mentioned in paragraph 5(c) of that Schedule, the conditions are—

(a)that, in investing of the sums in question, or in providing the benefit in question, the firm is carrying on an activity falling within Annex 1 to the Banking Consolidation Directive;

(b)that the activity in question is one in relation to which an authority in the firm’s home State has regulatory functions; and

(c)that the firm also carries on the activity in question in its home State.

(7E) Expressions used in subsections (7B) to (7D) which are also used in Schedule 3 to the Financial Services and Markets Act 2000 have the same meaning in those subsections as they have in that Schedule..

Resident Magistrates' Pensions Act (Northern Ireland) 1960 (c. 2)

Additional voluntary contributions

105.—(1) Section 9A(97) of the Resident Magistrates' Pensions Act (Northern Ireland) 1960 (additional voluntary contributions) is amended as follows.

(2) In subsection (2)(d), for sub-paragraph (iii) substitute—

(iii)the general value of benefits available to a person under any contract of life insurance entered into by him with an insurer;.

(3) In subsection (7)(98)—

(a)for the definition of “authorised provider” substitute—

“authorised provider”, in relation to the investment of any sums paid by way of voluntary contributions or the provision of any benefit, means—

(a)

a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to invest such sums or, as the case may be, to provide that benefit;

(b)

an EEA firm of a kind mentioned in paragraph 5(a), (b) or (c) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to invest such sums or, as the case may be, to provide that benefit and which satisfies the conditions applicable to it which are specified in subsection (7B), (7C) or (7D); or

(c)

an EEA firm of a kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to invest such sums or, as the case may be, to provide that benefit.; and

(b)after the definition of “employment” insert—

“insurer” means—

(a)

a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of long-term insurance;

(b)

an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of long-term insurance;.

(4) After subsection (7) insert—

(7A) In subsection (7), the definitions of “authorised provider” and “insurer” must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act.

(7B) If the EEA firm concerned is of the kind mentioned in paragraph 5(a) of Schedule 3 to the Financial Services and Markets Act 2000, the conditions are—

(a)that, in investing of the sums in question, or in providing the benefit in question, the firm is carrying on a service falling within section A or C of the Annex to the Investment Services Directive; and

(b)that the firm is authorised by its home state authorisation to carry on that service.

(7C) If the EEA firm concerned is of the kind mentioned in paragraph 5(b) of that Schedule, the conditions are—

(a)that, in investing of the sums in question, or in providing the benefit in question, the firm is carrying on an activity falling within Annex 1 to the Banking Consolidation Directive; and

(b)that the activity in question is one in relation to which an authority in the firm’s home State has regulatory functions.

(7D) If the EEA firm concerned is of the kind mentioned in paragraph 5(c) of that Schedule, the conditions are—

(a)that, in investing of the sums in question, or in providing the benefit in question, the firm is carrying on an activity falling within Annex 1 to the Banking Consolidation Directive;

(b)that the activity in question is one in relation to which an authority in the firm’s home State has regulatory functions; and

(c)that the firm also carries on the activity in question in its home State.

(7E) Expressions used in subsections (7B) to (7D) which are also used in Schedule 3 to the Financial Services and Markets Act 2000 have the same meaning in those subsections as they have in that Schedule..

Superannuation Act 1972 (c. 11)

Authorised providers in relation to superannuation schemes for civil servants etc.

106.—(1) Section 1 of the Superannuation Act 1972 (superannuation schemes in respect civil servants etc) is amended as follows.

(2) In subsection (9)(99), for the definition of “authorised provider” substitute—

“authorised provider”, in relation to the investment of any sums paid by way of voluntary contributions or the provision of any benefit, means—

(a)

a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to invest such sums or, as the case may be, to provide that benefit;

(b)

an EEA firm of a kind mentioned in paragraph 5(a), (b) or (c) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to invest such sums or, as the case may be, to provide that benefit and which satisfies the conditions applicable to it which are specified in subsection (9B), (9C) or (9D); or

(c)

an EEA firm of a kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to invest such sums or, as the case may be, to provide that benefit;.

(3) After that subsection insert—

(9A) In subsection (9), the definition of “authorised provider” must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act.

(9B) If the EEA firm concerned is of the kind mentioned in paragraph 5(a) of Schedule 3 to the Financial Services and Markets Act 2000, the conditions are—

(a)that, in investing of the sums in question, or in providing the benefit in question, the firm is carrying on a service falling within section A or C of the Annex to the Investment Services Directive; and

(b)that the firm is authorised by its home state authorisation to carry on that service.

(9C) If the EEA firm concerned is of the kind mentioned in paragraph 5(b) of that Schedule, the conditions are-

(a)that, in investing of the sums in question, or in providing the benefit in question, the firm is carrying on an activity falling within Annex 1 to the Banking Consolidation Directive; and

(b)that the activity in question is one in relation to which an authority in the firm’s home State has regulatory functions.

(9D) If the EEA firm concerned is of the kind mentioned in paragraph 5(c) of that Schedule, the conditions are—

(a)that, in investing of the sums in question, or in providing the benefit in question, the firm is carrying on an activity falling within Annex 1 to the Banking Consolidation Directive;

(b)that the activity in question is one in relation to which an authority in the firm’s home State has regulatory functions; and

(c)that the firm also carries on the activity in question in its home State.

(9E) Expressions used in subsections (9B) to (9D) which are also used in Schedule 3 to the Financial Services and Markets Act 2000 have the same meaning in those subsections as they have in that Schedule..

Authorised providers in relation to superannuation schemes for teachers

107.  In section 9(6) of the Superannuation Act 1972 (superannuation schemes as respects teachers) for the definition of “authorised provider”(100) substitute—

“authorised provider” has the meaning given in section 1;.

Authorised providers in relation to superannuation schemes for persons engaged in health services, etc.

108.  In section 10(6) of the Superannuation Act 1972 (superannuation schemes as respects persons engaged in health services, etc) for the definition of “authorised provider”(101) substitute—

“authorised provider” has the meaning given in section 1;.

Police Pensions Act 1976 (c. 35)

Information in connection with police officers' pensions

109.  In section 8A(102) of the Police Pensions Act 1976 (information in connection with police pensions), in subsection (2)(a), after “section 62 of the Financial Services Act 1986” insert “or section 150 of the Financial Services and Markets Act 2000”.

Judicial Pensions Act 1981 (c. 20)

Voluntary contributions by members of judicial pension scheme.

110.—(1) Section 33A(103) of the Judicial Pensions Act 1981 is amended as follows.

(2) In subsection (2)(d), for sub-paragraph (iii) substitute—

(iii)the general value of benefits available to a person under any contract of life insurance entered into by him with an insurer;.

(3) In subsection (9)(104)—

(a)for the definition of “authorised provider” substitute—

“authorised provider”, in relation to the investment of any sums paid by way of voluntary contributions or the provision of any benefit, means—

(a)

a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to invest such sums or, as the case may be, to provide that benefit;

(b)

an EEA firm of a kind mentioned in paragraph 5(a), (b) or (c) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to invest such sums or, as the case may be, to provide that benefit and which satisfies the conditions applicable to it which are specified in subsection (9B), (9C) or (9D); or

(c)

an EEA firm of a kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to invest such sums or, as the case may be, to provide that benefit.; and

(b)after the definition of “employment” insert—

“insurer” means—

(a)

a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of long-term insurance;

(b)

an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of long-term insurance;.

(4) After subsection (9) insert—

(9A) In subsection (9), the definitions of “authorised provider” and “insurer” must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act.

(9B) If the EEA firm concerned is of the kind mentioned in paragraph 5(a) of Schedule 3 to the Financial Services and Markets Act 2000, the conditions are—

(a)that, in investing of the sums in question, or in providing the benefit in question, the firm is carrying on a service falling within section A or C of the Annex to the Investment Services Directive; and

(b)that the firm is authorised by its home state authorisation to carry on that service.

(9C) If the EEA firm concerned is of the kind mentioned in paragraph 5(b) of that Schedule, the conditions are—

(a)that, in investing of the sums in question, or in providing the benefit in question, the firm is carrying on an activity falling within Annex 1 to the Banking Consolidation Directive; and

(b)that the activity in question is one in relation to which an authority in the firm’s home State has regulatory functions.

(9D) If the EEA firm concerned is of the kind mentioned in paragraph 5(c) of that Schedule, the conditions are—

(a)that, in investing of the sums in question, or in providing the benefit in question, the firm is carrying on an activity falling within Annex 1 to the Banking Consolidation Directive;

(b)that the activity in question is one in relation to which an authority in the firm’s home State has regulatory functions; and

(c)that the firm also carries on the activity in question in its home State.

(9E) Expressions used in subsections (9B) to (9D) which are also used in Schedule 3 to the Financial Services and Markets Act 2000 have the same meaning in those subsections as they have in that Schedule..

Judicial Pensions (Northern Ireland) Order 1991 (S.I. 1991/2631 (N.I. 24))

Judicial pensions: transfer of accrued benefits

111.—(1) The Schedule which is set out in paragraph 1(2) of Schedule 2 to the Judicial Pensions (Northern Ireland) Order 1991 (transfer of accrued benefits) is amended as follows.

(2) In paragraph 1, the existing provision becomes sub-paragraph (1).

(3) In that sub-paragraph, for the definition of “authorised insurance company” substitute—

“authorised insurer” means—

(i)

a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of long-term insurance, or

(ii)

an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of long-term insurance;.

(4) After that sub-paragraph, insert—

(2) The definition of “authorised insurer” in sub-paragraph (1) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section;

(c)Schedule 2 to that Act..

(5) In paragraph 6(2)(c), for “insurance companies” substitute “insurers”.

(6) In paragraph 11(3), in paragraph (a) of the definition of “qualifying scheme” for “insurance company” substitute “insurer”.

Judicial Pensions and Retirement Act 1993 (c. 8)

Voluntary contributions by persons to whom Part 1 of the Act applies

112.—(1) Section 10 of the Judicial Pensions and Retirement Act 1993 is amended as follows.

(2) In subsection (4)(d), for sub-paragraph (iii) substitute—

(iii)the general value of benefits available to a person under any contract of life insurance entered into by him with an insurer;.

(3) In subsection (8)—

(a)for the definition of “authorised provider” substitute—

“authorised provider”, in relation to the investment of any sums paid by way of voluntary contributions or the provision of any benefit, means—

(a)

a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to invest such sums or, as the case may be, to provide that benefit;

(b)

an EEA firm of a kind mentioned in paragraph 5(a), (b) or (c) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to invest such sums or, as the case may be, to provide that benefit and which satisfies the conditions applicable to it which are specified in subsection (8B), (8C) or (8D); or

(c)

an EEA firm of a kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to invest such sums or, as the case may be, to provide that benefit.; and

(b)after the definition of “employment” insert—

“insurer” means—

(a)

a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of long-term insurance;

(b)

an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of long-term insurance;.

(4) After subsection (8) insert—

(8A) In subsection (8), the definitions of “authorised provider” and “insurer” must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act.

(8B) If the EEA firm concerned is of the kind mentioned in paragraph 5(a) of Schedule 3 to the Financial Services and Markets Act 2000, the conditions are—

(a)that, in investing of the sums in question, or in providing the benefit in question, the firm is carrying on a service falling within section A or C of the Annex to the Investment Services Directive; and

(b)that the firm is authorised by its home state authorisation to carry on that service.

(8C) If the EEA firm concerned is of the kind mentioned in paragraph 5(b) of that Schedule, the conditions are—

(a)that, in investing of the sums in question, or in providing the benefit in question, the firm is carrying on an activity falling within Annex 1 to the Banking Consolidation Directive; and

(b)that the activity in question is one in relation to which an authority in the firm’s home State has regulatory functions.

(8D) If the EEA firm concerned is of the kind mentioned in paragraph 5(c) of that Schedule, the conditions are—

(a)that, in investing of the sums in question, or in providing the benefit in question, the firm is carrying on an activity falling within Annex 1 to the Banking Consolidation Directive;

(b)that the activity in question is one in relation to which an authority in the firm’s home State has regulatory functions; and

(c)that the firm also carries on the activity in question in its home State.

(8E) Expressions used in subsections (8B) to (8D) which are also used in Schedule 3 to the Financial Services and Markets Act 2000 have the same meaning in those subsections as they have in that Schedule..

Retirement date for holders of judicial offices etc: repeal of references to old tribunals

113.  In section 26(8) of the Judicial Pensions and Retirement Act 1993 (retirement date for members of certain tribunals), paragraphs (e), (f) and (j) are repealed.

Judicial pensions: transfer of accrued benefits

114.—(1) Schedule 2 to the Judicial Pensions and Retirement Act 1993 (transfer of accrued benefits) is amended as follows.

(2) In paragraph 1, the existing provision becomes sub-paragraph (1).

(3) In that sub-paragraph, for the definition of “authorised insurance company” substitute—

“authorised insurer” means—

(i)

a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of long-term insurance, or

(ii)

an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of long-term insurance;.

(4) After that sub-paragraph, insert—

(2) The definition of “authorised insurer” in sub-paragraph (1) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section;

(c)Schedule 2 to that Act..

(5) In paragraph 6(2)(c), for “insurance companies” substitute “insurers”.

(6) In paragraph 11(3), in paragraph (a) of the definition of “qualifying scheme” for “insurance company” substitute “insurer”.

Repeal of spent amendments

115.  The following provisions of Schedule 6 to the Judicial Pensions and Retirement Act 1993 (which are amendments to other legislation that are spent as a result of the coming into force of the Financial Services and Markets Act 2000) are repealed—

(a)paragraph 41;

(b)paragraph 64;

(c)paragraph 65; and

(d)paragraph 68.

Pension Schemes Act 1993 (c. 48)

Discharge of liability where guaranteed minimum pension secured by insurance policies or annuity contracts

116.—(1) Section 19 of the Pension Schemes Act 1993 (discharge of liability where guaranteed minimum pension secured by insurance policies or annuity contracts) is amended as follows.

(2) In subsection (4)(a)—

(a)for “insurance company” substitute “insurer”; and

(b)in sub-paragraph (i), the word “ordinary” is repealed.

(3) Subsection (7) is repealed.

Ways of giving effect to the protected rights: the pension and annuity requirements

117.—(1) Section 29 of the Pension Schemes Act 1993 (the pension and annuity requirements) is amended as follows.

(2) In subsection (3)(b)(105) for “insurance company” substitute “insurer”.

(3) In subsection (4)(106), for “insurance company”, in both places, substitute “insurer”.

Discharge of protected rights on winding up: insurance policies

118.  In section 32A(107) of the Pension Schemes Act 1993 (discharge of protected rights on winding up: insurance policies), in subsection (2)(a)—

(a)for “insurance company” substitute “insurer”; and

(b)in sub-paragraph (i), the word “ordinary” and the words “(within the meaning of the Insurance Companies Act 1982)” are repealed.

Alteration of rules of appropriate schemes: permitted form of scheme

119.—(1) Section 38 of the Pensions Schemes Act 1993 (alteration of rules of appropriate schemes: permitted forms) is amended as follows.

(2) In subsection (6), in paragraph (b) for the words from “has” to the end substitute “is an authorised unit trust scheme”.

(3) After that subsection, insert—

(6A) “Authorised unit trust scheme” has the meaning given in Part 17 of the Financial Services and Markets Act 2000 and includes any scheme which is, as a result of an order made under section 426 of that Act making transitional provisions, treated as falling within that meaning..

Entitlement to guaranteed minimum pensions: treatment of entitlements

120.  In section 47(3)(d) of the Pension Schemes Act 1993 (Further provisions concerning entitlement to guaranteed minimum pensions for the purposes of section 46), for “Policyholders Protection Act 1975” substitute “Financial Services Compensation Scheme”.

Ways of taking rights to cash equivalent: members of occupational pension schemes

121.  In section 95(2)(c) of the Pension Schemes Act 1993 (ways of taking rights to cash equivalent) for “insurance companies” substitute “insurers”.

Cash equivalent: authorised purposes for transfer notice

122.  In section 101F(2)(b)(108) of the Pension Schemes Act 1993 (authorised purposes for transfer notice) for “insurance companies” substitute “insurers”.

Procedure on an investigation by the Pensions Ombudsman

123.  In section 149(6) of the Pension Schemes Act 1993 (procedure on an investigation by the Pensions Ombudsman: persons to whom information may be disclosed)—

(a)paragraphs (f) and (g) are repealed;

(b)for paragraph (h) substitute—

(h)a person appointed under—

(i)Part 14 of the Companies Act 1985,

(ii)section 167 of the Financial Services and Markets Act 2000,

(iii)subsection (3) or (5) of section 168 of that Act, or

(iv)section 284 of that Act,

to conduct an investigation;; and

(c)for paragraphs (k) to (m) substitute—

(k)a body designated under section 326(1) of the Financial Services and Markets Act 2000; and

(l)a recognised investment exchange or a recognised clearing house (as defined by section 285 of that Act)..

Disclosure of information by the Secretary of State

124.—(1) The table set out in section 158A(1)(109) of the Pension Schemes Act 1993 (power of Secretary of State to disclose social security information for certain purposes) is amended as follows.

(2) The entries relating to the following persons are repealed—

  • The Treasury;

  • The Friendly Societies Commission;

  • The Building Societies Commission;

  • An inspector appointed by the Secretary of State;

  • A person authorised to exercise powers under section 106 of the Financial Services Act 1986;

  • A designated agency or transferee body or the competent authority (within the meaning of the Financial Services Act 1986); and

  • A recognised self-regulating organisation, recognised professional body, recognised investment exchange or recognised clearing house (within the meaning of the Financial Services Act 1986).

(3) In the entry relating to the Financial Services Authority(110), for the second column, substitute—

Functions under the legislation relating to friendly societies, under the Building Societies Act 1986 or under the Financial Services and Markets Act 2000.

(4) After the entry relating to the Pensions Compensation Board insert—

A person appointed under—

(a)

section 167 of the Financial Services and Markets Act 2000,

(b)

subsection (3) or (5) of section 168 of that Act, or

(c)

section 284 of that Act, to conduct an investigation.

Functions in relation to that investigation

A body designated under section 326(1) of the Financial Services and Markets Act 2000.

Functions in its capacity as a body designated under that section.

A recognised investment exchange or a recognised clearing house (as defined by section 285 of that Act).

Functions in its capacity as an exchange or clearing house recognised under that Act..

Determination of questions by Secretary of State

125.  In section 170(1)(c) of the Pension Schemes Act 1993 (Determination of questions by Secretary of State) for “Policyholders Protection Act 1975” substitute “Financial Services Compensation Scheme”.

Interpretation of expressions relating to insurance

126.  In the Pensions Schemes Act 1993, after section 180 insert—

Insurer and long-term insurance business

180A.(1) In this Act “insurer” means—

(a)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of insurance, or

(b)an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of insurance.

(2) In this Act “long term insurance business” means business which consists of the effecting or carrying out of contracts of long-term insurance.

(3) This section must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Interpretation: Financial Services Compensation Scheme

127.  In section 181(1) of the Pension Schemes Act 1993—

(a)after the definition of “employment”, insert—

“Financial Services Compensation Scheme” means the Financial Services Compensation Scheme referred to in section 213(2) of the Financial Services and Markets Act 2000.;

(b)the definition of “insurance company” is repealed.

Consultation on regulations concerning pension business of friendly societies

128.  In section 185(7) of the Pension Schemes Act 1993 (consultation on regulations concerning removal of restrictions on pension business of friendly societies), for the words “Chief Registrar of Friendly Societies or the Friendly Societies Commission” substitute “Financial Services Authority or, if the matter concerns section 464 of the Income and Corporation Taxes Act 1988, the Commissioners of the Inland Revenue”.

Pension Schemes (Northern Ireland) Act 1993 (c. 49)

Discharge of guaranteed minimum pension secured by insurance policies or annuity contracts

129.—(1) Section 15 of the Pension Schemes (Northern Ireland) Act 1993 (discharge of guaranteed minimum pension secured by insurance policies or annuity contracts) is amended as follows.

(2) In subsection (4)(a)—

(a)for “insurance company” substitute “insurer”; and

(b)in sub-paragraph (i), the word “ordinary” is repealed.

(3) Subsection (7) is repealed.

Ways of giving effect to the protected rights: the pension and annuity requirements

130.—(1) Section 25 of the Pension Schemes (Northern Ireland) Act 1993 (the pension and annuity requirements) is amended as follows.

(2) In subsection (3)(b) for “insurance company” substitute “insurer”.

(3) In subsection (4), for “insurance company”, in both places, substitute “insurer”.

Discharge of protected rights on winding up: insurance policies

131.  In section 28A of the Pension Schemes (Northern Ireland) Act 1993 (discharge of protected rights on winding up: insurance policies), in subsection (4)—

(a)for “insurance company” substitute “insurer”; and

(b)in sub-paragraph (i), the word “ordinary” and the words “(within the meaning of the Insurance Companies Act 1982)” are repealed.

Alteration of rules of appropriate schemes: permitted form of scheme

132.—(1) Section 34 of the Pension Schemes (Northern Ireland) Act 1993 (alteration of rules of appropriate schemes: permitted forms) is amended as follows.

(2) In subsection (6), in paragraph (b) for the words from “has” to the end substitute “is an authorised unit trust scheme”.

(3) After that subsection, insert—

(6A) “Authorised unit trust scheme” has the meaning given in Part 17 of the Financial Services and Markets Act 2000 and includes any scheme which is, as a result of an order under section 426 of that Act making transitional provisions, treated as falling within that meaning.

Ways of taking rights to cash equivalent: members of occupational pension schemes

133.  In section 91(2)(c) of the Pension Schemes (Northern Ireland) Act 1993 (ways of taking rights to cash equivalent) for “insurance companies” substitute “insurers”.

Cash equivalent: authorised purposes for transfer notice

134.  In section 97F(2)(b) of the Pension Schemes (Northern Ireland) Act 1993 (authorised purposes for transfer notice) for “insurance companies” substitute “insurers”.

Procedure on an investigation by the Pensions Ombudsman

135.  In section 145(6) of the Pension Schemes (Northern Ireland) Act 1993 (procedure on an investigation by the Pensions Ombudsman: persons to whom information may be disclosed)—

(a)paragraphs (f) and (g) are repealed;

(b)for paragraph (i) to (l) substitute—

(i)a person appointed under—

(i)Part 14 of the Companies Act 1985,

(ii)section 167 of the Financial Services and Markets Act 2000,

(iii)subsection (3) or (5) of section 168 of that Act, or

(iv)section 284 of that Act,

to conduct an investigation;

(j)a body designated under section 326(1) of the Financial Services and Markets Act 2000; and

(k)a recognised investment exchange or a recognised clearing house (as defined by section 285 of that Act)..

Disclosure of information by the Department

136.—(1) The table set out in section 154A(1) of the Pension Schemes (Northern Ireland) Act 1993 (power of Department to disclose social security information for certain purposes) is amended as follows.

(2) The entries relating to the following persons are repealed—

  • The Treasury;

  • The Friendly Societies Commission;

  • The Building Societies Commission;

  • An inspector appointed by the Secretary of State;

  • A person authorised to exercise powers under section 106 of the Financial Services Act 1986;

  • A designated agency or transferee body or the competent authority (within the meaning of the Financial Services Act 1986); and

  • A recognised self-regulating organisation, recognised professional body, recognised investment exchange or recognised clearing house (within the meaning of the Financial Services Act 1986).

(3) In the entry relating to the Financial Services Authority, for the second column, substitute—

Functions under the legislation relating to friendly societies, under the Building Societies Act 1986, or under the Financial Services and Markets Act 2000..

(4) After the entry relating to the Pensions Compensation Board insert—

A person appointed under—

(a)

section 167 of the Financial Services and Markets Act 2000

(b)

subsection (3) or (5) of section 168 of that Act, or

(c)

section 284 of that Act,

to conduct an investigation.

Functions in relation to that investigation.
A body designated under section 326(1) of the Financial Services and Markets Act 2000.Functions in its capacity as a body designated under that section.
A recognised investment exchange or a recognised clearing house (as defined by section 285 of that Act).Functions in its capacity as an exchange or clearing house recognised under that Act..

Interpretation of expressions relating to insurance

137.—(1) In the Pensions Schemes (Northern Ireland) Act 1993, after section 175 insert—

Insurer and long-term insurance business

175A.(1) In this Act “insurer” means—

(a)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of insurance, or

(b)an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of insurance.

(2) In this Act “long term insurance business” means business which consists of the effecting or carrying out of contracts of long-term insurance.

(3) This section must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

(2) In section 176(1) of that Act, the definition of “insurance company” is repealed.

Consultation on regulations concerning pension business of friendly societies

138.  In section 180(1) of the Pension Schemes (Northern Ireland) Act 1993 (consultation on regulations concerning removal of restrictions on pension business of friendly societies), for the words “Chief Registrar of Friendly Societies” substitute “Financial Services Authority or, if the matter concerns section 464 of the Income and Corporation Taxes Act 1988, the Commissioners of the Inland Revenue”.

Pensions Act 1995 (c. 26)

Occupational pension scheme under a trust: power of investment and delegation

139.—(1) Section 34 of the Pensions Act 1995 (power of investment and delegation) is amended as follows.

(2) For subsection (3) substitute—

(3) This subsection applies to a fund manager who, in relation to the investments, may take the decisions in question without contravening the prohibition imposed by section 19 of the Financial Services and Markets Act 2000 (prohibition on carrying on regulated activities unless authorised or exempt)..

(3) In subsection (5)(b) for the words from “carrying” to “1986)” substitute “the carrying on, in the United Kingdom, of a regulated activity (within the meaning of the Financial Services and Markets Act 2000)”.

Choice of investments by trustees of occupational pension scheme under a trust: meaning of “proper advice”

140.  For paragraph (a) of section 36(6) of the Pensions Act 1995 (choice of investments: meaning of “proper advice”) substitute—

(a)if the giving of the advice constitutes the carrying on, in the United Kingdom, of a regulated activity (within the meaning of the Financial Services and Markets Act 2000), advice given by a person who may give it without contravening the prohibition imposed by section 19 of that Act (prohibition on carrying on regulated activities unless authorised or exempt);.

Restriction on employer-related investments

141.—(1) Section 40 of the Pensions Act 1995 (employer-related investments) is amended as follows.

(2) In subsection (2) the definition of “securities” is repealed.

(3) After that subsection, insert—

(2A) In subsection (2)(a) “securities” does not include government or other public securities.

(2B) Paragraph (a) of subsection (2) and subsection (2A) must be read with—

(i)section 22 of the Financial Services and Markets Act 2000;

(ii)any relevant order under that section; and

(iii)Schedule 2 to that Act..

Advisers for occupational pension schemes

142.—(1) Section 47 of the Pensions Act 1995 is amended as follows.

(2) In subsection (2) the words “(within the meaning of the Financial Services Act 1986)” are repealed.

(3) After that subsection insert—

(2A) References in this section to investments must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Receipts, record and payments: duties of pension trustees and others

143.—(1) Section 49 of the Pensions Act 1995 (receipts, record and payments: duties of pension trustees and others) is amended as follows.

(2) In subsection (1)(111), for the words from “at” to the end substitute “with a deposit-taker”.

(3) Subsection (1A)(112) is repealed.

(4) In subsection (5)(113), for the words “at a relevant institution” substitute “with a deposit-taker”.

(5) After subsection (8)(114) insert—

(8A) “Deposit taker” means—

(a)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits;

(b)an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to accept deposits;

(c)the Bank of England or the central bank of a member state other than the United Kingdom;

(d)the National Savings Bank; or

(e)a municipal bank, that is to say a company which was, immediately before the repeal of the Banking Act 1987 exempted from the prohibition in section 3 of that Act by virtue of section 4(1) of, and paragraph 4 of Schedule 2 to, that Act.

(8B) Paragraphs (a) and (b) of subsection (8A) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Salary related occupational pension schemes: discharge of liabilities by insurance etc

144.  In section 74 of the Pensions Act 1995 (discharge of liabilities by insurance etc.), in subsection (3)(c), for “insurance companies” substitute “insurers”.

Borrowing power of Compensation Board

145.—(1) Section 78 of the Pensions Act 1995 (the Compensation Board) is amended as follows.

(2) In subsection (5), for the words from “an” to “1987” substitute “a deposit-taker”.

(3) After that subsection, insert—

(5A) “Deposit taker” means—

(a)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits; or

(b)an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to accept deposits.

(5B) Sub-paragraph (5A) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Disclosure of information by the Occupational Pensions Regulatory Authority

146.—(1) The table set out in section 107(1) of the Pensions Act 1995 (power of the Authority to disclose pension information for certain purposes) is amended as follows.

(2) The entries relating to the following persons are repealed—

  • The Treasury(115);

  • The Policyholders Protection Board;

  • The Deposit Protection Board;

  • The Investor Protection Board;

  • The Friendly Societies Commission;

  • The Building Societies Commission;

  • A person authorised to exercise powers under section 106 of the Financial Services Act 1986;

  • A designated agency or transferee body or the competent authority (within the meaning of the Financial Services Act 1986);

  • A recognised self-regulating organisation, recognised professional body, recognised investment exchange or recognised clearing house (within the meaning of the Financial Services Act 1986); and

  • A person administering a scheme for the compensation of investors under section 54 of the Financial Services Act 1986.

(3) In the entry relating to the Secretary of State, in the second column—

(a)the words “Insurance Companies Act 1982,” and “the Financial Services Act 1986,” are repealed; and

(b)for “or Part III of the Pension Schemes Act 1993” substitute “, Part 3 of the Pension Schemes Act 1993 or the Financial Services and Markets Act 2000”.

(4) In the entry relating to the Financial Services Authority(116), for the second column, substitute—

Functions under the legislation relating to friendly societies, under the Building Societies Act 1986 or under the Financial Services and Markets Act 2000..

(5) In the entry relating to an inspector appointed by the Secretary of State, the words “or section 94 or 177 of the Financial Services Act 1986” are repealed.

(6) For the entry beginning “A person authorised to exercise powers” substitute—

A person authorised to exercise powers under section 447 of the Companies Act 1985, Article 440 of the Companies (Northern Ireland) Order 1986 or section 84 of the Companies Act 1989.Functions under those sections or that Article.

A person appointed under—

(a)

section 167 of the Financial Services and Markets Act 2000,

(b)

subsection (3) or (5) of section 168 of that Act, or

(c)

section 284 of that Act, to conduct an investigation.

Functions in relation to that investigation.

A body designated under section 326(1) of the Financial Services and Markets Act 2000.Functions in its capacity as a body designated under that section.
A recognised investment exchange or a recognised clearing house (as defined by section 285 of that Act).Functions in its capacity as an exchange or clearing house recognised under that Act.
A body corporate established in accordance with section 212(1) of that Act.Functions under the Financial Services Compensation Scheme, established in accordance with section 213 of that Act..

Disclosure of information to Compensation Board

147.  In section 114(7) of the Pensions Act 1995 (bodies which may disclose information to the Compensation Board)—

(a)paragraphs (f) and (j) are repealed;

(b)after paragraph (l), insert—

(la)the Financial Services Authority;

(lb)a body corporate established in accordance with section 212(1) of the Financial Services and Markets Act 2000 (Financial Services Compensation Scheme: the scheme manager);.

Disclosure of information concerning public service pension schemes

148.  In section 172 of the Pensions Act 1995 (information in connection with public service pensions), in subsection (1)(a), after “section 62 of the Financial Services Act 1986” insert “or under section 150 of the Financial Services and Markets Act 2000”.

Repeal of spent amendments by Pensions Act 1995 to other legislation

149.  The following provisions of the Pensions Act 1995 (amendments to other legislation spent as a result of the coming into force of the Financial Services and Markets Act 2000) are repealed—

(a)in Schedule 3, paragraphs 11, 17, 18 and 19;

(b)in Schedule 5, paragraph 11; and

(c)in Schedule 7, in Part 1, the entries relating to the Insurance Companies Act 1982 and the Banking Act 1987 and, in Part 2, the entries relating to the Insurance Companies Act 1982.

Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22))

Occupational pension scheme under a trust: power of investment and delegation

150.—(1) Article 34 of the Pensions (Northern Ireland) Order 1995 (power of investment and delegation) is amended as follows—

(2) For paragraph (3) substitute—

(3) This paragraph applies to a fund manager who, in relation to the investments, may take the decisions in question without contravening the prohibition imposed by section 19 of the Financial Services and Markets Act 2000 (prohibition on carrying on regulated activities unless authorised or exempt)..

(3) In paragraph (5)(b) for the words from “carrying” to “1986)” substitute “the carrying on, in the United Kingdom, of a regulated activity (within the meaning of the Financial Services and Markets Act 2000)”.

Choice of investments by trustees of occupational pension scheme under a trust: meaning of “proper advice”

151.  For paragraph (a) of Article 36(6) of the Pensions (Northern Ireland) Order 1995 (choice of investments: meaning of “proper advice”) substitute—

(a)if the giving of the advice constitutes the carrying on, in the United Kingdom, of a regulated activity (within the meaning of the Financial Services and Markets Act 2000), advice given by a person who may give it without contravening the prohibition imposed by section 19 of that Act (prohibition on carrying on regulated activities unless authorised or exempt);.

Restriction on employer-related investments

152.—(1) Article 40 of the Pensions (Northern Ireland) Order 1995 (employer-related investments) is amended as follows.

(2) In paragraph (2) the definition of “securities” is repealed.

(3) After that paragraph, insert—

(2A) In paragraph (2)(a) “securities” does not include government or other public securities.

(2B) Sub-paragraph (a) of paragraph (2) and paragraph (2A) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Advisers for occupational pension schemes

153.—(1) Article 47 of the Pensions (Northern Ireland) Order 1995 is amended as follows.

(2) In paragraph (2) the words “(within the meaning of the Financial Services Act 1986)” are repealed.

(3) After that paragraph insert—

(2A) References in this Article to investments must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Receipts, record and payments: duties of pension trustees and others

154.—(1) Article 49 of the Pensions (Northern Ireland) Order 1995 (receipts, record and payments: duties of pension trustees and others) is amended as follows.

(2) In paragraph (1) (117), for the words from “at” to the end substitute “with a deposit-taker”.

(3) Paragraph (1A) (118) is revoked.

(4) In paragraph (5)(119) for the words from “at” to “1987” substitute “with a deposit-taker”.

(5) After paragraph (8) (120) insert—

(8A) “Deposit taker” means—

(a)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits;

(b)an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to accept deposits;

(c)the Bank of England or the central bank of a member state other than the United Kingdom;

(d)the National Savings Bank; or

(e)a municipal bank, that is to say a company which was, immediately before the repeal of the Banking Act 1987, exempted from the prohibition in section 3 of that Act by virtue of section 4(1) of, and paragraph 4 of Schedule 2 to, that Act.”

(8B) Paragraph (8A) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Disclosure of information by the Occupational Pensions Regulatory Authority

155.—(1) The table set out in Article 105(1) of the Pensions (Northern Ireland) Order 1995 (power of the Authority to disclose pension information for certain purposes) is amended as follows.

(2) The entries relating to the following persons are repealed—

  • The Treasury;

  • The Policyholders Protection Board;

  • The Deposit Protection Board;

  • The Investor Protection Board;

  • The Friendly Societies Commission;

  • The Building Societies Commission;

  • A person authorised to exercise powers under section 106 of the Financial Services Act 1986;

  • A designated agency or transferee body or the competent authority (within the meaning of the Financial Services Act 1986);

  • A recognised self-regulating organisation, recognised professional body, recognised investment exchange or recognised clearing house (within the meaning of the Financial Services Act 1986); and

  • A person administering a scheme for the compensation of investors under section 54 of the Financial Services Act 1986.

(3) In the entry relating to the Secretary of State, in the second column—

(a)the words “Insurance Companies Act 1982,” and “the Financial Services Act 1986,” are repealed; and

(b)for “or Part III of the Pension Schemes Act 1993” substitute “, Part 3 of the Pension Schemes Act 1993 or the Financial Services and Markets Act 2000”.

(4) In the entry relating to the Financial Services Authority(121), for the second column, substitute—

Functions under the legislation relating to friendly societies, under the Building Societies Act 1986 or under the Financial Services and Markets Act 2000..

(5) In the entry relating to an inspector appointed by the Secretary of State, the words “or section 94 or 177 of the Financial Services Act 1986” are repealed.

(6) For the entry beginning “A person authorised to exercise powers” substitute—

A person authorised to exercise powers under section 447 of the Companies Act 1985, Article 440 of the Companies (Northern Ireland) Order 1986 or section 84 of the Companies Act 1989.Functions under those sections or that Article.

A person appointed under—

(a)

section 167 of the Financial Services and Markets Act 2000,

(b)

subsection (3) or (5) of section 168 of that Act, or

(c)

section 284 of that Act,

to conduct an investigation.

Functions in relation to that investigation.

A body designated under section 326(1) of the Financial Services and Markets Act 2000.Functions in its capacity as a body designated under that section.
A recognised investment exchange or a recognised clearing house (as defined by section 285 of that Act).Functions in its capacity as an exchange or clearing house recognised under that Act.
A body corporate established in accordance with section 212(1) of that Act.Functions under the Financial Services Compensation Scheme, established in accordance with section 213 of that Act..

Disclosure of information to Compensation Board

156.  In Article 112(7) of the Pensions (Northern Ireland) Order 1995 (bodies which may disclose information to the Compensation Board)—

(a)sub-paragraphs (f) and (i) are repealed;

(b)after sub-paragraph (k), insert—

(ka)the Financial Services Authority;

(kb)a body corporate established in accordance with section 212(1) of the Financial Services and Markets Act 2000 (Financial Services Compensation Scheme: the scheme manager);.

Disclosure of information concerning public service pension schemes

157.  In Article 164 of the Pensions (Northern Ireland) Order 1995 (information in connection with public service pensions), in paragraph (1)(a), after “section 62 of the Financial Services Act 1986” insert “or section 150 of the Financial Services and Markets Act 2000”.

Repeal of spent amendments by Pensions (Northern Ireland) Order 1995 to other legislation

158.  Paragraph 7 of Schedule 3 to the Pensions (Northern Ireland) Order 1995 (which is spent as a result of the coming into force of the Financial Services and Markets Act 2000) is repealed.

Welfare Reform and Pensions Act 1999 (c. 30)

Pension credits: qualifying arrangements

159.—(1) Paragraph 6 of Schedule 5 to the Welfare Reform and Pensions Act 1999 (pension credits: qualifying arrangements) is amended as follows.

(2) In sub-paragraph (2)—

(a)for “insurance company” substitute “insurer”; and

(b)in paragraph (a), the word “ordinary” is repealed.

(3) For sub-paragraph (3) substitute—

(3) “Insurer” and “long-term insurance business” have the meaning given in section 180A of the Pension Schemes Act 1993..

Welfare Reform and Pensions (Northern Ireland) Order 1999 (S.I. 1999/3147 (N.I. 11))

Pension credits: qualifying arrangements

160.—(1) Paragraph 6 of Schedule 5 to the Welfare Reform and Pensions (Northern Ireland) Order 1999 (pension credits: qualifying arrangements) is amended as follows.

(2) In sub-paragraph (2)—

(a)for “insurance company” substitute “insurer”; and

(b)in paragraph (a), the word “ordinary” is repealed.

(3) For sub-paragraph (3) substitute—

(3) “Insurer” and “long-term insurance business” have the meaning given in section 175A of the Pension Schemes Act..

PART 4ENACTMENTS RELATING TO THE BANK OF ENGLAND

Bank of England Act 1998 (c. 11)

Power of Bank of England to require undertakings to provide information

161.—(1) Section 17 of the Bank of England Act 1998 (power of Bank to require undertakings to provide information for purposes of Bank’s functions under Part 2 of that Act) is amended as follows.

(2) For subsection (3)(122) substitute—

(3) An undertaking is one to which this section applies if—

(a)it has a place of business in the United Kingdom; and

(b)it falls within subsection (3A), (3B), (3C) or (3D).

(3A) An undertaking falls within this subsection if it is a deposit-taker.

(3B) An undertaking falls within this subsection if it is not a deposit-taker but it—

(a)falls within the subsector “other monetary financial institution”, as defined by paragraph 2.48 of Annex A to Council Regulation (EC) No. 2223/96,

(b)carries on a business of granting credits secured on land used for residential purposes,

(c)has issued a debt security, or

(d)has acted as an agent in connection with arranging or managing the issue of a debt security.

(3C) An undertaking falls within this subsection if it is a financial holding company.

(3D) An undertaking falls within this subsection if it is not a deposit-taker but continues to have a liability in respect of a deposit which was held by it in accordance with the Banking Act 1979 or the Banking Act 1987 or a permission under Part 4 of the Financial Services and Markets Act 2000..

(3) In subsection (5), for “subsection (3)” substitute “subsections (3) to (3D)”.

(4) For subsection (7) substitute—

(7) “Deposit taker” means—

(a)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits; or

(b)an EEA firm of the kind mentioned in paragraph 5(b) or (c) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12(1) of that Schedule) to accept deposits or other repayable funds.

(7A) “Debt security” means any instrument creating or acknowledging indebtedness (including a government or public security).

(7B) Subsections (7) and (7A) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act.

(7C) “Financial holding company” has the meaning given by Article 1(21) of Council Directive 2000/12/EC of the European Parliament and the Council.

(7D) “Undertaking” has the meaning given by section 259 of the Companies Act 1985..

Repeal of spent provisions relating to transfer of functions from the Bank to the Authority etc

162.  The following provisions of the Bank of England Act 1998 (which are spent or unnecessary as a result of the coming into force of the Financial Services and Markets Act 2000) are repealed—

(a)sub-paragraphs (i) and (ii) of paragraph (a) and paragraphs (b) and (c) of section 21;

(b)paragraphs 1 to 35, 39, 44, 45, 47, 52 to 59, 61, 65, 66 and 68 of Schedule 5 and section 23(1) so far as it relates to those paragraphs;

(c)section 25;

(d)section 26 and Schedule 6;

(e)sections 27 to 29;

(f)section 31;

(g)section 32;

(h)section 36;

(i)in Schedule 8, paragraphs 1 to 5 and paragraph 7; and

(j)in Schedule 9—

(i)in Part 1, the entries relating to the Financial Services Act 1986 and to the Banking Act 1987; and

(ii)Part 2.

Cash ratio deposits

163.—(1) For sub-paragraph (1) of paragraph 1 of Schedule 2 to the Bank of England Act 1998 (cash ratio deposits) substitute—

(1) Each deposit-taker is an eligible institution for the purposes of this Schedule.

(1A) “Deposit-taker” has the meaning given in section 17, except that it does not include—

(a)a credit union;

(b)a friendly society;

(c)a person who has permission to accept deposits under Part 4 of the Financial Services and Markets Act 2000 only in the course of effecting or carrying out contracts of insurance in accordance with that permission; or

(d)an EEA firm of the kind mentioned in paragraph 5(c) of Schedule 3 to that Act.

(1B) “Credit union” has the meaning given—

(a)by the Credit Unions Act 1979; or

(b)in Northern Ireland, by the Credit Unions (Northern Ireland) Order 1985.

(1C) “Friendly society” means—

(a)a society which is registered within the meaning of the Friendly Societies Act 1974; or

(b)a society incorporated under the Friendly Societies Act 1992..

(2) In sub-paragraph (2) of that paragraph, for “sub-paragraph (1)” substitute “sub-paragraphs (1) to (1C)”.

Restriction on disclosure of information

164.—(1) Schedule 7 to the Bank of England Act 1998 (restriction on disclosure of information) is amended as follows.

(2) For paragraph 2(2) substitute—

(2) “Credit institution” means an undertaking whose business is to receive deposits or other repayable funds from the public and to grant credits for its own account..

(3) For the Table in paragraph (3) substitute—

The Treasury.Functions under the Financial Services and Markets Act 2000.
The Secretary of State.Functions under the Financial Services and Markets Act 2000.
An inspector appointed under Part 14 of the Companies Act 1985 or Part 15 of the Companies (Northern Ireland) Order 1986.Functions under that Part.
A person authorised to exercise powers under section 447 of the Companies Act 1985, Article 440 of the Companies (Northern Ireland) Order 1986 or section 84 of the Companies Act 1989.Functions under that section or Article.

A person appointed under—

(a)

section 167 of the Financial Services and Markets Act 2000,

(b)

subsection (3) or (5) of section 168 of that Act, or

(c)

section 284 of that Act,

to conduct an investigation.

Functions in relation to that investigation.

The Financial Services Authority.Functions under the legislation relating to friendly societies, the Building Societies Act 1986, Part 7 of the Companies Act 1989 or the Financial Services and Markets Act 2000.
The competent authority for the purposes of Part 6 of the Financial Services and Markets Act 2000.Functions under that Part.
The Office for National Statistics.Functions under the Statistics of Trade Act 1947.
The Occupational Pensions Regulatory AuthorityFunctions under the Pension Schemes Act 1993 or the Pensions Act 1995 or any enactment in force in Northern Ireland corresponding to either of them..

PART 5AMENDMENTS TO THE CONSUMER CREDIT ACT 1974 (c. 39)

Exempt agreements

165.—(1) Section 16 (exempt agreements) of the Consumer Credit Act 1974 is amended as follows.

(2) In subsection (1)—

(a)for paragraph (a) substitute—

(a)an insurer;; and

(b)for paragraph (h) substitute—

(h)a deposit-taker..

(3) For subsection (3), substitute—

(3) Before he makes, varies or revokes an order under subsection (1), the Secretary of State must undertake the necessary consultation.

(3A) The necessary consultation means consultation with the bodies mentioned in the following table in relation to the provision under which the order is to be made, varied or revoked:

TABLE

Provision of subsection (1)Consultee
Paragraph (a) or (b)The Financial Services Authority
Paragraph (d)The Charity Commissioners
Paragraph (e), (f) or (ff)Any Minister of the Crown with responsibilities in relation to the body in question
Paragraph (g) or (h)The Treasury and the Financial Services Authority.

(4) For subsection (8) substitute—

(8) In the application of this section to Scotland, subsection (3A) shall have effect as if the reference to the Charity Commissioners were a reference to the Lord Advocate..

(5) In subsection (9)—

(a)for “subsection (3)” substitute “subsection (3A)”;

(b)the words “any reference to the Chief Registrar of Friendly Societies were a reference to the Registrar of Friendly Societies for Northern Ireland,” are repealed.

(6) After that subsection insert—

(10) In this section—

(a)“deposit-taker” means—

(i)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits,

(ii)an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to accept deposits,

(iii)any wholly owned subsidiary (within the meaning of the Companies Act 1985) of a person mentioned in sub-paragraph (i), or

(iv)any undertaking which, in relation to a person mentioned in sub-paragraph (ii), is a subsidiary undertaking within the meaning of any rule of law in force in the EEA State in question for purposes connected with the implementation of the European Council Seventh Company Law Directive of 13 June 1983 on consolidated accounts (No. 83/349/EEC), and which has no members other than that person;

(b)“insurer” means—

(i)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of insurance, or

(ii)an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of insurance,

but does not include a friendly society or an organisation of workers or of employers.

(11) Subsection (10) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Standard licences

166.  In section 22 of the Consumer Credit Act 1974 (standard licences), after subsection (8) insert—

(9) Subsection (10) applies if a standard licence is issued to an EEA consumer credit firm.

(10) The activities described in the licence are not to include an activity for which the firm has, or could obtain, permission under paragraph 15 of Schedule 3 to the Financial Services and Markets Act 2000..

Fitness of licensees

167.—(1) Section 25 of the Consumer Credit Act 1974 (licensees to be fit persons) is amended as follows.

(2) After subsection (1), insert—

(1A) The Director shall refuse an application for the grant of standard licence made by a consumer credit EEA firm if all of the activities described in the licence are activities for which the firm has permission, or could obtain permission, under paragraph 15 of Schedule 3 to the Financial Services and Markets Act 2000.

(1B) If an application for the grant of a standard licence—

(a)is made by a person with permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits, and

(b)relates to a listed activity,

the Financial Services Authority may, if it considers that the Director ought to refuse the application, notify him of that fact.

(1C) In subsection (1B) “listed activity” means an activity listed in Annex 1 to the banking consolidation directive (2000/12/EC) or in the Annex to the investment services directive (93/22/EEC) and references to deposits and to their acceptance must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

(3) In subsection (2), after paragraph (b) insert—

(bb)contravened any provision in force in an EEA State which corresponds to a provision of the kind mentioned in paragraph (b);.

Conduct of Consumer Credit Act business

168.  For section 26 of the Consumer Credit Act 1974 (regulations as to the conduct of business) substitute—

26.    Conduct of business

(1) Regulations may be made as to—

(a)the conduct by a licensee of his business; and

(b)the conduct by a consumer credit EEA firm of its business in the United Kingdom.

(2) The regulations may in particular specify—

(a)the books or other records to be kept by any person to whom the regulations apply;

(b)the information to be furnished by such a person to those persons with whom—

(i)that person does business, or

(ii)that person seeks to do business,

and the way in which that information is to be furnished..

The register maintained under the Consumer Credit Act 1974

169.  In section 35 of the Consumer Credit Act 1974 (the register), after subsection (1) insert—

(1A) The Director shall also cause to be kept in the register any copy of any notice or other document relating to a consumer credit EEA firm which is given to the Director by the Financial Services Authority for inclusion in the register..

Enforcement of agreements made by unlicensed trader

170.  In section 40 of the Consumer Credit Act 1974 (enforcement of agreements made by unlicensed trader), after subsection (5) insert—

(6) This section does not apply to a regulated agreement, other than a non-commercial agreement, made by a consumer credit EEA firm unless at the time it was made that firm was precluded from entering into it as a result of—

(a)a consumer credit prohibition imposed under section 203 of the Financial Services and Markets Act 2000; or

(b)a restriction imposed on the firm under section 204 of that Act..

Appeals to the Secretary of State

171.  In the table at the end of section 41 of the Consumer Credit Act 1974 (appeals to the Secretary of State) at the end insert—

Imposition of, or refusal to withdraw, consumer credit prohibition under section 203 of the Financial Services and Markets Act 2000.The consumer credit EEA firm concerned.
Imposition of, or refusal to withdraw, a restriction under section 204 of the Financial Services and Markets Act 2000.The consumer credit EEA firm concerned..

Conduct of business regulations

172.  In section 54 of the Consumer Credit Act 1974 (conduct of business regulations), for “a licensee” substitute “a person to whom the regulations apply”.

Enforcement of agreements made by unlicensed trader

173.  In section 148 of the Consumer Credit Act 1974 (enforcement of agreements made by unlicensed trader), after subsection (5) insert—

(6) This section does not apply to an agreement made by a consumer credit EEA firm unless at the time it was made that firm was precluded from entering into it as a result of—

(a)a consumer credit prohibition imposed under section 203 of the Financial Services and Markets Act 2000; or

(b)a restriction imposed on the firm under section 204 of that Act..

Regulated agreements made on introductions by unlicensed credit-brokers

174.  In section 149 of the Consumer Credit Act 1974 (enforcement of regulated agreements made on introductions by unlicensed credit-brokers), after subsection (5) insert—

(6) For the purposes of this section, “unlicensed credit-broker” does not include a consumer credit EEA firm unless at the time the introduction was made that firm was precluded from making it as a result of—

(a)a consumer credit prohibition imposed under section 203 of the Financial Services and Markets Act 2000; or

(b)a restriction imposed on the firm under section 204 of that Act..

Restriction on disclosure of information

175.  For subsection (3A) of section 174 of the Consumer Credit Act 1974 (disclosure of information), substitute—

(3A) Subsections (1) and (2) do not apply to any disclosure of information by the Director to the Financial Services Authority for the purpose of—

(a)enabling or assisting the Authority to discharge any of its functions;

(b)enabling or assisting the Director to discharge any of his functions under this Act or the Financial Services and Markets Act 2000..

Interpretation

176.  In section 189(1) of the Consumer Credit Act 1974 (definitions)—

(a)the definitions of “authorised institution” and “insurance company” are repealed;

(b)in the definition of “deposit”, after “means” insert “(except in section 16(10) and 25(1B))”; and

(c)in the definition of “friendly society” for “under the Friendly Societies Acts 1896 to 1971” substitute “or treated as registered under the Friendly Societies Act 1974 or the Friendly Societies Act 1992”.

Meaning of “consumer credit EEA firm”

177.  After section 189 of the Consumer Credit Act 1974 insert—

Meaning of “consumer credit EEA firm”

189A.  In this Act “consumer credit EEA firm” means an EEA firm falling within sub-paragraph (a), (b) or (c) of paragraph 5 of Schedule 3 to the Financial Services and Markets Act 2000 carrying on, or seeking to carry on, consumer credit business, consumer hire business or ancillary credit business for which a licence would be required under this Act but for paragraph 15(3) of Schedule 3 to the Financial Services and Markets Act 2000..

PART 6ENACTMENTS RELATING TO MUTUAL SOCIETIES

CHAPTER Iprimary legislation

Superannuation and Other Trust Funds (Validation) Act 1927 (c. 41)

Amendments consequential on dissolution of Registrar of Friendly Societies

178.—(1) The Superannuation and other Trust Funds (Validation) Act 1927 is amended as follows.

(2) In the following sections for the word “registrar” (wherever it appears), substitute “Authority”; for the word “he” (wherever it appears) substitute “it” and for the word “his” (wherever it appears) substitute “its”—

(a)section 3(1), 3(2), 3(3), 3(4) and 3(5);

(b)section 4(1) and 4(2);

(c)section 5(2);

(d)the side heading to section 6 and section 6(1).

(3) Section 3(6) is repealed.

(4) In section 6(2) (supplementary provisions as to powers of registrar) for the words “Chief Registrar, or in Scotland the assistant registrar for Scotland” substitute “Authority” and for the word “he” substitute “it”.

(5) In section 7 (penalties for default) for the word “registrar” (wherever it appears) substitute “Authority”.

(6) In section 8 (interpretation)—

(a)for the definition of “actuary”(123) substitute—

“Actuary” means a person who satisfies the requirements which are specified by the Authority for the purposes of section 340(6) of the Financial Services and Markets Act 2000 in so far as that subsection relates to actuaries;;

(b)the definition of “Chief Registrar” and “Registrar” is repealed; and

(c)after the definition of “auditor” insert—

“Authority” means the Financial Services Authority;.

(7) Section 10 (reports to Parliament) is repealed.

Industrial and Provident Societies Act 1965 (c. 12)

Cancellation of registration of society

179.—(1) In section 16(1) of the Industrial and Provident Societies Act 1965(124) (cancellation of registration of society), the words “by writing under his hand or seal or, in Scotland” are repealed.

(2) In the Financial Services and Markets Act 2000 (Mutual Societies) Order 2001(125), paragraph 218(a) of Schedule 3 is revoked.

Advertising dissolution of society

180.  In section 58(6) of the Industrial and Provident Societies Act 1965(126) (instrument of dissolution) the words “at the expense of the society” are repealed.

Power to make regulations

181.—(1) Section 71 of the Industrial and Provident Societies Act 1965 is repealed.

(2) In sections 2(3) and 10(3), for the words from “in the prescribed form” to the end substitute “bearing the Authority’s seal”.

Depositing of documents

182.  For section 72(1) of the Industrial and Provident Societies Act 1965(127) (form, deposit and evidence of documents), substitute—

Every return and other document required for the purposes of this Act shall be made in such form, shall contain such particulars and shall be deposited in such manner as the Authority may direct and the Authority shall register and record those documents with such observations thereon (if any) as it considers appropriate.

Industrial and Provident Societies Act 1967 (c. 48)

References to regulations made by Treasury

183.—(1) The Industrial and Provident Societies Act 1967 is amended as follows.

(2) In section 1(2)(a) (charges on assets of English and Welsh societies) for the words “in the prescribed manner” substitute “in the manner directed by the Authority” and for the words “as may be prescribed” substitute “as may be required by the Authority”.

(3) In section 1(3)—

(a)for the words “in the prescribed form” in paragraph (a) substitute “bearing the Authority’s seal”;

(b)the word “prescribed” in paragraph (b) is repealed;

(c)the words after paragraph (c) are repealed.

(4) In section 1(4)—

(a)for the words “to make regulations” substitute “to give directions”;

(b)for the words “section 71” substitute “section 72”;

(c)for the words “regulations under that section may” substitute “the Authority may, under that section”.

(5) In section 4(1) (filing of information relating to charges)—

(a)in paragraph (a), for the words “in the prescribed manner” substitute “in the manner directed by the Authority”;

(b)in paragraph (b), for the words “as may be prescribed” substitute “as may be required by the Authority”.

(6) In section 4(3)(a) for the words “in the prescribed form” substitute “bearing the Authority’s seal”.

(7) Section 4(4) is repealed.

(8) In section 5(1) (supplemental provisions)—

(a)for the words “to make regulations” substitute “to give directions”;

(b)for the words “section 71” substitute “section 72”;

(c)for the words “regulations under that section may” substitute “the Authority may, under that section”.

(9) In section 7 (interpretation, etc general)—

(a)the word “prescribed” in subsection (1) is repealed;

(b)the words “, 71” and “, regulations” are repealed.

Friendly and Industrial and Provident Societies Act 1968 (c. 55)

Power of societies to disapply obligation to appoint auditors

184.—(1) Section 4A of the Friendly and Industrial and Provident Societies Act 1968(128) (power of societies to disapply section 4) is amended as follows.

(2) In subsection (3)(e) the words “within the meaning of the Banking Act 1987” are repealed.

(3) After subsection (8), insert—

(9) In subsection (3), the reference to a deposit must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section;

(c)Schedule 2 to that Act..

Interpretation

185.  In section 21 of the Friendly and Industrial and Provident Societies Act 1968 (interpretation), in the definition of “annual return”(129) for the words “appropriate registrar” substitute “Authority”.

Friendly Societies Act 1974 (c. 46)

Power of societies to disapply obligation to appoint auditors

186.—(1) Section 32A of the Friendly Societies Act 1974(130) (power of societies to disapply section 31) is amended as follows.

(2) In subsection (3) the words “within the meaning of the Banking Act 1987” are repealed.

(3) After that subsection, insert—

(3A) In subsection (3) the reference to a deposit must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section;

(c)Schedule 2 to that Act..

References to Chief Registrar etc.

187.—(1) In sections 82(5)(131), 84(3) and 84A(6)(132) of the Friendly Societies Act 1974, for the words from “Chief Registrar or,” to the end substitute “Authority”.

(2) In Schedule 3 to the Financial Services and Markets Act 2000 (Mutual Societies) Order 2001, paragraphs 27, 29(b) and 30 are revoked.

Regulations with respect to registration and procedure

188.  Section 109(1)(a) of the Friendly Societies Act 1974 (Regulations) is repealed.

Advertising dissolution of society

189.  In section 94(7)(133) of the Friendly Societies Act 1974 (instrument of dissolution), the words “at the expense of the society or branch” are repealed.

Requirements for rules of registered societies

190.—(1) Schedule 2 to the Friendly Societies Act 1974 (matters to be provided for by the rules of societies registered under that Act) is amended as follows.

(2) In sub-paragraph (2) of paragraph 11, the words “within the meaning of the Insurance Companies Act 1974” are repealed.

(3) After that sub-paragraph insert—

(2A) In sub-paragraph (2) “long-term business” has the meaning given by section 117(2) of the Friendly Societies Act 1992..

Credit Unions Act 1979 (c. 34)

General prohibition on deposit taking

191.  In section 8(2) of the Credit Unions Act 1979(134) (general prohibition on deposit taking) for the words “has the meaning given in section 5 of the Banking Act 1987” substitute—

must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Insurance against fraud or other dishonesty

192.—(1) Section 15 of the Credit Unions Act 1979 (insurance against fraud or other dishonesty) is amended as follows.

(2) In subsection (2), for paragraph (d) substitute—

(d)must be issued by—

(i)a person who has a permission under Part IV of the Financial Services and Markets Act 2000 to effect or carry out contracts of insurance of a relevant class, or

(ii)an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of insurance of a relevant class..

(3) After subsection (3) insert—

(3A) Paragraph (d) of subsection (2) above must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Definition of “authorised bank”

193.—(1) Section 31(1) of the Credit Unions Act 1979 (interpretation) is amended as follows.

(2) In subsection (1), for paragraph (a) of the definition of “authorised bank”(135) substitute—

(a)a person who has permission under Part IV of the Financial Services and Markets Act 2000 to accept deposits;

(ab)an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12(1) of that Schedule) to accept deposits;

(ac)a municipal bank, that is to say a company which, immediately before the coming into force of this provision, fell within the definition in section 103 of the Banking Act 1987;.

(3) After subsection (1) insert—

(1A) Paragraphs (a) and (ab) of the definition of “authorised bank” in subsection (1) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Building Societies Act 1986 (c. 53)

Lending limit for building societies

194.—(1) Section 6(136) of the Building Societies Act 1986 (the lending limit) is amended as follows.

(2) In paragraph (c) of the definition of X in subsection (2), for the words “insurance companies within the meaning of the Insurance Companies Act 1982” substitute “effecting or carrying out contracts of insurance”.

(3) For subsection (12), substitute—

(12) In this section “long term insurance funds”, in relation to an undertaking effecting or carrying out contracts of insurance, means funds maintained by it—

(a)in accordance with asset identification rules (within the meaning of section 142(2) of the Financial Services and Markets Act 2000) in respect of its business in effecting or carrying out contracts of long term insurance; or

(b)where it is incorporated in a country or territory outside the United Kingdom, under the corresponding provisions of the law of that country or territory..

(4) After subsection 12, insert—

(12A) The definition of X in subsection (2) and subsection (12) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Restrictions on powers of building societies

195.—(1) Section 9A of the Building Societies Act 1986(137) (restrictions on certain transactions) is amended as follows.

(2) In subsection (5)—

(a)for paragraphs (a) and (b) substitute—

(a)as a person who has permission under Part IV of the Financial Services and Markets Act 2000 to effect or carry out contracts of long-term insurance, or

(b)an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of long-term insurance.;

(b)the words after paragraph (b) to the end are repealed.

(3) In subsection (9)—

(a)in the definition of “collective investment scheme” for the words “Financial Services Act 1986” substitute “Financial Services and Markets Act 2000”;

(b)for the definition of “derivative investment” substitute—

“derivative investment” means an investment of the following kinds—

(a)

instruments giving entitlements to investments;

(b)

options;

(c)

futures;

(d)

contracts for differences;.

(4) After subsection (9) insert—

(9A) Subsection (5) and the definition of “derivative investment” in subsection (9) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act;.

Transfers of business by building society to company

196.—(1) Section 98(138) of the Building Societies Act 1986 (transfers of business; supplementary provisions) is amended as follows.

(2) In section 98(3)(c), for the words “become or,” to the end substitute—

have—

(i)such permission under Part IV of the Financial Services and Markets Act 2000, or

(ii)such permission under paragraph 15 of Schedule 3 to that Act (as a result of qualifying for authorisation under paragraph 12 of that Schedule),

as will enable it to carry on the business which it will have as a result of the transfer without being taken (by virtue of section 20 of that Act) to have contravened a requirement imposed on it by the Authority under that Act; or.

Financial institution becoming subsidiary of building society

197.—(1) Section 101 of the Building Societies Act 1986(139) (protective provisions for specially formed successors) is amended as follows.

(2) In subsection (4)(a)—

(a)for the words “financial institution” substitute “person who is an authorised person within the meaning of section 31 of the Financial Services and Markets Act 2000”;

(b)for the words “an institution” substitute “a person”.

(3) In subsection (6), the definition of “financial institution” is repealed.

Definition of “institution” and “deposit”

198.—(1) Section 107 of the Building Societies Act 1986(140) (restriction of use of certain names and descriptions) is amended as follows.

(2) For subsection (12)(141) substitute—

(12) In this section—

“deposit” must be read with—

(a)

section 22 of the Financial Services and Markets Act 2000;

(b)

any relevant order under that section; and

(c)

Schedule 2 to that Act;

“institution” means—

(a)

a body corporate wherever incorporated;

(b)

a partnership formed under the law of any part of the United Kingdom;

(c)

a partnership or other unincorporated association of two or more persons formed under the law of a member State other than the United Kingdom..

Repeal of unnecessary provisions etc.

199.—(1) Section 119 of the Building Societies Act 1986 is amended as follows.

(2) In subsection (1) after the definition of “ordinary resolution” insert—

“own funds” means own funds as defined in Section 1 of Chapter 2 of Title V of the Banking Consolidation Directive;.

(3) In subsection (1) the definition of “currency” is repealed(142).

(4) Subsections (2A) and (2C) are repealed(143).

Application of companies insolvency legislation to building societies

200.—(1) In Schedule 15 to the Building Societies Act 1986, in paragraph 3(2), before paragraph (a) insert—

(aa)every reference to a company registered in Scotland shall have effect as a reference to a building society whose principal office is situated in Scotland;.

(2) In Schedule 15A(144) to the Building Societies Act 1986, in paragraph 2(2) before paragraph (a) insert—

(aa)every reference to a company registered in Scotland shall have effect as a reference to a building society whose principal office is situated in Scotland;.

(3) Paragraphs 209(b) and 210(b) of Schedule 3 to the Financial Services and Markets Act 2000 (Mutual Societies) Order 2001 are revoked.

Friendly Societies Act 1992 (c. 40)

Transfers of engagements

201.—(1) Section 86 of the Friendly Societies Act 1992 (transfer of engagements by or to friendly society) is amended as follows.

(2) Subsection (1)(a) is repealed.

(3) In subsection (1)(d), for the words “insurance company” to the end, substitute “insurer”.

(4) In subsection (1)(e) for the words “paragraph (a), (b) or (c) above” substitute “paragraph (b), (c) or (d) above”.

(5) After subsection (11), insert—

(12) In this section “insurer” means—

(a)a person who has permission under Part IV of the Financial Services and Markets Act 2000 to effect or carry out contracts of insurance, or

(b)an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of insurance.

(13) Subsection (12) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Law applicable to contracts of insurance

202.  The following provisions of the Friendly Societies Act 1992 are repealed (having been re-enacted in the Financial Services and Markets Act 2000 (Law Applicable to Contracts of Insurance) Regulations 2001(145))—

(a)section 101 (law applicable to contracts of insurance with friendly societies)(146);

(b)Schedule 20(147) (law applicable to certain contracts of insurance).

Miscellaneous amendments

203.—(1) The Friendly Societies Act 1992 is amended as follows.

(2) In section 85(3) (amalgamation of friendly societies), for the words “central office” substitute “Authority”.

(3) In section 89 (power of Commission to alter requirements for transfer by friendly society) for subsection (7) substitute—

(7) The Authority shall keep a copy of any direction given under this section in the public file of the society concerned..

(4) In section 90(8) (power of Commission to effect transfer of engagements) for the words from the beginning to “who” substitute “If the Authority gives a direction it shall keep a copy of that direction and”.

(5) In section 104 (public file of a friendly society)—

(a)in subsection (1)(b) for the words “on payment of the fee prescribed under section 114 below”, substitute “subject to subsection (2A) below”;

(b)in subsection (2) for the words “on payment of the fee so prescribed” substitute “subject to subsection (2A) below”.

(6) In Schedule 3 to the Financial Services and Markets Act 2000 (Mutual Societies) Order 2001, paragraphs 99(b), 100(f) and 108(b) are revoked.

Form of documents

204.—(1) For section 114 of the Friendly Societies Act 1992 (form of documents and power to prescribe fees) substitute—

(1) The Authority may, by directions under this section, make provision with respect to the form of any document to be sent to it under this Act or the 1974 Act, the particulars to be included in any such document and the procedure to be followed in sending any such document.

(2) The directions have effect subject to any other provision of or made under this Act..

(2) In Schedule 3 to the Financial Services and Markets Act 2000 (Mutual Societies) Order 2001, paragraph 113 is revoked.

Interpretation of the Friendly Societies Act 1992

205.—(1) Section 117(8) of the Friendly Societies Act 1992 (meaning of “provision of insurance”) is repealed.

(2) Section 119 of the Friendly Societies Act 1992 (interpretation) is amended as follows.

(3) In the definition of “supervisory authority” in subsection (1) (148) for the words “insurance companies” substitute “persons whose business consists of effecting or carrying out contracts of insurance”.

(4) In subsection (1A)(149) for the words “Prudential Supervision Directive” to the end of that subsection substitute “European Parliament and Council Directive of 29th June 1995 amending Directives 77/780/EEC and 89/646/EEC in the field of credit institutions, Directives 72/239/EEC and 92/96/EEC in the field of non-life insurance, Directives 79/267/EEC and 92/49/EEC in the field of life assurance, Directive 93/22/EEC in the field of investment firms and Directive 85/611/EEC in the field of undertakings for collective investment in transferable securities (UCITS) with a view to reinforcing prudential supervision (No. 95/26/EC)”.

(5) Subsection (1B) is repealed.

(6) After subsection (1B), insert—

(1C) In the definition of “supervisory authority” in subsection (1), the reference to contracts of insurance and to effecting or carrying out such contracts must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Transfer of engagements: margin of solvency

206.—(1) For paragraph 13 of Schedule 15 to the Friendly Societies Act 1992 substitute—

13.(1) The Authority shall not confirm a transfer in any case where the transferee is required by section 87 above to furnish the Authority with a report unless it is satisfied (after taking the proposed transfer into account) either that the transferee will possess the margin of solvency required by rules made by the Authority under section 138 of the Financial Services and Markets Act 2000 or, where no margin of solvency is required by such rules, that the value of the transferee’s assets will exceed its liabilities.

(2) The Authority shall not confirm a transfer of any engagements the fulfilment of which will constitute effecting or carrying out contracts of insurance in the United Kingdom unless it is satisfied (after taking the proposed transfer into account) either that the transferee will possess the margin of solvency required by rules made by the Authority under section 138 of the Financial Services and Markets Act 2000 or, where no margin of solvency is required by such rules, that the value of the transferee’s assets will exceed its liabilities.

(3) This paragraph does not apply to any transfer of engagements to which paragraph 15 or 15A below applies.

(4) The reference in sub-paragraph (2) to effecting or carrying out contracts of insurance must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

(2) In paragraph 128 of Schedule 3 to the Financial Services and Markets Act 2000 (Mutual Societies) Order 2001—

(a)in sub-paragraph (o), for the words “paragraphs 12 and 13” substitute “paragraph 12”;

(b)sub-paragraphs (p) and (q) are revoked.

Transfer of engagements: general business

207.—(1) In Schedule 15 to the Friendly Societies Act 1992, paragraph 15(150) is amended as follows.

(2) In sub-paragraph (1)(c)—

(a)for paragraph (ii) substitute—

(ii)a UK firm which has an EEA right deriving from any of the insurance directives;;

(b)for paragraph (iii) substitute—

(iii)an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to the Financial Services and Markets Act 2000;;

(c)paragraph (iv) is repealed;

(d)for paragraph (v) substitute—

(v)an insurance company whose head office is in Switzerland, which has permission under Part IV of the Financial Services and Markets Act 2000 to effect or carry out contracts of insurance, which permission is not limited to reinsurance business;.

(3) For sub-paragraph (6), substitute—

(6) In this paragraph “the relevant authority” means—

(a)if the transferee falls within paragraph (1)(c)(iii), its home state regulator;

(b)if the transferee falls within paragraph (1)(c)(v), the supervisory authority in Switzerland;

(c)if the transferee falls within paragraph (1)(c)(vi), the Authority or other supervisory body responsible for the supervision;

(d)in any other case, the Authority..

Transfer of engagements: long term business

208.—(1) In Schedule 15 to the Friendly Societies Act 1992, paragraph 15A(151) is amended as follows.

(2) In sub-paragraph (1)(c)—

(a)for paragraph (ii) substitute—

(ii)a UK firm which has an EEA right deriving from any of the insurance directives;;

(b)for paragraph (iii) substitute—

(iii)an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to the Financial Services and Markets Act 2000;;

(c)paragraph (iv) is repealed.

(3) For sub-paragraph (6), substitute—

(6) In this paragraph “the relevant authority” means—

(a)if the transferee falls within paragraph (1)(c)(iii), its home state regulator;

(b)if the transferee falls within paragraph (1)(c)(v), the Authority or other supervisory body responsible for the supervision;

(c)in any other case, the Authority..

Transfer of engagements: interpretation

209.  In paragraph 18(152) of Schedule 15 to the Friendly Societies Act 1992 for the words “the Insurance Companies Act 1982” substitute “Schedule 3 to the Financial Services and Markets Act 2000”.

CHAPTER IIsubordinate legislation

Enactments relating to friendly societies

Revocation of redundant provisions

210.  The following enactments are revoked—

(a)the Friendly Societies (Fees) Order 1971 (S.I. 1971/1900);

(b)the Friendly Societies Regulations 1975 (S.I. 1975/205);

(c)the Friendly Societies Act 1992 (Consequential Provisions) (No 2) Regulations 1993 (S.I. 1993/1187);

(d)the Friendly Societies Appeal Tribunal Regulations 1993 (S.I. 1993/2002);

(e)the Friendly Societies (Qualifications of Actuaries No 2) Regulations 1993 (S.I. 1993/2518);

(f)the Friendly Societies (Auditors) Order 1994 (S.I. 1994/132)(153);

(g)the Friendly Societies (Insurance Business) Regulations 1994 (S.I. 1994/1981);

(h)The Friendly Societies (Authorisation) Regulations 1994 (S.I. 1994/1982);

(i)the Friendly Societies (Activities of a Subsidiary) Order 1995 (S.I. 1995/3062);

(j)The Friendly Societies (Insurance Business) (Amendment) Regulations 1996 (S.I. 1996/3008);

(j)the Friendly Societies (Activities of a Subsidiary) Order 1996 (S.I. 1996/3009);

(k)the Friendly Societies (Insurance Business) (Amendment) Regulations 1997 (S.I. 1997/966);

(l)the Friendly Societies (Activities of a Subsidiary) Order 1998 (S.I. 1998/2328);

(m)the Friendly Societies (Activities of a Subsidiary) (No 2) Order 1998 (S.I. 1998/2696);

(n)the Friendly Societies (Insurance Business) (Amendment) Regulations 1998 (S.I. 1998/3034);

(o)the Friendly Societies (Insurance Business) (Amendment) Regulations 2000 (S.I. 2000/1700);

(p)the Friendly Societies (General Charge and Fees) Regulations 2001 (S.I. 2001/816).

Revocation of references to dissolved bodies, repealed legislation etc.

211.—(1) In the Friendly Societies Act 1992 (Commencement No 3 and Transitional Provisions) Order 1993 (S.I. 1993/16)—

(a)in article 1(2) (interpretation), the definitions of “assistant registrar”, “Chief Registrar”, “Commission” and “registrar” are revoked; and

(b)articles 5, 7 and 9 (transitional provisions) are revoked.

(2) In the Friendly Societies Act 1992 (Transitional and Consequential Provisions and Savings) Regulations 1993 (S.I. 1993/932)—

(a)in regulation 2 (interpretation), the definitions of “the 1987 Regulations”, “incorporated friendly society” and “registrar” are revoked; and

(b)regulations 3 to 5 (transitional provisions) are revoked.

(3) In the Friendly Societies Act 1992 (Commencement No 6 and Transitional Provisions) Order 1993 (S.I. 1993/2213)—

(a)in article 1(2), the definition of “Industrial Assurance Commissioner” is revoked; and

(b)article 6 is revoked.

(4) Article 7 of the Friendly Societies Act 1992 (Commencement No 7 and Transitional Provisions and Savings) Order 1993 (S.I.1993/3226) is revoked.

(5) In regulation 9 (associated bodies) of, and paragraph 12 of Schedule 3 to, the Friendly Societies (Accounts and Related Provisions) Regulations 1994 (S.I. 1994/1983), for “Commission” substitute “Authority”.

(6) In the Friendly Societies Act 1992 (Transitional and Consequential Provisions) Regulations 1995 (S.I. 1995/710), regulations 3 and 5 are revoked.

Enactments relating to building societies

Revocation of redundant provisions

212.  The following enactments are revoked—

(a)the Building Societies Appeal Tribunal Regulations 1987 (S.I. 1987/891)(154);

(b)the Building Societies (Designation of Prescribed Regulatory Authorities) Order 1988 (S.I. 1988/630);

(c)the Building Societies Appeal Tribunal (Amendment) Regulations 1993 (S.I. 1993/983);

(d)The Building Societies (Auditors) Order 1994 (S.I. 1994/525)(155);

(e)The Building Societies (Designation of Prescribed Regulatory Authorities) Order 1997 (S.I. 1997/2302);

(f)The Building Societies (General Charge and Fees) Regulations 2001 (S.I. 2001/815).

Revocation or amendment of references to dissolved bodies, repealed legislation etc.

213.—(1) In the Building Societies Act 1986 (Rules and Miscellaneous Transitional Provisions) Order 1986 (S.I. 1986/2168), articles 3(4) and (5), 4, 10 and 11 are revoked.

(2) In the Building Societies Act 1986 (Powers and Miscellaneous Transitional Provisions) Order 1986 (S.I. 1986/2169), the definition of “the registrar” in article 2 and articles 4, 8 and 11 are revoked.

(3) In regulation 2 of, and paragraph 28 of Part I of Schedule 1 to, and Schedule 3 to, the Building Societies (Transfer of Business) Regulations 1998 (S.I. 1998/212), for “Building Societies Commission” in each place those words appear, substitute “Authority”.

(4) In regulation 6 of, and Schedule 4 to, the Building Societies (Accounts and Related Provisions) Regulations 1998 (S.I. 1998/504)(156), for “Commission”, substitute “Authority”.

(5) In regulation 3 of the Building Societies (Business Names) Regulations 1998 (S.I. 1998/3186) and in the cross-heading before that regulation, for “Commission” substitute “Authority”.

(6) In regulation 2 of, and the Schedule to, the Building Societies (Merger Notification Statement) Regulations 1999 (S.I. 1999/1215), for “Building Societies Commission” in each place those words appear, substitute “Authority”.

Building Societies (Deferred Shares) Order 1991

214.  The Building Societies (Deferred Shares) Order 1991 (S.I. 1991/701) is amended as follows—

(a)for article 3(2), substitute—

(2) The condition mentioned in paragraph (1) of this article is that—

(a)the document containing the issue terms, or where the issue terms are contained in a series of documents, one of those documents, being in either case a document which is furnished to every applicant for the shares (“the issue document”), and every document evidencing title to the shares (“the title document”), contains a prominent statement to the effect that the shares are deferred shares for the purposes of section 119 of the Act;

(b)where the issue document was issued before 1st December 2001 or where the title document evidences title obtained before that date, that document contains a prominent statement to the effect that the shares are not protected investments for the purposes of payments out of the Building Societies Investor Protection Fund; and

(c)where the issue document was issued on or after 1st December 2001 or where the title document evidences title obtained on or after that date, that document contains a prominent statement stating whether or not the shares are an investment in respect of which a claim may be entertained by the Financial Services Compensation Scheme.; and

(b)in the Schedule, for “Commission” substitute “Authority”.

Enactments relating to industrial and provident societies and credit unions

Revocation of redundant provisions

215.  The following enactments are revoked—

(a)the Industrial and Provident Societies (Forms and Procedure) Regulations 1996 (S.I. 1996/3121);

(b)the Industrial and Provident Societies (Fees) Regulations 2001 (S.I. 2001/813);

(c)the Industrial and Provident Societies (Credit Unions) Regulations 1979 (S.I. 1979/937);

(d)the Industrial and Provident Societies (Credit Unions) (Fees) Regulations 2001 (S.I. 2001/814).

PART 7ENACTMENTS RELATING TO SCOTLAND

CHAPTER Iprimary legislation

Agricultural Credits (Scotland) Act 1929 (19&20 Geo. V c. 13)

Repeal of redundant provision

216.  Section 8 of the Agricultural Credits (Scotland) Act 1929 (registration of agricultural charges) is repealed.

Definition of “Bank”

217.  In section 9 of the Agricultural Credits (Scotland) Act 1929 (interpretation) for the definition of “Bank”(157) substitute—

“Bank” means—

(a)

the Bank of England,

(b)

a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits,

(c)

an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to accept deposits, or

(d)

the Post Office in the exercise of its powers to provide banking services,

and the expressions used in paragraphs (b) and (c) of this definition must be read with section 22 of the Financial Services and Markets Act 2000, any relevant order under that section and Schedule 2 to that Act;.

Local Government (Scotland) Act 1973 (c. 65)

Meaning of “securities”

218.  For subsection (1) of section 42(158) of the Local Government (Scotland) Act 1973 (interpretation of sections 39 and 41) substitute—

(1) In sections 39 and 41 of this Act “securities” has the meaning given by section 92.

Contracts deemed to be insurance policies

219.  In section 86(3) of the Local Government (Scotland) Act 1973 (insurance by local authorities against accidents to members) for the words “the Insurance Companies Act 1982”(159) substitute “the Financial Services and Markets Act 2000”.

Meaning of “securities”

220.—(1) Section 92 of the Local Government (Scotland) Act 1973 (transfer of securities on alteration of area etc.) is amended as follows.

(2) In subsection (2), the definition of “securities”(160) is repealed.

(3) After that subsection insert—

(3) “Securities” means—

(a)shares;

(b)instruments creating or acknowledging indebtedness;

(c)government and public securities;

(d)instruments giving entitlements to investments;

(e)certificates representing securities;

(f)units in a collective investment scheme;

(g)rights to, or interests in, any security of the kind mentioned in paragraphs (a) to (f);

(h)rights (whether actual or contingent) to money lent to, or deposited with—

(i)a society registered under the Industrial and Provident Societies Act 1965, or

(ii)a building society within the meaning of the Building Societies Act 1986.

(4) Subsection (3) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act.

National Health Service (Scotland) Act 1978 (c. 29)

Financial Services and Markets Act 2000 disapplied to certain health service schemes

221.  In section 85B(5)(161) of the National Health Service (Scotland) Act 1978 (schemes for meeting losses and liabilities etc. of certain health service bodies), for the words “carrying on insurance business for the purposes of the Insurance Companies Act 1982” substitute “effecting or carrying out contracts of insurance for the purposes of the Financial Services and Markets Act 2000”.

Solicitors (Scotland) Act 1980 (c. 46)

Specification of banks where solicitors may keep accounts

222.—(1) Section 35 of the Solicitors (Scotland) Act 1980 (accounts rules) is amended as follows.

(2) In subsection (2), for paragraph (e)(162) substitute—

(e)a person (other than a building society) who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits;

(ea)an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to the Financial Services and Markets Act 2000 which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to accept deposits;.

(3) After subsection (2) of section 35 insert—

(2A) Paragraphs (e) and (ea) of subsection (2) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Meaning of “authorised insurer”

223.—(1) Section 44 of the Solicitors (Scotland) Act 1980 (professional indemnity) is amended as follows.

(2) In subsection (5), for the words “authorised insurer” to the end of paragraph (b) substitute—

an “authorised insurer” is—

(a)

a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of general liability insurance;

(b)

a person who has permission under Part 4 of that Act to effect or carry out contracts of insurance relating to accident, sickness, credit, suretyship, miscellaneous financial loss and legal expenses;

(c)

an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of general liability insurance; or

(d)

an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts relating to accident, sickness, credit, suretyship, miscellaneous financial loss and legal expenses;.

(3) After subsection (5) of section 44 insert—

(6) The definition of “authorised insurer” in subsection (5) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Bankruptcy (Scotland) Act 1985 (c. 66)

Petitions for sequestration under Financial Services and Markets Act 2000

224.  In section 10(1)(c)(163) of the Bankruptcy (Scotland) Act 1985 (concurrent proceedings for sequestration or analogous remedies), for the words “section 72 of the Financial Services Act 1986” substitute “section 372 of the Financial Services and Markets Act 2000”.

Meaning of “appropriate bank or institution”

225.  In section 73 of the Bankruptcy (Scotland) Act 1985 (interpretation) for the definition of “appropriate bank or institution”(164) substitute—

“appropriate bank or institution” means—

(a)

the Bank of England,

(b)

a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits,

(c)

an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to accept deposits, or

(d)

a person who is exempt from the general prohibition in respect of accepting deposits as a result of an exemption order made under section 38(1) of that Act,

and the expressions in this definition must be read with section 22 of the Financial Services and Markets Act 2000, any relevant order under that section and Schedule 2 to that Act;.

Housing (Scotland) Act 1987 (c. 26)

Definition of “bank”

226.—(1) Section 338 of the Housing (Scotland) Act 1987 (interpretation) is amended as follows.

(2) In subsection (1)—

(a)in the definition of “bank”, for paragraph (a) substitute—

(a)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits,

(ab)an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to accept deposits, or;

(b)for the definition of “insurance company” substitute—

“insurance company” means—

(a)

a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of insurance, or

(b)

an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of insurance;.

(3) After subsection (1) insert—

(1A) The definitions of “bank” and “insurance company” in subsection (1) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Local authority indemnity for building societies: consultation requirements

227.  In section 229(4) of the Housing (Scotland) Act 1987 (local authority indemnity for building societies: consultation requirements) for “Building Societies Commission” substitute “Financial Services Authority”.

The Criminal Justice (Scotland) Act 1987 (c. 41)

Competent authorities for receipt of information

228.  For paragraphs (e) to (l) of section 54(5) of the Criminal Justice (Scotland) Act 1987 (competent authorities for the purposes of disclosure of information obtained in relation to serious or complex fraud) substitute—

(e)a person appointed under—

(i)section 167 of the Financial Services and Markets Act 2000 (general investigations),

(ii)section 168 of that Act (investigations in particular cases),

(iii)section 169(1)(b) of that Act (investigation in support of overseas regulator),

(iv)section 284 of that Act (investigations into affairs of certain collective investment schemes), or

(v)regulations made as a result of section 262(2)(k) of that Act (investigations into open-ended investment companies),

to conduct an investigation;

(f)a body corporate established in accordance with section 212(1) of the Financial Services and Markets Act 2000 (compensation scheme manager);.

Self-Governing Schools etc. (Scotland) Act 1989 (c. 39)

Specification of banks and investments

229.—(1) Section 53 of the Self-Governing Schools etc. (Scotland) Act 1989 (disposal of surplus money on winding up) is amended as follows.

(2) In subsection (1)(a), for the words “any bank” to the end substitute—

any person who has permission under the Financial Services and Markets Act 2000 to accept deposits); and.

(3) For subsection (4) substitute—

(4) This section applies to any investment which is a security.

(4) For subsection (5) substitute—

(5) The references to accepting deposits in subsection (1)(a) and to an investment being a security in subsection (4) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Enterprise and New Towns (Scotland) Act 1990 (c. 35)

Exclusion from financial promotion restriction

230.  For section 31(2) of the Enterprise and New Towns (Scotland) Act 1990 (application and disapplication of certain provisions) substitute—

(2) Section 21 of the Financial Services and Markets Act 2000 (restrictions on financial promotion) shall not apply to any invitation or inducement (within the meaning of that section) which Scottish Enterprise communicates in the discharge of its functions.

Law Reform (Miscellaneous Provisions) (Scotland) Act 1990 (c. 40)

Definition of “relevant institution”

231.  For section 12(13)(a) of the Law Reform (Miscellaneous Provisions) (Scotland) Act 1990 (dormant accounts of charities in banks, etc.) substitute—

(a)a “relevant institution” is—

(i)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits;

(ii)an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to accept deposits;

(iii)such other person or class of persons as the Secretary of State may by regulations made under this section, prescribe;.

Definition of “recognised financial institution”

232.—(1) Section 19 of the Law Reform (Miscellaneous Provisions) (Scotland) Act 1990 (executry services by recognised financial institutions) is amended as follows.

(2) For subsection (2) substitute—

(2) In this section “recognised financial institution” means—

(a)any person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits;

(b)an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to accept deposits;

(c)any subsidiary (as defined by section 736(1) of the Companies Act 1985) of a body falling within paragraph (a) or (b) above whose business or any part of whose business consists of the provision of executry services..

(3) After subsection (2) insert—

(2A) The definition of “recognised financial institution” in subsection (2) above must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

(4) In subsection (6), for the words from “section 16” to the end, substitute “rules made under section 141(1) of the Financial Services and Markets Act 2000 (which may restrict insurers to carrying on insurance business).”.

Meaning of “executry services”

233.  In section 23 of the Law Reform (Miscellaneous Provisions) (Scotland) Act 1990 (interpretation of sections 16 to 22), in the definition of “executry services” for the words “investment business within the meaning of the Financial Services Act 1986” substitute “carrying on a regulated activity within the meaning of the Financial Services and Markets Act 2000”.

Criminal Law (Consolidation) (Scotland) Act 1995 (c. 39)

Competent authorities for the receipt of information

234.  For paragraphs (e) to (l) of section 30(5) of the Criminal Law (Consolidation) (Scotland) Act 1995 (disclosure of information) substitute—

(e)a person appointed under—

(i)section 167 of the Financial Services and Markets Act 2000 (general investigations),

(ii)section 168 of that Act (investigations in particular cases),

(iii)section 169(1)(b) of that Act (investigation in support of overseas regulator),

(iv)section 284 of that Act (investigations into affairs of certain collective investment schemes), or

(v)regulations made as a result of section 262(2)(k) of that Act (investigations into open-ended investment companies),

to conduct an investigation;

(f)a body corporate established in accordance with section 212(1) of the Financial Services and Markets Act 2000 (compensation scheme manager);.

Adults with Incapacity (Scotland) Act 2000 (asp 4)

Persons capable of giving “proper advice”

235.—(1) Schedule 2 to the Adults with Incapacity (Scotland) Act 2000 (management of estate of adult) is amended as follows.

(2) In paragraph 5(2), for the words “authorised to carry on investment business in the United Kingdom for the purposes of the Financial Services Act 1986 (c. 60)” substitute “who has permission for the purposes of the Financial Services and Markets Act 2000 to advise on investments”.

(3) After paragraph 5(2) insert—

(2A) Sub-paragraph (2) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

CHAPTER IIsecondary legislation

The Banking Appeal Tribunal (Scottish Appeals)

Revocation of instruments made under the Banking Act 1987

236.  The following instruments are revoked—

(a)The Banking Appeal Tribunal (Scottish Appeals) Regulations 1987 (S.I. 1987/1336 (S.95));

(b)The Banking Appeal Tribunal (Scottish Appeals) Amendment Regulations 1993 (S.I. 1993/1061 (S.150)).

Local Government Superannuation (Scotland) Regulations 1987 (S.I. 1987/1850)

Actionable loss arising from pension mis-selling

237.  In regulation B4B(4)(b) of the Local Government Superannuation (Scotland) Regulations 1987(rejoining pensionable employment)(165)—

(a)after the words “section 62 of the Financial Services Act 1986” insert “or section 150 of the Financial Services and Markets Act 2000”; and

(b)the words “made under the Act” are revoked.

Use and investment of superannuation funds' moneys

238.—(1) Regulation P6 of the Local Government Superannuation (Scotland) Regulations 1987 (use and investment of superannuation funds' moneys) is amended as follows.

(2) In paragraph (7A)(166) for the words “the provisions of” to the end of sub-paragraph (b) substitute—

the provisions of CIS 5.14.4R and CIS 5.14.6R of the rules made by the Financial Services Authority under Part 10 of the Financial Services and Markets Act 2000..

(3) In paragraph (10), for the definition of “investment manager”(167) substitute—

“investment manager” means a person who has permission for the purposes of the Financial Services and Markets Act 2000 to manage investments which are held for the purposes of an occupational pension scheme and who is reasonably believed by the administrating authority to be suitably qualified to make investment decisions on their behalf, but who is not an employee of that authority;.

(4) After paragraph (10) insert—

(11) The definition of “investment manager” in paragraph (10) must be read with—

(a)sections 22 and 419 of the Financial Services and Markets Act 2000;

(b)any relevant order under those sections;

(c)Schedule 2 to that Act..

The Teachers' Superannuation (Scotland) Regulations 1992 (S.I. 1992/280)

Meaning of “reference banks”

239.—(1) The Teachers' Superannuation (Scotland) Regulations 1992 are amended as follows.

(2) For paragraph (5)(b) of regulation E31A (interest on late payment of certain benefits)(168) substitute—

(b)“the reference banks” means the four largest persons for the time being who—

(i)have permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits;

(ii)are incorporated in and carrying on in the United Kingdom a regulated activity of accepting deposits; and

(iii)quote a base rate applicable to sterling deposits,

and in this definition the reference to accepting deposits must be read with section 22 of the Financial Services and Markets Act 2000, any relevant order under that section and Schedule 2 to that Act;.

The Brechin and Bridge of Dun Light Railway Order 1992 (S.I. 1992/1267)

Meaning of “insurer”

240.—(1) Article 10 of the Brechin and Bridge of Dun Light Railway Order 1992 (public liability insurance) is amended as follows.

(2) In paragraph (1), for the definition of “insurer” substitute—

“insurer” means—

(a)

any person who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of insurance of a relevant class, or

(b)

an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of insurance of a relevant class;.

(3) After paragraph (1) insert—

(1A) The definition of “insurer” in paragraph (1) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

The Non-Domestic Rating (Payment of Interest) (Scotland) Regulations 1992 (S.I. 1992/2184 (S. 218))

Definition of “reference banks”

241.—(1) Regulation 4 of the Non-Domestic Rating (Payment of Interest) (Scotland) Regulations 1992 (calculation of interest—repayment on or after 1st October 1992) is amended as follows.

(2) In paragraph (3)—

(a)for the words from “seven” to “United Kingdom” substitute—

seven largest persons who—

(a)have permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits; and

(b)are incorporated in the United Kingdom and carrying on there a regulated activity of accepting deposits;; and

(b)for the words “an institution” substitute “a person”; for the words “that institution” substitute “that person” and for the word “its” substitute “the”.

(3) After paragraph (3) insert—

(4) Paragraph (3) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

The Registered Housing Associations (Accounting Requirements) (Scotland) Order 1993 (S.I. 1993/487 (S. 52))

Meaning of “listed investment”

242.  In paragraph 15 of Schedule 2 to the Registered Housing Associations (Accounting Requirements) (Scotland) Order 1993 (investments)—

(a)in sub-paragraph (1)(b) for the words “the Financial Services Act 1986” substitute “the Financial Services and Markets Act 2000”;

(b)in sub-paragraph (3) for the words “the Financial Services Act 1986” substitute “the Financial Services and Markets Act 2000”.

The Criminal Justice (Scotland) Act 1987 (Crown Servants and Regulators etc.) Regulations 1994 (S.I. 1994/1808) (S.80))

Exemption from obligation to disclose knowledge or suspicion of money laundering

243.  In regulation 4(1) of the Criminal Justice (Scotland) Act 1987 (Crown Servants and Regulators etc.) Regulations 1994 (designation of persons appearing to the Secretary of State to be performing regulatory etc. functions)—

(a)for sub-paragraph (c) substitute—

(c)the Financial Services Authority;;

(b)sub-paragraphs (b), (d) to (g) and (i) to (m) are revoked.

The National Health Service Superannuation Scheme (Scotland) Regulations 1995 (S.I. 1995/365)

Actionable loss arising from pension mis-selling

244.  In paragraph (1)(c) of regulation B6(169) of the National Health Service Superannuation Scheme (Scotland) Regulations 1995 (opting into the scheme: mis-sold pensions), after the words “section 62 of the Financial Services Act 1986” add “or section 150 of the Financial Services and Markets Act 2000”.

The Charities (Dormant Accounts) (Scotland) Regulations 1995 (S.I. 1995/2056)

Prescribed “relevant institutions”

245.  In regulation 2A of the Charities (Dormant Accounts) (Scotland) Regulations 1995(170) for the words “(being institutions mentioned in Schedule 2 to the Banking Act 1987)” substitute “that is to say a company which was, immediately before the repeal of the Banking Act 1987, exempted from the prohibition in section 3 of that Act by virtue of section 4(1) of, and paragraph 4 of Schedule 2 to, that Act”.

The Acquisition of Land (Rate of Interest After Entry) (Scotland) Regulations 1995 (S.I. 1995/2791) (S.206))

Definition of reference banks

246.—(1) Regulation 2 of the Acquisition of Land (Rate of Interest after Entry) (Scotland) Regulations 1995 (rate of interest) is amended as follows.

(2) In paragraph (5)(a) for the words from “seven” to “United Kingdom,” substitute—

seven largest persons who—

(a)have permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits; and

(b)are incorporated in the United Kingdom and carrying on there a regulated activity of accepting deposits,;

(3) In paragraphs (5)(b) and (6) for the words “an institution” (in both places) substitute “a person”; for the words “that institution” substitute “that person” and for “its” (wherever it appears) substitute “his”.

(4) After paragraph (5) insert—

(5A) Paragraph (5) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

The Teachers' Superannuation (Additional Voluntary Contributions) (Scotland) Regulations 1995 (S.I. 1995/2814)

Meaning of “insurer”

247.—(1) Regulation 9 of the Teachers' Superannuation (Additional Voluntary Contributions) (Scotland) Regulations 1995 (investment of contributions) is amended as follows.

(2) In paragraphs (1) and (2), for “insurance company” wherever it appears substitute “insurer”.

(3) For paragraph (3) substitute—

(3) In this regulation “insurer” means—

(a)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of long-term insurance, or

(b)an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of long-term insurance..

(4) After paragraph (3) insert—

(4) Paragraph (3) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section;

(c)Schedule 2 to that Act..

The Fossil Fuel Levy (Scotland) Regulations 1996 (S.I. 1996/293)

Investment of sums collected

248.—(1) Regulation 25 of the Fossil Fuel Levy (Scotland) Regulations 1996 (investment of sums collected) is amended as follows.

(2) In paragraph (3) for the words from “an institution” to “Regulations 1992”(171) substitute—

a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits and an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule to accept deposits as a result of satisfying the establishment conditions within the meaning of that Schedule.

(3) After paragraph (3) insert—

(4) Paragraph (3) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

The Independent Qualified Conveyancers (Scotland) Regulations 1997 (S.I. 1997/316) ( S.20))

Meaning of “banks” and “recognised financial institution”

249.—(1) Regulation 2 of the Independent Qualified Conveyancers (Scotland) Regulations 1997 (interpretation) is amended as follows.

(2) In paragraph (1)—

(a)for the definition of “Bank” substitute—

“Bank” means—

(a)

a person (other than a building society) who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits; or

(b)

an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule to accept deposits as a result of satisfying the establishment conditions within the meaning of that Schedule;; and

(b)for the definition of “recognised financial institution” substitute—

“recognised financial institution” means—

(a)

any person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits;

(b)

an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to accept deposits;

(c)

any subsidiary (as defined by section 736(1) of the Companies Act 1985) of a body falling within paragraph (a) or (b) above whose business or any part of whose business consists of the provision of executry services..

(3) After paragraph (1) insert—

(1A) The definitions of “bank” and “recognised financial institution” in paragraph (1) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

The Executry Practitioners (Scotland) Regulations 1997 (S.I. 1997/317) (S.21))

Meaning of “bank” and “recognised financial institution”

250.—(1) Regulation 2 of the Executry Practitioners (Scotland) Regulations 1997 (interpretation) is amended as follows.

(2) In paragraph (1) for the definition of “bank” substitute—

“Bank” means—

(a)

a person (other than a building society) who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits; or

(b)

an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule to accept deposits as a result of satisfying the establishment conditions within the meaning of that Schedule;.

(3) In paragraph (1) for the definition of “recognised financial institution” substitute—

“recognised financial institution” means—

(a)

any person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits;

(b)

an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to accept deposits;

(c)

any subsidiary (as defined by section 736(1) of the Companies Act 1985) of a body falling within paragraph (a) or (b) above whose business or any part of whose business consists of the provision of executry services..

(4) After paragraph (1) insert—

(1A) The definitions of “bank” and “recognised financial institution” in paragraph (1) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

The Local Government Pension Scheme (Scotland) Regulations 1998 (S.I. 1998/366)

Meaning of “authorised insurer” and “relevant institution”

251.—(1) Regulation 4(16)(172) of the Local Government Pension Scheme (Scotland) Regulations 1998 (agreements to enable employees of non-Scheme employers to be members (“admission agreements”) is amended as follows.

(2) For sub-paragraph (a) substitute—

(a)“authorised insurer” means—

(i)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of general insurance; or

(b)an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of general insurance,

and the expressions used in this definition must be read with section 22 of the Financial Services and Markets Act 2000, any relevant order under that section and Schedule 2 to that Act..

(3) For sub-paragraph (e) substitute—

(e)“relevant institution” means—

(i)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 accept deposits;

(ii)a person who is exempt from the general prohibition in respect of accepting deposits as a result of an exemption order made under section 38(1) of that Act;

(iii)an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule to accept deposits as a result of satisfying the establishment conditions within the meaning of that Schedule,

and the expressions used in this definition must be read with section 22 of the Financial Services and Markets Act 2000, any relevant order under that section and Schedule 2 to that Act..

Actionable loss arising from pensions mis-selling

252.  In regulation 6(9) of the Local Government Pension Scheme (Scotland) Regulations 1998 (joining the Scheme), after the words “section 62 of the Financial Services Act 1986” add “or section 150 of the Financial Services and Markets Act 2000”.

Appropriate annuity contracts etc.

253.—(1) Regulation 145(173) of the Local Government Pension Scheme (Scotland) Regulations 1998 (qualifying arrangements) is amended as follows.

(2) In paragraph (2), for sub-paragraph (a) substitute—

(a)effects or carries out contracts of long-term insurance in the United Kingdom or any other member State; and.

(3) For paragraph (3) substitute—

(3) Paragraph (2)(a) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order made under that section; and

(c)Schedule 2 to that Act..

Definition of terms

254.—(1) Schedule 1 to the Local Government Pension Scheme (Scotland) Regulations 1998 (interpretation) is amended as follows.

(2) In the definition of “AVC insurance company”—

(a)for paragraphs (a) and (b) substitute—

(a)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of long-term insurance;

(b)an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of long-term insurance; or

(b)for the words after the end of paragraph (c) substitute—

and paragraphs (a) and (b) of this definition must be read with section 22 of the Financial Services and Markets Act 2000, any relevant order under that section and Schedule 2 to that Act..

(3) In the definition of “the Reference banks”—

(a)for the words from “seven largest institutions” to the end of the definition substitute—

seven largest persons for the time being who—

(a)

have permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits;

(b)

are incorporated in and carrying on in the United Kingdom a regulated activity of accepting deposits; and

(c)

quote a base rate in sterling,

and in this definition—

  • the size of a person at any time is to be determined by reference to the gross assets denominated in sterling of that person, together with any subsidiary (as defined in section 736 of the Companies Act 1985), as shown in the audited end-of-year accounts last published before that time; and

  • the reference to accepting deposits must be read with section 22 of the Financial Services and Markets Act 2000, any relevant order under that section and Schedule 2 to that Act;.

(4) In the definition of “open ended investment company”(174) for the words “section 75(8) of the Financial Services Act 1986” substitute “section 236 of the Financial Services and Markets Act 2000”.

The National Health Service Superannuation Scheme (Scotland) (Additional Voluntary Contributions) Regulations 1998 (S.I. 1998/1451) (S.75))

Meaning of “insurance company”

255.—(1) Regulation 2 of the National Health Service Superannuation Scheme (Scotland) (Additional Voluntary Contributions) Regulations 1998 (interpretation) is amended as follows.

(2) In paragraph (1) for the definition of “insurance company” substitute—

“insurance company” means—

(a)

a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of long-term insurance; or

(b)

an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule to effect or carry out contracts of long-term insurance as a result of satisfying the establishment conditions within the meaning of that Schedule;.

(3) After paragraph (1) insert—

(1A) The definition of “insurance company” in paragraph (1) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

The Local Government Pension Scheme (Management and Investment of Funds) (Scotland) Regulations 1998 (S.I. 1998/2888) (S.168))

Definitions of terms

256.—(1) In regulation 2 of the Local Government Pension Scheme (Management and Investment of Funds) (Scotland) Regulations 1998 (general definitions)(175)—

(a)the existing provision becomes paragraph (1);

(b)the definitions of “European authorised institution” and “European institution” are revoked;

(c)the definition of “home-regulated investment business” is revoked;

(d)for the definition of “relevant institution” substitute—

“relevant institution” means—

(a)

a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits;

(b)

an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12(1) of that Schedule) to accept deposits; or

(c)

a person who is an exempt person in respect of accepting deposits as a result of an order made under section 38(1) of that Act;;

(e)after paragraph (1) insert—

(2) The definition of “relevant institution” in paragraph (1), together with regulations 3(5) to (6A) and 4(2) and paragraph 4 of Part I of Schedule 1, must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Meaning of “investment”

257.—(1) In regulation 3 of the Local Government Pension Scheme (Management and Investment of Funds) (Scotland) Regulations 1998 (definition of “investment”), for paragraphs (5) and (6) substitute—

(5) A contract of insurance is an investment if and only if it is a contract of a relevant class, and is entered into with a person within paragraph (6) for whom entering into the contract constitutes the carrying on of a regulated activity (within the meaning of the Financial Services and Markets Act 2000).

(6) The persons within this paragraph are—

(a)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of insurance of a relevant class;

(b)an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of insurance of a relevant class; or

(c)a person who does not fall within sub-paragraph (a) or (b) and who, because he has his head office in an EEA State (within the meaning of that Act) other than the United Kingdom, is permitted by the law of that State to effect or carry out contracts of insurance of a relevant class.

(6A) A contract of insurance is of a relevant class for the purposes of paragraphs (5) and (6) if it is—

(a)a contract of insurance on human life or a contract to pay an annuity on human life where the benefits are wholly or partly to be determined by reference to the value of, or the income from, property of any description (whether or not specified in the contract) or by reference to fluctuations in, or in an index of, the value of property of any description (whether or not so specified); or

(b)a contract to manage the investments of pension funds, whether or not combined with contracts of insurance covering either conservation of capital or payment of a minimum interest..

(2) For paragraphs (7) and (8) substitute—

(7) A stock lending arrangement is an investment if, and only if, in respect of it, the conditions in rules 5.14.4R and 5.14.6R in the Collective Investment Scheme Sourcebook are complied with.

(8) For the purposes of paragraph (7)—

(a)the references in rules 5.14.4R and 5.14.6R to the trustee must be read as if they were references to the administering authority; and

(b)the “Collective Investment Scheme Sourcebook” means the Collective Investment Scheme Sourcebook made by the Financial Services Authority under Part 10 of the Financial Services and Markets Act 2000..

Meaning of “investment manager”

258.—(1) Regulation 4 of the Local Government Pension Scheme (Management and Investment of Funds) (Scotland) Regulations 1998 (definition of “investment manager”), for paragraphs (2) to (4) substitute—

(2) A person is an investment manager if—

(a)he has permission under Part 4 of the Financial Services and Markets Act 2000 to manage the assets of occupational pension schemes;

(b)he is an EEA firm of the kind mentioned in paragraph 5(a) or (b) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to manage the assets of occupational pension schemes; or

(c)he is a person—

(i)who does not carry on regulated activities (within the meaning of that Act) from a permanent place of business maintained by him in the United Kingdom;

(ii)whose head office is situated in an EEA State (within the meaning of that Act) other than the United Kingdom;

(iii)who is recognised by the law of that EEA State as a national of that or another EEA State;

(iv)who is authorised under that law to carry on one or more regulated activities (within the meaning of that Act); and

(v)who is not prevented by that law from managing the assets of occupational pension schemes or assets belonging to another person..

Limits on investments and other definitions

259.—(1) Schedule 1 to the Local Government Pension Scheme (Management and Investment of Funds) (Scotland) Regulations 1998 (limits on investments) is amended as follows.

(2) For paragraph 4 of Part I of that Schedule (limits on investments) substitute—

4.  All deposits with—

(a)any local authority, or

(b)any body with power to issue a precept or requisition to a local authority, or to the expenses of which a local authority can be required to contribute,

which is an exempt person (within the meaning of the Financial Services and Markets Act 2000) in respect of accepting deposits as a result of an order made under section 38(1) of that Act, and all loans (but see paragraph 12)..

(3) In paragraph 15—

(a)in the definition of “collective investment scheme” for the words “section 75 of the Financial Services Act 1986” substitute “section 235 of the Financial Services and Markets Act 2000”; and

(b)in the definition of “open-ended investment company” for the words “Open-ended Investment Companies (Investment Companies with Variable Capital) Regulations 1996” substitute “Open-Ended Investment Companies Regulations 2001”.

The Registered Housing Associations (Accounting Requirements) (Scotland) Order 1999 (S.I. 1999/1073)

Listed investments shown on balance sheet

260.  In paragraph 28 of the Schedule to the Registered Housing Associations (Accounting Requirements) (Scotland) Order 1999, for the words from “granted a listing” to the end, substitute—

granted a listing on—

(a)a recognised investment exchange other than an overseas investment exchange within the meaning of the Financial Services and Markets Act 2000; or

(b)any stock exchange of repute outside Great Britain..

The Scotland Act 1998 (Transitory and Transitional Provisions) (Scottish Parliamentary Pension Scheme) Order 1999 (S.I. 1999/1082)

Additional voluntary contributions

261.—(1) Schedule 6 to the Scotland Act 1998 (Transitory and Transitional Provisions) (Scottish Parliamentary Pension Scheme) Order 1999 (additional voluntary contributions) is amended as follows.

(2) After sub-paragraph (2) of paragraph 1 (interpretation) insert—

(3) In this Schedule, paragraphs 5(2) and 8(2) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

(3) For sub-paragraphs (a) and (b) of paragraph 5(2) (investment of contributions) substitute—

(a)in an insurance policy or policies taken out with an office or branch in the United Kingdom of—

(i)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of long-term insurance; or

(ii)an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12(1) of that Schedule) to effect or carry out contracts of long-term insurance;

(b)in a deposit account or accounts with a building society (within the meaning of the Building Societies Act 1986) which has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits..

(4) In paragraph 8(2) (purchase of pensions), for the words from “being either” to the end of sub-paragraph (b) substitute—

being a United Kingdom branch or office of—

(a)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of long-term insurance; or

(b)an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule to effect or carry out contracts of long-term insurance as a result of satisfying the establishment conditions within the meaning of that Schedule;.

The Scotland Act 1998 (Functions Exercisable in or as Regards Scotland) Order 1999 (S.I. 1999/1748)

Revocation of redundant provision

262.  In Schedule 1 to the Scotland Act 1998 (Functions Exercisable in or as Regards Scotland) Order 1999—

(a)paragraphs 8 and 23 (which relate to the tribunal established under section 47 of the Building Societies Act 1986(176)), and

(b)paragraph 9 (which relates to the Financial Services Tribunal),

are revoked.

The European Communities (Lawyer’s Practice) (Scotland) Regulations 2000 (S.I. 2000/121)

Application of Part 20 of the Financial Services and Markets Act 2000 to European lawyers

263.—(1) Schedule 2 to the European Communities (Lawyer’s Practice) (Scotland) Regulations (application, extension and modification of enactments to registered European lawyers) is amended as follows.

(2) For paragraph 3 of Part II substitute—

3.  For the purposes of Part 20 of the Financial Services and Markets Act 2000 (provision of financial services by members of the professions), a registered European lawyer and any partner shall be treated as—

(a)a member of the profession in relation to which the Law Society of Scotland(177) is established; and

(b)as subject to the rules of the Law Society of Scotland..

(3) Paragraph 5 of Part II is revoked.

PART 8MISCELLANEOUS AMENDMENTS TO PRIMARY LEGISLATION

Lloyd’s Act 1871 (c. 21)

Functions to be exercised by the Authority

264.—(1) The Lloyd’s Act 1871 is amended as follows.

(2) In section 35 (salvage operations as to wreck of Lutine) for “the Treasury”(178) substitute “the Financial Services Authority”.

(3) In section 39 (agreements for incorporation of other Societies, &c) for “the Treasury”(179) substitute “the Financial Services Authority”.

Bankers' Books Evidence Act 1879 (c. 11)

Meaning of “bank” etc.

265.—(1) Section 9 of the Bankers' Books Evidence Act 1879 (meaning of “bank” etc.) is amended as follows.

(2) In subsection (1)(180), for paragraphs (a) and (aa) substitute—

(a)a deposit-taker;.

(3) After that subsection, insert—

(1A) “Deposit taker” means—

(a)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits; or

(b)an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12(1) of that Schedule) to accept deposits or other repayable funds from the public.

(1B) But a person is not a deposit-taker if he has permission to accept deposits only for the purpose of carrying on another regulated activity in accordance with that permission.

(1C) Subsections (1A) and (1B) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Meaning of “legal proceedings”

266.  In section 10 of the Bankers' Books Evidence Act 1879 (interpretation), in the definition of “legal proceedings”, for paragraph (c)(181) substitute—

(c)an investigation, consideration or determination of a complaint by a member of the panel of ombudsmen for the purposes of the ombudsman scheme within the meaning of the Financial Services and Markets Act 2000..

Agricultural Credits Act 1928 (c. 43)

Agricultural charges on farming stock and assets

267.—(1) In subsection (7)(182) of section 5 of the Agricultural Credits Act 1928 (agricultural charges on farming stock and assets: defined terms), for the definition of “Bank” substitute—

“Bank” means—

(a)

the Bank of England;

(b)

a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits;

(c)

an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12(1) of that Schedule) to accept deposits or other repayable funds from the public;.

(2) After that subsection, insert—

(7A) Paragraphs (b) and (c) of the definition of “Bank” in subsection (7) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Trustee Investments Act 1961 (c. 62)

Power of Treasury to give directions in relation to local authority investment schemes

268.  In section 11(3)(183) of the Trustee Investments Act 1961 (power of Treasury to give directions in relation to approved schemes for investment by local authorities), for “Financial Services Act 1986” substitute “Financial Services and Markets Act 2000”.

Manner of investment

269.—(1) Schedule 1(184) to the Trustee Investments Act 1961 (manner of investment) is amended as follows.

(2) In Part 2, for paragraph 10A(185) substitute—

10A.  In any units of a gilt unit trust scheme.

A gilt unit trust scheme is an authorised unit trust scheme, or a recognised scheme, the objective of which is—

(a)to invest at least 90% of the property of the scheme in loan stock, bonds or other instruments creating indebtedness which—

(i)are transferable; and

(ii)are issued or guaranteed by the government of the United Kingdom or of any other country or territory, by a local authority in the United Kingdom or in a relevant state, or by an international organisation the members of which include the United Kingdom or a relevant state;

(b)to invest the remainder of the property of the scheme in shares, debentures or other instruments creating or acknowledging indebtedness, certificates representing securities or units in a collective investment scheme.

Sub-paragraphs (a) and (b) must be read with—

(i)section 22 of the Financial Services and Markets Act 2000;

(ii)any relevant order under that section; and

(iii)Schedule 2 to that Act..

(3) In Part 3, in paragraph 3(186), the words “within the meaning of the Financial Services Act 1986” are repealed.

(4) In that Part, for paragraph 6(187) substitute—

6. In any units of a recognised scheme which does not fall within Part 2 of this Schedule..

(5) In Part 4(188), in paragraphs 2 and 2A, the words “within the meaning of the Financial Services Act 1986” are repealed.

(6) In that Part, after paragraph 4 insert—

4A.  In this Schedule—

“authorised unit trust scheme” and “recognised scheme” have the meaning given by section 237(3) of the Financial Services and Markets Act 2000;

“collective investment scheme” has the meaning given by section 235 of that Act; and

“recognised investment exchange” has the meaning given by section 285 of that Act.

(7) Paragraph 6A(189) is repealed.

Stock Transfer Act 1963 (c. 18)

Registered securities to which section 1 of the Act applies

270.  In section 1(4) of the Stock Transfer Act 1963 (registered securities which may be transferred by simplified form) in paragraph (e)(190), for “the Financial Services Act 1986” substitute “Part 17 of the Financial Services and Markets Act 2000”.

Meaning of “securities”: units of a collective investment scheme

271.  In section 4(1)(191) of the Stock Transfer Act 1963 (interpretation), in the definition of “securities”, for “Financial Services Act 1986” substitute “Financial Services and Markets Act 2000”.

Stock Transfer Act (Northern Ireland) 1963 (c. 24)

Registered securities to which section 1 of the Act applies

272.  In section 1(4) of the Stock Transfer Act (Northern Ireland) 1963 (registered securities which may be transferred by simplified form) in paragraph (e)(192), for “the Financial Services Act 1986” substitute “Part 17 of the Financial Services and Markets Act 2000”.

Meaning of “securities”: units of a collective investment scheme

273.  In section 4(1)(193) of the Stock Transfer Act (Northern Ireland) 1963 (interpretation), in the definition of “securities”, for “Financial Services Act 1986” substitute “Financial Services and Markets Act 2000”.

Parliamentary Commissioner Act 1967 (c. 13)

Bodies no longer subject to investigation

274.  In Schedule 2(194) to the Parliamentary Commissioner Act 1967, the entries in relation to the following are repealed—

  • the Building Societies Commission;

  • the Friendly Societies Commission; and

  • the Registry of Friendly Societies (and Note 2, which relates to that entry is also repealed).

Functions of administrative staff of certain tribunals subject to investigation by Commissioner

275.  In Schedule 4(195) to the Parliamentary Commissioner Act 1967 (relevant tribunals for the purposes of section 5(7)), before the entry relating to the Financial Services Tribunal(196) insert—

  • Financial Services and Markets Tribunal constituted under section 132 of the Financial Services and Markets Act 2000..

Local Authorities' Mutual Investment Trust Act 1968 (c. 25)

Meaning of “securities”

276.  In section 1(2)(197) of the Local Authorities' Mutual Investment Trust Act 1968 (extension of Company’s power to invest: meaning of securities), the words “within the meaning of the Financial Services Act 1986” are repealed.

Interpretation

277.—(1) Section 2 of the Local Authorities' Mutual Investment Trust Act 1968 (interpretation) is amended as follows.

(2) After the definition of “participation certificate” insert—

“recognised investment exchange” has the meaning given by section 285(1) of the Financial Services and Markets Act 2000;

(3) For the definition of “unit trust scheme”(198) substitute—

“unit trust scheme” has the meaning given by section 237(1) of the Financial Services and Markets Act 2000;.

Theft Act 1968 (c. 60)

Obtaining a money transfer by deception: interpretation

278.—(1) Section 15B(199) of the Theft Act 1968 (obtaining a money transfer by deception: interpretation) is amended as follows.

(2) In subsection (4), the words after paragraph (b) are repealed.

(3) After that subsection insert—

(4A) References in subsection (4) to a deposit must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act,

but any restriction on the meaning of deposit which arises from the identity of the person making it is to be disregarded..

Theft Act (Northern Ireland) 1969 (c. 16)

Obtaining a money transfer by deception: interpretation

279.—(1) Section 15B(200) of the Theft Act (Northern Ireland) 1969 (obtaining a money transfer by deception: interpretation) is amended as follows.

(2) In subsection (4), the words after paragraph (b) are repealed.

(3) After that subsection insert—

(4A) References in subsection (4) to a deposit must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act,

but any restriction on the meaning of deposit which arises from the identity of the person making it is to be disregarded..

Employers' Liability (Compulsory Insurance) Act 1969 (c. 57)

Insurance against liability for employees: meaning of authorised insurer

280.—(1) Section 1 of the Employers' Liability (Compulsory Insurance) Act 1969 (insurance against liability for employees) is amended as follows.

(2) In subsection (3), for paragraph (b)(201) substitute—

(b)“authorised insurer” means—

(i)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect and carry out contracts of insurance of a kind required by this Act and regulations made under this Act, or

(ii)an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to the Financial Services and Markets Act 2000, which has permission under paragraph 15 of that Schedule to effect and carry out contracts of insurance of a kind required by this Act and regulations made under this Act;.

(3) After that subsection insert—

(3A) Subsection (3)(b) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Local Government Act 1972 (c. 70)

Restrictions on voting: interpretation

281.  For subsection (1) of section 98(202) of the Local Government Act 1972 (restrictions on voting: interpretation) substitute—

(1) In sections 95 and 97 “securities” means—

(a)shares;

(b)instruments creating or acknowledging indebtedness;

(c)instruments giving entitlements to investments;

(d)certificates representing securities;

(e)units in a collective investment scheme;

(f)rights to, or interests in, any security of the kind mentioned in paragraphs (a) to (e);

(g)rights (whether actual or contingent) to money lent to, or deposited with—

(i)a society registered under the Industrial and Provident Societies Act 1965, or

(ii)a building society within the meaning of the Building Societies Act 1986,

and the definition of securities must be read with section 22 of the Financial Services and Markets Act 2000, any relevant order under that section and Schedule 2 to that Act..

Insurance by local authorities against accidents to members

282.—(1) Section 140 of the Local Government Act 1972 (insurance by local authorities against accidents to members) is amended as follows.

(2) In subsection (1)(203) for the words from “insurance” to “1982” substitute “accident insurance”.

(3) After subsection (3), insert—

(3A) References to accident insurance must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Insurance against accidents to voluntary assistants

283.—(1) Section 140C(204) of the Local Government Act 1972 (insurance against accidents to voluntary assistants: supplementary) is amended as follows.

(2) In subsection (1) for paragraphs (a) and (b) substitute—

(a)contracts of permanent health insurance; and

(b)contracts of accident insurance..

(3) After that subsection, insert—

(1A) Subsection (1) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Fair Trading Act 1973 (c. 41)

Exclusions from Part 11 of the Fair Trading Act 1973

284.—(1) Section 118(205) of the Fair Trading Act 1973 (trading schemes to which Part XI applies) is amended as follows.

(2) In subsection (6), for paragraph (a) substitute—

(a)under which the promoter or any of the promoters or participants is to carry on, or to purport to carry on, a relevant regulated activity;.

(3) After subsection (6) insert—

(6A) For the purposes of subsection (6)(a), “relevant regulated activity” means—

(a)dealing in investments as principal or agent;

(b)arranging deals in investments;

(c)managing investments;

(d)safeguarding and administering investments;

(e)sending dematerialised instructions;

(f)establishing etc. a collective investment scheme;

(g)advising on investments,

and paragraphs (a) to (g) must be read with section 22 of the Financial Services and Markets Act 2000, any relevant order under that section, and Schedule 2 to that Act..

Restrictions on disclosure of information

285.—(1) Section 133(2) of the Fair Trading Act 1973 (exceptions from general restrictions on disclosure of information obtained under that Act) is amended as follows.

(2) In paragraph (a)(206), the words “or Chapter XIV of Part I of the Financial Services Act 1986” are repealed.

(3) At the end of that paragraph, insert “or Chapter 2 of Part 18 of the Financial Services and Markets Act 2000”.

Solicitors Act 1974 (c. 47)

Meaning of “authorised insurer”

286.—(1) Section 87 of the Solicitors Act 1974 (interpretation) is amended as follows.

(2) In subsection (1), the definition of “authorised insurer”(207) is repealed.

(3) In subsection (1) for the definition of “bank”(208) substitute—

“bank” means the Bank of England, a person (other than a building society) who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits or an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to accept deposits;.

(4) After that subsection, insert—

(1A) In this Act “authorised insurer” means—

(a)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of insurance of a relevant class;

(b)a person who carries on an insurance market activity, within the meaning of section 316(3) of that Act;

(c)an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of insurance of a relevant class; or

(d)a person who does not fall within paragraph (a), (b) or (c) and who may lawfully effect or carry out contracts of insurance of a relevant class in a member state other than the United Kingdom.

(1B) A contract of insurance is of a relevant class for the purposes of subsection (1A) if it insures against risks arising from—

(a)accident;

(b)credit;

(c)legal expenses;

(d)general liability to third parties;

(e)sickness;

(f)suretyship;

(g)miscellaneous financial loss.

(1C) The definition of “bank” in subsection (1) and subsections (1A) and (1B) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

House of Commons Disqualification Act 1975 (c. 24)

Repeal of spent disqualifications

287.—(1) Schedule 1(209) to the House of Commons Disqualification Act 1975 (disqualifying offices) is amended as follows.

(2) In Part 2, the following entries are repealed—

  • “The Building Societies Commission.”; and

  • “The Friendly Societies Commission.”.

(3) In Part 3, the following entries are repealed—

  • “Chairman of a designated agency within the meaning of the Financial Services Act 1986 if he is in receipt of remuneration.”;

  • “Chairman of a transferee body within the meaning of Schedule 11 to the Financial Services Act 1986 if he is in receipt of remuneration.”;

  • “Registrar or Assistant Registrar of Friendly Societies.”.

Northern Ireland Assembly Disqualification Act 1975 (c. 25)

Repeal of spent disqualifications

288.—(1) Schedule 1 to the Northern Ireland Assembly Disqualification Act 1975 (disqualifying offices) is amended as follows.

(2) In Part 2, the following entries are repealed—

  • “The Building Societies Commission.”; and

  • “The Friendly Societies Commission.”.

(3) In Part 3, the following entries are repealed—

  • “Chairman of a designated agency within the meaning of the Financial Services Act 1986 if he is in receipt of remuneration.”;

  • “Chairman of a transferee body within the meaning of Schedule 11 to the Financial Services Act 1986 if he is in receipt of remuneration.”;

  • “Industrial Assurance Commissioner or Deputy Industrial Assurance Commissioner appointed under the Industrial Assurance Act (Northern Ireland) 1924.”; and

  • “Registrar or Assistant Registrar of Friendly Societies.”.

The Stock Exchange (Completion of Bargains) Act 1976 (c. 47)

Acquisition and disposal of securities by trustees etc

289.—(1) Section 5 of the Stock Exchange (Completion of Bargains) Act 1976 (acquisition and disposal of securities by trustees etc.) is amended as follows.

(2) In paragraph (a) of subsection (1)(210), for the words from “a recognised” to “exchange” substitute “a financial institution”.

(3) In paragraph (b) of that subsection, for “clearing house or nominee” substitute “financial institution”.

(4) In that subsection, the words after paragraph (b) are repealed.

(5) For subsection (2)(211) substitute—

(2) “Financial institution” means—

(a)a recognised clearing house acting in relation to a recognised investment exchange; or

(b)a nominee of—

(i)a recognised clearing house acting in that way; or

(ii)a recognised investment exchange.

(3) No person may be a nominee for the purposes of this section unless he is a person designated for those purposes in the rules of the recognised investment exchange in question.

(4) Expressions used in subsections (2) and (3) have the same meaning as in the Part 18 of the Financial Services and Markets Act 2000..

Supreme Court Act 1981 (c. 54)

Attachment of debts

290.—(1) Section 40 of the Supreme Court Act 1981 (attachment of debts) is amended as follows.

(2) In subsection (1), for the words from “the following” to the end substitute “any deposit account, and any withdrawable share account, with a deposit-taker”.

(3) In subsection (4)(b) for “deposit-taking institution”, in both places, substitute “deposit-taker”.

(4) For subsection (6)(212) substitute—

(6) “Deposit-taker” means a person who may, in the course of his business, lawfully accept deposits in the United Kingdom..

(5) After subsection (6) insert—

(7) Subsection (6) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Administrative expenses of garnishees and others

291.—(1) Section 40A(213) of the Supreme Court Act 1981 (administrative expenses of garnishees and others) is amended as follows.

(2) In subsection (1)—

(a)for “any deposit-taking institution, the institution” substitute “a deposit-taker, it”;

(b)for “the administrative and clerical expenses of the institution” substitute “its administrative and clerical expenses”; and

(c)the words “of an institution” are repealed.

(3) In subsection (1A)—

(a)for “any such institution as is mentioned in that subsection” substitute “a deposit-taker”; and

(b)for “the institution” substitute “it”.

(4) In subsection (3), for the definition of “deposit-taking institution” substitute—

“deposit-taker” has the meaning given by section 40(6);.

(5) In subsection (4)(c)(214), for “deposit-taking institutions” substitute “deposit-takers”.

Betting and Gaming Duties Act 1981 (c. 63)

Saving of section 63 of the Financial Services Act 1986

292.  Notwithstanding the repeal of the Financial Services Act 1986(215)—

(a)section 63 of that Act (gaming contracts),

(b)paragraphs 9 and 12 of Schedule 1 to that Act, and

(c)Parts III and IV of that Schedule 1

have effect for the purposes of section 3(2) of the Betting and Gaming Duties Act 1981 (bookmakers: spread bets)(216).

Duchy of Cornwall Management Act 1982 (c. 47)

Bank accounts in the name of the Duchy

293.—(1) Section 6 of the Duchy of Cornwall Management Act 1982 (banking) is amended as follows.

(2) In subsection (2), for “recognised bank or banks” substitute “deposit taker”.

(3) In subsection (3), in paragraphs (b) and (c)(217) for “an authorised institution” substitute “a deposit taker”.

(4) For subsection (4) substitute—

(4) In this section “deposit taker” means—

(a)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits; or

(b)an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12(1) of that Schedule) to accept deposits..

(5) After subsection (4) insert—

(5) Subsection (4) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that Schedule; and

(c)Schedule 2 to that Act..

County Courts Act 1984 (c. 28)

Attachment of debts

294.—(1) Section 108 of the County Courts Act 1984 (attachment of debts) is amended as follows.

(2) In subsection (1), for the words from “the following” to the end substitute “any deposit account, and any withdrawable share account, with a deposit-taker”.

(3) In subsection (4)(b) for “deposit-taking institution”, in both places, substitute “deposit-taker”.

Administrative expenses of garnishees and others

295.—(1) Section 109 of the County Courts Act 1984 (administrative expenses of garnishees and others) is amended as follows.

(2) In subsection (1)(218)—

(a)for “any deposit-taking institution, the institution” substitute “a deposit-taker, it”;

(b)for “the administrative and clerical expenses of the institution” substitute “its administrative and clerical expenses”; and

(c)the words “of an institution” are repealed.

(3) In subsection (1A)(219)—

(a)for “any such institution as is mentioned in that subsection” substitute “a deposit-taker”; and

(b)for “the institution” substitute “it”.

(4) In subsection (4)(c)(220), for “deposit-taking institution” substitute “deposit-taker”.

Meaning of “deposit-taking institution”

296.—(1) Section 147 of the County Courts Act 1984 (Interpretation) is amended as follows.

(2) In subsection (1), for the definition of “deposit-taking institution”(221) substitute—

“deposit-taking institution” means a person who may, in the course of his business, lawfully accept deposits in the United Kingdom;.

(3) After subsection (1) insert—

(1A) The definition of “deposit-taking institution” in subsection (1) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Trustee Savings Banks Act 1985 (c. 58)

Transferees to be treated as included within certain categories of institution

297.—(1) Paragraph 11 of Schedule 1 to the Trustee Savings Banks Act 1985 (status of transferees as authorised institutions for certain purposes) is amended as follows.

(2) In sub-paragraph (4)(b)(222), for “an institution authorised under the Banking Act 1987” substitute “a deposit-taker”.

(3) After that sub-paragraph, insert—

(4A) “Deposit taker” means—

(a)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits; or

(b)an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12(1) of that Schedule) to accept deposits or other repayable funds from the public.

(4B) But a person is not a deposit-taker if he has permission to accept deposits only for purpose of carrying on another regulated activity in accordance with that permission.

(4C) Sub-paragraphs (4A) and (4B) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Administration of Justice Act 1985 (c. 61)

Meaning of “authorised insurer”

298.  For section 21(5)(223) of the Administration of Justice Act 1985 (professional indemnity and compensation: meaning of “authorised insurer”) substitute—

(5) “Authorised insurer” means—

(a)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of insurance of a relevant class;

(b)an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of insurance of a relevant class; or

(c)a person who does not fall within sub-paragraph (i) or (ii) and who may lawfully effect or carry out contracts of insurance of a relevant class in a member State other than the United Kingdom.

(6) A contract of insurance is of a relevant class for the purposes of subsection (5) if it insures against a risk arising from—

(a)accident;

(b)credit;

(c)legal expenses;

(d)general liability to third parties;

(e)sickness;

(f)suretyship; or

(g)miscellaneous financial loss.

(7) Subsections (5) and (6) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Housing Act 1985 (c. 68)

Lending institutions and savings institutions

299.—(1) The Housing Act 1985 is amended as follows.

(2) In section 36(4) (liability to repay is a charge on the premises), for the words from “a building society” to “a friendly society” substitute—

  • an authorised deposit taker

  • an authorised insurer.

(3) In section 151B(5) (mortgage for securing redemption of landlord’s share)(224), for the words from “a building society” to “a friendly society” substitute—

  • an authorised deposit taker

  • an authorised insurer.

(4) In section 156(4) (liability to repay is a charge on the premises)(225), for the words from “a building society” to “a friendly society” substitute—

  • an authorised deposit taker

  • an authorised insurer.

(5) In section 447(1) (recognised lending institutions)—

(a)the entries relating to “ building societies”(226), “trustees savings banks”, “banks”, “insurance companies” and “friendly societies” in the list of lending institutions recognised for the purposes of section 445 are repealed; and

(b)at the beginning of that list insert—

  • an authorised deposit taker

  • an authorised insurer.

(6) In section 448(1) (recognised savings institutions)—

(a)the entries relating to “building societies”(227), “trustees savings banks” and “banks” in the list of savings institutions recognised for the purposes of section 446 are repealed; and

(b)at the beginning of that list insert—

  • an authorised deposit taker.

(7) In section 576 (meaning of “lending institution”) for the words from “a building society” to “an insurance company” substitute—

  • an authorised deposit taker, or

  • an authorised insurer.

Interpretation of the 1985 Act

300.—(1) Section 622 of the Housing Act 1985 is amended as follows.

(2) The existing text is numbered subsection (1).

(3) In subsection (1), the definitions of “bank”, “building society”(228), “insurance company” and “trustee savings bank” are repealed.

(4) In subsection (1), after the definition of “assured agricultural tenancy” insert—

“authorised deposit taker” means—

(a)

a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits, or

(b)

an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act who has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12(1) of that Schedule) to accept deposits;

“authorised insurer” means—

(a)

a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of insurance, or

(b)

an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act who has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12(1) of that Schedule) to effect or carry out contracts of insurance;.

(5) After subsection (1) insert—

(2) The definitions of “authorised deposit taker” and “authorised insurer” in subsection (1) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Housing Associations Act 1985 (c. 69)

Agreements to indemnify certain lenders in England and Wales: consultation requirements

301.  In section 84(5)(a)(229) of the Housing Associations Act 1985 (requirement to consult before approving form of agreements with building societies), for “Building Societies Commission” substitute “Financial Services Authority”.

Agreements to indemnify certain lenders in Scotland: consultation requirements

302.  In section 86(4)(230) of the Housing Associations Act 1985 (requirement to consult before giving general approval to agreements), for “Building Societies Commission” substitute “Financial Services Authority”.

Insolvency Act 1986 (c. 45)

Further meaning of inability to pay debts where the company is a deposit taker

303.—(1) After section 8(1) of the Insolvency Act 1986 (restrictions on making of administration order) insert—

(1A) For the purposes of a petition presented by the Financial Services Authority alone or together with any other party, an authorised deposit taker who defaults in an obligation to pay any sum due and payable in respect of a relevant deposit is deemed to be unable to pay its debts as mentioned in subsection (1).

(1B) In subsection (1A)—

(a)“authorised deposit taker” means a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits, but excludes a person who has such permission only for the purpose of carrying on another regulated activity in accordance with that permission; and

(b)“relevant deposit” must be read with—

(i)section 22 of the Financial Services and Markets Act 2000,

(ii)any relevant order under that section, and

(iii)Schedule 2 to that Act,

but any restriction on the meaning of deposit which arises from the identity of the person making it is to be disregarded..

Limitation on power to make administration order

304.  For section 8(4)(231) of the Insolvency Act 1986 (restrictions on making of administration order) substitute—

(4) An administration order shall not be made in relation to a company after it has gone into liquidation.

(5) An administration order shall not be made against a company if—

(a)it has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of insurance in the United Kingdom;

(b)it continues to have a liability in respect of a deposit which was held by it in accordance with the Banking Act 1979 or the Banking Act 1987.

(6) Subsection (5)(a) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Petition for winding-up by the Secretary of State

305.  In subsection (1) of section 124A of the Insolvency Act 1986 (petition for winding-up on the grounds of public interest), for paragraph (b) substitute—

(b)any report made by inspectors under—

(i)section 167, 168, 169 or 284 of the Financial Services and Markets Act 2000, or

(ii)where the company is an open-ended investment company (within the meaning of that Act), regulations made as a result of section 262(2)(k) of that Act;

(bb)any information or documents obtained under section 165, 171, 172, 173 or 175 of that Act,.

Winding-up on petition of the Authority: partnerships

306.  Section 168(5C)(232) of the Insolvency Act 1986 (which is superseded by section 367 of the Financial Services and Markets Act 2000) is repealed.

Power to apply Parts 1 to 7 to former authorised institutions

307.  In section 422(1)(233) of the Insolvency Act 1986 (power to apply first group of Parts to banks etc), for “authorised institutions and former authorised institutions within the meaning of the Banking Act 1987” substitute “any person who continues to have a liability in respect of a deposit which was held by him in accordance with the Banking Act 1979 or the Banking Act 1987”.

Criminal Justice Act 1987 (c. 38)

Restriction on disclosure of information by members of Serious Fraud Office

308.  For paragraphs (e) to (k) of section 3(6)(234) of the Criminal Justice Act 1987 (competent authorities for the purposes of disclosure of information by members of the Serious Fraud Office) substitute—

(e)a person appointed under—

(i)section 167 of the Financial Services and Markets Act 2000 (general investigations),

(ii)section 168 of that Act (investigations in particular cases),

(iii)section 169(1)(b) of that Act (investigation in support of overseas regulator),

(iv)section 284 of that Act (investigations into affairs of certain collective investment schemes), or

(v)regulations made as a result of section 262(2)(k) of that Act (investigations into open-ended investment companies),

to conduct an investigation;

(f)a body corporate established in accordance with section 212(1) of the Financial Services and Markets Act 2000 (compensation scheme manager);.

Consumer Protection Act 1987 (c. 43)

Exclusion of offences under section 397 of the Financial Services and Markets Act 2000

309.  After subsection (5) of section 20 of the Consumer Protection Act 1987 (offence of giving misleading information) insert—

(5A) A person is not guilty of an offence under subsection (1) or (2) above if, in giving the misleading indication which would otherwise constitute an offence under either of those subsections, he is guilty of an offence under section 397 of the Financial Services and Markets Act 2000 (misleading statements and practices)..

Repeal of unnecessary provisions

310.—(1) Section 22 of the Consumer Protection Act 1987 (application of provisions relating to misleading price indications to services and facilities) is amended as follows.

(2) Subsection (3) is repealed.

(3) In subsection (5), the definitions of “appointed representative”, “authorised person” and “investment business” are repealed.

Access to Medical Reports Act 1988 (c. 28)

Access to medical reports: “insurance purposes”

311.—(1) Section 2 of the Access to Medical Reports Act 1988 (interpretation) is amended as follows.

(2) In subsection (1), for the definition of “insurance purposes” substitute—

“insurance purposes”, in a case of any individual who has entered into, or is seeking to enter into, a contract of insurance with an insurer, means the purposes of that insurer in relation to that individual;

“insurer” means—

(a)

a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of insurance;

(b)

an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out relevant contracts of insurance..

(3) After that subsection, insert—

(1A) The definitions of “insurance purposes” and “insurer” in subsection (1) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Road Traffic Act 1988 (c. 52)

Notification of refusal of insurance on health grounds

312.  For subsection (2) of section 95 of the Road Traffic Act 1988 (notification of refusal of insurance on health grounds) substitute—

(2) “Authorised insurer” means an insurer who is a member of the Motor Insurers Bureau (a company limited by guarantee and incorporated under the Companies Act 1929 on 14th June 1946).

(3) “Insurer” means—

(a)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out relevant contracts of insurance, or

(b)an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out relevant contracts of insurance.

(4) A contract is a relevant contract of insurance if the risk insured against relates to—

(a)the insured sustaining accidental injury or death as a result of travelling as a passenger;

(b)land vehicles;

(c)goods in transit; or

(d)motor vehicle liability.

(5) This section must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any order for the time being in force under that section; and

(c)Schedule 2 to that Act..

Requirements with respect to policies of insurance

313.  For section 145(5) of the Road Traffic Act 1988 (requirements with respect to policies of insurance) substitute—

(5) “Authorised insurer” has the same meaning as in section 95..

Defined expressions: “authorised insurer”

314.  In section 162 of the Road Traffic Act 1988 (defined expressions in Part 6), for the entry relating to “authorised insurer” substitute—

Authorised insurerSection 145(5).

Water Act 1989 (c. 15)

Listing particulars of nominated holding companies

315.—(1) Section 90 of the Water Act 1989 (listing particulars of nominated holding companies) is amended as follows.

(2) Subsection (2) is repealed.

(3) For subsection (3) substitute—

(3) In this section—

“listing particulars” has the same meaning as in section 90(1) of the Financial Services and Markets Act 2000; and

“responsible”, in relation to listing particulars, has the meaning given in section 79(3) of that Act..

Restriction on disclosure of information

316.  For paragraph (e) of section 174(2) of the Water Act 1989 (restrictions on disclosure of information) substitute—

(e)for the purpose of enabling or assisting the Secretary of State, the Treasury or the Financial Services Authority to exercise any powers conferred by or under the Financial Services and Markets Act 2000 or by the enactments relating to companies or insolvency;

(ea)for the purpose of enabling or assisting any inspector appointed under enactments relating to companies to carry out his functions;.

Law of Property (Miscellaneous Provisions) Act 1989 (c. 34)

Contracts to which section 2 of the 1989 Act does not apply

317.—(1) Section 2 of the Law of Property (Miscellaneous Provisions) Act 1989 (Contracts for sale etc of land to be made by signed writing) is amended as follows.

(2) For paragraph (c) of subsection (5) substitute—

(c)a contract regulated under the Financial Services and Markets Act 2000, other than a regulated mortgage contract;.

(3) In subsection (6) after the definition of “interest in land” insert—

“regulated mortgage contract” must be read with—

(a)

section 22 of the Financial Services and Markets Act 2000,

(b)

any relevant order under that section, and

(c)

Schedule 2 to that Act..

Local Government and Housing Act 1989 (c. 42)

Borrowing powers of local authorities

318.—(1) Section 43 of the Local Government and Housing Act 1989 (borrowing powers) is amended as follows.

(2) In paragraph (a) of subsection (2), for “an authorised institution within the meaning of the Banking Act 1987” substitute “a deposit-taker”.

(3) In that subsection, the words after paragraph (c) are repealed.

(4) After subsection (8) insert—

(9) In this section—

(a)“deposit-taker” means—

(i)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits, or

(ii)an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12(1) of that Schedule) to accept deposits; and

(b)“short-term”, in relation to borrowing, is to be read with section 45(6).

(10) Subsection (9)(a) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

National Health Service and Community Care Act 1990 (c. 19)

Schemes for meeting losses and liabilities of certain health service bodies

319.  For section 21(5)(235) of the National Health Service and Community Care Act 1990 (schemes for meeting losses and liabilities of certain health service bodies) substitute—

(5) A person or body administering a scheme under this section does not require permission under any provision of the Financial Services and Markets Act 2000 as respects activities carried out under the scheme..

Contracts (Applicable Law) Act 1990 (c. 36)

Law applicable to a contract of insurance

320.  In section 2 of the Contracts (Applicable Law) Act 1990 (conventions to have force of law), for subsection (1A)(236) substitute—

(1A) The internal law for the purposes of Article 1(3) of the Rome Convention is the provisions of the regulations for the time being in force under section 424(3) of the Financial Services and Markets Act 2000..

Courts and Legal Services Act 1990 (c. 41)

Authorisation of conveyancing practitioners

321.  For section 37(8)(237) of the Courts and Legal Services Act 1990 (authorisation of conveyancing practitioners) substitute—

(8) Subsection (8A) applies if the applicant is—

(a)a person with permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits or to effect or carry out contracts of insurance; or

(b)an EEA firm of the kind mentioned in paragraph 5(b) or (d) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12(1) of that Schedule) either—

(i)to accept deposits, or

(ii)to effect or carry out contracts of insurance.

(8A) The Board must have regard to the fact that the applicant has obtained that permission in determining whether it is satisfied as mentioned in subsection (1)(a).

(8B) Subsection (8) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Investigation of conveyancing practitioners

322.  For section 48(4)(238) of the Courts and Legal Services Act 1990 (investigation of conveyancing practitioners on behalf of the Board) substitute—

(4) Subsection (4A) applies if an authorised practitioner whose affairs are under investigation is—

(a)a person with permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits or to effect or carry out contracts of insurance; or

(b)an EEA firm of the kind mentioned in paragraph 5(b) or (d) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12(1) of that Schedule) either—

(i)to accept deposits, or

(ii)to effect or carry out contracts of insurance.

(4A) The Lord Chancellor may give a direction with a view to limiting the scope of the investigation to matters concerned with the provision of conveyancing services.

(4B) Subsection (4) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Exceptions from restrictions on disclosure of information by the Authorised Conveyancing Practitioners Board

323.—(1) Subsection (2) of section 50 of the Courts and Legal Services Act 1990 (power of the Board to disclose information for certain purposes) is amended as follows.

(2) The following are repealed—

(a)paragraphs (d) and (l);

(b)sub-paragraph (vii) of paragraph (m); and

(c)in paragraph (i)(239) of sub-paragraph (p), the words “the Building Societies Commission”.

(3) For paragraph (e) substitute—

(e)a recognised investment exchange or a recognised clearing house (both within the meaning given by section 285 of the Financial Services and Markets Act 2000) to discharge any of its functions;.

(4) For paragraphs (fa)(240) to (h) substitute—

(fa)the Financial Services Authority to discharge its functions under the legislation relating to friendly societies or to industrial and provident societies, under the Building Societies Act 1986 or under the Financial Services and Markets Act 2000;

(g)the Secretary of State or the Treasury to discharge any function conferred by this Act, the Financial Services and Markets Act 2000 or any enactment relating to competition, companies or insolvency;

(h)the competent authority for the purposes of Part 6 of the Financial Services and Markets Act 2000 to discharge its functions under that Part;

(ha)a person appointed under—

(i)section 167 of the Financial Services and Markets Act 2000 (general investigations),

(ii)section 168 of that Act (investigations in particular cases),

(iii)section 169(1)(b) of that Act (investigation in support of overseas regulator),

(iv)section 284 of that Act (investigations into affairs of certain collective investment schemes), or

(v)regulations made as a result of section 262(2)(k) of that Act (investigations into open-ended investment companies),

to conduct an investigation to discharge his functions;

(hb)any inspector appointed by the Secretary of State under this Act or any enactment relating to competition, companies or insolvency to discharge his functions under that enactment;

(hc)a body designated under section 326(1) of the Financial Services and Markets Act 2000 to discharge its functions in its capacity as a body designated under that section;.

(5) In paragraph (m), after sub-paragraph (ix) insert—

(x)the Financial Services and Markets Act 2000;.

(6) For paragraph (r) substitute—

(r)the Financial Services Tribunal to discharge any function it has in relation to proceedings before it by virtue of the Financial Services and Markets Act 2000 (Transitional Provisions) (Partly Completed Procedures) Order 2001;

(s)the Financial Services and Markets Tribunal to discharge any of its functions..

Board’s power of intervention

324.  For subsections (5) to (8) of section 52(241) of the Courts and Legal Services Act 1990 substitute—

(5) Subsection (6) applies to an authorised practitioner who—

(a)has permission under any provision of the Financial Services and Markets Act 2000 to carry on a regulated activity; or

(b)is an appointed representative of a person with such permission;

and “regulated activity” and “appointed representative” have the meaning given in that Act.

(6) In relation to an authorised practitioner to whom this subsection applies, the powers of intervention may be exercised only after consultation with the Financial Services Authority..

Preparation of papers for probate

325.—(1) Section 54(1) of the Courts and Legal Services Act 1990 (which amends the Solicitors Act 1974(242)) is amended as follows.

(2) In the inserted subsection (2), for paragraphs (e)(243) to (g) substitute—

(e)a person who—

(i)has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits or to effect or carry out contracts of insurance, and

(ii)satisfies the conditions mentioned in subsection (2A);

(f)an EEA firm of the kind mentioned in paragraph 5(b) or (d) of Schedule 3 to that Act—

(i)which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12(1) of that Schedule) either to accept deposits or to effect or carry out contracts of insurance, and

(ii)which satisfies those conditions;.

(3) In paragraph (h) of that inserted subsection, for “, (f) or (g)” substitute “or (f)”.

(4) After the inserted subsection (2A), insert—

(2AB) Paragraphs (e) and (f) of subsection (2) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Judicial pensions: transfer of accrued benefits

326.—(1) Schedule 13 to the Courts and Legal Services Act 1990 (transfer of accrued benefits) is amended as follows.

(2) In paragraph 1 of Schedule 1A(244) (to be inserted in the Judicial Pensions Act 1981), the existing provision becomes sub-paragraph (1).

(3) In that sub-paragraph, for the definition of “authorised insurance company” substitute—

“authorised insurer” means—

(i)

a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of long-term insurance, or

(ii)

an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of long-term insurance;.

(4) After that sub-paragraph, insert—

(2) The definition of “authorised insurer” in sub-paragraph (1) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section;

(c)Schedule 2 to that Act..

(5) In paragraph 6(2)(c), for “insurance companies” substitute “insurers”.

(6) In paragraph 11(3), in paragraph (a) of the definition of “qualifying scheme” for “insurance company” substitute “insurer”.

Foreign lawyers: authorisation under Financial Services Act 1986

327.  Paragraph 9 of Schedule 14 to the Courts and Legal Services Act 1990 is repealed.

Water Industry Act 1991 (c. 56)

Restriction on disclosure of information

328.  For paragraph (e) of section 206(3) of the Water Industry Act 1991 (restrictions on disclosure of information) substitute—

(e)for the purpose of enabling or assisting the Secretary of State, the Treasury or the Financial Services Authority to exercise any powers conferred by or under the Financial Services and Markets Act 2000 or by the enactments relating to companies or insolvency;

(ea)for the purpose of enabling or assisting any inspector appointed under enactments relating to companies to carry out his functions;.

Water Resources Act 1991 (c. 57)

Restriction on disclosure of information

329.  For paragraph (e) of section 204(2) of the Water Resources Act 1991 (restrictions on disclosure of information) substitute—

(e)for the purpose of enabling or assisting the Secretary of State, the Treasury or the Financial Services Authority to exercise any powers conferred by or under the Financial Services and Markets Act 2000 or by the enactments relating to companies or insolvency;

(ea)for the purpose of enabling or assisting any inspector appointed under enactments relating to companies to carry out his functions;.

The Social Security Administration Act 1992 (c. 5)

Meaning of “qualifying lender”

330.—(1) Section 15A of the Social Security Administration Act 1992 is amended as follows.

(2) In subsection (3)—

(a)for paragraph (a) substitute—

(a)a deposit taker;;

(b)paragraph (b) is repealed; and

(c)for paragraph (c) substitute—

(c)an insurer;.

(3) In subsection (4), before the definition of “mortgage interest” insert—

“deposit taker” means—

(a)

a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits, or

(b)

an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to accept deposits;

“insurer” means—

(a)

a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect and carry out contracts of insurance, or

(b)

an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect and carry out contracts of insurance;.

(4) After subsection (4) insert—

(4A) The definitions of “deposit taker” and “insurer” in subsection (4) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Local Government Act 1992 (c. 19)

Repeal of spent provision

331.  Paragraph 22 of Schedule 3 to the Local Government Act 1992 (minor and consequential amendments) is repealed.

Trade Union and Labour Relations (Consolidation) Act 1992 (c. 52)

Application of section 99 of Friendly Societies Act 1992 to trade unions

332.  In section 19(1)(245) of the Trade Union and Labour Relations (Consolidation) Act 1992 (application of section 99 of Friendly Societies Act 1992 to trade unions) for “an industrial assurance company” substitute “a friendly society”.

Application of section 19 to employers' associations

333.  In section 129(3) of the Trade Union and Labour Relations (Consolidation) Act 1992 (application of section 19 of that Act to employers' associations), the words “industrial assurance or” are repealed.

Tribunals and Inquiries Act 1992 (c. 53)

Concurrence required for removal of members of certain tribunals

334.  In section 7(2)(246) of the Tribunals and Inquiries Act 1992 (tribunals in relation to which requirement of concurrence to removal of members does not apply) the words “,4” and “, 21A” are repealed.

Consultation on tribunal rules

335.—(1) Section 8 of the Tribunals and Inquiries Act 1992 (consultation on tribunal rules) is amended as follows.

(2) Subsection (2) is repealed.

(3) For paragraphs (a) and (b)(247) of subsection (3) substitute “with respect to any tribunal specified in Part 2 of Schedule 1.”.

Removal of unnecessary right of appeal

336.  In section 11(1)(248) of the Tribunals and Inquiries Act 1992 (right of appeal from certain tribunals on a point of law) the word “, 18” is repealed.

Power to amend or repeal certain provisions

337.  In section 13(5) of the Tribunals and Inquiries Act 1992 (power to amend or repeal certain provisions of that Act) in paragraph (a), the word “, 6” is repealed.

Removal of references to old tribunals

338.  In Schedule 1 to the Tribunals and Inquiries Act 1992 (tribunals subject to the Council’s supervision) the entries relating to the following matters are repealed—

  • Banking;

  • Building Societies; and

  • Friendly Societies(249).

Charities Act 1993 (c. 10)

Power to give directions about dormant bank accounts of charities

339.—(1) Section 28 of the Charities Act 1993 (power to give directions about dormant bank accounts of charities) is amended as follows.

(2) In subsection (8)(b), for sub-paragraphs (ii)(250) to (v) of the definition of “relevant institution” substitute—

(ii)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits;

(iii)an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12(1) of that Schedule) to accept deposits; or

(iv)such other person who may lawfully accept deposits in the United Kingdom as may be prescribed by the Secretary of State..

(3) After that subsection insert—

(8A) Sub-paragraphs (ii) to (iv) of the definition of “relevant institution” in subsection (8)(b) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Criminal Justice Act 1993 (c. 36)

Penalties under implementing regulations

340.  In section 70(2)(251) of the Criminal Justice Act 1993 (penalties under implementing regulations), for “under sections 39, 40 and 41 of the Banking Act 1987” substitute “punishable on summary conviction under section 177 of the Financial Services and Markets Act 2000”.

Insider dealing: special defences

341.—(1) Schedule 1 to the Criminal Justice Act 1993 (insider dealing: special defences) is amended as follows.

(2) In paragraph 1(3) for “under paragraph 25B of Schedule 1 to the Financial Services Act 1986” substitute “by the Treasury under any relevant order under section 22 of the Financial Services and Markets Act 2000”.

(3) For paragraph 5(2) substitute—

(2) “Price stabilisation rules” means rules made under section 144(1) of the Financial Services and Markets Act 2000..

Repeal of spent provisions

342.  The following provisions of the Criminal Justice Act 1993 (which are spent) are repealed—

(a)in Schedule 5, paragraphs 7 to 13; and

(b)in Schedule 6, the entries relating to the Financial Services Act 1986 and the Banking Act 1987.

Railways Act 1993 (c. 43)

Restriction on disclosure of information

343.  For paragraph (c) of section 145(2) of the Railways Act 1993 (general restrictions on disclosure of information) substitute—

(c)for the purpose of enabling or assisting the Secretary of State, the Treasury or the Financial Services Authority to exercise any powers conferred by or under the Financial Services and Markets Act 2000 or by the enactments relating to companies or insolvency;

(ca)for the purpose of enabling or assisting any inspector appointed under enactments relating to companies to carry out his functions;.

Definition of “securities”

344.  In subsection (1) of section 151 of the Railways Act 1993 (general interpretation), in the definition of “securities” for “section 142 of the Financial Services Act 1986” substitute “section 74(5) of the Financial Services and Markets Act 2000”.

Finance Act 1994 (c. 9)

Insurance Premium Tax: Tax representatives

345.—(1) Section 57 of the Finance Act 1994 (tax representatives)(252) is amended as follows.

(2) In subsections (2) and (3) for “a representative fulfilling the requirements of section 10 of the Insurance Companies Act 1982” substitute “a general representative”.

(3) After subsection (16) insert—

(16A) For the purposes of subsections (2) and (3), “general representative” means a person resident in the United Kingdom who—

(a)has been designated as the representative of the insurer or taxable intermediary,

(b)is authorised to act generally, and to accept service of any document, on behalf of the insurer or taxable intermediary, and

(c)fulfils the requirements of rules made under Part 10 of the Financial Services and Markets Act 2000..

Insurance Premium Tax: Contracts that are not taxable

346.—(1) Schedule 7A to the Finance Act 1994(253) (insurance premium tax) is amended as follows.

(2) In paragraph 2(1) (contracts constituting long term business) for the words from “if it is one” to the end of that sub-paragraph substitute “if it is exclusively a contract of long-term insurance.”.

(3) For paragraph 2(2) substitute—

(2) In deciding whether a contract is exclusively a contract of long-term insurance, as is mentioned in sub-paragraph (1) above, where—

(a)the contract includes cover for risks relating to accident or sickness;

(b)the contract contains related and subsidiary provisions such that it might also be regarded as a contract of general insurance, but is treated as a contract of long-term insurance for the purposes of any relevant order made under section 22 of the Financial Services and Markets Act 2000; and

(c)the contract was not entered into after 30th November 1993,

the inclusion of such cover shall be ignored.

(4) In paragraph 4 (contracts relating to commercial ships)—

(a)in sub-paragraph (1) for the words from “a contract whose effecting” to the end of that sub-paragraph substitute “a contract of general insurance of a relevant class.”; and

(b)for sub-paragraph (2) substitute—

(2) For the purposes of this paragraph, a contract of general insurance is of a relevant class if it insures against risks arising from or in relation to—

(a)accidents,

(b)ships, or

(c)liabilities of ships,

(and no other risks)..

(5) In paragraph 5 (contracts relating to lifeboats and lifeboat equipment)—

(a)in sub-paragraph (1) for the words from “a contract whose effecting” to the end of that sub-paragraph substitute “a contract of general insurance of a relevant class.”; and

(b)for sub-paragraph (2) substitute—

(2) For the purposes of this paragraph, a contract of general insurance is of a relevant class if it insures against risks arising from or in relation to—

(a)accidents,

(b)ships, or

(c)liabilities of ships,

(and no other risks)..

(6) In paragraph 7 (contracts relating to commercial aircraft)—

(a)in sub-paragraph (1) for the words from “a contract whose effecting” to the end of that sub-paragraph substitute “a contract of general insurance of a relevant class.”; and

(b)for sub-paragraph (2) substitute—

(2) For the purposes of this paragraph, a contract of general insurance is of a relevant class if it insures against risks arising from or in relation to—

(a)accidents,

(b)aircraft, or

(c)aircraft liability,

(and no other risks)..

(7) In paragraph 8 (contracts relating to risks outside the United Kingdom)—

(a)for sub-paragraph (2) substitute—

(2) The question of whether a risk is situated in the United Kingdom shall be determined in accordance with regulations made under section 424(3) of the Financial Services and Markets Act 2000; but in determining that question as respects a contract which relates to a building it shall be irrelevant whether or not the contract also covers the contents of the building..

(8) In paragraph 9 (contracts relating to foreign or international railway rolling stock)—

(a)in sub-paragraph (1) for the words from “a contract whose effecting” to the end of that sub-paragraph substitute “a contract of general insurance of a relevant class.”; and

(b)for sub-paragraph (2) substitute—

(2) For the purposes of this paragraph, a contract of general insurance is of a relevant class if it insures against risks arising from or in relation to—

(a)railway rolling stock, or

(b)general liability to third parties,

(and no other risks)..

(9) In paragraph 10 (contracts relating to the Channel tunnel)—

(a)in sub-paragraph (1) for the words from “a contract whose effecting” to the end of that sub-paragraph substitute “a contract of general insurance of a relevant class.”; and

(b)for sub-paragraph (2) substitute—

(2) For the purposes of this paragraph, a contract of general insurance is of a relevant class if it insures against risks arising from or in relation to—

(a)fire or natural forces,

(b)damage to property, or

(c)general liability to third parties,

(and no other risks)..

(10) In paragraph 11—

(a)in sub-paragraph (1) for the words from “a contract whose effecting” to the end of that sub-paragraph substitute “a contract of general insurance of a relevant class.”; and

(b)for sub-paragraph (2) substitute—

(2) For the purposes of this paragraph, a contract of general insurance is of a relevant class if it insures against risks arising from or in relation to—

(a)fire or natural forces,

(b)damage to property, or

(c)general liability to third parties,

(and no other risks)..

(11) For paragraph 15(2)(c) (contracts relating to the provision of financial facilities) substitute—

(c)the contract of insurance insures against risks arising from or in relation to either or both—

(i)credit,

(ii)suretyship..

(12) In Part II of the Schedule (Interpretation) after paragraph 16 insert—

16A.  Paragraphs 2, 4, 5, 7, 8, 9, 10, 11 and 15 must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Value Added Tax Act 1994 (c. 23)

Supplies exempt from Value Added Tax

347.—(1) Schedule 9 to the Value Added Tax Act 1994 (exempt supplies)(254) is amended as follows.

(2) For Item 1 of Group 2 substitute—

1  The provision of insurance or reinsurance in the course of insurance business by—

(a)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of insurance;

(b)a person who is exempt in respect of effecting or carrying out contracts of insurance by reason of an order under section 38 of that Act (and accordingly may effect or carry out contracts of insurance without contravening the general prohibition);

(c)a person who carries on an insurance market activity;

(d)a person (not falling within paragraph (a)) who would require permission to effect or carry out—

(i)a contract of insurance under which the benefits provided by that person are exclusively or primarily benefits in kind in the event of accident to or breakdown of a vehicle, or

(ii)a contract in the course of a Community co-insurance operation,

but for the identity of the person carrying on that activity..

(3) For Item 2 substitute—

2  The provision by an insurer or reinsurer who belongs outside the United Kingdom of—

(a)insurance against any of the risks or other things described in the Annex to the first non-life insurance directive or in the Annex to the first life insurance directive, or

(b)reinsurance relating to any of those risks or other things..

(4) In Item 4, in paragraph (a) for “a contract of insurance or reinsurance” substitute “a contract of insurance”.

(5) Before Note (1) to Group 2, insert—

(A1) For the purposes of Item 1—

“Community co-insurance operation” has the same meaning as in the Council Directive of 30 May 1978 on the co-ordination of laws, regulations and administrative provisions relating to Community co-insurance (No. 78/473/EEC);

“insurance business” means business which consists of effecting and carrying out contracts of insurance;

“insurance market activity” has the meaning given in section 316(3) of the Financial Services and Markets Act 2000.

(B1) References—

(a)in Items 1 and 4 to contracts of insurance, and

(b)in Item 1 and Note (AI) to the effecting and carrying out of contracts of insurance,

must be read with section 22 of the Financial Services and Markets Act 2000, any relevant order under that section, and Schedule 2 to that Act.

(C1) In Item 2—

(a)“first non-life insurance directive” means the Council Directive of 24 July 1973 on the co-ordination of laws, regulations and administrative provisions relating to the taking up and pursuit of the business of direct insurance other than life assurance (No. 73/239/EEC);

(b)“first life insurance directive” means the Council Directive of 5 March 1979 on the co-ordination of laws, regulations and administrative provisions relating to the taking up and pursuit of the business of direct life assurance (No.79/267/EEC)..

Supplies exempt from Value Added Tax—Finance

348.—(1) In Schedule 9 to the Value Added Tax Act 1994 (exempt supplies), Group 5 (Finance) is amended as follows.

(2) For Note (6), substitute—

(6) In item 9—

“authorised unit trust scheme” has the meaning given in section 237(3) of the Financial Services and Markets Act 2000;

“operator” has the meaning given in section 237(2) of that Act; and

“trust based scheme” means a scheme the purpose or effect of which is to enable persons taking part in the scheme, by becoming beneficiaries under a trust, to participate in or receive profits or income arising from the acquisition, holding, management or disposal of property of a kind described in section 239(3)(a) of the Financial Services and Markets Act 2000 or sums paid out of such profits or income.

(3) For Note (10), substitute—

(10) For the purposes of this Group—

“collective investment scheme” has the meaning given in section 235 of the Financial Services and Markets Act 2000; and

“open-ended investment company” has the meaning given in section 236 of that Act..

Police Act 1996 (c. 16)

Determination of status of particular bodies

349.  Section 64(3) of the Police Act 1996 (power of chief registrar of friendly societies to determine status of bodies for the purposes of that section) is repealed.

Damages Act 1996 (c. 48)

Enhanced protection for structured settlement annuitants

350.  In section 4 of the Damages Act 1996—

(a)in subsection (1) after “insurer)”, and in subsections (2) and (3) after “sections”, insert “as applied by any transitional provisions made by order under section 426 of the 2000 Act”;

(b)after subsection (3), insert—

(3A) In relation to an annuity—

(a)purchased for a person pursuant to a structured settlement from an authorised insurer;

(b)purchased from such an insurer pursuant to any order of the kind referred to in subsection (2); or

(c)purchased from or otherwise provided by such an insurer pursuant to terms corresponding to those of a structured settlement contained in an agreement of the kind referred to in subsection (3),

any long term insurance provision in the Financial Services Compensation Scheme has effect in accordance with subsection (3B).

(3B) To the extent that any long term insurance provision limits the obligation of the scheme manager to make payments or secure continuity of insurance by reference to any amount less than the full amount of any liability, benefit or value due under a contract of long term insurance, the provision has effect as if the reference to that amount were a reference to the full amount of the liability, benefit or value.

(3C) In this section—

“the 2000 Act” means the Financial Services and Markets Act 2000;

“authorised insurer” means an authorised person within the meaning of the 2000 Act with permission under that Act to effect or carry out contracts of insurance as principal;

“Financial Services Compensation Scheme” means the Financial Services Compensation Scheme referred to in section 213(2) of the Financial Services and Markets Act 2000;

“long term insurance provision” means any provision in the Financial Services Compensation Scheme requiring the scheme manager to—

(a)

pay compensation in respect of a liability of an authorised insurer in liquidation under a contract of long term insurance;

(b)

secure continuity of insurance for parties to contracts of long term insurance in the event that an authorised insurer goes into liquidation; or

(c)

secure that payments are made in respect of benefits falling due under contracts of long term insurance during any period while the scheme manager is seeking to make arrangements to secure continuity of insurance as mentioned in (b) above;

“scheme manager” means a body corporate established in accordance with section 212(1) of the 2000 Act.

(3D) In subsections (3B) and (3C) above—

(a)a reference to a contract of long term insurance must be read with—

(i)section 22 of the 2000 Act;

(ii)any relevant order under that section; and

(iii)Schedule 2 to that Act;

(b)an authorised insurer is in liquidation when—

(i)a resolution has been passed in accordance with the provisions of the Insolvency Act 1986 or (as the case may be) of the Insolvency (Northern Ireland) Order 1989 for the voluntary winding up of the insurer, otherwise than merely for the purpose of reconstruction of the insurer or of amalgamation with another insurer; or

(ii)without any such resolution having been passed beforehand, an order has been made for the winding up of the insurer by the court under that Act or that Order.;

(c)In subsection (5), for “This section applies”, substitute “Subsections (1) to (3) of this section apply”;

(d)After subsection (5), insert—

(6) Subsections (3A) to (3D) of this section apply if the liquidation of the authorised insurer begins (within the meaning of subsection (3D)) after the coming into force of section 19 of the 2000 Act, irrespective of when the annuity was purchased or provided..

Housing Act 1996 (c. 52)

Registration of social landlords

351.  In section 3(3) of the Housing Act 1996 (recording of registration as a social landlord), in sub-paragraph (b), for “appropriate registrar” substitute “Financial Services Authority”.

Removal of social landlord from register

352.  In section 4(6) of the Housing Act 1996 (notification of removal of society from register of social landlords), in sub-paragraph (b), for “appropriate registrar” substitute “Financial Services Authority”.

Appeal against decision in relation to register of social landlords

353.  In section 6(3) of the Housing Act 1996 (notification of appeal against decision concerning register of social landlords), in sub-paragraph (b), for “appropriate registrar” substitute “Financial Services Authority”.

Notice of agreed proposals where registered social landlord insolvent

354.  In section 45(4) of the Housing Act 1996 (notification of agreed proposals where registered social landlord is insolvent), in sub-paragraph (d), for “appropriate registrar” substitute “Financial Services Authority”.

Transfer of engagements of registered social landlord

355.  In section 48(3) of the Housing Act 1996 (copy of transfer of engagements of social landlord which is an industrial and provident society under an order under section 46), for “appropriate registrar and registered by him” substitute “Financial Services Authority and registered by it”.

Removal of definition of “appropriate registrar”

356.—(1) In section 57(1) of the Housing Act 1996 (definitions for the purposes of Part 1 of that Act) the entry relating to the “appropriate registrar” is repealed.

(2) In the Table set out in section 64 of that Act (index of defined expressions) the entry relating to the “appropriate registrar” is repealed.

Regulation of registered social landlords

357.—(1) Schedule 1 to the Housing Act 1996 (regulation of registered social landlords) is amended as follows.

(2) In paragraph 9, in sub-paragraphs (1) and (4), for “appropriate registrar” substitute “Financial Services Authority”.

(3) In paragraph 12—

(a)in sub-paragraph (1), for “appropriate registrar” substitute “Financial Services Authority”;

(b)in sub-paragraph (2)—

(i)for “registrar” substitute “Financial Services Authority”, and

(ii)for “him” substitute “it”;

(c)in sub-paragraph (4)(b), for “appropriate registrar” substitute “Financial Services Authority”; and

(d)in sub-paragraph (5)—

(i)for “appropriate registrar” substitute “Financial Services Authority”, and

(ii)for “him” substitute “it”.

Social Security (Recovery of Benefits) Act 1997 (c. 27)

Payments by insurers

358.—(1) Paragraph 5 of Schedule 1 to the Social Security (Recovery of Benefits) Act 1997 is amended as follows.

(2) The existing provision becomes sub-paragraph (1).

(3) In that sub-paragraph—

(a)for “insurance company within the meaning of the Insurance Companies Act 1982” substitute “insurer”; and

(b)for “the company” substitute “the insurer”.

(4) After that sub-paragraph, insert—

(2) “Insurer” means—

(a)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of insurance; or

(b)an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of insurance.

(3) Sub-paragraph (2) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Local Government and Rating Act 1997 (c. 29)

Repeal of spent provision

359.  Paragraph 21 of Schedule 3 to the Local Government and Rating Act 1997 (which is spent) is repealed.

Scotland Act 1998 (c. 46)

Functions of the Accountant in Bankruptcy

360.—(1) Paragraph 23 of Schedule 8 to the Scotland Act 1998 (consequential amendments in relation to Insolvency Act 1986) is amended as follows.

(2) For sub-paragraph (2) substitute—

(2) Anything directed to be done, or which may be done, to or by the registrar of companies in Scotland by virtue of any of the provisions mentioned in sub-paragraph (3), shall, or (as the case may be) may, also be done to or by the Accountant in Bankruptcy.

(2A) In the case of a building society, friendly society or industrial and provident society which has its registered office in Scotland, anything directed to be done, or which may be done, to or by the Financial Services Authority by virtue of any of the provisions mentioned in sub-paragraph (3) as applied (with or without modifications) in relation to the society shall, or (as the case may be) may, also be done to or by the Accountant in Bankruptcy..

(3) For sub-paragraph (4) substitute—

(4) Anything directed to be done, or which may be done, to or by the registrar of companies in Scotland by virtue of any of the provisions mentioned in sub-paragraph (5), shall, or (as the case may be) shall instead be done to or by the Accountant in Bankruptcy.

(4A) In the case of a building society, friendly society or industrial and provident society which has its registered office in Scotland, anything directed to be done, or which may be done, to or by the Financial Services Authority by virtue of any of those provisions as applied (with or without modifications) in relation to the society shall, or (as the case may be) shall instead be done to or by the Accountant in Bankruptcy..

Terrorism Act 2000 (c. 11)

Meaning of “financial institution”

361.—(1) Paragraph 6 of Schedule 6 to the Terrorism Act 2000 (financial information) is amended as follows.

(2) In sub-paragraph (1)(255)—

(a)for paragraph (a) substitute—

(a)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits,;

(b)paragraph (b) is repealed; and

(c)for paragraph (d) substitute—

(d)a person carrying on a relevant regulated activity,.

(3) After sub-paragraph (1) of paragraph 6 insert—

(1A) For the purposes of sub-paragraph (1)(d), a relevant regulated activity means—

(a)dealing in investments as principal or as agent,

(b)arranging deals in investments,

(c)managing investments,

(d)safeguarding and administering investments,

(e)sending dematerialised instructions,

(f)establishing etc. collective investment schemes,

(g)advising on investments.

(1B) Sub-paragraphs (1)(a) and (1A) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Postal Services Act 2000 (c. 26)

Meaning of “bank”

362.—(1) Section 7 of the Postal Services Act 2000 (exceptions from section 6) is amended as follows.

(2) In subsection (5) for the definition of “bank” substitute—

“bank” means—

(a)

the Bank of England,

(b)

a deposit taker,

(c)

an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to the Financial Services and Markets Act 2000 which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12(1) of that Schedule) to accept deposits, or

(d)

the central bank of an EEA State other than the United Kingdom..

(3) In subsection (5), after the definition of “departure facility” insert—

“deposit taker” means a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits, but does not include—

(a)

a credit union, within the meaning of the Credit Unions Act 1979(256) or the Credit Unions (Northern Ireland) Order 1985(257),

(b)

a specially authorised society within the meaning of section 7(1)(f) of the Friendly Societies Act 1974(258),

(c)

a person who has permission to accept deposits only for the purpose of carrying on another regulated activity in accordance with that permission..

(4) After subsection (5) insert—

(6) In subsection (5), paragraph (c) of the definition of “bank” and the definition of “deposit taker” must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

Utilities Act 2000 (c. 27)

Restriction on disclosure of information

363.  For paragraph (c) of section 105(4) of the Utilities Act 2000 (restrictions on disclosure of information) substitute—

(c)for the purpose of facilitating the exercise by the Secretary of State, the Treasury or the Financial Services Authority of any power conferred by or under the Financial Services and Markets Act 2000 or by the enactments relating to companies or insolvency;.

Criminal Justice and Police Act 2001 (c. 16)

Repeal of unnecessary provisions

364.  The following provisions of the Criminal Justice and Police Act 2001(259) are repealed—

(a)in section 56(5), paragraphs (c), (d) and (e);

(b)in section 57(1), paragraphs (e), (h) and (j);

(c)in section 66(5), paragraphs (a), (c) and (e);

(d)in section 68(2), paragraphs (b), (d) and (e);

(e)in Schedule 1, paragraphs 32, 40 and 43; and

(f)in Schedule 2, in paragraph 16(2), paragraphs (a), (b), (c) and (d).

PART 9AMENDMENTS TO SECONDARY LEGISLATION

The Superannuation and other Trust Funds (Qualifications of Actuaries) Regulations 1968 (S.I. 1968/1480)

Revocation of the 1968 Regulations

365.  The Superannuation and Other Trust Funds (Qualifications of Actuaries) Regulations 1968 are revoked.

The British Transport (Alteration of Pension Schemes) Order 1969 (S.I. 1969/1858)

Additional powers of investment

366.  In paragraph 8 of the Schedule(260) to the British Transport (Alteration of Pension Schemes) Order 1969 (additional powers of investment) for “Financial Services Act 1986” substitute “Financial Services and Markets Act 2000”.

The Employers' Liability (Defective Equipment and Compulsory Insurance) (Northern Ireland) Order 1972 (S.I. 1972/963 (N.I. 6))

Insurance against liability for employees: meaning of authorised insurer

367.—(1) Article 5 of the Employers' Liability (Defective Equipment and Compulsory Insurance) (Northern Ireland) Order 1972 (insurance against liability for employees) is amended as follows.

(2) In paragraph (3), for sub-paragraph (b)(261) substitute—

(b)“authorised insurer” means—

(i)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of insurance;

(ii)an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of insurance; or

(iii)a person who does not fall within sub-paragraph (i) or (ii) and who may lawfully effect or carry out contracts of insurance in a member State other than the United Kingdom;.

(3) After that paragraph insert—

(3A) Paragraph (3)(b) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

The Local Authority (Stocks and Bonds) Regulations 1974 (S.I. 1974/519)

Interpretation of the 1974 Regulations

368.  In paragraph 3 of regulation 1(262) of the Local Authority (Stocks and Bonds) Regulations 1974 (Title, commencement and interpretation), in the definition of “negotiable bonds”, for “Part IV of the Financial Services Act 1986” substitute “Part 6 of the Financial Services and Markets Act 2000”.

The Superannuation and other Trust Funds (fees) Regulations 1976 (S.I. 1976/354)

Revocation of the 1976 Regulations

369.  The Superannuation and Other Trust Funds (Fees) Regulations 1976 are revoked.

The National Savings Stock Register Regulations 1976 (S.I. 1976/2012)

Minors

370.—(1) For paragraph (1A) (263) of regulation 30 of the National Savings Stock Register Regulations 1976 (minors) substitute—

(1A) In paragraph (1) above “approved account” means—

(a)an account in the National Savings Bank comprising investment deposits within the meaning of the National Savings Bank Act 1971,

(b)an account with a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits, or

(c)an account with an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to the Financial Services and Markets Act 2000, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12(1) of that Schedule) to accept deposits..

(2) After paragraph (2) of that regulation insert—

(3) Paragraph (1A) must be read with—

(a)section 2 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

The Stock Exchange (Completion of Bargains) (Northern Ireland) Order 1977 (S.I. 1977/1254 (N.I. 21))

Acquisition and disposal of securities by trustees etc

371.—(1) Article 7 of the Stock Exchange (Completion of Bargains) (Northern Ireland) Order 1977 (acquisition and disposal of securities by trustees etc.) is amended as follows.

(2) In sub-paragraph (a) of paragraph (1)(264), for the words from “a recognised” to “exchange” substitute “a financial institution”.

(3) In sub-paragraph (b) of that paragraph, for “clearing house or nominee” substitute “financial institution”.

(4) In that paragraph, the words after sub-paragraph (b) are repealed.

(5) For paragraph (2) (265) substitute—

(2) “Financial institution” means—

(a)a recognised clearing house acting in relation to a recognised investment exchange; or

(b)a nominee of—

(i)a recognised clearing house acting in that way, or

(ii)a recognised investment exchange.

(3) No person may be a nominee for the purposes of this Article unless he is a person designated for those purposes in the rules of the recognised investment exchange in question.

(4) Expressions used in paragraphs (2) and (3) have the same meaning as in Part 18 of the Financial Services and Markets Act 2000..

The British Railways Board (Winding up of Closed Pension Funds) Order 1978 (S.I. 1978/1358)

Interpretation of the 1978 Order: “insurer”

372.—(1) In paragraph (2) of article 1 of the British Railways Board (Winding Up of Closed Pension Funds) Order 1978 (commencement, citation and interpretation)—

(a)the definition of friendly society is revoked, and

(b)the definition of “insurance company” is revoked, and in its place insert—

“insurer” means—

(a)

a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of long term insurance, or

(b)

an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of long-term insurance..

(2) After that paragraph insert—

(2A) The definition of “insurer” in paragraph (2) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

(3) In paragraph (3)(b) of Article 4 of that Order (order on application of assets on winding up of a pension fund) for “an insurance company or friendly society” substitute “an insurer”.

The Road Traffic (Northern Ireland) Order 1981 (S.I. 1981/154 (N.I. 1))

Notification of refusal of insurance on health grounds

373.  For paragraph (2) of Article 12 of the Road Traffic (Northern Ireland) Order 1981 (notification of refusal on health grounds) substitute—

(2) “Authorised insurer” means an insurer who is a member of the Motor Insurers Bureau (a company limited by guarantee and incorporated under the Companies Act 1929 on 14th June 1946).

(3) “Insurer” means—

(a)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out relevant contracts of insurance; or

(b)an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out relevant contracts of insurance.

(4) A contract is a relevant contract of insurance if the risk insured against relates to—

(a)the insured sustaining accidental injury or death as a result of travelling as a passenger;

(b)land vehicles;

(c)goods in transit; or

(d)motor vehicle liability.

(5) This Article must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any order for the time being in force under that section; and

(c)Schedule 2 to that Act..

Requirements with respect to policies of insurance

374.—(1) Article 101 of the Road Traffic (Northern Ireland) Order 1981 (requirements with respect to policies of insurance) is amended as follows.

(2) For paragraph (1) substitute—

(1) In this Part “authorised insurer” has the same meaning as in Article 12..

(3) In paragraph (2) the words “referred to in paragraph (1)” are repealed.

The Consumer Credit (Agreements) Regulations 1983 (S.I. 1983/1553)

Interpretation of the 1983 Regulations: “contract of insurance”

375.—(1) In paragraph (2) of regulation 1 of the Consumer Credit (Agreements) Regulations 1983 (citation, commencement and interpretation) the definition of “contract of insurance” is revoked(266).

(2) After that paragraph insert—

(2A) References in these Regulations to contracts of insurance must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

The Consumer Credit (Linked Transactions) (Exemptions) Regulations 1983 (S.I. 1983/1560)

Interpretation of the 1983 Regulations: “contract of insurance” and “deposit”

376.—(1) In paragraph (2) of Regulation 1 of the Consumer Credit (Linked Transactions) (Exemptions) Regulations 1983 (citation, commencement and interpretation) the definitions of “contract of insurance” and “deposit” are revoked.

(2) After that paragraph insert—

(2A) References in these Regulations to contracts of insurance and to deposits must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

The Insolvency Rules 1986 (S.I. 1986/1925)

Authorised deposit-takers and former authorised deposit-takers

377.—(1) The Insolvency Rules 1986 are amended as follows.

(2) In Rule 2.7 (Manner in which service to be effected), for paragraph (4A)(a)(267) substitute—

(a)is an authorised deposit-taker or former authorised deposit-taker,.

(3) In Rule 4.1 (Voluntary winding up; winding up by the court), in paragraph (1)(b)(268), for “authorised institutions or former authorised institutions within the meaning of the Banking Act 1987” substitute “authorised deposit-takers or former authorised deposit-takers”.

(4) In Rule 4.7 (Presentation and filing of petition), in paragraph (4)(e)(269) for “an authorised institution or former authorised institution within the meaning of the Banking Act 1987” substitute “an authorised deposit-taker or a former authorised deposit-taker”.

(5) In Rule 4.50 (First meetings (No CVL Application)), in paragraph (8)(270) for “an authorised institution or former authorised institution within the meaning of the Banking Act 1987” substitute “an authorised deposit-taker or a former authorised deposit-taker”.

(6) In Rule 4.51, in paragraph (3)(271) for “an authorised institution or former authorised institution within the meaning of the Banking Act 1987” substitute “an authorised deposit-taker or a former authorised deposit-taker”.

(7) In Rule 4.72 (Additional provisions as regards certain meetings) in paragraph (1)(272) for “an authorised institution or former authorised institution within the meaning of the Banking Act 1987” substitute

an “authorised deposit-taker or a former authorised deposit-taker”.

The Scheme Manager of the Financial Services Compensation Scheme

378.—(1) In Rule 4.1 of those Rules (Voluntary winding up; winding up by court), in paragraph (1)(b), for “Deposit Protection Board” substitute “the scheme manager”.

(2) In Rule 4.72 (Additional provisions as regards certain meetings)—

(a)in paragraph (2)(273) for “to the Deposit Protection Board” substitute “to the scheme manager established under section 212(1) of the Financial Services and Markets Act 2000”, and

(b)in paragraphs (3), (4), (5), (6) and (7) for “the Board” substitute “the scheme manager”.

(3) In Schedule 1 (Deposit Protection Board’s Voting Rights) for “Deposit Protection Board” or “Board” wherever occurring, substitute “scheme manager”.

Additional Creditor Members

379.  In Rule 4.152 of those Rules (Membership of Committee), for paragraph (7)(274) substitute—

(7) The following categories of person are to be regarded as additional creditor members—

(a)a representative of the Financial Services Authority who exercises the right under section 371(4)(b) of the Financial Services and Markets Act 2000 to be a member of the committee;

(b)a representative of the scheme manager who exercises the right under section 215(4) of that Act to be a member of the committee..

Debts not provable unless all other claims have been paid in full

380.  In Rule 12.3 of those Rules (provable debts), for sub-paragraphs (2A)(a) and (b)(275) substitute—

(a)in a winding up or a bankruptcy, any claim arising by virtue of section 382(1)(a) of the Financial Services and Markets Act 2000, not being a claim also arising by virtue of section 382(1)(b) of that Act;.

Interpretation of “deposit-taker”

381.  After Rule 13.12 of those Rules insert—

13.12A    “Authorised deposit-taker and former authorised deposit-taker”

(1) “Authorised deposit-taker” means a person with permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits.

(2) “Former authorised deposit-taker” means a person who—

(a)is not an authorised deposit-taker,

(b)was formerly an authorised institution under the Banking Act 1987, or a recognised bank or a licensed institution under the Banking Act 1979(276), and

(c)continues to have liability in respect of any deposit for which it had a liability at a time when it was an authorised institution, recognised bank or licensed institution.

(3) Paragraphs (1) and (2) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act..

The Police Pensions Regulations 1987 (S.I. 1987/257)

Mis-sold pensions

382.  In regulation F11(277) of the Police Pensions Regulations 1987 (mis-sold pensions) in paragraph (1)(b) after “section 62 of the Financial Services Act 1986” insert “or section 150 of the Financial Services and Markets Act 2000”.

The Personal Pension Schemes (Disclosure of Information) Regulations 1987 (S.I. 1987/1110)

Information about the scheme: illustrative estimates of cash equivalents

383.—(1) In Schedule 1 to the Personal Pension Schemes (Disclosure of Information) Regulations 1987 (basic information about the scheme), for paragraph 9(278) substitute—

9  Illustrative estimates of the cash equivalents which would be paid on the transfer of protected rights to another scheme at the end of the first 5 years of membership, which—

(a)are clearly labelled as illustrative estimates, and state the period for which they will be honoured by the scheme, the assumptions made, and whether the same basis of calculation has been used for all members of the scheme; or

(b)are prepared in accordance with rules made under Part 10 of the Financial Services and Markets Act 2000, if the scheme is established by an authorised person within the meaning of section 31(2) of that Act..

(2) In paragraph 10 of that Schedule, for the words from “where a scheme is established by a person to whose business Chapter V of Part I of the Financial Services Act 1986 applies” to the end of the paragraph substitute “where a scheme is established by an authorised person within the meaning of section 31(2) of the Financial Services and Markets Act 2000 the information required by this paragraph may be specified in accordance with rules made under Part 10 of that Act.”.

The Consumer Protection (Northern Ireland) Order 1987 (S.I. 1987/2049 (N.I. 20))

Exclusion of offences under section 397 of the Financial Services and Markets Act 2000

384.  After paragraph (5) of Article 13 of the Consumer Protection (Northern Ireland) Order 1987 (offence of giving misleading information) insert—

(5A) A person is not guilty of an offence under paragraph (1) or (2) above if, in giving the misleading indication which would otherwise constitute an offence under either of those paragraphs, he is guilty of an offence under section 397 of the Financial Services and Markets Act 2000 (misleading statements and practices)..

Repeal of unnecessary provisions

385.—(1) Article 15 of the Consumer Protection (Northern Ireland) Order 1987 (application of provisions relating to misleading price indications to services and facilities) is amended as follows.

(2) Paragraph (3) is repealed.

(3) In paragraph (5), the definitions of “appointed representative”, “authorised person” and “investment business” are repealed.

The Consumer Protection (Cancellation of Contracts Concluded Away From Business Premises) Regulations 1987 (S.I. 1987/2117)

Excepted contracts

386.—(1) Regulation 3 of the Consumer Protection (Cancellation of Contracts Concluded away from Business Premises) Regulations 1987 (contracts to which the Regulations apply) is amended as follows.

(2) For paragraph (2)(d) substitute—

(d)contracts of insurance;.

(3) For paragraph (2)(e) substitute—

(e)any agreement the making or performance of which by either party constitutes a relevant regulated activity;.

(4)  After paragraph (3)(279) insert—

(4) For the purposes of paragraph (2)(e)—

(a)“a relevant regulated activity” means an activity of the following kind, namely—

(i)dealing in investments, as principal or as agent,

(ii)arranging deals in investments,

(iii)managing investments,

(iv)safeguarding and administering investments,

(v)establishing etc. a collective investment scheme; and

(b)“investment” means—

(i)shares,

(ii)instruments creating or acknowledging indebtedness,

(iii)government and public securities,

(iv)instruments giving entitlement to investments, <