The Banking Coordination (Second Council Directive) Regulations 1992

• (4) A notice under sub-paragraph (1) above shall give particulars of the right to require the case to be referred to the Financial Services Tribunal under section 97 of the Financial Services Act.

• (5) Where a case is not required to be referred to that Tribunal by an institution on whom a notice is served under sub-paragraph (1) above, the Board shall, at the expiration of the period within which such a requirement can be made—

• (a) give that institution written notice of the prohibition or refusal; or

• (b) give that institution written notice that the prohibition is not to be imposed or, as the case may be, written notice of the grant of the application,

and the Board may give public notice of any decision notified by it under paragraph (a) or (b) above and the reasons for the decision, except that it shall not do so in the case of a decision notified under paragraph (b) unless the institution concerned consents to its doing so.

• (6) Where the Board gives a notice under sub-paragraph (1) or (5)(a) or (b) above, it shall serve a copy of the notice—

• (a) on the Bank; and

• (b) on the relevant supervisory authority in the institution’s home State.

References to the Financial Services Tribunal

2

Section 97 of the Financial Services Act[^f00058] (references to the Tribunal) shall have effect as if—

• (a) any reference to a notice served under section 29 of that Act included a reference to a notice served under paragraph 1 above;

• (b) any reference to a copy of a notice served under the said section 29 included a reference to a copy of a notice served under sub-paragraph (3) of that paragraph;

• (c) any reference to the withdrawal of an authorisation included a reference to the imposition of an absolute prohibition under regulation 15 of these Regulations; and

• (d) any reference to the suspension of an authorisation included a reference to the imposition of a limited prohibition under regulation 15 of these Regulations,

and any reference in that section to a decision not to withdraw or suspend an authorisation shall be construed accordingly.

3

• (1) Section 98 of the Financial Services Act (decisions on references by applicant or authorised person etc.) shall have effect as if—

• (a) the applications mentioned in paragraph (a) of subsection (2) included an application for the variation of a limited prohibition imposed under regulation 15 of these Regulations; but

• (b) as if the applications mentioned in paragraph (b) of that subsection did not include an application for the rescission of any prohibition imposed under that regulation.

• (2) Subsection (3)(b) of that section shall have effect as if the provisions there referred to included regulation 15 of these Regulations.

• (3) That section shall have effect as if it included provision that paragraph 1 above shall not apply to any action taken by the Board in accordance with the Tribunal’s report.

4

• (1) Subsection (2) of section 100 of the Financial Services Act (withdrawal of references) shall have effect as if the reference to the provisions mentioned in section 97(1)(a) of that Act included a reference to paragraph 1 above.

• (2) That section shall have effect as if it included provision that where a person on whom a notice was served under paragraph 1 above withdraws a case from the Tribunal, sub-paragraph (5) of that paragraph shall apply to him as if he had not required the case to be referred.

SCHEDULE 5 — PROHIBITIONS AND RESTRICTIONS BY THE DIRECTOR

Preliminary

1

In this Schedule—

• “appeal period” has the same meaning as in the Consumer Credit Act[^f00059];

• “prohibition” means a prohibition under regulation 18 of these Regulations;

• “restriction” means a restriction under regulation 19 of these Regulations.

Notice of prohibition or restriction

2

• (1) This paragraph applies where the Director proposes, in relation to a European institution—

• (a) to impose a prohibition;

• (b) to impose a restriction; or

• (c) to vary a restriction otherwise than with the agreement of the institution.

• (2) The Director shall, by notice—

• (a) inform the institution that, as the case may be, the Director proposes to impose the prohibition or restriction or vary the restriction, stating his reasons; and

• (b) invite the institution to submit representations to the proposal in accordance with paragraph 4 below.

• (3) If he imposes the prohibition or restriction or varies the restriction, the Director may give directions authorising the institution to carry into effect agreements made before the coming into force of the prohibition, restriction or variation.

• (4) A prohibition, restriction or variation shall not come into force before the end of the appeal period.

• (5) Where the Director imposes a prohibition or restriction or varies a restriction, he shall serve a copy of the prohibition, restriction or variation—

• (a) on the Bank; and

• (b) on the relevant supervisory authority in the institution’s home State.

Application to revoke prohibition or restriction

3

• (1) This paragraph applies where the Director proposes to refuse an application made by a European institution for the revocation of a prohibition or restriction.

• (2) The Director shall, by notice—

• (a) inform the institution that the Director proposes to refuse the application, stating his reasons; and

• (b) invite the institution to submit representations in support of the application in accordance with paragraph 4 below.

Representations to Director

4

• (1) Where this paragraph applies to an invitation by the Director to an institution to submit representations, the Director shall invite the institution, within 21 days after the notice containing the invitation is given to it, or such longer period as the Director may allow—

• (a) to submit its representations in writing to the Director; and

• (b) to give notice to the Director, if it thinks fit, that it wishes to make representations orally;

and where notice is given under paragraph (b) above the Director shall arrange for the oral representations to be heard.

• (2) In reaching his determination the Director shall take into account any representations submitted or made under this paragraph.

• (3) The Director shall give notice of his determination to the institution.

Appeals

5

Section 41 of the Consumer Credit Act[^f00060] (appeals to the Secretary of State) shall have effect as if—

• (a) the following determinations were mentioned in column 1 of the table set out at the end of that section, namely—

• (i) imposition of a prohibition or restriction or the variation of a restriction; and

• (ii) refusal of an application for the revocation of a prohibition or restriction; and

• (b) the European institution concerned were mentioned in column 2 of that table in relation to those determinations.

SCHEDULE 6 — REQUIREMENTS AS RESPECTS UK INSTITUTIONS

Requirements for carrying on activities etc.

1

• (1) In relation to the carrying on of a home-regulated activity by the provision of services, the requirements of this paragraph are that the institution has given to the UK authority a notice in accordance with paragraph 2 below.

• (2) In relation to the establishment of a branch, the requirements of this paragraph are—

• (a) that the institution has given to the UK authority a notice in accordance with paragraph 2 below;

• (b) that the UK authority has given to the relevant supervisory authority in the member State concerned the notice which, subject to paragraph 4 below, it is required by paragraph 3(1) or (2) below to give; and

• (c) that either—

• (i) the relevant supervisory authority has informed the institution that it may establish the branch; or

• (ii) the period of two months beginning with the day on which the UK authority gave the relevant supervisory authority the notice mentioned in paragraph (b) above has elapsed.

2

A notice given by an institution to the UK authority is given in accordance with this paragraph if it states—

• (a) the member State in which the institution proposes to carry on home-regulated activities;

• (b) whether the institution intends to establish a branch in that member State;

• (c) if the notice states that the institution does not intend to establish such a branch, the home-regulated activities in relation to which the notice is given; and

• (d) if the notice states that the institution intends to establish such a branch, the requisite details of the branch.

3

• (1) The notice which, subject to paragraph 4 below, the UK authority is required to give in respect of a UK authorised institution is a notice which is addressed to the relevant supervisory authority in the member State identified in the institution’s notice under paragraph 2 above and which—

• (a) certifies that the institution is a credit institution which is for the time being authorised by the UK authority under the Banking Act[^f00061] or, as the case may be, the Building Societies Act[^f00062];

• (b) contains the information stated in the institution’s notice; and

• (c) if the institution intends to establish a branch in the member State, contains—

• (i) a statement of the amount of the institution’s own funds and the solvency ratio of the institution (calculated in accordance with the Solvency Ratio Directive[^f00063]); and

• (ii) details of any deposit guarantee scheme which is intended to secure the protection of depositors in the branch.

• (2) The notice which, subject to paragraph 4 below, the UK authority is required to give in respect of a UK subsidiary is a notice which is addressed to the relevant supervisory authority in the member State identified in the institution’s notice under paragraph 2 above and which—

• (a) certifies that the institution is a financial institution which is a 90 per cent. subsidiary undertaking of a UK authorised institution;

• (b) certifies that the conditions mentioned in regulation 20(5) of these Regulations are fulfilled in relation to the institution;

• (c) certifies that the institution’s business is being conducted in a prudent manner;

• (d) contains the information stated in the institution’s notice; and

• (e) if the institution intends to establish a branch in the member State, contains a statement of the amount of the institution’s own funds and the consolidated solvency ratio of the institution’s parent undertaking (calculated in accordance with the Solvency Ratio Directive).

4

• (1) Where the institution’s notice under paragraph 2 above states that the institution does not intend to establish a branch in the member State, the notice referred to in paragraph 3(1) or (2) above shall be given within the period of one month beginning with the date on which the institution’s notice was received by the UK authority.

• (2) Where the institution’s notice under paragraph 2 above states that the institution intends to establish a branch in the member State, the UK authority shall, within the period of three months beginning with the date on which the institution’s notice was received—

• (a) give the notice referred to in paragraph 3(1) or (2) above; or

• (b) refuse to give such a notice.

• (3) The UK authority may not refuse to give such a notice unless, having regard to the homeregulated activities proposed to be carried on, the UK authority doubts the adequacy of the administrative structure or the financial situation of the institution.

• (4) Before determining to give or to refuse to give such a notice, the UK authority—

• (a) shall seek and take into account the views of every other authority which it knows is a connected UK authority in relation to any of the home-regulated activities proposed to be carried on; and

• (b) may regard itself as satisfied in relation to any matter relating to those activities which is relevant to the decision if any such authority informs the UK authority that it is so satisfied.

• (5) In reaching a determination as to the adequacy of the administrative structure, the UK authority may have regard to the adequacy of management, systems and controls and the presence of relevant skills needed for the activities proposed to be carried on.

• (6) Where the institution’s notice under paragraph 2 above states that the institution proposes to establish a branch, the UK authority shall, within the period of three months referred to in subparagraph (2) above, notify the institution—

• (a) that it has given the notice referred to in paragraph 3(1) or (2) above, stating the date on which it did so; or

• (b) that it has refused to give the notice, stating the reasons for the refusal and giving particulars of the rights conferred by section 27 of the Banking Act or, as the case may be, section 46 of the Building Societies Act.

Requirements for changing requisite details of branch

5

• (1) Subject to sub-paragraph (2) below, the requirements of this paragraph are—

• (a) that the institution has given a notice to the UK authority, and to the relevant supervisory authority in the member State in which it has established the branch, stating the details of the proposed change;

• (b) that that authority has received from the UK authority a notice under paragraph 6(1) below; and

• (c) that either that authority has informed the institution that it may make the change, or the period of one month beginning with the day on which it gave that authority the notice mentioned in paragraph (a) above has elapsed.

• (2) In the case of a change occasioned by circumstances beyond the institution’s control, the requirements of this paragraph are that the institution has, as soon as practicable (whether before or after the change), given a notice to the UK authority, and to the relevant supervisory authority in the member State in which it has established the branch, stating the details of the change.

6

• (1) The UK authority shall, within the period of one month beginning with the date on which the notice under paragraph 5(1) above was received—

• (a) give a notice to the relevant supervisory authority informing it of the details of the proposed change; or

• (b) refuse to give such a notice.

• (2) The UK authority may not refuse to give a notice under sub-paragraph (1) above unless, having regard to the changes and to the home-regulated activities proposed to be carried on, the UK authority doubts the adequacy of the administrative structure or the financial situation of the institution.

• (3) Before determining to give or to refuse to give such a notice, the UK authority—

• (a) shall seek and take into account the views of any connected UK authority in relation to any changes to the home-regulated activities proposed to be carried on; and

• (b) may regard itself as satisfied in relation to any matter relating to those activities which is relevant to the decision if any such authority informs the UK authority that it is so satisfied.

• (4) In reaching a determination as to the adequacy of the administrative structure, the UK authority may have regard to the adequacy of management, systems and controls and the presence of relevant skills needed for the activities proposed to be carried on.

• (5) The UK authority shall, within the period of one month referred to in sub-paragraph (1) above, notify the institution—

• (a) that it has given the notice referred to in that sub-paragraph, stating the date on which it did so; or

• (b) that it refused to give the notice, stating the reasons for the refusal and giving particulars of the rights conferred by section 27 of the Banking Act or, as the case may be, section 46 of the Building Societies Act.

Cancellation of compliance with certain requirements

7

• (1) The UK authority may, on an application by a UK subsidiary, direct that any compliance with the requirements of paragraph 1 above in relation to—

• (a) its carrying on of any activity in another member State; or

• (b) its establishment of a branch in another member State,

shall cease to have effect as from such date as may be specified in the direction.

• (2) The UK authority shall not give a direction under this paragraph unless—

• (a) the applicant has given notice of the application to the relevant supervisory authority in the member State concerned; and

• (b) the UK authority has agreed with the relevant supervisory authority that the direction should be given.

• (3) The date specified in a direction under this paragraph—

• (a) shall not be earlier than the date requested in the application; but

• (b) subject to that, shall be such date as may be agreed between the UK authority and the relevant supervisory authority.

• (4) The UK authority shall as soon as practicable send a copy of any direction given under this paragraph to the applicant, to the relevant supervisory authority and to every other authority which it knows is a connected UK authority.

Appeals

8

• (1) Section 27 of the Banking Act[^f00064] (rights of appeal) shall have effect as if the decisions mentioned in subsection (1) included a decision of the Bank to refuse to give a notice under paragraph 3(1) or (2) or 6(1) above.

• (2) Section 29 of the Banking Act (determination of appeals) shall have effect as if it included provision that, where the tribunal reverses a decision of the Bank to refuse to give a notice under paragraph 3(1) or (2) or 6(1) above, the tribunal shall direct the Bank to give the notice.

9

• (1) Section 46 of the Building Societies Act[^f00065] (rights of appeal) shall have effect as if—

• (a) the decisions mentioned in subsection (1) included a decision of the Commission to refuse to give a notice under paragraph 3(1) or (2) or 6(1) above; and

• (b) in relation to such a decision, the reference in that subsection to a building society included a reference to a UK subsidiary.

• (2) Section 47 of the Building Societies Act (determination of appeals) shall have effect as if it included provision that, where the tribunal reverses a decision of the Commission to refuse to give a notice under paragraph 3(1) or (2) or 6(1) above, the tribunal shall direct the Commission to give the notice.

SCHEDULE 7 — RESTRICTIONS BY THE UK AUTHORITY

Preliminary

1

In this Schedule “restriction” means a restriction under regulation 23 of these Regulations.

Notice of restriction in non-urgent cases

2

• (1) Subject to paragraph 3 below, where the UK authority proposes, in relation to a UK subsidiary—

• (a) to impose a restriction; or

• (b) to vary a restriction otherwise than with the agreement of the institution,

the UK authority shall give notice of its proposal to the institution and to every other authority which it knows is a connected UK authority.

• (2) A notice under sub-paragraph (1) above shall—

• (a) specify the proposed restriction or, as the case may be, the proposed variation; and

• (b) state the grounds on which the UK authority proposes to act and give particulars of the institution’s rights under sub-paragraph (4) below.

• (3) Where—

• (a) a proposed restriction consists of or includes a condition requiring the removal of any person as director, controller or manager; or

• (b) the ground or a ground for a proposal to impose or vary a restriction is that it appears to the UK authority that the criterion in paragraph 1 of Schedule 3 to the Banking Act is not or has not been fulfilled, or may not or may not have been fulfilled, in the case of any person,

the UK authority shall give that person a copy of the notice mentioned in sub-paragraph (1) above, together with a statement of his rights under sub-paragraph (4) below.

• (4) An institution which is given a notice under sub-paragraph (1) above and a person who is given a copy under sub-paragraph (3) above may, within the period of 14 days beginning with the day on which the notice was given, make representations to the UK authority.

• (5) After giving a notice under sub-paragraph (1) above and taking into account any representations made under sub-paragraph (4) above, the UK authority shall decide whether—

• (a) to proceed with the action proposed in the notice;

• (b) to take no further action; or

• (c) to impose a different restriction or, as the case may be, make a different variation.

• (6) The UK authority shall give—

• (a) the institution; and

• (b) any such person as is mentioned in sub-paragraph (4) above,

written notice of its decision and, except where the decision is to take no further action, the notice shall state the reasons for the decision and give particulars of the rights conferred by sub-paragraph (10) below and section 27 of the Banking Act or, as the case may be, section 46 of the Building Societies Act.

• (7) A notice under sub-paragraph (6) above shall be given within the period of 28 days beginning with the day on which the notice under sub-paragraph (1) above was given.

• (8) If no notice under sub-paragraph (6) above is given within the period mentioned in subparagraph (7) above, the UK authority shall be treated as having at the end of that period given a notice under that sub-paragraph to the effect that no further action is to be taken.

• (9) A notice under sub-paragraph (6) above imposing a restriction on an institution or varying a restriction shall have the effect of restricting the institution’s activities or varying the restriction in the manner specified in the notice.

• (10) Where the decision notified under sub-paragraph (6) above is to impose or vary a restriction otherwise than as stated in the notice given under sub-paragraph (1) above—

• (a) the institution concerned may, within the period of seven days beginning with the day on which the notice was given under sub-paragraph (6) above, make written representations to the UK authority with respect to the restriction or variation; and

• (b) the UK authority may, after taking those representations into account, alter the restriction.

• (11) The UK authority may omit from the copy given to a person under sub-paragraph (4) above and from a notice given to him under sub-paragraph (6) above any matter which does not relate to him.

Notice of restriction in urgent cases

3

• (1) No notice need be given in accordance with paragraph 2 above in respect of—

• (a) the imposition of a restriction; or

• (b) the variation of a restriction otherwise than with the agreement of the institution concerned,

in any case in which the UK authority considers that the restriction should be imposed, or the variation should be made, as a matter of urgency.

• (2) In any such case the UK authority may by written notice to the institution impose the restriction or make the variation.

• (3) Any such notice shall state the reasons for which the UK authority has acted and particulars of the rights conferred by sub-paragraph (5) below and by section 27 of the Banking Act or, as the case may be, section 46 of the Building Societies Act.

• (4) Where—

• (a) a restriction consists of or includes a condition requiring the removal of any person as director, controller or manager; or

• (b) the ground or a ground for a restriction or variation of a restriction is that it appears to the UK authority that the criterion in paragraph 1 of Schedule 3 to the Banking Act is not or has not been fulfilled, or may not or may not have been fulfilled, in the case of any person,

the UK authority shall give that person a copy of the notice mentioned in sub-paragraph (2) above, together with a statement of his rights under sub-paragraph (5) below.

• (5) An institution to which a notice is given under this paragraph and a person who is given a copy of it by virtue of sub-paragraph (4) above may within the period of 14 days beginning with the day on which the notice was given make representations to the UK authority.

• (6) After giving a notice under sub-paragraph (2) above and taking into account any representations made in accordance with sub-paragraph (5) above, the UK authority shall decide whether—

• (a) to confirm or rescind its original decision; or

• (b) to impose a different restriction or to vary the restriction in a different manner.

• (7) The UK authority shall, within the period of 28 days beginning with the day on which the notice was given under sub-paragraph (2) above, give the institution written notice of its decision under sub-paragraph (6) above and, except where the decision is to rescind the original decision, the notice shall state the reasons for the decision.

• (8) Where the notice under sub-paragraph (7) above is of a decision to take the action specified in sub-paragraph (6)(b) above, the notice under sub-paragraph (7) shall have the effect of imposing the restriction, or making the variation specified in the notice, with effect from the date on which it is given.

Appeals

4

Section 27 of the Banking Act (rights of appeal) shall have effect as if the decisions mentioned in subsection (1) included a decision of the Bank to impose or vary a restriction.

5

• (1) Section 46 of the Building Societies Act (rights of appeal) shall have effect as if—

• (a) the decisions mentioned in subsection (1) included a decision of the Commission to impose or vary a restriction; and

• (b) in relation to such a decision, the reference in that subsection to a building society included a reference to a UK subsidiary.

• (2) Section 47 of that Act[^f00066] (determination of appeals) shall have effect as if it included provision enabling the tribunal to vary any decision of the Commission to impose or vary a restriction by directing the Commission to impose a different restriction or make a different variation.

Statement of principles

6

• (1) The Bank shall, as soon as practicable after the coming into force of these Regulations, publish in such manner as it thinks appropriate a statement of the principles in accordance with which it is acting or proposing to act in exercising its power to restrict the listed activities of a UK subsidiary.

• (2) Subsection (2) of section 16 of the Banking Act (statement of principles) shall apply for the purposes of sub-paragraph (1) above as it applies for the purpose of subsection (1) of that section.

SCHEDULE 8 — AMENDMENTS OF BANKING ACT

Preliminary

1

In this Schedule—

• “the Act” means the Banking Act[^f00067];

• “former European institution” means an institution which was formerly a European institution and continues to have a liability in respect of any deposit for which it had a liability when it was a European institution, and “former European authorised institution” shall be construed accordingly;

• “former UK subsidiary” means an institution which was formerly a UK subsidiary and continues to have a liability in respect of any deposit for which it had a liability when it was a UK subsidiary.

The Bank and the Board of Banking Supervision

2

Section 1 of the Act (functions and duties of the Bank) shall have effect as if—

• (a) the reference in subsection (3) to the Bank’s activities under the Act included a reference to its activities under these Regulations; and

• (b) the reference in subsection (4) to the Bank’s functions under the Act included a reference to its functions under these Regulations.

3

Section 2 of the Act (the Board of Banking Supervision) shall have effect as if references in subsection (3) to the Bank’s functions under the Act included references to its functions under these Regulations.

Meaning of “deposit”

4

Section 5 of the Act (meaning of “deposit”) shall have effect as if the reference in subsection (3) to an authorised institution included a reference to a European authorised institution which has lawfully established a branch in the United Kingdom for the purpose of accepting deposits.

Authorisations

5

• (1) Section 17 of the Act (information as to authorised institutions) shall have effect as if—

• (a) references in subsections (1) and (2) to the institutions which are authorised under the Act included references to European authorised institutions in respect of which the Bank has received a notice given in accordance with paragraph 3 of Schedule 2 to these Regulations; and

• (b) the reference in subsection (3) to the fact that an institution has ceased to be so authorised included a reference to the fact that an institution has ceased to be a European authorised institution.

• (2) That section shall also have effect as if it included provision that any such list as is mentioned in subsection (1) shall indicate the European authorised institutions as respects which the Bank is satisfied that they are entitled to accept deposits in the United Kingdom in the course of carrying on a deposit-taking business (within the meaning of the Act).

6

• (1) Section 18 of the Act (false statements as to authorised status) shall have effect as if subsection (1) also precluded any person other than a European institution from—

• (a) describing himself as a European institution; or

• (b) so holding himself out as to indicate or be reasonably understood to indicate that he is a European institution.

• (2) That section shall also have effect as if any reference in subsection (2) to an authorised institution included a reference to a European institution.

Invitations to make deposits

7

Section 33 of the Act (advertisement directions) shall have effect as if the reference in subsection (1) to an authorised institution included a reference to a European authorised institution.

Information

8

• (1) Section 39 of the Act[^f00068] (power to obtain information and require production of documents) shall have effect as if—

• (a) references to an authorised institution included references to a European institution, a quasi-European authorised institution or a UK subsidiary;

• (b) references to the Bank’s functions under the Act included references to its functions under these Regulations;

• (c) references to an officer, servant or agent of the Bank included references to an officer, servant or agent of the relevant supervisory authority in a European institution’s or quasi-European authorised institution’s home State;

• (d) references to such information or documents as the Bank may reasonably require for the performance of its functions under the Act included references to such information or documents as such an authority may reasonably require for the performance of any of its functions corresponding to those of the Bank under the Act or these Regulations or those of a connected UK authority; and

• (e) the reference to a former authorised institution included a reference to a former European institution.

• (2) That section shall also have effect as if it included provision empowering the Bank to exercise the powers conferred by that section for the purpose of assisting a supervisory authority in a European institution’s home State in the performance of any functions corresponding to those of the Bank under the Act or these Regulations or to those of a connected UK authority.

• (3) A person who is guilty of an offence under subsection (11) of that section by virtue of this paragraph shall not be liable to imprisonment for a term exceeding three months.

9

• (1) Section 40 of the Act (right of entry to obtain information and documents) shall have effect as if the reference in subsection (2) to any officer, servant or agent of the Bank included a reference to any officer, servant or agent of a supervisory authority in a European institution’s or quasi-European authorised institution’s home State.

• (2) A person who is guilty of an offence under subsection (3) of that section by virtue of this paragraph shall not be liable to imprisonment for a term exceeding three months.

Investigations

10

• (1) Section 41 of the Act[^f00069] (investigations on behalf of the Bank) shall have effect as if—

• (a) references to an authorised institution included references to a European institution or a quasi-European authorised institution; and

• (b) the reference to a former authorised institution included a reference to a former European institution.

• (2) That section shall also have effect as if it included provision empowering the Bank to exercise the powers conferred by that section for the purpose of assisting a supervisory authority in a European institution’s home State in the performance of any functions corresponding to those of the Bank under the Act or these Regulations or those of a connected UK authority.

• (3) A person who is guilty of an offence under subsection (9) of that section by virtue of this paragraph shall not be liable to imprisonment for a term exceeding three months.

Accounts and auditors

11

Section 45 of the Act (audited accounts to be open for inspection) shall have effect as if the reference in subsection (1) to an authorised institution included a reference to a European authorised institution.

12

Section 47 of the Act (communications by auditor etc. with the Bank) shall have effect as if—

• (a) references to authorised institutions included references to European institutions and UK subsidiaries;

• (b) the reference in subsection (1) to any function of the Bank under the Act included a reference to any function of the Bank under these Regulations; and

• (c) the reference in subsection (7) to a former authorised institution included a reference to a former European institution.

The deposit protection scheme

13

Section 50 of the Act (the Deposit Protection Board) shall have effect as if the reference in subsection (2) to authorised institutions included a reference to European authorised institutions which accept deposits in the United Kingdom.

14

• (1) Subject to sub-paragraph (2) below, section 52 of the Act (contributory institutions and general provisions as to contributions) shall have effect as if the reference in subsection (1) to authorised institutions included a reference to European authorised institutions which accept deposits in the United Kingdom.

• (2) The Deposit Protection Board may, with the consent of the Treasury, waive (in whole or in part) all or any contributions from a European authorised institution which accepts deposits in the United Kingdom if it is satisfied that it is appropriate to do so, having regard to the extent to which sterling deposits with the United Kingdom offices of the institution are protected—

• (a) under the law of the institution’s home State; or

• (b) by virtue of any arrangements which are in force there.

15

Section 58 of the Act (compensation payments to depositors) shall have effect as if in subsection (1)—

• (a) the reference to an authorised institution included a reference to a European authorised institution which accepts deposits in the United Kingdom; and

• (b) the reference to a former authorised institution included a reference to an institution which—

• (i) was formerly a European authorised institution which accepted deposits in the United Kingdom; and

• (ii) continues to have a liability in respect of any deposit for which it had a liability when it was such an institution.

16

Section 60 of the Act (protected deposits) shall have effect as if in subsection (6)—

• (a) the reference to a former authorised institution included a reference to an institution which—

• (i) was formerly a European authorised institution which accepted deposits in the United Kingdom; and

• (ii) continues to have a liability in respect of any deposit for which it had a liability when it was such an institution; and

• (b) the references to ceasing to be an authorised institution included references to ceasing to be a European authorised institution which accepted deposits in the United Kingdom.

Banking names and descriptions

17

Section 68 of the Act (exemptions from section 67) shall have effect as if the reference in subsection (3) to an authorised institution included a reference to a European authorised institution.

18

Section 69 of the Act (restriction on use of banking descriptions) shall have effect as if the reference in subsection (1) to an authorised institution included a reference to a European authorised institution.

19

• (1) Section 70 of the Act (power to object to institution’s names) shall have effect as if—

• (a) subsection (1) included provision enabling the Bank to give notice in writing to a European institution or quasi-European institution whose recognition notice stated an intention to establish a branch in the United Kingdom that it objects to the name stated in that notice as one of the requisite details of the branch;

• (b) the reference in subsection (1) to an institution applying for an authorisation under the Act included a reference to a European institution or quasi-European institution whose recognition notice stated no such intention;

• (c) the reference in subsection (2) to an authorised institution included a reference to a European institution;

• (d) the reference in subsection (3) to an authorised institution to which section 67 of the Act applies included a reference to a European authorised institution; and

• (e) the reference in paragraph (b) of that subsection to the said section 67 included a reference to section 68(3) of the Act.

• (2) In this paragraph “recognition notice”, in relation to a European institution or quasiEuropean institution, means a notice given by it in accordance with paragraph 2 of Schedule 2 to these Regulations.

20

Section 71 of the Act (effect of notices under section 70 and appeals) shall have effect as if the reference in subsection (1) to an authorised institution included a reference to a European institution.

Overseas institutions

21

Section 74 of the Act (meaning of “overseas institution” and “representative office”) shall have effect as if the reference in subsection (1) to an authorised institution included a reference to a European institution.

Disclosure of information

22

Section 82 of the Act (restrictions on disclosure) shall have effect as if the reference to the Bank’s functions under the Act included a reference to its functions under these Regulations.

23

Section 83 of the Act[^f00070] (disclosure for facilitating discharge of functions by Bank) shall have effect as if—

• (a) the reference to the Bank’s functions under the Act included a reference to its functions under these Regulations;

• (b) references to an authorised institution included references to a European institution or UK subsidiary; and

• (c) the reference to a former authorised institution included a reference to a former European institution or former UK subsidiary.

24

Section 84 of the Act (disclosure for facilitating discharge of functions by other supervisory authorities) shall have effect as if the reference in subsection (5A)(a)[^f00071] to an authorised institution or former authorised institution included a reference to a European institution or former European institution.

25

Section 86 of the Act[^f00072] (information supplied to Bank by overseas authority etc.) shall have effect as if the references in subsections (1) to (3) to the Bank’s functions under the Act included a reference to its functions under these Regulations.

26

Section 87 of the Act[^f00073] (disclosure of information obtained under other Acts) shall have effect as if the reference in subsection (3A) to the Bank’s functions under the Act included a reference to its functions under these Regulations.

Miscellaneous and supplementary

27

Section 93 of the Act (injunctions) shall have effect as if the reference in subsection (1) to a direction under section 19 of the Act included a reference to a restriction under regulation 10 or 23 of these Regulations.

28

Section 94 of the Act (false and misleading information) of that Act shall have effect as if—

• (a) the reference in subsection (1) to a requirement imposed by or under the Act included a reference to a requirement imposed by or under these Regulations;

• (b) references in subsections (1) and (3) to the Bank’s functions under the Act included references to its functions under these Regulations;

• (c) the reference in subsection (3) to an authorised institution included a reference to a European institution or UK subsidiary; and

• (d) the reference in that subsection to a former authorised institution included a reference to a former European institution or former UK subsidiary.

29

Section 95 of the Act (restriction of Rehabilitation of Offenders Act 1974) shall have effect as if in subsection (4)—

• (a) the reference to imposing a restriction included a reference to imposing a restriction under regulation 10 or 23 of these Regulations;

• (b) the reference to an authorised institution included a reference to a European institution or UK subsidiary; and

• (c) the reference to a former authorised institution included a reference to a former European institution or former UK subsidiary.

30

Section 99 of the Act (service of notices on Bank) shall have effect as if the reference in subsection (1) to a notice required by that Act to be given to or served on the Bank included a reference to a notice required by these Regulations to be so given or served.

31

Section 100 of the Act (service of other notices) shall have effect in relation to a European institution which has not established a branch in the United Kingdom as if in subsection (4) the words from “except that” to the end were omitted.

32

• (1) Section 101 of the Act (evidence) shall have effect as if in subsection (1)—

• (a) the reference to an authorised institution included a reference to a European institution or UK subsidiary;

• (b) the reference to the date on which a particular institution became or ceased to be authorised included a reference to the date on which a particular institution became or ceased to be a European institution or UK subsidiary; and

• (c) the reference to whether or not a particular institution’s authorisation is or was restricted included a reference to whether or not a restriction under regulation 10 or 23 of these Regulations has or had been imposed on a particular European institution or UK subsidiary.

• (2) In giving a certificate under subsection (1) of that section in relation to a European institution, the Bank may rely on any information supplied to it by the relevant supervisory authority in the institution’s home State.

33

Section 106 of the Act (interpretation) shall have effect as if the reference in the definition of “former authorised institution” in subsection (1) to an institution which was formerly an authorised institution did not include a reference to a European authorised institution.

SCHEDULE 9 — AMENDMENTS OF FINANCIAL SERVICES ACT

Preliminary

1

In this Schedule—

• “the Act” means the Financial Services Act[^f00074];

• “investment agreement” has the same meaning as in the Act.

Restriction on carrying on business

2

Section 5 of the Act (agreements made by or through unauthorised persons) shall have effect as if the persons mentioned in subsection (1)(b)(i) included a European institution acting in the course of home-regulated investment business carried on by it in the United Kingdom.

Authorised persons

3

Section 10 of the Act (grant and refusal of recognition of self-regulating organisations) shall have effect as if the excepted cases mentioned in subsection (3) included the case where the member is a European institution and the business is home-regulated investment business.

4

Section 13 of the Act[^f00075] (alteration of rules of recognised self-regulating organisation for protection of investors) shall have effect as if the excepted cases mentioned in subsection (2) (both as amended and as originally enacted) included the case where the member is a European institution and the business is home-regulated investment business.

5

Section 28 of the Act (withdrawal and suspension of authorisation) shall have effect in relation to an authorisation granted to a European institution as if the reference in subsection (1)(a) to the investment business which the holder of the authorisation is carrying on or proposing to carry on did not include a reference to any home-regulated investment business.

6

Section 32 of the Act (notice of commencement of business) shall have effect in relation to a notice given under subsection (1) by a European institution or quasi-European authorised institution as if the reference in subsection (2)(a) to the investment business which is proposed to be carried on did not include a reference to any home-regulated investment business.

Exempted persons

7

Section 44 of the Act (appointed representatives) shall have effect as if any reference to an authorised person included a reference to a European institution carrying on home-regulated investment business in the United Kingdom.

8

Section 45 of the Act (miscellaneous exemptions) shall have effect as if the reference in subsection (2) to a partnership which is an authorised person included a reference to a partnership which is or was a European institution carrying on home-regulated investment business in the United Kingdom.

Conduct of business

9

• (1) Section 47A of the Act[^f00076] (statements of principle) shall have effect as if—

• (a) the reference in subsection (1) to the conduct expected of persons authorised to carry on investment business included a reference to the conduct expected of European institutions carrying on home-regulated investment business in the United Kingdom; and

• (b) the reference in subsection (4) to the withdrawal or suspension of authorisation under section 28 of the Act included a reference to the imposition of a prohibition under regulation 15 of these Regulations.

• (2) That section shall also have effect as if it included provision that a statement of principle issued under that section shall not include, as respects any European institution—

• (a) provision as to the fitness of the institution to carry on any home-regulated investment business; or

• (b) provision as to any other matter for which, under the Second Council Directive, responsibility is reserved to the relevant supervisory authority in the institution’s home State.

10

• (1) Section 48 of the Act[^f00077] (conduct of business rules) shall have effect as if—

• (a) the reference in subsection (1) to the conduct of investment business by authorised persons included a reference to the conduct of home-regulated investment business carried on in the United Kingdom by European institutions; and

• (b) the reference in subsection (2) to an authorised person included a reference to a European institution carrying on home-regulated investment business in the United Kingdom.

• (2) That section shall have effect as if it included provision that rules under that section shall not include, as respects any European institution—

• (a) provision prohibiting the institution from carrying on, or holding itself out as carrying on, any home-regulated investment business; or

• (b) provision as to any matter for which, under the Second Council Directive, responsibility is reserved to the relevant supervisory authority in the institution’s home State.

11

• (1) Section 49 of the Act[^f00078] (financial resources rules) shall have effect as if it included provision that rules under that section shall not include, as respects any European institution which is a member of a recognised self-regulating organisation, provision requiring the institution to have and maintain financial resources in respect of any home-regulated investment business carried on by it.

• (2) Subsection (2) of that section shall also have effect in relation to an authorised person who is a European institution as if the reference in paragraph (b) to any business (whether or not investment business) carried on by the person concerned did not include a reference to any homeregulated investment business.

12

• (1) Section 51 of the Act (cancellation rules) shall have effect as if the reference in subsection (1) to a person who has entered or offered to enter into an investment agreement with an authorised person included a reference to a person who has entered or offered to enter into an investment agreement to which sub-paragraph (2) below applies.

• (2) This sub-paragraph applies to an investment agreement which is made by a European institution in the course of the carrying on by it of home-regulated investment business in the United Kingdom.

13

• (1) Section 52 of the Act[^f00079] (notification regulations) shall have effect as if any reference to authorised persons, or an authorised person, included a reference to European institutions, or a European institution, carrying on home-regulated investment business in the United Kingdom.

• (2) That section shall also have effect as if it included provision that regulations under that section shall not require European institutions to furnish information which is not reasonably required for purposes connected with the exercise of functions under the Act or these Regulations.

14

Section 53 of the Act (indemnity rules) shall have effect as if the reference in subsection (1) to civil liability incurred by an authorised person in connection with his investment business included a reference to civil liability incurred by a European institution in connection with home-regulated investment business carried on by it in the United Kingdom.

15

Section 54 of the Act[^f00080] (compensation fund) shall have effect as if—

• (a) it included provision that rules establishing a scheme under that section may include in the scheme provision for compensating investors in cases where persons who are or have been European institutions are unable, or likely to be unable, to satisfy claims in respect of any civil liability incurred by them in connection with home-regulated investment business carried on by them in the United Kingdom; and

• (b) any reference in subsection (2) to authorised persons included a reference to European institutions carrying on home-regulated investment business in the United Kingdom.

16

Section 55 of the Act[^f00081] (clients' money) shall have effect as if any reference to authorised persons, or an authorised person, included a reference to European institutions, or a European institution, carrying on home-regulated investment business in the United Kingdom.

17

Section 57 of the Act (restrictions on advertising) shall have effect as if any reference to an authorised person included a reference to a European institution carrying on home-regulated investment business in the United Kingdom.

18

Section 59 of the Act (employment of prohibited persons) shall have effect as if any reference to authorised persons, or an authorised person, included a reference to European institutions, or a European institution, carrying on home-regulated investment business in the United Kingdom.

19

Section 60 of the Act (public statement as to person’s misconduct) shall have effect as if—

• (a) the reference in subsection (1) to a person who is or was an authorised person by virtue of section 25 of that Act included a reference to a person who is or was a European institution carrying on home-regulated investment business in the United Kingdom;

• (b) the reference in subsection (3) to the authorised person included a reference to the European institution; and

• (c) it included provision that where any notice under that section is given to a person who is or was a European institution, a copy of the notice shall be served on the Bank.

20

Section 64 of the Act (scope of powers of intervention) shall have effect in relation to an authorised person who is a European institution as if the reference in subsection (1) to investment business of a particular kind did not include a reference to any home-regulated investment business which the authorised person is carrying on or proposing to carry on.

21

Section 65 of the Act (restriction of business) shall have effect as if the reference in subsection (1) to an authorised person included a reference to a European institution carrying on home-regulated investment business in the United Kingdom.

22

Section 66 of the Act (restriction on dealing with assets) shall have effect as if—

• (a) the reference in subsection (1) to an authorised person included a reference to a European institution carrying on home-regulated investment business in the United Kingdom; and

• (b) it included provision that a prohibition may not be imposed under that section in relation to a European institution unless the relevant supervisory authority in the institution’s home State has requested that measures be taken for the purpose of ensuring that the institution has sufficient assets available to cover risks arising from open positions on financial markets in the United Kingdom.

23

Section 67 of the Act (vesting of assets in trustee) shall have effect as if—

• (a) any reference to an authorised person included a reference to a European institution carrying on home-regulated investment business in the United Kingdom; and

• (b) it included provision that a requirement may not be imposed under that section in relation to a European institution unless the relevant supervisory authority in the institution’s home State has requested that measures be taken for the purpose of ensuring that the institution has sufficient assets available to cover risks arising from open positions on financial markets in the United Kingdom.

Collective investment schemes

24

Section 75 of the Act[^f00082] (collective investment schemes: interpretation) shall have effect as if the reference in subsection (6) to an authorised person included a reference to a European institution carrying on home-regulated investment business in the United Kingdom.

25

Section 76 of the Act (restrictions on promotion) shall have effect as if any reference to an authorised person included a reference to a European institution carrying on home-regulated investment business in the United Kingdom.

26

Section 93 of the Act (applications to the court) shall have effect as if the reference in subsection (1) to an authorised person included a reference to a European institution.

Information

27

Section 102 of the Act (register of authorised persons etc.) shall have effect as if it included provision that—

• (a) the register kept under that section shall contain an entry in respect of each institution which appears to the Board to be a European institution carrying on home-regulated investment business in the United Kingdom;

• (b) the entry in respect of each such institution shall consist of—

• (i) information as to the services which the institution holds itself out as able to provide; and

• (ii) such other information as the Board may determine;

• (c) where it appears to the Board that any person in respect of whom there is an entry in the register by virtue of paragraph (a) above has ceased to be a European institution carrying on home-regulated investment business in the United Kingdom, the Board shall make a note to that effect in the entry together with the reason why the person in question is no longer such an institution; and

• (d) an entry in respect of which a note is made by virtue of paragraph (c) above may be removed from the register at the end of such period as the Board thinks fit.

28

Section 104 of the Act (power to call for information) shall have effect as if—

• (a) the reference in subsection (1) to a person who is authorised to carry on investment business by virtue of any of the provisions there mentioned included a reference to a European institution carrying on home-regulated investment business in the United Kingdom; and

• (b) references to functions under the Act included references to functions under these Regulations.

29

Section 106 of the Act[^f00083] (exercise of investigation powers by officer etc.) shall have effect as if it included provision that—

• (a) where the Secretary of State or the Board authorises a person other than one of his or its officers to exercise any powers under section 105 of the Act (investigation powers) in relation to any home-regulated investment business of a European institution, the Secretary of State or, as the case may be, the Board may determine that subsection (3) of section 106 shall not apply; and

• (b) where such a determination is made, the person authorised to exercise the powers shall make a report to the relevant supervisory authority in the institution’s home State, in such manner as that authority may require, on the exercise of those powers and the results of exercising them.

Auditors

30

Subsection (3) of section 107 of the Act[^f00084] (appointment of auditors) shall have effect in relation to an auditor appointed by an authorised person which is a European institution as if the reference to the accounts of the authorised person did not include a reference to any accounts relating to a home-regulated activity.

31

Section 109 of the Act (communication by auditor with supervisory authorities) shall have effect as if in subsection (1)—

• (a) the reference to an authorised person included a reference to a European institution; and

• (b) the reference to functions under the Act included a reference to functions under these Regulations.

32

Subsection (3) of section 110 of the Act (overseas business) shall have effect in relation to a European institution as if any reference to investment business did not include a reference to home-regulated investment business; and the reference in paragraph (b) of that subsection to the powers and duties of an auditor shall be construed accordingly.

Fees

33

Section 113 of the Act (periodical fees) shall have effect as if it included provision that a European institution carrying on home-regulated investment business in the United Kingdom shall pay such periodical fees to the Board as may be prescribed by regulations made under that section.

Prevention of restrictive practices

34

Section 119 of the Act[^f00085] (recognised self-regulating organisations, investment exchanges and clearing houses) shall have effect as if any reference in subsections (1) and (2) to the protection of investors included a reference to compliance with the Second Council Directive.

35

Section 121 of the Act[^f00086] (designated agencies) shall have effect as if any reference in subsections (1) and (2) to the protection of investors included a reference to compliance with the Second Council Directive.

Relations with other regulatory authorities

36

• (1) Section 128C of the Act[^f00087] (enforcement in support of overseas regulatory authority) shall have effect as if it—

• (a) required the powers mentioned in subsection (1) to be exercised at the request of the relevant supervisory authority in another member State if their exercise is necessary for the purposes of complying with the Second Council Directive; and

• (b) included provision that, in relation to the exercise of those powers in such a case, subsections (4) and (5) shall not apply and the Board shall notify the action taken by it to that authority.

• (2) That section shall also have effect as if the reference in subsection (2) to the power to withdraw or suspend authorisation under section 28 of the Act included a reference to the power to impose a prohibition under regulation 15 of these Regulations.

Official listing of securities

37

Section 154 of the Act (advertisements etc. in connection with listing applications) shall have effect as if—

• (a) it included provision that, where a European institution carrying on home-regulated investment business in the United Kingdom contravenes that section, it shall be treated as having contravened rules made under Chapter V of Part I of the Act, or in the case of an institution which is a member of a recognised self-regulating organisation, the rules of that organisation; and

• (b) the reference in subsection (3) to a person other than an authorised person did not include a reference to such an institution.

Offers of unlisted securities

38

Section 171 of the Act[^f00088] (contraventions in relation to offers of unlisted securities) shall have effect as if—

• (a) it included provision that, where a European institution carrying on home-regulated investment business in the United Kingdom does any of the things specified in paragraphs (a) to (c) of subsection (1), it shall be treated as having contravened rules made under Chapter V of Part I of the Act, or in the case of an institution which is a member of a recognised self-regulating organisation, the rules of that organisation; and

• (b) the reference in subsection (3) to a person other than an authorised person did not include a reference to such an institution.

Insider dealing

39

• (1) Section 178 of the Act (penalty for failure to co-operate with section 177 investigations) shall have effect as if—

• (a) the reference in subsection (3) to an authorised person included a reference to a European institution; and

• (b) the notices which may be served on a European institution under that subsection included a notice—

• (i) directing that regulation 5(1)(b) of these Regulations shall not apply in relation to the institution after the expiry of a specified period after the service of the notice; or

• (ii) directing that during a specified period that provision shall apply in relation to the institution only as respects the performance of contracts entered into before the notice comes into force;

• (c) the reference in subsection (4) to the period mentioned in paragraphs (a) and (c) of subsection (3) included a reference to the period mentioned in paragraph (b)(i) and (ii) above;

• (d) any reference in subsection (5) to an unauthorised person did not include a reference to a European institution carrying on home-regulated investment business in the United Kingdom; and

• (e) the reference in that subsection to any authorised person included a reference to such a European institution.

• (2) That section shall also have effect as if it included provision that if, it appears to the Secretary of State—

• (a) that a person on whom he serves a notice under subsection (3) is a European institution carrying on home-regulated investment business in the United Kingdom; or

• (b) that a person on whom he serves a revocation notice under subsection (7) was such an institution at the time when the notice which is being revoked was served,

he shall serve a copy of the notice on the Board or, in the case of an institution which is a member of a recognised self-regulating organisation, that organisation.

Restrictions on disclosure of information

40

Section 179 of the Act[^f00089] (restrictions on disclosure of information) shall have effect as if the reference in subsection (2) to functions under the Act included a reference to functions under these Regulations.

41

Section 180 of the Act[^f00090] (exceptions from restriction on disclosure of information) shall have effect as if—

• (a) the reference in paragraph (g) of subsection (1) to functions under the Banking Act included a reference to functions under these Regulations;

• (b) the reference in that subsection to functions under the Building Societies Act included a reference to functions under these Regulations; and

• (c) the reference in that subsection to an authorised person included a reference to a European institution carrying on home-regulated investment business in the United Kingdom.

Miscellaneous and supplementary

42

Section 191 of the Act (occupational pension schemes) shall have effect as if any reference to an authorised person included a reference to a European institution carrying on home-regulated investment business in the United Kingdom.

43

Section 206 of the Act[^f00091] shall have effect as if the reference in subsection (1) to authorised persons included a reference to European institutions.

Activities constituting investment business

44

• (1) Paragraph 17 of Schedule 1 to the Act[^f00092] (investments and investment business) shall have effect as if any reference to authorised persons, or an authorised person, included a reference to European institutions, or a European institution, carrying on home-regulated investment business in the United Kingdom.

• (2) Paragraph 18 of that Schedule shall have effect as if the reference in sub-paragraph (2) to an authorised person included a reference to a European institution carrying on home-regulated investment business in the United Kingdom.

• (3) Paragraph 26 of that Schedule shall have effect as if any reference to an authorised person, or authorised persons, included a reference to a European institution, or European institutions, carrying on home-regulated investment business in the United Kingdom.

Requirements for recognition of self-regulating organisation

45

• (1) Paragraph 2 of Schedule 2 to the Act (requirements for recognition of self-regulating organisation) shall have effect as if it included provision that the rules and practices of the organisation must be such as to secure that no European institution, other than one on which an absolute prohibition has been imposed under regulation 15 of these Regulations, is refused admission to the organisation, or expelled from it, for reasons relating to the institution’s fitness to carry on any home-regulated investment business.

• (2) Paragraph 3 of that Schedule[^f00093] shall have effect as if it included provision that the rules of the organisation must not include, as respects any European institution—

• (a) provision requiring the institution to have and maintain financial resources in respect of any home-regulated investment business carried on by it; or

• (b) provision as to any other matter for which, under the Second Council Directive, responsibility is reserved to a supervisory authority in the institution’s home State.

• (3) That paragraph shall also have effect as if—

• (a) the reference in sub-paragraph (3) to Chapter VI of Part I of the Act included a reference to regulation 16 of these Regulations; and

• (b) it included provision that the rules of the organisation must be such as to secure that, where a power falling within that sub-paragraph is exercisable by virtue of a European institution’s contravention of a requirement to furnish information for statistical purposes, the exercise of the power shall be subject to such restrictions as are necessary for the purposes of complying with article 21 of the Second Council Directive.

• (4) Paragraph 7 of that Schedule shall have effect as if it included provision that, for the purposes of complying with the Second Council Directive, the organisation must be able and willing to co-operate, by the sharing of information and otherwise, with supervisory authorities in other member States.

Qualifications of designated agency

46

• (1) Paragraph 4 of Schedule 7 to the Act[^f00094] (qualifications of designated agency) shall have effect as if any reference to authorised persons included a reference to European institutions carrying on home-regulated investment business in the United Kingdom.

• (2) Paragraph 5 of that Schedule shall have effect as if it included provision that, for the purposes of complying with the Second Council Directive, the agency must be able and willing to co-operate, by the sharing of information and otherwise, with supervisory authorities in other member States.

Principles applicable to designated agency’s legislative provisions

47

Schedule 8 to the Act[^f00095] (principles applicable to designated agency’s legislative provisions) shall have effect as if any reference to an authorised person included a reference to a European institution carrying on home-regulated investment business in the United Kingdom.

SCHEDULE 10 — MINOR AND CONSEQUENTIAL AMENDMENTS

PART I — PRIMARY LEGISLATION

Judicial Factors Act 1849 (c. 51)

1

Section 5(1) of the Judicial Factors Act 1849[^f00096] (factor to lodge monies in one bank) shall have effect as if the reference to an institution authorised under the Banking Act included a reference to a European deposit-taker.

Bankers' Books Evidence Act 1879 (c. 11)

2

Section 9(1) of the Bankers' Books Evidence Act 1879[^f00097] (meaning of “bank” etc.) shall have effect as if the reference to an institution authorised under the Banking Act included a reference to a European deposit-taker.

Agricultural Credits Act 1928 (c. 43)

3

Section 5(7) of the Agricultural Credits Act 1928[^f00098] (meaning of “bank” etc.) shall have effect as if the reference to an institution authorised under the Banking Act included a reference to a European deposit-taker.

Agricultural Credits (Scotland) Act 1929 (c. 13)

4

Section 9(2) of the Agricultural Credits (Scotland) Act 1929[^f00099] (meaning of “bank” etc.) shall have effect as if the reference to an institution authorised under the Banking Act included a reference to a European deposit-taker.

Superannuation Act 1972 (c. 11)

5

Sections 1, 9 and 10 of the Superannuation Act 1972[^f00100] (superannuation of civil servants etc.) shall each have effect as if the reference in subsection (2A) to any authorised provider included a reference to any European institution acting in the course of home-regulated investment business carried on by it in the United Kingdom.

Superannuation (Northern Ireland) Order 1972 (S.I. 1972/1073 (N.I. 10))

6

Articles 3, 11 and 12 of the Superannuation (Northern Ireland) Order 1972 (superannuation of civil servants etc.) shall each have effect as if the reference in paragraph (1A) or, as the case may be, paragraph (2A) to any authorised provider included a reference to any European institution acting in the course of home-regulated investment business carried on by it in the United Kingdom.

Consumer Credit Act 1974 (c. 39)

7