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

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

• A person administering a scheme for the compensation of investors under section 54 of the Financial Services Act 1986.

• (3) In the entry relating to the Secretary of State, in the second column—

• (a) the words “Insurance Companies Act 1982,” and “the Financial Services Act 1986,” are repealed; and

• (b) for “or Part III of the Pension Schemes Act 1993” substitute “, Part 3 of the Pension Schemes Act 1993 or the Financial Services and Markets Act 2000”.

• (4) In the entry relating to the Financial Services Authority[^f00121], for the second column, substitute—

	Functions under the legislation relating to friendly societies, under the Building Societies Act 1986 or under the Financial Services and Markets Act 2000.

• (5) In the entry relating to an inspector appointed by the Secretary of State, the words “or section 94 or 177 of the Financial Services Act 1986” are repealed.

• (6) For the entry beginning “A person authorised to exercise powers” substitute—

A person authorised to exercise powers under section 447 of the Companies Act 1985, Article 440 of the Companies (Northern Ireland) Order 1986 or section 84 of the Companies Act 1989.	Functions under those sections or that Article.
A person appointed under— section 167 of the Financial Services and Markets Act 2000, subsection (3) or (5) of section 168 of that Act, or section 284 of that Act, to conduct an investigation.	Functions in relation to that investigation.
A body designated under section 326(1) of the Financial Services and Markets Act 2000.	Functions in its capacity as a body designated under that section.
A recognised investment exchange or a recognised clearing house (as defined by section 285 of that Act).	Functions in its capacity as an exchange or clearing house recognised under that Act.
A body corporate established in accordance with section 212(1) of that Act.	Functions under the Financial Services Compensation Scheme, established in accordance with section 213 of that Act.

Disclosure of information to Compensation Board

156

In Article 112(7) of the Pensions (Northern Ireland) Order 1995 (bodies which may disclose information to the Compensation Board)—

• (a) sub-paragraphs (f) and (i) are repealed;

• (b) after sub-paragraph (k), insert—

(ka) the Financial Services Authority; (kb) a body corporate established in accordance with section 212(1) of the Financial Services and Markets Act 2000 (Financial Services Compensation Scheme: the scheme manager);

Disclosure of information concerning public service pension schemes

157

In Article 164 of the Pensions (Northern Ireland) Order 1995 (information in connection with public service pensions), in paragraph (1)(a), after “section 62 of the Financial Services Act 1986” insert “or section 150 of the Financial Services and Markets Act 2000”.

Repeal of spent amendments by Pensions (Northern Ireland) Order 1995 to other legislation

158

Paragraph 7 of Schedule 3 to the Pensions (Northern Ireland) Order 1995 (which is spent as a result of the coming into force of the Financial Services and Markets Act 2000) is repealed.

Welfare Reform and Pensions Act 1999 (c. 30)

Pension credits: qualifying arrangements

159

• (1) Paragraph 6 of Schedule 5 to the Welfare Reform and Pensions Act 1999 (pension credits: qualifying arrangements) is amended as follows.

• (2) In sub-paragraph (2)—

• (a) for “insurance company” substitute “insurer”; and

• (b) in paragraph (a), the word “ordinary” is repealed.

• (3) For sub-paragraph (3) substitute—

(3) “Insurer” and “long-term insurance business” have the meaning given in section 180A of the Pension Schemes Act 1993.

Welfare Reform and Pensions (Northern Ireland) Order 1999 (S.I. 1999/3147 (N.I. 11))

Pension credits: qualifying arrangements

160

• (1) Paragraph 6 of Schedule 5 to the Welfare Reform and Pensions (Northern Ireland) Order 1999 (pension credits: qualifying arrangements) is amended as follows.

• (2) In sub-paragraph (2)—

• (a) for “insurance company” substitute “insurer”; and

• (b) in paragraph (a), the word “ordinary” is repealed.

• (3) For sub-paragraph (3) substitute—

(3) “Insurer” and “long-term insurance business” have the meaning given in section 175A of the Pension Schemes Act.

PART 4 — ENACTMENTS RELATING TO THE BANK OF ENGLAND

Bank of England Act 1998 (c. 11)

Power of Bank of England to require undertakings to provide information

161

• (1) Section 17 of the Bank of England Act 1998 (power of Bank to require undertakings to provide information for purposes of Bank’s functions under Part 2 of that Act) is amended as follows.

• (2) For subsection (3)[^f00122] substitute—

(3) An undertaking is one to which this section applies if— (a) it has a place of business in the United Kingdom; and (b) it falls within subsection (3A), (3B), (3C) or (3D). (3A) An undertaking falls within this subsection if it is a deposit-taker. (3B) An undertaking falls within this subsection if it is not a deposit-taker but it— (a) falls within the subsector “other monetary financial institution”, as defined by paragraph 2.48 of Annex A to Council Regulation (EC) No. 2223/96, (b) carries on a business of granting credits secured on land used for residential purposes, (c) has issued a debt security, or (d) has acted as an agent in connection with arranging or managing the issue of a debt security. (3C) An undertaking falls within this subsection if it is a financial holding company. (3D) An undertaking falls within this subsection if it is not a deposit-taker but continues to have a liability in respect of a deposit which was held by it in accordance with the Banking Act 1979 or the Banking Act 1987 or a permission under Part 4 of the Financial Services and Markets Act 2000.

• (3) In subsection (5), for “subsection (3)” substitute “subsections (3) to (3D)”.

• (4) For subsection (7) substitute—

(7) “Deposit taker” means— (a) a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits; or (b) an EEA firm of the kind mentioned in paragraph 5(b) or (c) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12(1) of that Schedule) to accept deposits or other repayable funds. (7A) “Debt security” means any instrument creating or acknowledging indebtedness (including a government or public security). (7B) Subsections (7) and (7A) must be read with— (a) section 22 of the Financial Services and Markets Act 2000; (b) any relevant order under that section; and (c) Schedule 2 to that Act. (7C) “Financial holding company” has the meaning given by Article 1(21) of Council Directive 2000/12/EC of the European Parliament and the Council. (7D) “Undertaking” has the meaning given by section 259 of the Companies Act 1985.

Repeal of spent provisions relating to transfer of functions from the Bank to the Authority etc

162

The following provisions of the Bank of England Act 1998 (which are spent or unnecessary as a result of the coming into force of the Financial Services and Markets Act 2000) are repealed—

• (a) sub-paragraphs (i) and (ii) of paragraph (a) and paragraphs (b) and (c) of section 21;

• (b) paragraphs 1 to 35, 39, 44, 45, 47, 52 to 59, 61, 65, 66 and 68 of Schedule 5 and section 23(1) so far as it relates to those paragraphs;

• (c) section 25;

• (d) section 26 and Schedule 6;

• (e) sections 27 to 29;

• (f) section 31;

• (g) section 32;

• (h) section 36;

• (i) in Schedule 8, paragraphs 1 to 5 and paragraph 7; and

• (j) in Schedule 9—

• (i) in Part 1, the entries relating to the Financial Services Act 1986 and to the Banking Act 1987; and

• (ii) Part 2.

Cash ratio deposits

163

• (1) For sub-paragraph (1) of paragraph 1 of Schedule 2 to the Bank of England Act 1998 (cash ratio deposits) substitute—

(1) Each deposit-taker is an eligible institution for the purposes of this Schedule. (1A) “Deposit-taker” has the meaning given in section 17, except that it does not include— (a) a credit union; (b) a friendly society; (c) a person who has permission to accept deposits under Part 4 of the Financial Services and Markets Act 2000 only in the course of effecting or carrying out contracts of insurance in accordance with that permission; or (d) an EEA firm of the kind mentioned in paragraph 5(c) of Schedule 3 to that Act. (1B) “Credit union” has the meaning given— (a) by the Credit Unions Act 1979; or (b) in Northern Ireland, by the Credit Unions (Northern Ireland) Order 1985. (1C) “Friendly society” means— (a) a society which is registered within the meaning of the Friendly Societies Act 1974; or (b) a society incorporated under the Friendly Societies Act 1992.

• (2) In sub-paragraph (2) of that paragraph, for “sub-paragraph (1)” substitute “sub-paragraphs (1) to (1C)”.

Restriction on disclosure of information

164

• (1) Schedule 7 to the Bank of England Act 1998 (restriction on disclosure of information) is amended as follows.

• (2) For paragraph 2(2) substitute—

(2) “Credit institution” means an undertaking whose business is to receive deposits or other repayable funds from the public and to grant credits for its own account.

• (3) For the Table in paragraph (3) substitute—

The Treasury.	Functions under the Financial Services and Markets Act 2000.
The Secretary of State.	Functions under the Financial Services and Markets Act 2000.
An inspector appointed under Part 14 of the Companies Act 1985 or Part 15 of the Companies (Northern Ireland) Order 1986.	Functions under that Part.
A person authorised to exercise powers under section 447 of the Companies Act 1985, Article 440 of the Companies (Northern Ireland) Order 1986 or section 84 of the Companies Act 1989.	Functions under that section or Article.
A person appointed under— section 167 of the Financial Services and Markets Act 2000, subsection (3) or (5) of section 168 of that Act, or section 284 of that Act, to conduct an investigation.	Functions in relation to that investigation.
The Financial Services Authority.	Functions under the legislation relating to friendly societies, the Building Societies Act 1986, Part 7 of the Companies Act 1989 or the Financial Services and Markets Act 2000.
The competent authority for the purposes of Part 6 of the Financial Services and Markets Act 2000.	Functions under that Part.
The Office for National Statistics.	Functions under the Statistics of Trade Act 1947.
The Occupational Pensions Regulatory Authority	Functions under the Pension Schemes Act 1993 or the Pensions Act 1995 or any enactment in force in Northern Ireland corresponding to either of them.

PART 5 — AMENDMENTS TO THE CONSUMER CREDIT ACT 1974 (c. 39)

Exempt agreements

165

• (1) Section 16 (exempt agreements) of the Consumer Credit Act 1974 is amended as follows.

• (2) In subsection (1)—

• (a) for paragraph (a) substitute—

(a) an insurer;

; and

• (b) for paragraph (h) substitute—

(h) a deposit-taker.

• (3) For subsection (3), substitute—

(3) Before he makes, varies or revokes an order under subsection (1), the Secretary of State must undertake the necessary consultation. (3A) The necessary consultation means consultation with the bodies mentioned in the following table in relation to the provision under which the order is to be made, varied or revoked:

Provision of subsection (1)	Consultee
Paragraph (a) or (b)	The Financial Services Authority
Paragraph (d)	The Charity Commissioners
Paragraph (e), (f) or (ff)	Any Minister of the Crown with responsibilities in relation to the body in question
Paragraph (g) or (h)	The Treasury and the Financial Services Authority

• (4) For subsection (8) substitute—

(8) In the application of this section to Scotland, subsection (3A) shall have effect as if the reference to the Charity Commissioners were a reference to the Lord Advocate.

• (5) In subsection (9)—

• (a) for “subsection (3)” substitute “subsection (3A)”;

• (b) the words “any reference to the Chief Registrar of Friendly Societies were a reference to the Registrar of Friendly Societies for Northern Ireland,” are repealed.

• (6) After that subsection insert—

(10) In this section— (a) “deposit-taker” means— (i) a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits, (ii) an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to accept deposits, (iii) any wholly owned subsidiary (within the meaning of the Companies Act 1985) of a person mentioned in sub-paragraph (i), or (iv) any undertaking which, in relation to a person mentioned in sub-paragraph (ii), is a subsidiary undertaking within the meaning of any rule of law in force in the EEA State in question for purposes connected with the implementation of the European Council Seventh Company Law Directive of 13 June 1983 on consolidated accounts (No. 83/349/EEC), and which has no members other than that person; (b) “insurer” means— (i) a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of insurance, or (ii) an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of insurance, but does not include a friendly society or an organisation of workers or of employers. (11) Subsection (10) must be read with— (a) section 22 of the Financial Services and Markets Act 2000; (b) any relevant order under that section; and (c) Schedule 2 to that Act.

Standard licences

166

In section 22 of the Consumer Credit Act 1974 (standard licences), after subsection (8) insert—

(9) Subsection (10) applies if a standard licence is issued to an EEA consumer credit firm. (10) The activities described in the licence are not to include an activity for which the firm has, or could obtain, permission under paragraph 15 of Schedule 3 to the Financial Services and Markets Act 2000.

Fitness of licensees

167

• (1) Section 25 of the Consumer Credit Act 1974 (licensees to be fit persons) is amended as follows.

• (2) After subsection (1), insert—

(1A) The Director shall refuse an application for the grant of standard licence made by a consumer credit EEA firm if all of the activities described in the licence are activities for which the firm has permission, or could obtain permission, under paragraph 15 of Schedule 3 to the Financial Services and Markets Act 2000. (1B) If an application for the grant of a standard licence— (a) is made by a person with permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits, and (b) relates to a listed activity, the Financial Services Authority may, if it considers that the Director ought to refuse the application, notify him of that fact. (1C) In subsection (1B) “listed activity” means an activity listed in Annex 1 to the banking consolidation directive (2000/12/EC) or in the Annex to the investment services directive (93/22/EEC) and references to deposits and to their acceptance must be read with— (a) section 22 of the Financial Services and Markets Act 2000; (b) any relevant order under that section; and (c) Schedule 2 to that Act.

• (3) In subsection (2), after paragraph (b) insert—

(bb) contravened any provision in force in an EEA State which corresponds to a provision of the kind mentioned in paragraph (b);

Conduct of Consumer Credit Act business

168

For section 26 of the Consumer Credit Act 1974 (regulations as to the conduct of business) substitute—

(26) (1) Regulations may be made as to— (a) the conduct by a licensee of his business; and (b) the conduct by a consumer credit EEA firm of its business in the United Kingdom. (2) The regulations may in particular specify— (a) the books or other records to be kept by any person to whom the regulations apply; (b) the information to be furnished by such a person to those persons with whom— (i) that person does business, or (ii) that person seeks to do business, and the way in which that information is to be furnished.

The register maintained under the Consumer Credit Act 1974

169

In section 35 of the Consumer Credit Act 1974 (the register), after subsection (1) insert—

(1A) The Director shall also cause to be kept in the register any copy of any notice or other document relating to a consumer credit EEA firm which is given to the Director by the Financial Services Authority for inclusion in the register.

Enforcement of agreements made by unlicensed trader

170

In section 40 of the Consumer Credit Act 1974 (enforcement of agreements made by unlicensed trader), after subsection (5) insert—

(6) This section does not apply to a regulated agreement, other than a non-commercial agreement, made by a consumer credit EEA firm unless at the time it was made that firm was precluded from entering into it as a result of— (a) a consumer credit prohibition imposed under section 203 of the Financial Services and Markets Act 2000; or (b) a restriction imposed on the firm under section 204 of that Act.

Appeals to the Secretary of State

171

In the table at the end of section 41 of the Consumer Credit Act 1974 (appeals to the Secretary of State) at the end insert—

Imposition of, or refusal to withdraw, consumer credit prohibition under section 203 of the Financial Services and Markets Act 2000.	The consumer credit EEA firm concerned.
Imposition of, or refusal to withdraw, a restriction under section 204 of the Financial Services and Markets Act 2000.	The consumer credit EEA firm concerned.

Conduct of business regulations

172

In section 54 of the Consumer Credit Act 1974 (conduct of business regulations), for “a licensee” substitute “a person to whom the regulations apply”.

Enforcement of agreements made by unlicensed trader

173

In section 148 of the Consumer Credit Act 1974 (enforcement of agreements made by unlicensed trader), after subsection (5) insert—

(6) This section does not apply to an agreement made by a consumer credit EEA firm unless at the time it was made that firm was precluded from entering into it as a result of— (a) a consumer credit prohibition imposed under section 203 of the Financial Services and Markets Act 2000; or (b) a restriction imposed on the firm under section 204 of that Act.

Regulated agreements made on introductions by unlicensed credit-brokers

174

In section 149 of the Consumer Credit Act 1974 (enforcement of regulated agreements made on introductions by unlicensed credit-brokers), after subsection (5) insert—

(6) For the purposes of this section, “unlicensed credit-broker” does not include a consumer credit EEA firm unless at the time the introduction was made that firm was precluded from making it as a result of— (a) a consumer credit prohibition imposed under section 203 of the Financial Services and Markets Act 2000; or (b) a restriction imposed on the firm under section 204 of that Act.

Restriction on disclosure of information

175

For subsection (3A) of section 174 of the Consumer Credit Act 1974 (disclosure of information), substitute—

(3A) Subsections (1) and (2) do not apply to any disclosure of information by the Director to the Financial Services Authority for the purpose of— (a) enabling or assisting the Authority to discharge any of its functions; (b) enabling or assisting the Director to discharge any of his functions under this Act or the Financial Services and Markets Act 2000.

Interpretation

176

In section 189(1) of the Consumer Credit Act 1974 (definitions)—

• (a) the definitions of “authorised institution” and “insurance company” are repealed;

• (b) in the definition of “deposit”, after “means” insert “(except in section 16(10) and 25(1B))”; and

• (c) in the definition of “friendly society” for “under the Friendly Societies Acts 1896 to 1971” substitute “or treated as registered under the Friendly Societies Act 1974 or the Friendly Societies Act 1992”.

Meaning of “consumer credit EEA firm”

177

After section 189 of the Consumer Credit Act 1974 insert—

(189A) In this Act “consumer credit EEA firm” means an EEA firm falling within sub-paragraph (a), (b) or (c) of paragraph 5 of Schedule 3 to the Financial Services and Markets Act 2000 carrying on, or seeking to carry on, consumer credit business, consumer hire business or ancillary credit business for which a licence would be required under this Act but for paragraph 15(3) of Schedule 3 to the Financial Services and Markets Act 2000.

PART 6 — ENACTMENTS RELATING TO MUTUAL SOCIETIES

CHAPTER I — primary legislation

Superannuation and Other Trust Funds (Validation) Act 1927 (c. 41)

Amendments consequential on dissolution of Registrar of Friendly Societies

178

• (1) The Superannuation and other Trust Funds (Validation) Act 1927 is amended as follows.

• (2) In the following sections for the word “registrar” (wherever it appears), substitute “Authority”; for the word “he” (wherever it appears) substitute “it” and for the word “his” (wherever it appears) substitute “its”—

• (a) section 3(1), 3(2), 3(3), 3(4) and 3(5);

• (b) section 4(1) and 4(2);

• (c) section 5(2);

• (d) the side heading to section 6 and section 6(1).

• (3) Section 3(6) is repealed.

• (4) In section 6(2) (supplementary provisions as to powers of registrar) for the words “Chief Registrar, or in Scotland the assistant registrar for Scotland” substitute “Authority” and for the word “he” substitute “it”.

• (5) In section 7 (penalties for default) for the word “registrar” (wherever it appears) substitute “Authority”.

• (6) In section 8 (interpretation)—

• (a) for the definition of “actuary”[^f00123] substitute—

• “Actuary” means a person who satisfies the requirements which are specified by the Authority for the purposes of section 340(6) of the Financial Services and Markets Act 2000 in so far as that subsection relates to actuaries;

• (b) the definition of “Chief Registrar” and “Registrar” is repealed; and

• (c) after the definition of “auditor” insert—

• “Authority” means the Financial Services Authority;

• (7) Section 10 (reports to Parliament) is repealed.

Industrial and Provident Societies Act 1965 (c. 12)

Cancellation of registration of society

179

• (1) In section 16(1) of the Industrial and Provident Societies Act 1965[^f00124] (cancellation of registration of society), the words “by writing under his hand or seal or, in Scotland” are repealed.

• (2) In the Financial Services and Markets Act 2000 (Mutual Societies) Order 2001[^f00125], paragraph 218(a) of Schedule 3 is revoked.

Advertising dissolution of society

180

In section 58(6) of the Industrial and Provident Societies Act 1965[^f00126] (instrument of dissolution) the words “at the expense of the society” are repealed.

Power to make regulations

181

• (1) Section 71 of the Industrial and Provident Societies Act 1965 is repealed.

• (2) In sections 2(3) and 10(3), for the words from “in the prescribed form” to the end substitute “bearing the Authority’s seal”.

Depositing of documents

182

For section 72(1) of the Industrial and Provident Societies Act 1965[^f00127] (form, deposit and evidence of documents), substitute—

Every return and other document required for the purposes of this Act shall be made in such form, shall contain such particulars and shall be deposited in such manner as the Authority may direct and the Authority shall register and record those documents with such observations thereon (if any) as it considers appropriate.

Industrial and Provident Societies Act 1967 (c. 48)

References to regulations made by Treasury

183

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Friendly and Industrial and Provident Societies Act 1968 (c. 55)

Power of societies to disapply obligation to appoint auditors

184

• (1) Section 4A of the Friendly and Industrial and Provident Societies Act 1968[^f00128] (power of societies to disapply section 4) is amended as follows.

• (2) In subsection (3)(e) the words “within the meaning of the Banking Act 1987” are repealed.

• (3) After subsection (8), insert—

(9) In subsection (3), the reference to a deposit must be read with— (a) section 22 of the Financial Services and Markets Act 2000; (b) any relevant order under that section; (c) Schedule 2 to that Act.

Interpretation

185

In section 21 of the Friendly and Industrial and Provident Societies Act 1968 (interpretation), in the definition of “annual return”[^f00129] for the words “appropriate registrar” substitute “Authority”.

Friendly Societies Act 1974 (c. 46)

Power of societies to disapply obligation to appoint auditors

186

• (1) Section 32A of the Friendly Societies Act 1974[^f00130] (power of societies to disapply section 31) is amended as follows.

• (2) In subsection (3) the words “within the meaning of the Banking Act 1987” are repealed.

• (3) After that subsection, insert—

(3A) In subsection (3) the reference to a deposit must be read with— (a) section 22 of the Financial Services and Markets Act 2000; (b) any relevant order under that section; (c) Schedule 2 to that Act.

References to Chief Registrar etc.

187

• (1) In sections 82(5)[^f00131], 84(3) and 84A(6)[^f00132] of the Friendly Societies Act 1974, for the words from “Chief Registrar or,” to the end substitute “Authority”.

• (2) In Schedule 3 to the Financial Services and Markets Act 2000 (Mutual Societies) Order 2001, paragraphs 27, 29(b) and 30 are revoked.

Regulations with respect to registration and procedure

188

Section 109(1)(a) of the Friendly Societies Act 1974 (Regulations) is repealed.

Advertising dissolution of society

189

In section 94(7)[^f00133] of the Friendly Societies Act 1974 (instrument of dissolution), the words “at the expense of the society or branch” are repealed.

Requirements for rules of registered societies

190

• (1) Schedule 2 to the Friendly Societies Act 1974 (matters to be provided for by the rules of societies registered under that Act) is amended as follows.

• (2) In sub-paragraph (2) of paragraph 11, the words “within the meaning of the Insurance Companies Act 1974” are repealed.

• (3) After that sub-paragraph insert—

(2A) In sub-paragraph (2) “long-term business” has the meaning given by section 117(2) of the Friendly Societies Act 1992.

Credit Unions Act 1979 (c. 34)

General prohibition on deposit taking

191

In section 8(2) of the Credit Unions Act 1979[^f00134] (general prohibition on deposit taking) for the words “has the meaning given in section 5 of the Banking Act 1987” substitute—

must be read with— (a) section 22 of the Financial Services and Markets Act 2000; (b) any relevant order under that section; and (c) Schedule 2 to that Act.

Insurance against fraud or other dishonesty

192

• (1) Section 15 of the Credit Unions Act 1979 (insurance against fraud or other dishonesty) is amended as follows.

• (2) In subsection (2), for paragraph (d) substitute—

(d) must be issued by— (i) a person who has a permission under Part IV of the Financial Services and Markets Act 2000 to effect or carry out contracts of insurance of a relevant class, or (ii) an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of insurance of a relevant class.

• (3) After subsection (3) insert—

(3A) Paragraph (d) of subsection (2) above must be read with— (a) section 22 of the Financial Services and Markets Act 2000; (b) any relevant order under that section; and (c) Schedule 2 to that Act.

Definition of “authorised bank”

193

• (1) Section 31(1) of the Credit Unions Act 1979 (interpretation) is amended as follows.

• (2) In subsection (1), for paragraph (a) of the definition of “authorised bank”[^f00135] substitute—

(a) a person who has permission under Part IV of the Financial Services and Markets Act 2000 to accept deposits; (ab) an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12(1) of that Schedule) to accept deposits; (ac) a municipal bank, that is to say a company which, immediately before the coming into force of this provision, fell within the definition in section 103 of the Banking Act 1987;

• (3) After subsection (1) insert—

(1A) Paragraphs (a) and (ab) of the definition of “authorised bank” in subsection (1) must be read with— (a) section 22 of the Financial Services and Markets Act 2000; (b) any relevant order under that section; and (c) Schedule 2 to that Act.

Building Societies Act 1986 (c. 53)

Lending limit for building societies

194

• (1) Section 6[^f00136] of the Building Societies Act 1986 (the lending limit) is amended as follows.

• (2) In paragraph (c) of the definition of X in subsection (2), for the words “insurance companies within the meaning of the Insurance Companies Act 1982” substitute “effecting or carrying out contracts of insurance”.

• (3) For subsection (12), substitute—

(12) In this section “long term insurance funds”, in relation to an undertaking effecting or carrying out contracts of insurance, means funds maintained by it— (a) in accordance with asset identification rules (within the meaning of section 142(2) of the Financial Services and Markets Act 2000) in respect of its business in effecting or carrying out contracts of long term insurance; or (b) where it is incorporated in a country or territory outside the United Kingdom, under the corresponding provisions of the law of that country or territory.

• (4) After subsection 12, insert—

(12A) The definition of X in subsection (2) and subsection (12) must be read with— (a) section 22 of the Financial Services and Markets Act 2000; (b) any relevant order under that section; and (c) Schedule 2 to that Act.

Restrictions on powers of building societies

195

• (1) Section 9A of the Building Societies Act 1986[^f00137] (restrictions on certain transactions) is amended as follows.

• (2) In subsection (5)—

• (a) for paragraphs (a) and (b) substitute—

(a) as a person who has permission under Part IV of the Financial Services and Markets Act 2000 to effect or carry out contracts of long-term insurance, or (b) an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of long-term insurance.

• (b) the words after paragraph (b) to the end are repealed.

• (3) In subsection (9)—

• (a) in the definition of “collective investment scheme” for the words “Financial Services Act 1986” substitute “Financial Services and Markets Act 2000”;

• (b) for the definition of “derivative investment” substitute—

• “derivative investment” means an investment of the following kinds— instruments giving entitlements to investments; options; futures; contracts for differences;

• (4) After subsection (9) insert—

(9A) Subsection (5) and the definition of “derivative investment” in subsection (9) must be read with— (a) section 22 of the Financial Services and Markets Act 2000; (b) any relevant order under that section; and (c) Schedule 2 to that Act;

Transfers of business by building society to company

196

• (1) Section 98[^f00138] of the Building Societies Act 1986 (transfers of business; supplementary provisions) is amended as follows.

• (2) In section 98(3)(c), for the words “become or,” to the end substitute—

have— (i) such permission under Part IV of the Financial Services and Markets Act 2000, or (ii) such permission under paragraph 15 of Schedule 3 to that Act (as a result of qualifying for authorisation under paragraph 12 of that Schedule), as will enable it to carry on the business which it will have as a result of the transfer without being taken (by virtue of section 20 of that Act) to have contravened a requirement imposed on it by the Authority under that Act; or

Financial institution becoming subsidiary of building society

197

• (1) Section 101 of the Building Societies Act 1986[^f00139] (protective provisions for specially formed successors) is amended as follows.

• (2) In subsection (4)(a)—

• (a) for the words “financial institution” substitute “person who is an authorised person within the meaning of section 31 of the Financial Services and Markets Act 2000”;

• (b) for the words “an institution” substitute “a person”.

• (3) In subsection (6), the definition of “financial institution” is repealed.

Definition of “institution” and “deposit”

198

• (1) Section 107 of the Building Societies Act 1986[^f00140] (restriction of use of certain names and descriptions) is amended as follows.

• (2) For subsection (12)[^f00141] substitute—

(12) In this section— - “deposit” must be read with— section 22 of the Financial Services and Markets Act 2000; any relevant order under that section; and Schedule 2 to that Act; - “institution” means— a body corporate wherever incorporated; a partnership formed under the law of any part of the United Kingdom; a partnership or other unincorporated association of two or more persons formed under the law of a member State other than the United Kingdom.

Repeal of unnecessary provisions etc.

199

• (1) Section 119 of the Building Societies Act 1986 is amended as follows.

• (2) In subsection (1) after the definition of “ordinary resolution” insert—

• “own funds” means own funds as defined in Section 1 of Chapter 2 of Title V of the Banking Consolidation Directive;

• (3) In subsection (1) the definition of “currency” is repealed[^f00142].

• (4) Subsections (2A) and (2C) are repealed[^f00143].

Application of companies insolvency legislation to building societies

200

• (1) In Schedule 15 to the Building Societies Act 1986, in paragraph 3(2), before paragraph (a) insert—

(aa) every reference to a company registered in Scotland shall have effect as a reference to a building society whose principal office is situated in Scotland;

• (2) In Schedule 15A[^f00144] to the Building Societies Act 1986, in paragraph 2(2) before paragraph (a) insert—

(aa) every reference to a company registered in Scotland shall have effect as a reference to a building society whose principal office is situated in Scotland;

• (3) Paragraphs 209(b) and 210(b) of Schedule 3 to the Financial Services and Markets Act 2000 (Mutual Societies) Order 2001 are revoked.

Friendly Societies Act 1992 (c. 40)

Transfers of engagements

201

• (1) Section 86 of the Friendly Societies Act 1992 (transfer of engagements by or to friendly society) is amended as follows.

• (2) Subsection (1)(a) is repealed.

• (3) In subsection (1)(d), for the words “insurance company” to the end, substitute “insurer”.

• (4) In subsection (1)(e) for the words “paragraph (a), (b) or (c) above” substitute “paragraph (b), (c) or (d) above”.

• (5) After subsection (11), insert—

(12) In this section “insurer” means— (a) a person who has permission under Part IV of the Financial Services and Markets Act 2000 to effect or carry out contracts of insurance, or (b) an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of insurance. (13) Subsection (12) must be read with— (a) section 22 of the Financial Services and Markets Act 2000; (b) any relevant order under that section; and (c) Schedule 2 to that Act.

Law applicable to contracts of insurance

202

The following provisions of the Friendly Societies Act 1992 are repealed (having been re-enacted in the Financial Services and Markets Act 2000 (Law Applicable to Contracts of Insurance) Regulations 2001[^f00145])—

• (a) section 101 (law applicable to contracts of insurance with friendly societies)[^f00146];

• (b) Schedule 20[^f00147] (law applicable to certain contracts of insurance).

Miscellaneous amendments

203

• (1) The Friendly Societies Act 1992 is amended as follows.

• (2) In section 85(3) (amalgamation of friendly societies), for the words “central office” substitute “Authority”.

• (3) In section 89 (power of Commission to alter requirements for transfer by friendly society) for subsection (7) substitute—

(7) The Authority shall keep a copy of any direction given under this section in the public file of the society concerned.

• (4) In section 90(8) (power of Commission to effect transfer of engagements) for the words from the beginning to “who” substitute “If the Authority gives a direction it shall keep a copy of that direction and”.

• (5) In section 104 (public file of a friendly society)—

• (a) in subsection (1)(b) for the words “on payment of the fee prescribed under section 114 below”, substitute “subject to subsection (2A) below”;

• (b) in subsection (2) for the words “on payment of the fee so prescribed” substitute “subject to subsection (2A) below”.

• (6) In Schedule 3 to the Financial Services and Markets Act 2000 (Mutual Societies) Order 2001, paragraphs 99(b), 100(f) and 108(b) are revoked.

Form of documents

204

• (1) For section 114 of the Friendly Societies Act 1992 (form of documents and power to prescribe fees) substitute—

(114) (1) The Authority may, by directions under this section, make provision with respect to the form of any document to be sent to it under this Act or the 1974 Act, the particulars to be included in any such document and the procedure to be followed in sending any such document. (2) The directions have effect subject to any other provision of or made under this Act.

• (2) In Schedule 3 to the Financial Services and Markets Act 2000 (Mutual Societies) Order 2001, paragraph 113 is revoked.

Interpretation of the Friendly Societies Act 1992

205

• (1) Section 117(8) of the Friendly Societies Act 1992 (meaning of “provision of insurance”) is repealed.

• (2) Section 119 of the Friendly Societies Act 1992 (interpretation) is amended as follows.

• (3) In the definition of “supervisory authority” in subsection (1) [^f00148] for the words “insurance companies” substitute “persons whose business consists of effecting or carrying out contracts of insurance”.

• (4) In subsection (1A)[^f00149] for the words “Prudential Supervision Directive” to the end of that subsection substitute “European Parliament and Council Directive of 29th June 1995 amending Directives 77/780/EEC and 89/646/EEC in the field of credit institutions, Directives 72/239/EEC and 92/96/EEC in the field of non-life insurance, Directives 79/267/EEC and 92/49/EEC in the field of life assurance, Directive 93/22/EEC in the field of investment firms and Directive 85/611/EEC in the field of undertakings for collective investment in transferable securities (UCITS) with a view to reinforcing prudential supervision (No. 95/26/EC)”.

• (5) Subsection (1B) is repealed.

• (6) After subsection (1B), insert—

(1C) In the definition of “supervisory authority” in subsection (1), the reference to contracts of insurance and to effecting or carrying out such contracts must be read with— (a) section 22 of the Financial Services and Markets Act 2000; (b) any relevant order under that section; and (c) Schedule 2 to that Act.

Transfer of engagements: margin of solvency

206

• (1) For paragraph 13 of Schedule 15 to the Friendly Societies Act 1992 substitute—

(13) (1) The Authority shall not confirm a transfer in any case where the transferee is required by section 87 above to furnish the Authority with a report unless it is satisfied (after taking the proposed transfer into account) either that the transferee will possess the margin of solvency required by rules made by the Authority under section 138 of the Financial Services and Markets Act 2000 or, where no margin of solvency is required by such rules, that the value of the transferee’s assets will exceed its liabilities. (2) The Authority shall not confirm a transfer of any engagements the fulfilment of which will constitute effecting or carrying out contracts of insurance in the United Kingdom unless it is satisfied (after taking the proposed transfer into account) either that the transferee will possess the margin of solvency required by rules made by the Authority under section 138 of the Financial Services and Markets Act 2000 or, where no margin of solvency is required by such rules, that the value of the transferee’s assets will exceed its liabilities. (3) This paragraph does not apply to any transfer of engagements to which paragraph 15 or 15A below applies. (4) The reference in sub-paragraph (2) to effecting or carrying out contracts of insurance must be read with— (a) section 22 of the Financial Services and Markets Act 2000; (b) any relevant order under that section; and (c) Schedule 2 to that Act.

• (2) In paragraph 128 of Schedule 3 to the Financial Services and Markets Act 2000 (Mutual Societies) Order 2001—

• (a) in sub-paragraph (o), for the words “paragraphs 12 and 13” substitute “paragraph 12”;

• (b) sub-paragraphs (p) and (q) are revoked.

Transfer of engagements: general business

207

• (1) In Schedule 15 to the Friendly Societies Act 1992, paragraph 15[^f00150] is amended as follows.

• (2) In sub-paragraph (1)(c)—

• (a) for paragraph (ii) substitute—

(ii) a UK firm which has an EEA right deriving from any of the insurance directives;

• (b) for paragraph (iii) substitute—

(iii) an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to the Financial Services and Markets Act 2000;

• (c) paragraph (iv) is repealed;

• (d) for paragraph (v) substitute—

(v) an insurance company whose head office is in Switzerland, which has permission under Part IV of the Financial Services and Markets Act 2000 to effect or carry out contracts of insurance, which permission is not limited to reinsurance business;

• (3) For sub-paragraph (6), substitute—

(6) In this paragraph “the relevant authority” means— (a) if the transferee falls within paragraph (1)(c)(iii), its home state regulator; (b) if the transferee falls within paragraph (1)(c)(v), the supervisory authority in Switzerland; (c) if the transferee falls within paragraph (1)(c)(vi), the Authority or other supervisory body responsible for the supervision; (d) in any other case, the Authority.

Transfer of engagements: long term business

208

• (1) In Schedule 15 to the Friendly Societies Act 1992, paragraph 15A[^f00151] is amended as follows.

• (2) In sub-paragraph (1)(c)—

• (a) for paragraph (ii) substitute—

(ii) a UK firm which has an EEA right deriving from any of the insurance directives;

• (b) for paragraph (iii) substitute—

(iii) an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to the Financial Services and Markets Act 2000;

• (c) paragraph (iv) is repealed.

• (3) For sub-paragraph (6), substitute—

(6) In this paragraph “the relevant authority” means— (a) if the transferee falls within paragraph (1)(c)(iii), its home state regulator; (b) if the transferee falls within paragraph (1)(c)(v), the Authority or other supervisory body responsible for the supervision; (c) in any other case, the Authority.

Transfer of engagements: interpretation

209

In paragraph 18[^f00152] of Schedule 15 to the Friendly Societies Act 1992 for the words “the Insurance Companies Act 1982” substitute “Schedule 3 to the Financial Services and Markets Act 2000”.

CHAPTER II — subordinate legislation

Enactments relating to friendly societies

Revocation of redundant provisions

210

The following enactments are revoked—

• (a) the Friendly Societies (Fees) Order 1971 (S.I. 1971/1900);

• (b) the Friendly Societies Regulations 1975 (S.I. 1975/205);

• (c) the Friendly Societies Act 1992 (Consequential Provisions) (No 2) Regulations 1993 (S.I. 1993/1187);

• (d) the Friendly Societies Appeal Tribunal Regulations 1993 (S.I. 1993/2002);

• (e) the Friendly Societies (Qualifications of Actuaries No 2) Regulations 1993 (S.I. 1993/2518);

• (f) the Friendly Societies (Auditors) Order 1994 (S.I. 1994/132)[^f00153];

• (g) the Friendly Societies (Insurance Business) Regulations 1994 (S.I. 1994/1981);

• (h) The Friendly Societies (Authorisation) Regulations 1994 (S.I. 1994/1982);

• (i) the Friendly Societies (Activities of a Subsidiary) Order 1995 (S.I. 1995/3062);

• (j) The Friendly Societies (Insurance Business) (Amendment) Regulations 1996 (S.I. 1996/3008);

• (j) the Friendly Societies (Activities of a Subsidiary) Order 1996 (S.I. 1996/3009);

• (k) the Friendly Societies (Insurance Business) (Amendment) Regulations 1997 (S.I. 1997/966);

• (l) the Friendly Societies (Activities of a Subsidiary) Order 1998 (S.I. 1998/2328);

• (m) the Friendly Societies (Activities of a Subsidiary) (No 2) Order 1998 (S.I. 1998/2696);

• (n) the Friendly Societies (Insurance Business) (Amendment) Regulations 1998 (S.I. 1998/3034);

• (o) the Friendly Societies (Insurance Business) (Amendment) Regulations 2000 (S.I. 2000/1700);

• (p) the Friendly Societies (General Charge and Fees) Regulations 2001 (S.I. 2001/816).

Revocation of references to dissolved bodies, repealed legislation etc.

211

• (1) In the Friendly Societies Act 1992 (Commencement No 3 and Transitional Provisions) Order 1993 (S.I. 1993/16)—

• (a) in article 1(2) (interpretation), the definitions of “assistant registrar”, “Chief Registrar”, “Commission” and “registrar” are revoked; and

• (b) articles 5, 7 and 9 (transitional provisions) are revoked.

• (2) In the Friendly Societies Act 1992 (Transitional and Consequential Provisions and Savings) Regulations 1993 (S.I. 1993/932)—

• (a) in regulation 2 (interpretation), the definitions of “the 1987 Regulations”, “incorporated friendly society” and “registrar” are revoked; and

• (b) regulations 3 to 5 (transitional provisions) are revoked.

• (3) In the Friendly Societies Act 1992 (Commencement No 6 and Transitional Provisions) Order 1993 (S.I. 1993/2213)—

• (a) in article 1(2), the definition of “Industrial Assurance Commissioner” is revoked; and

• (b) article 6 is revoked.

• (4) Article 7 of the Friendly Societies Act 1992 (Commencement No 7 and Transitional Provisions and Savings) Order 1993 (S.I.1993/3226) is revoked.

• (5) In regulation 9 (associated bodies) of, and paragraph 12 of Schedule 3 to, the Friendly Societies (Accounts and Related Provisions) Regulations 1994 (S.I. 1994/1983), for “Commission” substitute “Authority”.

• (6) In the Friendly Societies Act 1992 (Transitional and Consequential Provisions) Regulations 1995 (S.I. 1995/710), regulations 3 and 5 are revoked.

Enactments relating to building societies

Revocation of redundant provisions

212

The following enactments are revoked—

• (a) the Building Societies Appeal Tribunal Regulations 1987 (S.I. 1987/891)[^f00154];

• (b) the Building Societies (Designation of Prescribed Regulatory Authorities) Order 1988 (S.I. 1988/630);

• (c) the Building Societies Appeal Tribunal (Amendment) Regulations 1993 (S.I. 1993/983);

• (d) The Building Societies (Auditors) Order 1994 (S.I. 1994/525)[^f00155];

• (e) The Building Societies (Designation of Prescribed Regulatory Authorities) Order 1997 (S.I. 1997/2302);

• (f) The Building Societies (General Charge and Fees) Regulations 2001 (S.I. 2001/815).

Revocation or amendment of references to dissolved bodies, repealed legislation etc.

213

• (1) In the Building Societies Act 1986 (Rules and Miscellaneous Transitional Provisions) Order 1986 (S.I. 1986/2168), articles 3(4) and (5), 4, 10 and 11 are revoked.

• (2) In the Building Societies Act 1986 (Powers and Miscellaneous Transitional Provisions) Order 1986 (S.I. 1986/2169), the definition of “the registrar” in article 2 and articles 4, 8 and 11 are revoked.

• (3) In regulation 2 of, and paragraph 28 of Part I of Schedule 1 to, and Schedule 3 to, the Building Societies (Transfer of Business) Regulations 1998 (S.I. 1998/212), for “Building Societies Commission” in each place those words appear, substitute “Authority”.

• (4) In regulation 6 of, and Schedule 4 to, the Building Societies (Accounts and Related Provisions) Regulations 1998 (S.I. 1998/504)[^f00156], for “Commission”, substitute “Authority”.

• (5) In regulation 3 of the Building Societies (Business Names) Regulations 1998 (S.I. 1998/3186) and in the cross-heading before that regulation, for “Commission” substitute “Authority”.

• (6) In regulation 2 of, and the Schedule to, the Building Societies (Merger Notification Statement) Regulations 1999 (S.I. 1999/1215), for “Building Societies Commission” in each place those words appear, substitute “Authority”.

Building Societies (Deferred Shares) Order 1991

214

The Building Societies (Deferred Shares) Order 1991 (S.I. 1991/701) is amended as follows—

• (a) for article 3(2), substitute—

(2) The condition mentioned in paragraph (1) of this article is that— (a) the document containing the issue terms, or where the issue terms are contained in a series of documents, one of those documents, being in either case a document which is furnished to every applicant for the shares (“the issue document”), and every document evidencing title to the shares (“the title document”), contains a prominent statement to the effect that the shares are deferred shares for the purposes of section 119 of the Act; (b) where the issue document was issued before 1st December 2001 or where the title document evidences title obtained before that date, that document contains a prominent statement to the effect that the shares are not protected investments for the purposes of payments out of the Building Societies Investor Protection Fund; and (c) where the issue document was issued on or after 1st December 2001 or where the title document evidences title obtained on or after that date, that document contains a prominent statement stating whether or not the shares are an investment in respect of which a claim may be entertained by the Financial Services Compensation Scheme.

; and

• (b) in the Schedule, for “Commission” substitute “Authority”.

Enactments relating to industrial and provident societies and credit unions

Revocation of redundant provisions

215

The following enactments are revoked—

• (a) the Industrial and Provident Societies (Forms and Procedure) Regulations 1996 (S.I. 1996/3121);

• (b) the Industrial and Provident Societies (Fees) Regulations 2001 (S.I. 2001/813);

• (c) the Industrial and Provident Societies (Credit Unions) Regulations 1979 (S.I. 1979/937);

• (d) the Industrial and Provident Societies (Credit Unions) (Fees) Regulations 2001 (S.I. 2001/814).

PART 7 — ENACTMENTS RELATING TO SCOTLAND

CHAPTER I — primary legislation

Agricultural Credits (Scotland) Act 1929 (19&20 Geo. V c. 13)

Repeal of redundant provision

216

Section 8 of the Agricultural Credits (Scotland) Act 1929 (registration of agricultural charges) is repealed.

Definition of “Bank”

217

In section 9 of the Agricultural Credits (Scotland) Act 1929 (interpretation) for the definition of “Bank”[^f00157] substitute—

• “Bank” means— the Bank of England, a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits, an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to accept deposits, or the Post Office in the exercise of its powers to provide banking services, and the expressions used in paragraphs (b) and (c) of this definition must be read with section 22 of the Financial Services and Markets Act 2000, any relevant order under that section and Schedule 2 to that Act;

Local Government (Scotland) Act 1973 (c. 65)

Meaning of “securities”

218

For subsection (1) of section 42[^f00158] of the Local Government (Scotland) Act 1973 (interpretation of sections 39 and 41) substitute—

(1) In sections 39 and 41 of this Act “securities” has the meaning given by section 92.

Contracts deemed to be insurance policies

219

In section 86(3) of the Local Government (Scotland) Act 1973 (insurance by local authorities against accidents to members) for the words “the Insurance Companies Act 1982”[^f00159] substitute “the Financial Services and Markets Act 2000”.

Meaning of “securities”

220

• (1) Section 92 of the Local Government (Scotland) Act 1973 (transfer of securities on alteration of area etc.) is amended as follows.

• (2) In subsection (2), the definition of “securities”[^f00160] is repealed.

• (3) After that subsection insert—

(3) “Securities” means— (a) shares; (b) instruments creating or acknowledging indebtedness; (c) government and public securities; (d) instruments giving entitlements to investments; (e) certificates representing securities; (f) units in a collective investment scheme; (g) rights to, or interests in, any security of the kind mentioned in paragraphs (a) to (f); (h) rights (whether actual or contingent) to money lent to, or deposited with— (i) a society registered under the Industrial and Provident Societies Act 1965, or (ii) a building society within the meaning of the Building Societies Act 1986. (4) Subsection (3) must be read with— (a) section 22 of the Financial Services and Markets Act 2000; (b) any relevant order under that section; and (c) Schedule 2 to that Act.

National Health Service (Scotland) Act 1978 (c. 29)

Financial Services and Markets Act 2000 disapplied to certain health service schemes

221

In section 85B(5)[^f00161] of the National Health Service (Scotland) Act 1978 (schemes for meeting losses and liabilities etc. of certain health service bodies), for the words “carrying on insurance business for the purposes of the Insurance Companies Act 1982” substitute “effecting or carrying out contracts of insurance for the purposes of the Financial Services and Markets Act 2000”.

Solicitors (Scotland) Act 1980 (c. 46)

Specification of banks where solicitors may keep accounts

222

• (1) Section 35 of the Solicitors (Scotland) Act 1980 (accounts rules) is amended as follows.

• (2) In subsection (2), for paragraph (e)[^f00162] substitute—

(e) a person (other than a building society) who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits; (ea) an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to the Financial Services and Markets Act 2000 which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to accept deposits;

• (3) After subsection (2) of section 35 insert—

(2A) Paragraphs (e) and (ea) of subsection (2) must be read with— (a) section 22 of the Financial Services and Markets Act 2000; (b) any relevant order under that section; and (c) Schedule 2 to that Act.

Meaning of “authorised insurer”

223

• (1) Section 44 of the Solicitors (Scotland) Act 1980 (professional indemnity) is amended as follows.

• (2) In subsection (5), for the words “authorised insurer” to the end of paragraph (b) substitute—

• an “authorised insurer” is— a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of general liability insurance; a person who has permission under Part 4 of that Act to effect or carry out contracts of insurance relating to accident, sickness, credit, suretyship, miscellaneous financial loss and legal expenses; an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of general liability insurance; or an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts relating to accident, sickness, credit, suretyship, miscellaneous financial loss and legal expenses;

• (3) After subsection (5) of section 44 insert—

(6) The definition of “authorised insurer” in subsection (5) must be read with— (a) section 22 of the Financial Services and Markets Act 2000; (b) any relevant order under that section; and (c) Schedule 2 to that Act.

Bankruptcy (Scotland) Act 1985 (c. 66)

Petitions for sequestration under Financial Services and Markets Act 2000

224

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Meaning of “appropriate bank or institution”

225

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Housing (Scotland) Act 1987 (c. 26)

Definition of “bank”

226

• (1) Section 338 of the Housing (Scotland) Act 1987 (interpretation) is amended as follows.

• (2) In subsection (1)—

• (a) in the definition of “bank”, for paragraph (a) substitute—

(a) a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits, (ab) an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to accept deposits, or

• (b) for the definition of “insurance company” substitute—

• “insurance company” means— a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of insurance, or an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of insurance;

• (3) After subsection (1) insert—

(1A) The definitions of “bank” and “insurance company” in subsection (1) must be read with— (a) section 22 of the Financial Services and Markets Act 2000; (b) any relevant order under that section; and (c) Schedule 2 to that Act.

Local authority indemnity for building societies: consultation requirements

227

In section 229(4) of the Housing (Scotland) Act 1987 (local authority indemnity for building societies: consultation requirements) for “Building Societies Commission” substitute “Financial Services Authority”.

The Criminal Justice (Scotland) Act 1987 (c. 41)

Competent authorities for receipt of information

228

For paragraphs (e) to (l) of section 54(5) of the Criminal Justice (Scotland) Act 1987 (competent authorities for the purposes of disclosure of information obtained in relation to serious or complex fraud) substitute—

(e) a person appointed under— (i) section 167 of the Financial Services and Markets Act 2000 (general investigations), (ii) section 168 of that Act (investigations in particular cases), (iii) section 169(1)(b) of that Act (investigation in support of overseas regulator), (iv) section 284 of that Act (investigations into affairs of certain collective investment schemes), or (v) regulations made as a result of section 262(2)(k) of that Act (investigations into open-ended investment companies), to conduct an investigation; (f) a body corporate established in accordance with section 212(1) of the Financial Services and Markets Act 2000 (compensation scheme manager);

Self-Governing Schools etc. (Scotland) Act 1989 (c. 39)

Specification of banks and investments

229

• (1) Section 53 of the Self-Governing Schools etc. (Scotland) Act 1989 (disposal of surplus money on winding up) is amended as follows.

• (2) In subsection (1)(a), for the words “any bank” to the end substitute—

any person who has permission under the Financial Services and Markets Act 2000 to accept deposits); and

• (3) For subsection (4) substitute—

(4) This section applies to any investment which is a security.

• (4) For subsection (5) substitute—

(5) The references to accepting deposits in subsection (1)(a) and to an investment being a security in subsection (4) must be read with— (a) section 22 of the Financial Services and Markets Act 2000; (b) any relevant order under that section; and (c) Schedule 2 to that Act.

Enterprise and New Towns (Scotland) Act 1990 (c. 35)

Exclusion from financial promotion restriction

230

For section 31(2) of the Enterprise and New Towns (Scotland) Act 1990 (application and disapplication of certain provisions) substitute—

(2) Section 21 of the Financial Services and Markets Act 2000 (restrictions on financial promotion) shall not apply to any invitation or inducement (within the meaning of that section) which Scottish Enterprise communicates in the discharge of its functions.

Law Reform (Miscellaneous Provisions) (Scotland) Act 1990 (c. 40)

Definition of “relevant institution”

231

For section 12(13)(a) of the Law Reform (Miscellaneous Provisions) (Scotland) Act 1990 (dormant accounts of charities in banks, etc.) substitute—

(a) a “relevant institution” is— (i) a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits; (ii) an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to accept deposits; (iii) such other person or class of persons as the Secretary of State may by regulations made under this section, prescribe;

Definition of “recognised financial institution”

232

• (1) Section 19 of the Law Reform (Miscellaneous Provisions) (Scotland) Act 1990 (executry services by recognised financial institutions) is amended as follows.

• (2) For subsection (2) substitute—

(2) In this section “recognised financial institution” means— (a) any person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits; (b) an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to accept deposits; (c) any subsidiary (as defined by section 736(1) of the Companies Act 1985) of a body falling within paragraph (a) or (b) above whose business or any part of whose business consists of the provision of executry services.

• (3) After subsection (2) insert—

(2A) The definition of “recognised financial institution” in subsection (2) above must be read with— (a) section 22 of the Financial Services and Markets Act 2000; (b) any relevant order under that section; and (c) Schedule 2 to that Act.

• (4) In subsection (6), for the words from “section 16” to the end, substitute “rules made under section 141(1) of the Financial Services and Markets Act 2000 (which may restrict insurers to carrying on insurance business).”.

Meaning of “executry services”

233

In section 23 of the Law Reform (Miscellaneous Provisions) (Scotland) Act 1990 (interpretation of sections 16 to 22), in the definition of “executry services” for the words “investment business within the meaning of the Financial Services Act 1986” substitute “carrying on a regulated activity within the meaning of the Financial Services and Markets Act 2000”.

Criminal Law (Consolidation) (Scotland) Act 1995 (c. 39)

Competent authorities for the receipt of information

234

For paragraphs (e) to (l) of section 30(5) of the Criminal Law (Consolidation) (Scotland) Act 1995 (disclosure of information) substitute—

(e) a person appointed under— (i) section 167 of the Financial Services and Markets Act 2000 (general investigations), (ii) section 168 of that Act (investigations in particular cases), (iii) section 169(1)(b) of that Act (investigation in support of overseas regulator), (iv) section 284 of that Act (investigations into affairs of certain collective investment schemes), or (v) regulations made as a result of section 262(2)(k) of that Act (investigations into open-ended investment companies), to conduct an investigation; (f) a body corporate established in accordance with section 212(1) of the Financial Services and Markets Act 2000 (compensation scheme manager);

Adults with Incapacity (Scotland) Act 2000 (asp 4)

Persons capable of giving “proper advice”

235

• (1) Schedule 2 to the Adults with Incapacity (Scotland) Act 2000 (management of estate of adult) is amended as follows.

• (2) In paragraph 5(2), for the words “authorised to carry on investment business in the United Kingdom for the purposes of the Financial Services Act 1986 (c. 60)” substitute “who has permission for the purposes of the Financial Services and Markets Act 2000 to advise on investments”.

• (3) After paragraph 5(2) insert—

(2A) Sub-paragraph (2) must be read with— (a) section 22 of the Financial Services and Markets Act 2000; (b) any relevant order under that section; and (c) Schedule 2 to that Act.

CHAPTER II — secondary legislation

The Banking Appeal Tribunal (Scottish Appeals)

Revocation of instruments made under the Banking Act 1987

236

The following instruments are revoked—

• (a) The Banking Appeal Tribunal (Scottish Appeals) Regulations 1987 (S.I. 1987/1336 (S.95));

• (b) The Banking Appeal Tribunal (Scottish Appeals) Amendment Regulations 1993 (S.I. 1993/1061 (S.150)).

Local Government Superannuation (Scotland) Regulations 1987 (S.I. 1987/1850)

Actionable loss arising from pension mis-selling

237

In regulation B4B(4)(b) of the Local Government Superannuation (Scotland) Regulations 1987(rejoining pensionable employment)[^f00165]—

• (a) after the words “section 62 of the Financial Services Act 1986” insert “or section 150 of the Financial Services and Markets Act 2000”; and

• (b) the words “made under the Act” are revoked.

Use and investment of superannuation funds' moneys

238

• (1) Regulation P6 of the Local Government Superannuation (Scotland) Regulations 1987 (use and investment of superannuation funds' moneys) is amended as follows.

• (2) In paragraph (7A)[^f00166] for the words “the provisions of” to the end of sub-paragraph (b) substitute—

the provisions of CIS 5.14.4R and CIS 5.14.6R of the rules made by the Financial Services Authority under Part 10 of the Financial Services and Markets Act 2000.

• (3) In paragraph (10), for the definition of “investment manager”[^f00167] substitute—

• “investment manager” means a person who has permission for the purposes of the Financial Services and Markets Act 2000 to manage investments which are held for the purposes of an occupational pension scheme and who is reasonably believed by the administrating authority to be suitably qualified to make investment decisions on their behalf, but who is not an employee of that authority;

• (4) After paragraph (10) insert—

(11) The definition of “investment manager” in paragraph (10) must be read with— (a) sections 22 and 419 of the Financial Services and Markets Act 2000; (b) any relevant order under those sections; (c) Schedule 2 to that Act.

The Teachers' Superannuation (Scotland) Regulations 1992 (S.I. 1992/280)

Meaning of “reference banks”

239

• (1) The Teachers' Superannuation (Scotland) Regulations 1992 are amended as follows.

• (2) For paragraph (5)(b) of regulation E31A (interest on late payment of certain benefits)[^f00168] substitute—

(b) “the reference banks” means the four largest persons for the time being who— (i) have permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits; (ii) are incorporated in and carrying on in the United Kingdom a regulated activity of accepting deposits; and (iii) quote a base rate applicable to sterling deposits, and in this definition the reference to accepting deposits must be read with section 22 of the Financial Services and Markets Act 2000, any relevant order under that section and Schedule 2 to that Act;

The Brechin and Bridge of Dun Light Railway Order 1992 (S.I. 1992/1267)

Meaning of “insurer”

240

• (1) Article 10 of the Brechin and Bridge of Dun Light Railway Order 1992 (public liability insurance) is amended as follows.

• (2) In paragraph (1), for the definition of “insurer” substitute—

• “insurer” means— any person who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of insurance of a relevant class, or an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of insurance of a relevant class;

• (3) After paragraph (1) insert—

(1A) The definition of “insurer” in paragraph (1) must be read with— (a) section 22 of the Financial Services and Markets Act 2000; (b) any relevant order under that section; and (c) Schedule 2 to that Act.

The Non-Domestic Rating (Payment of Interest) (Scotland) Regulations 1992 (S.I. 1992/2184 (S. 218))

Definition of “reference banks”

241

• (1) Regulation 4 of the Non-Domestic Rating (Payment of Interest) (Scotland) Regulations 1992 (calculation of interest—repayment on or after 1st October 1992) is amended as follows.

• (2) In paragraph (3)—

• (a) for the words from “seven” to “United Kingdom” substitute—

seven largest persons who— (a) have permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits; and (b) are incorporated in the United Kingdom and carrying on there a regulated activity of accepting deposits;

; and

• (b) for the words “an institution” substitute “a person”; for the words “that institution” substitute “that person” and for the word “its” substitute “the”.

• (3) After paragraph (3) insert—

(4) Paragraph (3) must be read with— (a) section 22 of the Financial Services and Markets Act 2000; (b) any relevant order under that section; and (c) Schedule 2 to that Act.

The Registered Housing Associations (Accounting Requirements) (Scotland) Order 1993 (S.I. 1993/487 (S. 52))

Meaning of “listed investment”

242

In paragraph 15 of Schedule 2 to the Registered Housing Associations (Accounting Requirements) (Scotland) Order 1993 (investments)—

• (a) in sub-paragraph (1)(b) for the words “the Financial Services Act 1986” substitute “the Financial Services and Markets Act 2000”;

• (b) in sub-paragraph (3) for the words “the Financial Services Act 1986” substitute “the Financial Services and Markets Act 2000”.

The Criminal Justice (Scotland) Act 1987 (Crown Servants and Regulators etc.) Regulations 1994 (S.I. 1994/1808) (S.80))

Exemption from obligation to disclose knowledge or suspicion of money laundering

243

In regulation 4(1) of the Criminal Justice (Scotland) Act 1987 (Crown Servants and Regulators etc.) Regulations 1994 (designation of persons appearing to the Secretary of State to be performing regulatory etc. functions)—

• (a) for sub-paragraph (c) substitute—

(c) the Financial Services Authority;

• (b) sub-paragraphs (b), (d) to (g) and (i) to (m) are revoked.

The National Health Service Superannuation Scheme (Scotland) Regulations 1995 (S.I. 1995/365)

Actionable loss arising from pension mis-selling

244

In paragraph (1)(c) of regulation B6[^f00169] of the National Health Service Superannuation Scheme (Scotland) Regulations 1995 (opting into the scheme: mis-sold pensions), after the words “section 62 of the Financial Services Act 1986” add “or section 150 of the Financial Services and Markets Act 2000”.

The Charities (Dormant Accounts) (Scotland) Regulations 1995 (S.I. 1995/2056)

Prescribed “relevant institutions”

245

In regulation 2A of the Charities (Dormant Accounts) (Scotland) Regulations 1995[^f00170] for the words “(being institutions mentioned in Schedule 2 to the Banking Act 1987)” substitute “that is to say a company which was, immediately before the repeal of the Banking Act 1987, exempted from the prohibition in section 3 of that Act by virtue of section 4(1) of, and paragraph 4 of Schedule 2 to, that Act”.

The Acquisition of Land (Rate of Interest After Entry) (Scotland) Regulations 1995 (S.I. 1995/2791) (S.206))

Definition of reference banks

246