The Financial Services and Markets Act 2000 (Excluded Activities and Prohibitions) Order 2014

Excluded activities: central bank exemption

8.—(1) A ring-fenced body does not carry on an excluded activity where—

(a) it enters into a transaction with a central bank, or with a wholly owned subsidiary of a central bank, in the course of carrying on the activity specified in article 14 (dealing in investments as principal) of the Regulated Activities Order 2001, or which would fall within that activity if the transaction took place in the United Kingdom; or

(b) it sells commodities to, or buys commodities from, a central bank, or a wholly owned subsidiary of a central bank.

(2) For the purposes of this article—

(a) an undertaking is to be regarded as wholly owned by a central bank at any time if at that time—

(i) it is an undertaking of which no person other than the central bank or a nominee of the central bank is a member, or

(ii) it is a wholly owned subsidiary of an undertaking within paragraph (i);

(b) an undertaking (“A”) is a “subsidiary” of another undertaking (“B”) if B—

(i) holds a majority of the voting rights in A,

(ii) is a member of A and has the right to appoint or remove a majority of A’s directors, or

(iii) is a member of A, and controls alone, pursuant to an agreement with other members, a majority of the voting rights in A;

(c) A is a subsidiary of B if it is a subsidiary of an undertaking that is itself a subsidiary of B.