Financial Services Act 1986 (repealed)

• (b) the law of the country or territory in which the scheme is established precludes the participants being entitled or the operator, being required as mentioned in that subsection; and

• (c) throughout the period of five years ending on the date on which the application is made under that section, units under the scheme have in fact been regularly redeemed as mentioned in that subsection or the operator has in fact regularly ensured that participants were able to sell their units as there mentioned.

• (2) The grounds for revoking an order made under section 88 of this Act by virtue of this paragraph shall include the ground that it appears to the Secretary of State that since the making of the order units under the scheme have ceased to be regularly redeemed or the operator has ceased regularly to ensure their sale as mentioned in sub-paragraph (1)(c) above.

Delegation orders

12

• (1) A delegation order may transfer a function notwithstanding that the provision conferring it has not yet come into force but no such function shall be exercisable by virtue of the order until the coming into force of that provision.

• (2) Sub-paragraph (1) above applies also to a transfer order under paragraph 28(1) of Schedule 11 to this Act.

Disclosure of information

13

In determining for the purposes of section 180(6) of this Act and the enactments amended by paragraphs 3(2), 9(2) and 13(2) of Schedule 13 to this Act whether the functions of an authority in a country or territory outside the United Kingdom correspond to functions conferred by any of the provisions of this Act regard shall be had to those provisions whether or not they have already come into force.

Temporary exemptions for friendly societies

14

• (1) A registered friendly society which transacts no investment business after the date on which section 3 of this Act comes into force except for the purpose of making or carrying out relevant existing members' contracts shall be treated for the purposes of that section as if it were an exempted person under Chapter IV of Part I of this Act.

• (2) Subject to sub-paragraph (3) below, for the purposes of this paragraph " relevant existing members' contracts ", in relation to any society, means—

• (a) contracts made by the society before that date ; and

• (b) in the case of a small income society—

• (i) during the period of three years beginning with that date, tax exempt investment agreements made by it with persons who were members of the society before that date ; and

• (ii) after the expiry of that period, tax exempt investment agreements made by it with such persons before the expiry of that period.

• (3) Paragraph (b) of sub-paragraph (2) above shall not apply to a registered friendly society after the expiry of the period of two years beginning with that date unless before the expiry of that period it has by special resolution (within the meaning of the Friendly Societies Act 1974 or, as the case may be, the Friendly Societies Act (Northern Ireland) 1970) determined—

• (a) to transact no further investment business except for the purpose of carrying out contracts entered into before the expiry of the said period of three years ; or

• (b) to take such action as is necessary to procure the transfer of its engagements to another such society or a company or the amalgamation of the society with another such society under section 82 of the said Act of 1974 or, as the case may be, section 70 of the said Act of 1970,

and a copy of that resolution has been registered in accordance with section 86 of the said Act of 1974 or, as the case may be, section 75 of the said Act of 1970.

• (4) For the purpose of sub-paragraph (2) above a society is a small income society if its income in 1985 from members' contributions did not exceed £50,000.

• (5) For the purposes of sub-paragraph (2) above an investment agreement is a tax exempt investment agreement if the society by which it is made may obtain exemption from income and corporation tax on the profits from it under section 332 of the Income and Corporation Taxes Act 1970.

• (6) A society to which sub-paragraph (1) or (2) above applies shall not be an authorised person for the purposes of this Act nor a regulated friendly society for the purposes of the provisions of Schedule 11 to this Act.

Dealings in course of non-investment business

15

If before the day on which section 3 of this Act comes into force a person has applied for permission under paragraph 23 of Schedule 1 to this Act and the application has not been determined before that day, that person shall, until the determination of the application and subject to his complying with such requirements as the Secretary of State may impose, be treated as if he had been granted a permission under that paragraph

Northern Ireland

16

The foregoing provisions shall apply to Northern Ireland with the substitution for references to the previous Act or any provision of that Act of references to the Prevention of Fraud (Investments) Act (Northern Ireland) 1940 and the corresponding provision of that Act.

SCHEDULE 16

1

In section 22 of the Charities Act 1960—

• (a) subsection (10) shall be omitted ; and

• (b) in subsection (11) for the words "Subsections (9) and (10)" there shall be substituted the words "Subsection (9)".

2

In the Trustee Investments Act 1961—

• (a) in section 11(3) for the words "the Prevention of Fraud (Investments) Act 1958 or the Prevention of Fraud (Investments) Act (Northern Ireland) 1940" there shall be substituted the words "the Financial Services Act 1986";

• (b) for paragraph 3 of Part III of Schedule 1 there shall be substituted—

(3) In any units of an authorised unit trust scheme within the meaning of the Financial Services Act 1986

;

• (c) in paragraph 2(a) of Part IV of Schedule 1 for the words from " a recognised stock exchange' onwards there shall be substituted the words " a recognised investment exchange within the meaning of the Financial Services Act 1986 " ;

• (d) in the definition of " securities " in paragraph 4 of Part IV of that Schedule after the word " debentures " there shall be inserted the words " units within paragraph 3 of Part III of this Schedule ".

3

In section 32 of the Clergy Pensions Measure 1961 No. 3—

• (a) for paragraph (t) of subsection (1) there shall be substituted—

(t) in any units in any authorised unit trust scheme or a recognised scheme within the meaning of the Financial Services Act 1986

; and

• (b) in subsection (5)(a) for the words from "a recognised stock exchange" onwards there shall be substituted the words " recognised investment exchange within the meaning of the Financial Services Act 1986. ".

4

In the Stock Transfer Act 1963—

• (a) for paragraph (e) of section 1(4) there shall be substituted—

(e) units of an authorised unit trust scheme or a recognised scheme within the meaning of the Financial Services Act 1986

; and

• (b) in the definition of " securities " in section 4(1) for the words from "unit trust scheme" to "scheme" there shall be substituted the words " collective investment scheme within the meaning of the Financial Services Act 1986 ".

5

In the Stock Transfer Act (Northern Ireland) 1963—

• (a) for paragraph (e) of section 1(4) there shall be substituted—

(e) units of an authorised unit trust scheme or a recognised scheme within the meaning of the Financial Services Act 1986

; and

• (b) in the definition of "securities" in section 4(1) for the words from "unit trust scheme" to "scheme" there shall be substituted the words " collective investment scheme within the meaning of the Financial Services Act 1986 ".

6

In section 25 of the Charities Act (Northern Ireland) 1964—

• (a) subsection (16) shall be omitted ; and

• (b) in subsection (17) for the words " Subsections (15) and (16)" there shall be substituted the words 'Subsection (15)".

7

In the Local Authorities' Mutual Investment Trust Act 1968—

• (a) in section 1(2) for the words "recognised stock exchange within the meaning of the Prevention of Fraud (Investments) Act 1958 " there shall be substituted the words " recognised investment exchange within the meaning of the Financial Services Act 1986 " ; and

• (b) in the definition of " unit trust scheme " in section 2 for the words " Prevention of Fraud (Investments) Act 1958 " there shall be substituted the words " Financial Services Act 1986 ".

8

In the Local Government Act 1972—

• (a) in section 98(1) for the words from " and " onwards there shall be substituted the words

means— (a) investments falling within any of paragraphs 1 to 6 of Schedule 1 to the Financial Services Act 1986 or, so far as relevant to any of those paragraphs, paragraph 11 of that Schedule ; or (b) rights (whether actual or contingent) in respect of money lent to, or deposited with, any society registered under the Industrial and Provident Societies Act 1965 or any building society within the meaning of the Building Societies Act 1986.

; and

• (b) for the definition of " securities" in section 146(2) there shall be substituted—

• " securities " has the meaning given in section 98(1) above

.

9

For subsection (1) of section 42 of the Local Government (Scotland) Act 1973 there shall be substituted—

(1) In sections 39 and 41 of this Act " securities " means— (a) investments falling within any of paragraphs 1 to 6 of Schedule 1 to the Financial Services Act 1986 or, so far as relevant to any of those paragraphs, paragraph 11 of that Schedule ; or (b) rights (whether actual or contingent) in respect of money lent to, or deposited with, any society registered under the Industrial and Provident Societies Act 1965 or any building society within the meaning of the Building Societies Act 1986.

10

For paragraph 20 of Schedule 1 to the Industry Act 1975 there shall be substituted—

(20) Section 57 of the Financial Services Act 1986 (restrictions on advertising) shall not apply to any investment advertisement within the meaning of that section which the Board issue or cause to be issued in the discharge of their functions.

11

For paragraph 20 of Schedule 1 to the Scottish Development Agency Act 1975 there shall be substituted—

(20) Section 57 of the Financial Services Act 1986 (restrictions on advertising) shall not apply to any investment advertisement within the meaning of that section which the Agency issue or cause to be issued in the discharge of their functions.

12

For paragraph 21 of Schedule 1 to the Welsh Development Agency Act 1975 there shall be substituted—

(21) Section 57 of the Financial Services Act 1986 (restrictions on advertising) shall not apply to any investment advertisement within the meaning of that section which the Agency issue or cause to be issued in the discharge of their functions.

.

13

In section 3(5) of the Aircraft and Shipbuilding Industries Act 1977 the words "Sections 428 to 430 of the Companies Act 1985 and" shall be omitted and for the words " those sections " there shall be substituted the words " that section ".

14

In paragraph 10(1)(c) of Part II of Schedule 10 to the Finance Act 1980 for the words " sections 428 to 430 " there shall be substituted the words " sections 428 to 430F ".

15

For the definition of " securities" in section 3(6) of the Licensing (Alcohol Education and Research) Act 1981 there shall be substituted—

• " securities " means any investments falling within any of paragraphs 1 to 6 of Schedule 1 to the Financial Services Act 1986 or, so far as relevant to any of those paragraphs, paragraph 11 of that Schedule

.

16

In section 97 of the Companies Act 1985—

• (a) in subsection (1) after the word " conditions " there shall be inserted the words " nd any conditions which apply in respect of any such payment by virtue of rules made under section 169(2) of the Financial Services Act 1986 " ; and

• (b) in subsection (2)(a) for the words from " 10 per cent." onwards there shall be substituted the words—

(i) any limit imposed on it by those rules or, if none is so imposed, 10 per cent, of the price at which the shares are issued ; or (ii) the amount or rate authorised by the articles, whichever is the less

.

17

In section 163 of the Companies Act 1985—

• (a) for the words " a recognised stock exchange " in each place where they occur there shall be substituted the words " recognised investment exchange " ;

• (b) for the words " that stock exchange " in subsection (1) there shall be substituted the words " that investment exchange " ;

• (c) in subsection (2) in paragraph (a) for the words " on that stock exchange" there shall be substituted the words " under Part IV of the Financial Services Act 1986 " and in paragraph (b) for the words " that stock exchange " in both places where they occur there shall be substituted the words " that investment exchange " ;

• (d) after subsection (3) of that section there shall be inserted—

(4) In this section " recognised investment exchange " means a recognised investment exchange other than an overseas investment exchange within the meaning of the Financial Services Act 1986.

18

In section 209(1)(c) of the Companies Act 1985 for the words " the Prevention of Fraud (Investments) Act 1958 " there shall be substituted the words " the Financial Services Act 1986 ".

19

In section 265(4)(a) of the Companies Act 1985 for the words " recognised stock exchange " there shall be substituted the words " recognised investment exchange other than an overseas investment exchange within the meaning of the Financial Services Act 1986 ".

20

In section 329(1) of the Companies Act 1985 for the words " recognised stock exchange ", " that stock exchange " and " the stock exchange " there shall be substituted respectively the words " " recognised investment exchange other than an overseas investment exchange within the meaning of the Financial Services Act 1986 , " that investment exchange " and " the investment exchange " ".

21

For paragraphs (a) to (c) of section 446(4) of the Companies Act 1985 there shall be substituted—

(a) to any individual who is an authorised person within the meaning of the Financial Services Act 1986 ; (b) to any individual who holds a permission granted under paragraph 23 of Schedule 1 to that Act; (c) to any officer (whether past or present) of a body corporate which is such an authorised person or holds such a permission ; (d) to any partner (whether past or present) in a partnership which is such an authorised person or holds such a permission ; (e) to any member of the governing body or officer (in either case whether past or present) of an unincorporated association which is such an authorised person or holds such a permission

.

22

At the end of sections 716(2) and 717(1) of the Companies Act 1985 there shall be inserted the words—

and in this subsection ' recognised stock exchange ' means The Stock Exchange and any other stock exchange which is declared to be a recognised stock exchange for the purposes of this section by an order in a statutory instrument made by the Secretary of State which is for the time being in force ;

.

23

In Schedule 4 to the Companies Act 1985—

• (a) in paragraph 45 for the words " recognised stock exchange " there shall be substituted the words " recognised investment exchange other than an overseas investment exchange within the meaning of the Financial Services Act 1986 " ; and

• (b) in paragraph 84 for the words from " on a recognised stock exchange " onwards there shall be substituted the words " on a recognised investment exchange other than an overseas investment exchange within the meaning of the Financial Services Act 1986 or on any stock exchange of repute outside Great Britain ".

24

In Schedule 9 to the Companies Act 1985 in paragraphs 10(3) and 33 for the words " recognised stock exchange " there shall be substituted the words " recognised investment exchange other than an overseas investment exchange within the meaning of the Financial Services Act 1986 ".

25

In paragraph 11 of Schedule 13 to the Companies Act 1985 for paragraph (a) there shall be substituted—

(a) any unit trust scheme which is an authorised unit trust scheme within the meaning of the Financial Services Act 1986

.

26

In Schedule 22 to the Companies Act 1985, in the second column of the entry relating to section 185(4) for the words " stock exchange " there shall be substituted the words " clearing house or ".

27

In Schedule 24 to the Companies Act 1985—

• (a) in the second column of the entry relating to section 329(3) for the words " stock exchange " there shall be substituted the words " investment exchange " ; and

• (b) after the entry relating to section 427(5) there shall be inserted—

429(6)	Offeror failing to send copy of notice or making statutory declaration knowing it to be false, etc.	1. On indictment.	2 years or a fine; or both.
429(6)	Offeror failing to send copy of notice or making statutory declaration knowing it to be false, etc.	2. Summary.	6 months or the statutory maximum; or both.	One-fiftieth of the statutory maximum.
430A(6)	Offeror failing to give notice of rights to minority shareholder.	1. On indictment.	A fine.	One fiftieth of the statutory maximum.
430A(6)	Offeror failing to give notice of rights to minority shareholder.	2. Summary.	The statutory maximum.	One fiftieth of the statutory maximum.

28

In section 16 of the Company Securities (Insider Dealing) Act 1985—

• (a) in subsection (1) for the definition of " recognised stock exchange " there shall be substituted—

• ' recognised stock exchange' means The Stock Exchange and any other investment exchange which is declared by an order of the Secretary of State for the time being in force to be a recognised stock exchange for the purposes of this Act;

; and

• (b) after that subsection there shall be inserted—

(1A) The power to make an order under subsection (1) above shall be exercisable by statutory instrument.

;

• (c) in subsection (2) for the word " 15 " there shall be substituted the word " 14 ".

29

For paragraph (c) of section 10(1) of the Bankruptcy (Scotland) Act 1985 there shall be substituted—

(c) a petition is before a court for the winding up of the debtor under Part IV or V of the Insolvency Act 1986 or section 72 of the Financial Services Act 1986 ;

.

30

In section 101 of the Building Societies Act 1986—

• (a) for paragraph (l)(a) there shall be substituted—

(a) offer for sale or invite subscription for any shares in or debentures of the company or allot or agree to allot any such shares or debentures with a view to their being offered for sale ;

.

• (b) in subsection (1) after the words " the effect of the offer " there shall be inserted the words " the invitation " ; and

• (c) in subsection (2) for the words " the public " there shall be substituted the words " , invite subscription for, ".

31

In Article 107 of the Companies (Northern Ireland) Order 1986—

• (a) in paragraph (1) after the word " conditions " there shall be inserted the words " and any conditions which apply in respect of any such payment by virtue of rules made under section 169(2) of the Financial Services Act 1986"

• (b) in sub-paragraph (2\d) for the words from " 10 per cent." onwards there shall be substituted the words—

(i) any limit imposed on it by those rules or, if none is so imposed, 10 per cent, of the price at which the shares are issued ; or (ii) the amount or rate authorised by the articles, whichever is the less

.

32

In Article 173 of the Companies (Northern Ireland) Order 1986—

• (a) for the words " a recognised stock exchange ", in each place where they occur, there shall be substituted the words " recognised investment exchange " ;

• (b) for the words " that stock exchange " in paragraph (1) there shall be substituted the words " that investment exchange " ;

• (c) in paragraph (2), in sub-paragraph (a) for the words " on that stock exchange " there shall be substituted the words " under Part IV of the Financial Services Act 1986 " and in sub-paragraph (b) for the words " that stock exchange " in both places where they occur there shall be substituted the words " that investment exchange " ;

• (d) after paragraph (3) there shall be inserted—

(4) In this Article " recognised investment exchange " means a recognised investment exchange other than an overseas investment exchange within the meaning of the Financial Services Act 1986.

33

In Article 217(1) (b) of the Companies (Northern Ireland) Order 1986 for the words "the Prevention of Fraud (Investments) Act (Northern Ireland) 1940 or of the Prevention of Fraud (Investments) Act 1958 " there shall be substituted the words " the Financial Services Act 1986 ".

34

In Article 273(4)(a) of the Companies (Northern Ireland) Order 1986 for the words " recognised stock exchange" there shall be substituted the words " recognised investment exchange other than an overseas investment exchange within the meaning of the Financial Services Act 1986 ".

35

In Article 337(1) of the Companies (Northern Ireland) Order 1986 for the words "recognised stock exchange", "that stock exchange" and " the stock exchange" there shall be substituted respectively the words " "recognised investment exchange", " that investment exchange " and " the investment exchange " ".

36

For sub-paragraphs (a) to (c) of Article 439(4) of the Companies (Northern Ireland) Order 1986 there shall be substituted—

(a) to any individual who is an authorised person within the meaning of the Financial Services Act 1986 ; (b) to any individual who holds a permission granted under paragraph 23 of Schedule 1 to that Act; (c) to an officer (whether past or present) of a body corporate which is such an authorised person or holds such a permission ; (d) to any partner (whether past or present) in a partnership which is such an authorised person or holds such a permission ; (e) to any member of the governing body or officer (in either case whether past or present) of an unincorporated association which is such an authorised person or holds such a permission

.

37

At the end of Article 665(2) and 666(1) of the Companies (Northern Ireland) Order 1986 there shall be inserted the words—

and in this paragraph ' recognised stock exchange' means The Stock Exchange and any other stock exchange which is declared by an order of the Department for the time being in force to be a recognised stock exchange for the purposes of this Article ;

.

38

In Schedule 4 to the Companies (Northern Ireland) Order 1986—

• (a) in paragraph 45 for the words " recognised stock exchange " there shall be substituted the words " recognised investment exchange other than an overseas investment exchange within the meaning of the Financial Services Act 1986 "

• (b) in paragraph 83 for the words from " on a recognised stock exchange " onwards there shall be substituted the words " on a recognised investment exchange other than an overseas investment exchange within the meaning of the Financial Services Act 1986 or on any stock exchange of repute outside Northern Ireland ".

39

In Schedule 9 to the Companies (Northern Ireland) Order 1986, in paragraph 10(3) and 33 for the words " recognised stock exchange " there shall be substituted the words " recognised investment exchange other than an overseas investment exchange within the meaning of the Financial Services Act 1986. "

40

In paragraph 11 of Schedule 13 to the Companies (Northern Ireland) Order 1986 for paragraph (a) there shall be substituted—

(a) any unit trust scheme which is an authorised unit trust scheme within the meaning of the Financial Services Act 1986

.

41

In Schedule 21 to the Companies (Northern Ireland) Order 1986 in the second column of the entry relating to Article 195(4) for the words " stock exchange" there shall be substituted the words " clearing house or ".

42

In Schedule 23 to the Companies (Northern Ireland) Order 1986 in the second column of the entry relating to Article 337(3) for the words " stock exchange" there shall be substituted the words " investment exchange ".

43

In Article 2(1) of the Company Securities (Insider Dealing) (Northern Ireland) Order 1986, for the definition of " recognised stock exchange " there shall be substituted—

• "recognised stock exchange' means The Stock Exchange and any other investment exchange which is declared by an order of the Department for the time being in force to be a recognised stock exchange for the purposes of this Order ;

.

SCHEDULE 17

PART I — Enactments

PART II — Instruments