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

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

• (4) After the entry relating to the Pensions Compensation Board insert—

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.

Determination of questions by Secretary of State

125

In section 170(1)(c) of the Pension Schemes Act 1993 (Determination of questions by Secretary of State) for “Policyholders Protection Act 1975” substitute “Financial Services Compensation Scheme”.

Interpretation of expressions relating to insurance

126

In the Pensions Schemes Act 1993, after section 180 insert—

(180A) (1) In this Act “insurer” means— (a) 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 (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. (2) In this Act “long term insurance business” means business which consists of the effecting or carrying out of contracts of long-term insurance. (3) This section 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.

Interpretation: Financial Services Compensation Scheme

127

In section 181(1) of the Pension Schemes Act 1993—

• (a) after the definition of “employment”, insert—

• “Financial Services Compensation Scheme” means the Financial Services Compensation Scheme referred to in section 213(2) of the Financial Services and Markets Act 2000.

• (b) the definition of “insurance company” is repealed.

Consultation on regulations concerning pension business of friendly societies

128

In section 185(7) of the Pension Schemes Act 1993 (consultation on regulations concerning removal of restrictions on pension business of friendly societies), for the words “Chief Registrar of Friendly Societies or the Friendly Societies Commission” substitute “Financial Services Authority or, if the matter concerns section 464 of the Income and Corporation Taxes Act 1988, the Commissioners of the Inland Revenue”.

Pension Schemes (Northern Ireland) Act 1993 (c. 49)

Discharge of guaranteed minimum pension secured by insurance policies or annuity contracts

129

• (1) Section 15 of the Pension Schemes (Northern Ireland) Act 1993 (discharge of guaranteed minimum pension secured by insurance policies or annuity contracts) is amended as follows.

• (2) In subsection (4)(a)—

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

• (b) in sub-paragraph (i), the word “ordinary” is repealed.

• (3) Subsection (7) is repealed.

Ways of giving effect to the protected rights: the pension and annuity requirements

130

• (1) Section 25 of the Pension Schemes (Northern Ireland) Act 1993 (the pension and annuity requirements) is amended as follows.

• (2) In subsection (3)(b) for “insurance company” substitute “insurer”.

• (3) In subsection (4), for “insurance company”, in both places, substitute “insurer”.

Discharge of protected rights on winding up: insurance policies

131

In section 28A of the Pension Schemes (Northern Ireland) Act 1993 (discharge of protected rights on winding up: insurance policies), in subsection (4)—

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

• (b) in sub-paragraph (i), the word “ordinary” and the words “(within the meaning of the Insurance Companies Act 1982)” are repealed.

Alteration of rules of appropriate schemes: permitted form of scheme

132

• (1) Section 34 of the Pension Schemes (Northern Ireland) Act 1993 (alteration of rules of appropriate schemes: permitted forms) is amended as follows.

• (2) In subsection (6), in paragraph (b) for the words from “has” to the end substitute “is an authorised unit trust scheme”.

• (3) After that subsection, insert—

(6A) “Authorised unit trust scheme” has the meaning given in Part 17 of the Financial Services and Markets Act 2000 and includes any scheme which is, as a result of an order under section 426 of that Act making transitional provisions, treated as falling within that meaning.

Ways of taking rights to cash equivalent: members of occupational pension schemes

133

In section 91(2)(c) of the Pension Schemes (Northern Ireland) Act 1993 (ways of taking rights to cash equivalent) for “insurance companies” substitute “insurers”.

Cash equivalent: authorised purposes for transfer notice

134

In section 97F(2)(b) of the Pension Schemes (Northern Ireland) Act 1993 (authorised purposes for transfer notice) for “insurance companies” substitute “insurers”.

Procedure on an investigation by the Pensions Ombudsman

135

In section 145(6) of the Pension Schemes (Northern Ireland) Act 1993 (procedure on an investigation by the Pensions Ombudsman: persons to whom information may be disclosed)—

• (a) paragraphs (f) and (g) are repealed;

• (b) for paragraph (i) to (l) substitute—

(i) a person appointed under— (i) Part 14 of the Companies Act 1985, (ii) section 167 of the Financial Services and Markets Act 2000, (iii) subsection (3) or (5) of section 168 of that Act, or (iv) section 284 of that Act, to conduct an investigation; (j) a body designated under section 326(1) of the Financial Services and Markets Act 2000; and (k) a recognised investment exchange or a recognised clearing house (as defined by section 285 of that Act).

Disclosure of information by the Department

136

• (1) The table set out in section 154A(1) of the Pension Schemes (Northern Ireland) Act 1993 (power of Department to disclose social security information for certain purposes) is amended as follows.

• (2) The entries relating to the following persons are repealed—

• The Treasury;

• The Friendly Societies Commission;

• The Building Societies Commission;

• An inspector appointed by the Secretary of State;

• A person authorised to exercise powers under section 106 of the Financial Services Act 1986;

• A designated agency or transferee body or the competent authority (within the meaning of the Financial Services Act 1986); and

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

• (3) In the entry relating to the Financial Services Authority, 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.

• (4) After the entry relating to the Pensions Compensation Board insert—

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.

Interpretation of expressions relating to insurance

137

• (1) In the Pensions Schemes (Northern Ireland) Act 1993, after section 175 insert—

(175A) (1) In this Act “insurer” means— (a) 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 (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. (2) In this Act “long term insurance business” means business which consists of the effecting or carrying out of contracts of long-term insurance. (3) This section 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 section 176(1) of that Act, the definition of “insurance company” is repealed.

Consultation on regulations concerning pension business of friendly societies

138

In section 180(1) of the Pension Schemes (Northern Ireland) Act 1993 (consultation on regulations concerning removal of restrictions on pension business of friendly societies), for the words “Chief Registrar of Friendly Societies” substitute “Financial Services Authority or, if the matter concerns section 464 of the Income and Corporation Taxes Act 1988, the Commissioners of the Inland Revenue”.

Pensions Act 1995 (c. 26)

Occupational pension scheme under a trust: power of investment and delegation

139

• (1) Section 34 of the Pensions Act 1995 (power of investment and delegation) is amended as follows.

• (2) For subsection (3) substitute—

(3) This subsection applies to a fund manager who, in relation to the investments, may take the decisions in question without contravening the prohibition imposed by section 19 of the Financial Services and Markets Act 2000 (prohibition on carrying on regulated activities unless authorised or exempt).

• (3) In subsection (5)(b) for the words from “carrying” to “1986)” substitute “the carrying on, in the United Kingdom, of a regulated activity (within the meaning of the Financial Services and Markets Act 2000)”.

Choice of investments by trustees of occupational pension scheme under a trust: meaning of “proper advice”

140

For paragraph (a) of section 36(6) of the Pensions Act 1995 (choice of investments: meaning of “proper advice”) substitute—

(a) if the giving of the advice constitutes the carrying on, in the United Kingdom, of a regulated activity (within the meaning of the Financial Services and Markets Act 2000), advice given by a person who may give it without contravening the prohibition imposed by section 19 of that Act (prohibition on carrying on regulated activities unless authorised or exempt);

Restriction on employer-related investments

141

• (1) Section 40 of the Pensions Act 1995 (employer-related investments) is amended as follows.

• (2) In subsection (2) the definition of “securities” is repealed.

• (3) After that subsection, insert—

(2A) In subsection (2)(a) “securities” does not include government or other public securities. (2B) Paragraph (a) of subsection (2) and subsection (2A) must be read with— (i) section 22 of the Financial Services and Markets Act 2000; (ii) any relevant order under that section; and (iii) Schedule 2 to that Act.

Advisers for occupational pension schemes

142

• (1) Section 47 of the Pensions Act 1995 is amended as follows.

• (2) In subsection (2) the words “(within the meaning of the Financial Services Act 1986)” are repealed.

• (3) After that subsection insert—

(2A) References in this section to investments 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.

Receipts, record and payments: duties of pension trustees and others

143

• (1) Section 49 of the Pensions Act 1995 (receipts, record and payments: duties of pension trustees and others) is amended as follows.

• (2) In subsection (1)¹⁰⁸, for the words from “at” to the end substitute “with a deposit-taker”.

• (3) Subsection (1A)¹⁰⁹ is repealed.

• (4) In subsection (5)¹¹⁰, for the words “at a relevant institution” substitute “with a deposit-taker”.

• (5) After subsection (8)¹¹¹ insert—

(8A) “Deposit taker” means— (a) a 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) the Bank of England or the central bank of a member state other than the United Kingdom; (d) the National Savings Bank; or (e) a municipal bank, 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. (8B) Paragraphs (a) and (b) of subsection (8A) 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.

Salary related occupational pension schemes: discharge of liabilities by insurance etc

144

In section 74 of the Pensions Act 1995 (discharge of liabilities by insurance etc.), in subsection (3)(c), for “insurance companies” substitute “insurers”.

Borrowing power of Compensation Board

145

• (1) Section 78 of the Pensions Act 1995 (the Compensation Board) is amended as follows.

• (2) In subsection (5), for the words from “an” to “1987” substitute “a deposit-taker”.

• (3) After that subsection, insert—

(5A) “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) 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. (5B) Sub-paragraph (5A) 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.

Disclosure of information by the Occupational Pensions Regulatory Authority

146

• (1) The table set out in section 107(1) of the Pensions Act 1995 (power of the Authority to disclose pension information for certain purposes) is amended as follows.

• (2) The entries relating to the following persons are repealed—

• The Treasury¹¹²;

• The Policyholders Protection Board;

• The Deposit Protection Board;

• The Investor Protection Board;

• The Friendly Societies Commission;

• The Building Societies Commission;

• A person authorised to exercise powers under section 106 of the Financial Services Act 1986;

• A designated agency or transferee body or the competent authority (within the meaning of the Financial Services Act 1986);

• 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 Authority¹¹³, 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

147

In section 114(7) of the Pensions Act 1995 (bodies which may disclose information to the Compensation Board)—

• (a) paragraphs (f) and (j) are repealed;

• (b) after paragraph (l), insert—

(la) the Financial Services Authority; (lb) 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

148

In section 172 of the Pensions Act 1995 (information in connection with public service pensions), in subsection (1)(a), after “section 62 of the Financial Services Act 1986” insert “or under section 150 of the Financial Services and Markets Act 2000”.

Repeal of spent amendments by Pensions Act 1995 to other legislation

149

The following provisions of the Pensions Act 1995 (amendments to other legislation spent as a result of the coming into force of the Financial Services and Markets Act 2000) are repealed—

• (a) in Schedule 3, paragraphs 11, 17, 18 and 19;

• (b) in Schedule 5, paragraph 11; and

• (c) in Schedule 7, in Part 1, the entries relating to the Insurance Companies Act 1982 and the Banking Act 1987 and, in Part 2, the entries relating to the Insurance Companies Act 1982.

Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22))

Occupational pension scheme under a trust: power of investment and delegation

150

• (1) Article 34 of the Pensions (Northern Ireland) Order 1995 (power of investment and delegation) is amended as follows—

• (2) For paragraph (3) substitute—

(3) This paragraph applies to a fund manager who, in relation to the investments, may take the decisions in question without contravening the prohibition imposed by section 19 of the Financial Services and Markets Act 2000 (prohibition on carrying on regulated activities unless authorised or exempt).

• (3) In paragraph (5)(b) for the words from “carrying” to “1986)” substitute “the carrying on, in the United Kingdom, of a regulated activity (within the meaning of the Financial Services and Markets Act 2000)”.

Choice of investments by trustees of occupational pension scheme under a trust: meaning of “proper advice”

151

For paragraph (a) of Article 36(6) of the Pensions (Northern Ireland) Order 1995 (choice of investments: meaning of “proper advice”) substitute—

(a) if the giving of the advice constitutes the carrying on, in the United Kingdom, of a regulated activity (within the meaning of the Financial Services and Markets Act 2000), advice given by a person who may give it without contravening the prohibition imposed by section 19 of that Act (prohibition on carrying on regulated activities unless authorised or exempt);

Restriction on employer-related investments

152

• (1) Article 40 of the Pensions (Northern Ireland) Order 1995 (employer-related investments) is amended as follows.

• (2) In paragraph (2) the definition of “securities” is repealed.

• (3) After that paragraph, insert—

(2A) In paragraph (2)(a) “securities” does not include government or other public securities. (2B) Sub-paragraph (a) of paragraph (2) and paragraph (2A) 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.

Advisers for occupational pension schemes

153

• (1) Article 47 of the Pensions (Northern Ireland) Order 1995 is amended as follows.

• (2) In paragraph (2) the words “(within the meaning of the Financial Services Act 1986)” are repealed.

• (3) After that paragraph insert—

(2A) References in this Article to investments 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.

Receipts, record and payments: duties of pension trustees and others

154

• (1) Article 49 of the Pensions (Northern Ireland) Order 1995 (receipts, record and payments: duties of pension trustees and others) is amended as follows.

• (2) In paragraph (1) ¹¹⁴, for the words from “at” to the end substitute “with a deposit-taker”.

• (3) Paragraph (1A) ¹¹⁵ is revoked.

• (4) In paragraph (5)¹¹⁶ for the words from “at” to “1987” substitute “with a deposit-taker”.

• (5) After paragraph (8) ¹¹⁷ insert—

(8A) “Deposit taker” means— (a) a 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) the Bank of England or the central bank of a member state other than the United Kingdom; (d) the National Savings Bank; or (e) a municipal bank, 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.” (8B) Paragraph (8A) 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.

Disclosure of information by the Occupational Pensions Regulatory Authority

155

• (1) The table set out in Article 105(1) of the Pensions (Northern Ireland) Order 1995 (power of the Authority to disclose pension information for certain purposes) is amended as follows.

• (2) The entries relating to the following persons are repealed—

• The Treasury;

• The Policyholders Protection Board;

• The Deposit Protection Board;

• The Investor Protection Board;

• The Friendly Societies Commission;

• The Building Societies Commission;

• A person authorised to exercise powers under section 106 of the Financial Services Act 1986;

• A designated agency or transferee body or the competent authority (within the meaning of the Financial Services Act 1986);

• 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 Authority¹¹⁸, 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)¹¹⁹ 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”¹²⁰ 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 1965¹²¹ (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 2001¹²², paragraph 218(a) of Schedule 3 is revoked.

Advertising dissolution of society

180

In section 58(6) of the Industrial and Provident Societies Act 1965¹²³ (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 1965¹²⁴ (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 1968¹²⁵ (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”¹²⁶ 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 1974¹²⁷ (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)¹²⁸, 84(3) and 84A(6)¹²⁹ 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)¹³⁰ 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 1979¹³¹ (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”¹³² 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 6¹³³ 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 1986¹³⁴ (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 98¹³⁵ 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 1986¹³⁶ (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 1986¹³⁷ (restriction of use of certain names and descriptions) is amended as follows.

• (2) For subsection (12)¹³⁸ 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 repealed¹³⁹.

• (4) Subsections (2A) and (2C) are repealed¹⁴⁰.

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 15A¹⁴¹ 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 2001¹⁴²)—

• (a) section 101 (law applicable to contracts of insurance with friendly societies)¹⁴³;

• (b) Schedule 20¹⁴⁴ (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) ¹⁴⁵ for the words “insurance companies” substitute “persons whose business consists of effecting or carrying out contracts of insurance”.

• (4) In subsection (1A)¹⁴⁶ 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 15¹⁴⁷ 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 15A¹⁴⁸ 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 18¹⁴⁹ 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);