Companies (1986 Order) (Bank Accounts) Regulations (Northern Ireland) 1992

• (a) the information required by paragraphs 8 and 24 of Schedule 5 (information about significant holdings of the company in undertakings other than subsidiary undertakings)[^f00024] need only be given in respect of undertakings (otherwise falling within the class of undertakings in respect of which disclosure is required) in which the company has a significant holding amounting to 20 per cent. or more of the nominal value of the shares in the undertaking; and

• (b) the information required by paragraph 27 of Schedule 5 (information about significant holdings of the group in undertakings other than subsidiary undertakings) need only be given in respect of undertakings (otherwise falling within the class of undertakings in respect of which disclosure is required) in which the group has a significant holding amounting to 20 per cent. or more of the nominal value of the shares in the undertaking.

SCHEDULE 2 — Further Amendments to Part VIII of the 1986 Order

1

Article 262 (3) of the 1986 Order[^f00025] is amended by the insertion of the words “if the company is a banking company or the parent company of a banking group or” after the word “apply” therein.

2

Article 268 (6) of the 1986 Order[^f00026] is amended by the insertion of the words and in “Chapter I of Part I of Schedule 9” after the words “Schedule 4”.

3

The index of defined expressions set out in Article 270A of the 1986 Order[^f00027] is amended:

• (a) by the substitution, against the entries relating to the following expressions, of the following new references in place of those already existing:

• (i) “banking group”: Article 263A(4); and

• (ii) “insurance group”: Article 263A(5);

• (b) by the substitution of the words “Schedule 9A” for the words “Schedule 9” where they occur in the index;

• (c) by the insertion of the following entries into the index at their appropriate position:

• (d) by the insertion of the following entries in substitution for the existing entries dealing with the same subject matter:

• and by the: insertion of the following words at the appropriate place in the entry relating to “lease, long lease and short lease”: — in Schedule 9paragraph 82 of Part I of that Schedule ; insertion of the following words at the appropriate place in the entry relating to “provision”: — in Schedule 9paragraph 85 of Part I of that Schedule .

4

Parts I and II of Schedule 9 to the 1986 Order[^f00028], formed into a new Schedule by regulation 5 and numbered Schedule 9A, shall be amended as follows:

• (a) in paragraph 17(2) of Part 1, the words from “except in so far as” to the end shall be omitted;

• (b) paragraph 27 of Part I is repealed;

• (c) in paragraph 28A[^f00029] of Part I, the words “27 or” shall be omitted;

• (d) the words “banking or” shall be omitted from the heading to Part II;

• (e) the following shall be substituted for paragraph 1 of Part II:

(1) An undertaking (other than one carrying on insurance business) whose activities are a direct extension of or ancillary to insurance business shall not be excluded from consolidation under Article 237(4) (exclusion of undertakings whose activities are different from those of the undertakings consolidated).

• (f) in paragraph 5 of Part II, the word “an” shall be substituted for the words “a banking or” in sub-paragraph (1) and the words “27 or” in that sub-paragraph and “27(4)” in sub-paragraph (2) shall be omitted; and

• (g) paragraph 6 of Part II is repealed.

5

Schedule 10 to the 1986 Order (Directors' Report where Accounts Prepared in Accordance with Special Provisions for Banking or Insurance Companies or Groups)[^f00030] shall be amended as follows:

• (a) the words “banking or” shall be omitted from the heading to the Schedule and also from paragraphs 1(1), 2(1) and 3(1) where they occur; and

• (b) the words “(other than banking or discounting or a class prescribed for the purposes of paragraph 17(2) of Part I of Schedule 9)” in paragraph 2(2) shall be omitted.

SCHEDULE 3 — Further (Consequential) Amendments of the 1986 Order

1

• (1) Schedule 11 (Modifications of Part IX where Company’s Accounts Prepared in Accordance with Special Provisions for Banking or Insurance Companies)[^f00031] to the 1986 Order is amended as follows.

• (2) The following paragraphs are inserted before paragraph 1 of the Schedule:

(1) Paragraphs 2 to 6 apply where a company has prepared accounts in accordance with the special provisions of Part VIII relating to banking companies and paragraph 7 to 13 apply where a company has prepared accounts in accordance with the special provisions of Part VIII relating to insurance companies. (2) Article 272(2) shall apply as if the reference to paragraph 88 of Schedule 4 therein was a reference to paragraph 85(c) of Part 1 of Schedule 9. (3) Article 277 shall apply as if: (a) there were substituted for the words “are shown as an asset” in paragraph (1) the words “are included as an asset”; and (b) the reference to paragraph 20 of Schedule 4 in paragraph (2)(b) was to paragraph 27 of Part I of Schedule 9. (4) Articles 278(2) and 283 shall apply as if the references therein to paragraphs 87 and 88 of Schedule 4 were to paragraph 85 of Part I of Schedule 9. (5) Articles 280 and 281 shall apply as if in Article 280(3) there were substituted, for the references to Article 234[^f00032] and Schedule 4, references to Article 263 and Part I of Schedule 9. (6) Article 284 shall apply as if the references to paragraphs 12(a) and 34(3)(a)[^f00033] of Schedule 4 were to paragraphs 19(a) and 44(3)(a) of Schedule 9.

• (3) The present paragraphs 1 to 7 shall be renumbered 7 to 13, shall be preceded by the heading “Modifications where accounts prepared in accordance with special provisions for insurance companies” and shall be amended as follows:

• (a) the words “Schedule 9A” shall be substituted for the words “Schedule 9” wherever they occur; and

• (b) the words “27 or” shall be omitted in present paragraphs 5(a) and 6(b).

2

In Schedule 21 (provisions applying to unregistered companies), in the entry relating to Part VIII, in column 1, for “Schedules 4 to 8” substitute “Schedules 4 to 9” and for “Schedule 9” substitute “Schedule 9A”.

Signed

Sealed with the Official Seal of the Department of Economic Development on 5th June 1992.

A. H. McAlister — Assistant Secretary

Explanatory note

(This note is not part of the Regulations.)

1 These Regulations implement Council Directive 86/635/EEC (O.J. No. L372, 31.12.1986, pages 1-17) on the Annual Accounts and Consolidated Accounts of Banks and Other Financial Institutions, in so far as that Directive is applicable to bodies corporate to which Part VIII of the Companies (Northern Ireland) Order 1986 (“the 1986 Order”) applies.

2 The Regulations firstly amend Schedule 9 to the 1986 Order, which makes special provision for the accounts of banking and insurance companies and groups. The existing Parts I and II of that Schedule are formed by the Regulations into a new Schedule 9A (regulation 5(1)) and confined in their operation to insurance companies and groups. The existing Part III of Schedule 9 is repealed (regulation 5(2)). New Parts I to III are inserted into Schedule 9 by regulation 5(4) and are set out in Parts I to III of Schedule 1. The new Part I lays down rules governing the content of the individual accounts of banking companies, including prescribed formats to be followed, the valuation rules to be applied and the disclosures to be made in the notes to the accounts. The new Part II adapts the general rules of Part VIII of the 1986 Order with respect to the consolidated accounts of a company to the special circumstances of banking groups. The new Part III makes special provision with respect to the disclosures required of banking companies and the parent companies of banking groups in respect of undertakings in which they, or members of their group of companies, have invested.

3 Regulation 3 substitutes new Articles 263 to 263B for the existing Articles of those numbers in Part VIII of the 1986 Order. These Articles introduce the new provisions of Schedule 9 and the new Schedule 9A. Inter alia, they define which companies are to prepare group accounts under the special provisions with respect to banking groups.

4 Regulation 4 also amends Article 263C of the 1986 Order, which sets out special rules on the content of the directors' report and presently applies to banking and insurance companies and groups, so that for the future it will only apply to insurance companies and groups.

5 Regulations 6 to 8 make further and consequential amendments.

6 Regulation 9 sets out a transitional provision whereby a company may prepare accounts in accordance with the unamended Part VIII, as that Part applies to banking companies and groups, rather than under the amended provisions for a financial year commencing prior to 23rd December 1992.

Footnotes

[^f00001]: S.I. 1986/1032 (N.I. 6); Article 265 was inserted by Article 22 of the Companies (Northern Ireland) Order 1990, S.1 1990/593 (N.I. 5)

[^f00002]: S.I. 1990/593 (N.I. 5)

[^f00003]: Articles 263 to 263B were inserted into the 1986 Order by Article 20(1) of the 1990 Order

[^f00004]: Article 234 was inserted into the 1986 Order by Article 6(1) of the 1990 Order

[^f00005]: Schedule 4A was inserted into the 1986 Order by Article 7(2) of and Schedule 2 to the 1990 Order

[^f00006]: Article 235 was inserted into the 1986 Order by Article 7(1) of the 1990 Order

[^f00007]: Article 238 was inserted into the 1986 Order by Article 7(4) of the 1990 Order

[^f00008]: Schedule 5 was inserted into the 1986 Order by Article 8(2) of and Schedule 3 to the 1990 Order

[^f00009]: Schedule 6 has been amended by section 108 of and Schedules 6 and 7 to the Banking Act 1987 (c. 22) and by Articles 8(4) and 26 of, and Schedules 4 and 15 to, the 1990 Order

[^f00010]: Part IV of Schedule 9 was inserted into the 1986 Order by Article 20(3) and (4) of and Schedule 7 to the 1990 Order

[^f00011]: Article 263C was inserted into the 1986 Order by Article 20(1) of the 1990 Order

[^f00012]: Schedule 9 to the 1986 Order has been amended by the Financial Services Act 1986 (c. 60) and by Article 20 of, and Schedule 7 to, the 1990 Order

[^f00013]: S.I. 1981/156 (N.I. 3); Article 141 has been repealed by sections 27 and 157 of and Schedule 22 to the Finance Act 1982 (c. 39) subject to the provisions of section 27(2), (4) and (5) of that Act; Article 141 has been amended by Article 23 of, and Schedule I to, the Companies Consolidation (Consequential Provisions) (Northern Ireland) Order 1986 (S.I. 1986/1035 (N.I. 9))

[^f00014]: Article 229 was inserted into the 1986 Order by Article 4 of the 1990 Order

[^f00015]: Schedule 4A was inserted into the 1986 Order by Article 7(2) of and Schedule 2 to the 1990 Order

[^f00016]: Schedule 5 was inserted into the 1986 Order by Article 8(2) of and Schedule 3 to the 1990 Order

[^f00017]: Schedule 6 has been amended by section 108 of and Schedules 6 and 7 to the Banking Act 1987 (c. 22) and by Articles 8(4) and 26 of and Schedules 4 and 15 to the 1990 Order

[^f00018]: Article 229 was inserted into the 1986 Order by Article 4 of the 1990 Order

[^f00019]: Article 163(4) of the 1986 Order was amended by section 196(4) and (5) of the Financial Services Act 1986 (c. 60) and by Articles 62(4) and 67 of, and paragraph 13 of Schedule 3 to, the Companies (No. 2) (Northern Ireland) Order 1990 (S.I. 1990/1504 (N.I. 10))

[^f00020]: 1987 c. 22

[^f00021]: Article 237 was inserted into the 1986 Order by Article 7(3) of the 1990 Order

[^f00022]: Schedule 4A was inserted into the 1986 Order by Article 7(2) of and Schedule 2 to the 1990 Order

[^f00023]: Article 250 was inserted into the 1986 Order by Article 13 of the 1990 Order

[^f00024]: Schedule 5 was inserted into the 1986 Order by Article 8(2) of and Schedule 3 to the 1990 Order

[^f00025]: Article 262(3) was inserted into the 1986 Order by Article 19 of the 1990 Order

[^f00026]: Article 268 was inserted into the 1986 Order by Article 24 of the 1990 Order

[^f00027]: Article 270A was inserted into the 1986 Order by Article 24 of the 1990 Order

[^f00028]: Schedule 9 to the 1986 Order has been amended by the Financial Services Act 1986 (c. 60) and by Article 20 of, and Schedule 7 to, the 1990 Order

[^f00029]: Paragraph 28A was inserted into Schedule 9 to the 1986 Order by Article 20 of, and paragraph 10 of Part I of Schedule 7 to, the 1990 Order

[^f00030]: A new Schedule 10 to the 1986 Order was substituted by Article 20(5) of, and Schedule 8 to, the 1990 Order

[^f00031]: Schedule 11 to the 1986 Order has been amended by Article 25 of. and paragraph 24 of Schedule 10 to, the 1990 Order

[^f00032]: Reference inserted by Article 25 of, and paragraph 7 of Schedule 10 to, the 1990 Order

[^f00033]: Reference inserted by Article 25 of, and paragraph 9 of Schedule 10 to, the 1990 Order