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

The Occupational Pension Schemes (Minimum Funding Requirements and Actuarial Valuations) Regulations 1996 (S.I. 1996/1536)

Interpretation of the 1996 Regulations

525

• (1) The Occupational Pension Schemes (Minimum Funding Requirement and Actuarial Valuations) Regulations 1996 are amended as follows.

• (2) In paragraph (1) of regulation 2 (Interpretation)—

• (a) for the definition of “equities” substitute—

• “equities” means investments of the following kinds— shares, instruments creating or acknowledging indebtedness, instruments giving entitlements to investments of the kind mentioned in (a) or (b) above, certificates representing such investments;

; and

• (b) for the definition of “gilt-edged securities” substitute—

• “gilt-edged securities” means investments of the following kinds— government and public securities, contracts of long term insurance;

• (3) After paragraph (1) of regulation 2 insert—

(1A) The definitions of “equities” and “gilt-edged securities” 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.

• (4) In paragraph 1(1) of Schedule 4 to those Regulations (Methods of securing shortfall in cases of serious underprovision), for the definition of “relevant institution” substitute—

• “relevant institution” means— a person with permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits, or 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;

• (5) After sub-paragraph (1) of paragraph 1 insert—

(1A) The definition of “relevant institution” in sub-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 Personal and Occupational Pension Schemes (Protected Rights) Regulations 1996 (S.I. 1996/1537)

Prescribed conditions relating to an insurer

526

Regulation 11 of the Personal and Occupational Pension Schemes (Protected Rights) Regulations 1996 (Insurance companies that may provide protected rights by way of annuities) is amended as follows—

• (a) in the sub-title of that regulation, for “Insurance companies” substitute “Insurers”;

• (b) the existing text of that regulation is numbered paragraph (1);

• (c) in paragraph (1) for “insurance company” (in both places) substitute “insurer”;

• (d) for paragraph (1)(a) of that regulation substitute—

(a) (i) is a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect and carry out contracts of long-term insurance; or (ii) is 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 and carry out contracts of long-term insurance;

; and

• (e) after paragraph (1) insert—

(2) Paragraph (1)(a) of this regulation 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 Financial Institutions (Prudential Supervision) Regulations 1996 (S.I.1996/1669)

Revocation of the 1996 Regulations

527

The Financial Institutions (Prudential Supervision) Regulations 1996 are revoked.

The Occupational Pension Schemes (Scheme Administration) Regulations 1996 (S.I. 1996/1715)

Relevant occupational pension schemes

528

In paragraph (3) of regulation 3 of the Occupational Pension Schemes (Scheme Administration) Regulations 1996 (Exemptions from the professional advisers requirements)—

• (a) the words “(within the meaning of the Financial Services Act 1986)” are revoked; and

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

(a) relevant schemes of a kind mentioned in paragraph (4) of regulation 4 of the Financial Services and Markets Act 2000 (Carrying on Regulated Activities by Way of Business) Order 2001³²⁸ (Managing investments: occupational pension schemes);

Notification by fund managers of any conflict of interest

529

In regulation 5 of the Occupational Pension Schemes (Scheme Administration) Regulations 1996 (Manner and terms of appointment and removal of professional advisers), for paragraph (2)(b)(i)³²⁹ substitute—

(i) in the case of a fund manager, or a person carrying out functions referred to in regulation 2(c), who is subject to rules made under section 138 of the Financial Services and Markets Act 2000 (General rule making power) which impose requirements in relation to conflicts of interest, confirm in writing that he will notify the trustees or managers of any conflicts of interest to which he is or may be subject in relation to the scheme, in accordance with those requirements, and—

Prescribed circumstances: accounts with exempt deposit-takers

530

• (1) Regulation 11 of the Occupational Pension Schemes (Scheme Administration) Regulations 1996 (Exemption from the requirement for money to be kept by the trustees) is amended as follows.

• (2) In paragraph (1) of that regulation, for “at an institution authorised under the Banking Act 1987” substitute “with a deposit-taker”.

• (3) For paragraph (1)(b)(i)³³⁰ of that regulation substitute—

(i) kept by them with any of the persons specified in paragraph (3);

• (4) After paragraph (2) of that regulation insert—

(3) The persons referred to in paragraph (1)(b)(i) are— (a) the Bank of England or the central bank of another EEA State; (b) the National Savings Bank; or (c) a municipal bank. (4) In paragraph (3)— (a) “EEA State” means a State which is a contracting party to the agreement on the European Economic Area signed at Oporto on 2 May 1992 as it has effect for the time being; and (b) “municipal bank” means a company within the meaning of the Companies Act 1985³³¹— (i) in respect of which a resolution has been passed by a local authority under section 48(3) of the Banking Act 1979 or section 103(3) of the Banking Act 1987; and (ii) is exempt from the prohibition imposed by section 19 of the Financial Services and Markets Act 2000 in relation to the acceptance of deposits; (c) the definition of “municipal bank” above 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.

Meaning of “deposit-taker”

531

• (1) Regulation 15 of the Occupational Pension Schemes (Scheme Administration) Regulations 1996 (Employer to make payments of benefits into a separate account), is amended as follows.

• (2) The existing text of that regulation is numbered paragraph (1).

• (3) In paragraph (1) for “institution authorised under the Banking Act 1987” substitute “deposit taker”.

• (4) After paragraph (1) insert—

(2) (a) In this regulation “deposit taker” means— (i) a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits; or (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 having qualified for authorisation under paragraph 12(1) of that Schedule) to accept deposits; (b) sub-paragraph (a) 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.

The Disability Discrimination (Services and Premises) Regulations 1996 (S.I. 1996/1836)

Interpretation of the 1996 Regulations

532

• (1) Regulation 1 of the Disability Discrimination (Services and Premises) Regulations 1996 (Citation, commencement and interpretation) is amended as follows.

• (2) In paragraph (2) of that regulation—

• (a) for the definition of “insurance business” substitute—

• “insurance business” means business which consists of effecting or carrying out contracts of insurance;

; and

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

• “insurer” means a person who may carry on insurance business without contravening the prohibition imposed by section 19 of the Financial Services and Markets Act 2000.

• (3) After paragraph (2) of that regulation insert—

(2A) The definition of “insurance business” in 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.

The Local Authorities (Contracting Out of Investment Functions) Order 1996 (S.I. 1996/1883)

Qualifications of contractors

533

For article 9 of the Local Authorities (Contracting Out of Investment Functions) Order 1996 (qualifications of contractors) substitute—

(9) In relation to any function which a contractor is authorised to exercise by the authority, the contractor shall ensure that he and his employees are suitably qualified to make investment decisions on the authority’s behalf and have practical experience of financial matters, including making investments, and, without prejudice to the generality of this condition, shall ensure that he is— (a) an authorised person within the meaning of the Financial Services and Markets Act 2000 (“the 2000 Act”); or (b) a person— (i) who does not carry on regulated activities (within the meaning of the 2000 Act) from a permanent place of business maintained by him in the United Kingdom; (ii) whose head office is situated in an EEA State other than the United Kingdom; (iii) who is recognised by the law of that EEA State as a national of that or another EEA State; and (iv) who is for the time being authorised under that law to carry on one or more regulated activities (within the meaning of the 2000 Act), and is not precluded by that law from managing assets belonging to another person.

The Deregulation (Insurance Companies Act 1982) Order 1996 (S.I. 1996/2102)

Revocation of the 1996 Order

534

The Deregulation (Insurance Companies Act 1982) Order 1996 is revoked.

The Social Landlords (Permissible Additional Purposes or Objects) Order 1996 (S.I. 1996/2256)

Interpretation of the 1996 Order

535

Article 2 of the Social Landlords (Permissible Additional Purposes or Objects) Order 1996 (interpretation) is amended is follows—

• (a) the existing provision becomes paragraph (1);

• (b) the definitions of “bank” and “insurance company” are revoked;

• (c) for the definition of “qualifying lending institution” substitute—

• “qualifying lending institution” means— the Corporation; a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits or to effect or carry out contracts of insurance; or an EEA firm of the kind mentioned in paragraph 5(b) or (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) either— to accept deposits; or to effect or carry out contracts of insurance;

• (d) after paragraph (1) insert—

(2) The definition of “qualifying lending institution” 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 Teachers' Superannuation (Provision of Information and Administrative Expenses etc) Regulations 1996 (S.I. 1996/2282)

Provision of information

536

The Teachers' Superannuation (Provision of Information and Administrative Expenses etc) Regulations 1996 are amended as follows—

• (a) in regulation 1 (citation, commencement and interpretation), the definition of “the 1986 Act” is revoked;

• (b) in paragraph (2) of regulation 3 (provision of information)—

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

• (ii) in sub-paragraph (b), for “section 44 of the 1986 Act” substitute “that Act”;

• (iii) sub-paragraph (c) is revoked;

• (iv) for sub-paragraphs (d) to (f) substitute—

(d) a designated professional body within the meaning of Part XX of that Act; (e) the scheme manager within the meaning of that Act; (f) the Financial Services Authority;

The Housing Act 1996 (Consequential Provisions) Order 1996 (S.I. 1996/2325)

Revocation of spent provision

537

In Schedule 1 to the Housing Act 1996 (Consequential Provisions) Order 1996 (repeals), the entry relating to the Banking Act 1987 is revoked.

The National Health Service Pension Scheme (Provision of Information and Administrative Expenses etc) Regulations 1996 (S.I. 1996/2424)

Provision of information

538

The National Health Service Pension Scheme (Provision of Information and Administrative Expenses etc) Regulations 1996 are amended as follows—

• (a) in regulation 2 (interpretation), for the definition of “the Financial Services Act” substitute—

• “the FSM Act” means the Financial Services and Markets Act 2000;

• (b) in paragraph (2) of regulation 3 (application of the 1996 Regulations), for “section 62 of the Financial Services Act” substitute “section 71 or 150 of the FSM Act”;

• (c) in regulation 5 (provision of information to prescribed persons)—

• (i) in paragraph (a), for “the Financial Services Act” substitute “the FSM Act”;

• (ii) in paragraph (b), for “section 44 of the Financial Services Act” substitute “the FSM Act”;

• (iii) paragraph (c) is revoked;

• (iv) for paragraphs (d) to (f) substitute—

(d) a designated professional body within the meaning of Part XX of the FSM Act; (e) the Financial Services Authority; (f) the scheme manager within the meaning of the FSM Act;

The Personal and Occupational Pension Schemes (Pensions Ombudsman) Regulations 1996 (S.I. 1996/2475)

Exclusions from jurisdiction

539

In the Personal and Occupational Pension Schemes (Pensions Ombudsman) Regulations 1996, for paragraph (1) of regulation 4 (exclusions from jurisdiction) substitute—

(1) The Pensions Ombudsman shall not investigate or determine any complaint or dispute which can be dealt with under the compulsory jurisdiction of the ombudsman scheme provided for by Part 16 of the Financial Services and Markets Act 2000, other than a complaint or dispute relating to the management of a personal pension scheme.

Payment of interest on late paid benefit

540

• (1) For paragraph (2)(b) of regulation 6³³² of the Personal and Occupational Pension Schemes (Pensions Ombudsman) Regulations 1996 (payment of interest on late paid benefit), substitute—

(b) “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 the United Kingdom and carrying on there a regulated activity of accepting deposits, and (iii) quote a base rate applicable to sterling deposits.

• (2) After paragraph (2) of that regulation insert—

(3) Paragraph (2)(b) 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 National Park Authorities (Levies) (England) Regulations 1996 (S.I. 1996/2794)

Interest on unpaid levies

541

The National Park Authorities (Levies) (England) Regulations 1996 are amended as follows—

• (a) for paragraph (3)(a) of regulation 8³³³ (interest on unpaid levies) substitute—

(a) the reference banks are the seven largest persons who- (i) have permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits, (ii) are incorporated in the United Kingdom and carrying on there a regulated activity of accepting deposits, and; (iii) quote a base rate in sterling, and

• (b) in paragraph (3)(b) of regulation 8, for “an institution” substitute “a person” and for “its” (in both places) substitute “his”;

• (c) paragraph (4)(a) of regulation 8 is revoked;

• (d) in paragraph (4)(b) of regulation 8, for “that institution” the first time it appears substitute “a person” and the second time it appears substitute “that person”;

• (e) after paragraph (4) of regulation 8 insert—

(5) Paragraph (3)(a) 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 Insurance (Lloyd's) Regulations 1996 (S.I. 1996/3011)

Revocation of the 1996 Regulations

542

The Insurance (Lloyd's) Regulations 1996 are revoked.

The Industrial and Provident Societies (Forms and Procedure) Regulations 1996 (S.I. 1996/3121)

Maintenance of files for registered societies

543

In paragraph (2) of regulation 12 of the Industrial and Provident Societies (Forms and Procedure) Regulations 1996 (duties and functions), the words from “together with documents” to the end are revoked.

The Occupational Pension Schemes (Investment) Regulations 1996 (S.I. 1996/3127)

Interpretation of the 1996 Regulations

544

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

Restrictions on employer-related investments

545

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

Investments to which restrictions on employer-related investments do not apply

546

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

Loans that become employer-related

547

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

Exemptions from section 35 of the 1995 Act

548

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

The Local Authorities (Capital Finance) Regulations 1997 (S.I. 1997/319)

Capital receipts of debt-free authorities

549

• (1) Regulation 65 of the Local Authorities (Capital Finance) Regulations 1997³³⁴ is amended as follows.

• (2) In paragraph (1), for sub-paragraphs (e) and (f) of the definition of “relevant lender” substitute—

(e) a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits; or (f) 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.

• (3) After paragraph (1) insert—

(1A) Sub-paragraphs (e) and (f) of the definition of “relevant lender” 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 Personal Pension Schemes (Appropriate Schemes) Regulations 1997 (S.I. 1997/470)

Forms of scheme which may be appropriate schemes

550

• (1) The Personal Pension Schemes (Appropriate Schemes) Regulations 1997 are amended as follows.

• (2) In paragraph (2) of regulation 1 (citation, commencement and interpretation), the definition of “investment business” is revoked.

• (3) For paragraph (2)(b) of regulation 2 (forms of scheme which may be appropriate schemes)³³⁵ substitute—

(b) a unit trust scheme of a kind mentioned in Part I of Schedule 1 to these Regulations which is the subject of an authorisation order made (or treated as made) under section 243 of the Financial Services and Markets Act 2000;

• (4) In regulation 3 (persons who and bodies which may establish schemes), for paragraph (2) substitute—

(2) This paragraph applies to a Friendly Society which has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of insurance.

• (5) Paragraph (3)(a) of regulation 3 is revoked.

• (6) For paragraph (3)(c) of regulation 3 substitute—

(c) a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits; (ca) 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;

• (7) In paragraph (3)(d) of regulation 3, for “an institution”, in both places, substitute “a person or firm”, and after “sub-paragraph (c)” insert “or (ca)”.

• (8) In paragraph (4) of that regulation, for “an institution” substitute “a person or firm”, and after “paragraph (3)(c)” insert “or (ca)”.

• (9) After paragraph 4 of that regulation insert—

(5) Sub-paragraphs (c) and (ca) of 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.

• (10) In Schedule 1 (kinds of unit trust scheme that may be an appropriate scheme)—

• (a) in Part I (kinds of unit trust scheme), for “investment company with a variable capital”, in both places, substitute “open-ended investment company”;

• (b) in Part II (definitions)—

• (i) in the definition of “authorised unit trust scheme”, for “the Financial Services Act 1986” substitute “Part 17 of the Financial Services and Markets Act 2000”;

• (ii) in the definition of “feeder fund”, for “investment company with variable capital” substitute “open-ended investment company”;

• (iii) in the definition of “fund of funds”, for “investment companies with a variable capital” substitute “open-ended investment companies”;

• (iv) the definition of “investment company with variable capital” is revoked;

• (v) after the definition of “money market fund” insert—

• “open-ended investment company” has the same meaning as in the Open-Ended Investment Companies Regulations 2001;

• (vi) for the definition of “transferable security” substitute—

• “transferable security” means any investment which is treated as a security for the purposes of any relevant order made under section 22 of the Financial Services and Markets Act 2000, other than an investment which either cannot be transferred or can be transferred only with the consent of a third party.

The Residuary Body for Wales (Dyffryn House and Gardens) Order 1997 (S.I. 1997/540)

Interpretation of the 1997 Order

551

• (1) In paragraph (1) of article 2 of the Residuary Body for Wales (Dyffryn House and Gardens) Order 1997 (interpretation and general provisions)—

• (a) for the definition of “contract for banking services” substitute—

• “contract for banking services” means a contract for the provision of services for the Residuary Body by— a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits; or 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;

• (b) the definition of “contract of insurance” is revoked.

• (2) After paragraph (4) of that article insert—

(5) The definition of “contract for banking services” in paragraph (1), and references in this Order to 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.

The Occupational Pension Schemes (Pensions Compensation Provisions) Regulations 1997 (S.I. 1997/665)

Interpretation of the 1997 Regulations

552

• (1) In paragraph (2) of regulation 1 of the Occupational Pension Schemes (Pensions Compensation Provisions) Regulations 1997 (citation, commencement and interpretation)³³⁶, for the definition of “reference banks” substitute—

• “reference banks” means the four largest persons for the time being who— have permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits, are incorporated in the United Kingdom and carrying on there a regulated activity of accepting deposits, and quote a base rate applicable to sterling deposits;

• (2) After that paragraph insert—

(2A) The definition of “reference banks” in 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.

The Occupational Pension Schemes (Discharge of Liability) Regulations 1997 (S.I. 1997/784)

Requirements applying to policies of insurance and annuity contracts

553

• (1) In paragraph (1) of regulation 2 of the Occupational Pension Schemes (Discharge of Liability) Regulations 1997 (requirements applying to policies of insurance and annuity contracts), for the words “an insurance company” to the end, substitute—

(a) a person who has permission under Part 4 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.

• (2) For paragraph (2) of that regulation, substitute—

(2) Sub-paragraphs (a) and (b) of 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 Social Security (Recovery of Benefits) (Northern Ireland) Order 1997 (S.I. 1997/1183 (N.I. 12))

Payments by insurers

554

• (1) Paragraph 5 of Schedule 1 to the Social Security (Recovery of Benefits) (Northern Ireland) Order 1997 is amended as follows.

• (2) The existing provision becomes sub-paragraph (1).

• (3) In that sub-paragraph—

• (a) for “insurance company within the meaning of the Insurance Companies Act 1982” substitute “insurer”; and

• (b) for “the company” substitute “the insurer”.

• (4) After that sub-paragraph, insert—

(2) “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. (3) 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.

The Local Government Pension Scheme Regulations 1997 (S.I. 1997/1612)

Interpretation of the 1997 Regulations

555

• (1) In regulation 2 of the Local Government Pension Scheme Regulations 1997 (interpretation)³³⁷, after paragraph (2) insert—

(3) The definitions of “AVC insurance company” and “Reference banks” in Schedule 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.

• (2) In Schedule 1 to those Regulations (interpretation)³³⁸—

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

• “AVC 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 long-term 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 long-term insurance;

• (b) for the definition of “Reference banks” substitute—

• “Reference banks” means the seven largest persons for the time being who— have permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits, are incorporated in the United Kingdom and carrying on there a regulated activity of accepting deposits, and quote a base rate in sterling; and for the purpose of this definition the size of a person at any time is to be determined by reference to the gross assets denominated in sterling of that person, together with any subsidiary (as defined in section 736 of the Companies Act 1985), as shown in the audited end-of-year accounts last published before that time;

Interpretation of regulations 5 and 6 of, and Schedule 2A to, the 1997 Regulations

556

• (1) Regulation 5³³⁹ of the Local Government Pension Scheme Regulations 1997 (Agreements to enable employees of non-Scheme employers to be members (“admission agreements”)) is amended as follows.

• (2) In paragraph (17) of that regulation, for sub-paragraph (a)³⁴⁰ substitute—

(a) “authorised insurer” means— (i) a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect and carry out contracts of general 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 and carry out contracts of general insurance;

• (3) In paragraph (17), for sub-paragraph (f) substitute—

(f) “relevant institution” 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(1) of that Schedule) to accept deposits, or (iii) a person who does not require permission under that Act to accept deposits, by way of business, in the United Kingdom;

• (4) After paragraph (17) insert—

(18) In paragraph (17), the definitions of “authorised insurer” and “relevant institution” 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.

Revenue restrictions

557

In paragraph 1(1) of Schedule 4 to the Local Government Pension Scheme Regulations 1997 (Revenue restrictions), in sub-paragraph (e) of the definition of “continuity conditions”³⁴¹, after “section 62 of the Financial Services Act 1986” insert “or section 71 or 150 of the Financial Services and Markets Act 2000”.

Prescribed persons to whom information may be provided

558

Paragraph 1 of Schedule 5A³⁴² (mis-sold pensions) to the Local Government Pension Scheme Regulations 1997 is amended as follows—

• (a) in sub-paragraph (a)—

• (i) after “a person who is” insert “an authorised person within the meaning of the Financial Services and Markets Act 2000 (“the 2000 Act”),”,

• (ii) before “has been an authorised person” insert “who”, and

• (iii) the words “(“the 1986 Act”)” are revoked;

• (b) in sub-paragraph (b) for “section 44 of the 1986 Act” substitute “section 39 of the 2000 Act”;

• (c) sub-paragraph (c) is revoked;

• (d) for sub-paragraph (d) substitute—

(d) a designated professional body within the meaning of section 326 of the 2000 Act;

• (e) for sub-paragraph (e) substitute—

(e) the Financial Services Authority;

, and

• (f) for sub-paragraph (f) substitute—

(f) the scheme manager (within the meaning of section 212(1) of the 2000 Act);

The Firemen’s Pensions (Provision of Information) Regulations 1997 (S.I. 1997/1829)

Persons to whom information may be supplied

559

In paragraph (2) of regulation 3 of the Firemen’s Pensions (Provision of Information) Regulations 1997 (persons to whom information may be supplied)—

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

• (b) in sub-paragraph (b), for “section 44 of the Financial Services Act 1986” substitute “that Act”;

• (c) sub-paragraph (c) is revoked;

• (d) for sub-paragraphs (d) to (f) substitute—

(d) a designated professional body within the meaning of Part XX of that Act; (e) the scheme manager within the meaning of that Act; (f) the Financial Services Authority;

The Police Pensions (Provision of Information) Regulations 1997 (S.I. 1997/1912)

Persons to whom information may be provided

560

In paragraph (2) of regulation 3 of the Police Pensions (Provision of Information) Regulations 1997 (persons to whom information may be supplied)—

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

• (b) in sub-paragraph (b), for “section 44 of the Financial Services Act 1986” substitute “that Act”;

• (c) sub-paragraph (c) is revoked;

• (d) for sub-paragraphs (d) to (f) substitute—

(d) a designated professional body within the meaning of Part XX of that Act; (e) the scheme manager within the meaning of that Act; (f) the Financial Services Authority;

The National Crime Squad Service Authority (Levying) Order 1997 (S.I. 1997/2283)

Interest on unpaid levies

561

In article 14 of the National Crime Squad Service Authority (Levying) Order 1997 (interest on unpaid levies)³⁴³, for paragraphs (2) and (3) substitute—

(2) For the purposes of paragraph (1) above— (a) the reference banks are the seven largest persons who— (i) have permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits; (ii) are incorporated in the United Kingdom and carrying on there a regulated activity of accepting deposits; and (iii) quote a base rate in sterling; (b) the size of a person is to be determined by reference to his total consolidated gross assets denominated in sterling, as shown in his audited end-year accounts last published before the beginning of the period for which interest is payable. (3) In this article, “consolidated gross assets” of a person is a reference to the gross assets of that person together with any subsidiary within the meaning of section 736 of the Companies Act 1985. (4) Paragraph (2)(a) 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.

The NCIS Service Authority (Levying) Order 1997 (S.I. 1997/2284)

Interest on unpaid levies

562

In article 14 of the NCIS Service Authority (Levying) Order 1997 (interest on unpaid levies)³⁴⁴, for paragraphs (2) and (3) substitute—

(2) For the purposes of paragraph (1) above— (a) the reference banks are the seven largest persons who— (i) have permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits; (ii) are incorporated in the United Kingdom and carrying on there a regulated activity of accepting deposits; and (iii) quote a base rate in sterling; (b) the size of a person is to be determined by reference to his total consolidated gross assets denominated in sterling, as shown in his audited end-year accounts last published before the beginning of the period for which interest is payable. (3) In this article, “consolidated gross assets” of a person is a reference to the gross assets of that person together with any subsidiary within the meaning of section 736 of the Companies Act 1985. (4) Paragraph (2)(a) 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.

The Teachers' Pensions Regulations 1997 (S.I. 1997/3001)

Interest on late payment of certain benefits

563

• (1) In regulation E34 of the Teachers' Pensions Regulations 1997³⁴⁵, for paragraph (5)(b) 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 the United Kingdom and carrying on there a regulated activity of accepting deposits; (iii) quote a base rate applicable to sterling deposits.

• (2) After paragraph (5) of that regulation insert—

(6) Paragraph (5)(b) 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 Building Societies (Transfer of Business) Regulations 1998 (S.I. 1998/212)

Transfer of business: prescribed matters for transfer statements and transfer notification statements

564

• (1) In paragraph 10 of Part II of Schedule 1 to the Building Societies (Transfer of Business) Regulations 1998 (matters of which particulars are to be included in the case of a transfer to an existing company)—

• (a) the existing text becomes sub-paragraph (1);

• (b) in that sub-paragraph, for the words from “become” to the end substitute “have relevant permission”;

• (c) after that sub-paragraph insert—

(2) “Relevant permission” means— (a) such permission under Part 4 of the Financial Services and Markets Act 2000, or (b) 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 the successor company 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.

• (2) In paragraph 4 of Part III of that Schedule (matters of which particulars are to be included in the case of a transfer to a specially formed company)—

• (a) the existing text becomes sub-paragraph (1);

• (b) in that sub-paragraph, for the words from “become” to the end substitute “have relevant permission”;

• (c) after that sub-paragraph insert—

(2) “Relevant permission” has the meaning given by paragraph 10(2) of Part II of this Schedule.

• (3) In paragraph 4 of Schedule 3 to those Regulations (prescribed matters for transfer notification statements)—

• (a) the existing text becomes sub-paragraph (1);

• (b) in that sub-paragraph for the words from “become” to the end substitute “have relevant permission”;

• (c) after that sub-paragraph insert—

(2) “Relevant permission” has the meaning given by paragraph 10(2) of Part II of Schedule 1 to these Regulations.

The Building Societies (Accounts and Related Provisions) Regulations 1998 (S.I. 1998/504)

Group accounts: subsidiary undertakings

565

• (1) In paragraph (7) of regulation 4 of the Building Societies (Accounts and Related Provisions) Regulations 1998 (group accounts: supplementary provisions), for the words from “means” to the end substitute “means the carrying on of a regulated activity (within the meaning of the Financial Services and Markets Act 2000) of accepting deposits”.

• (2) After that paragraph insert—

(7A) The reference in paragraph (7) to accepting deposits 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 of Schedules to the 1998 Regulations

566

In Schedule 11 to the Building Societies (Accounts and Related Provisions) Regulations 1998 (interpretation of Schedules)—

• (a) in paragraph 5 (definition of “listed securities”) for “which meets the criteria agreed between the Financial Services Authority and the Stock Exchange and is included in a list maintained by the Stock Exchange for the purposes of the rules of the Stock Exchange” substitute “which meets the criteria established by the competent authority (within the meaning of section 72 of the Financial Services and Markets Act 2000) and is included in a list maintained by that authority”;

• (b) in paragraph 13 (other definitions), for the definition of “credit institution” substitute—

• “credit institution” means an undertaking carrying on (whether in the United Kingdom or elsewhere) a regulated activity (within the meaning of the Financial Services and Markets Act 2000) of accepting deposits, and authorised by the competent authorities of an EEA State or any other State (the reference to accepting deposits being read with section 22 of that Act, any relevant order under that section and Schedule 2 to that Act);

The Police Act 1997 (Provisions in Relation to the NCIS Service Authority) Order 1998 (S.I. 1998/633)

Meaning of “securities”

567

In paragraph (1) of article E5 of the Police Act 1997 (Provisions in Relation to the NCIS Service Authority) Order 1998 (interpretation of articles E2 and E4), for sub-paragraph (a) substitute—

(a) investments treated as securities for the purposes of any relevant order made under section 22 of the Financial Services and Markets Act 2000;

Borrowing powers

568

• (1) In paragraph (2) of article G5 of the Police Act 1997 (Provisions in Relation to the NCIS Service Authority) Order 1998 (borrowing powers), for sub-paragraph (a) substitute—

(a) by overdraft or short term from the Bank of England or from a person who, at the time the borrowing is undertaken, is— (i) a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits; or (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; or

• (2) After paragraph (2) insert—

(2A) Paragraph (2)(a) 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.

Insurance by the NCIS Service Authority against accidents to members

569

• (1) In paragraph (1) of article K4 of the Police Act 1997 (Provisions in Relation to the NCIS Service Authority) Order 1998 (insurance by the NCIS Service Authority against accidents to members), the words “of Class 1 in Part 1 of Schedule 2 to the Insurance Companies Act 1982” are revoked.

• (2) After paragraph (4) of that article insert—

(5) 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 Bank of England (Information Powers) Order 1998 (S.I. 1998/1270)

Interpretation of the 1998 Order

570

In paragraph (2) of article 1 of the Bank of England (Information Powers) Order 1998 (citation, commencement and interpretation), in the definition of “securities”—

• (a) the word “relevant” is revoked; and

• (b) for “the Financial Services Act 1986” substitute “Part 17 of the Financial Services and Markets Act 2000”.

The Angola (United Nations Sanctions) Order 1998 (S.I. 1998/1752)

Assets of UNITA or persons connected with UNITA: definition of “investments”

571

In paragraph (4) of article 7 of the Angola (United Nations Sanctions) Order 1998 (assets of UNITA or persons connected with UNITA)³⁴⁶, for sub-paragraph (b) substitute—

(b) “investment” means any investment of a kind specified by any relevant order made under section 22 of the Financial Services and Markets Act 2000 which is not a security;

The Angola (United Nations Sanctions) (Channel Islands) Order 1998 (S.I. 1998/1756)

Assets of UNITA or persons connected with UNITA: definition of “investments”

572

In paragraph (4) of article 8 of the Angola (United Nations Sanctions) (Channel Islands) Order 1998 (assets of UNITA or persons connected with UNITA)(a), for sub-paragraph (b) substitute—

(b) “investment” means any investment of a kind specified by any relevant order made under section 22 of the Financial Services and Markets Act 2000 which is not a security;

The Angola (United Nations Sanctions) (Isle of Man) Order 1998 (S.I. 1998/1757)

Assets of UNITA or persons connected with UNITA: definition of “investments”

573

In paragraph (4) of article 7 of the Angola (United Nations Sanctions) (Isle of Man) Order 1998 (assets of UNITA or persons connected with UNITA)(a), for sub-paragraph (b) substitute—

(b) “investment” means any investment of a kind specified by any relevant order made under section 22 of the Financial Services and Markets Act 2000 which is not a security;

The Local Government Pension Scheme (Management and Investment of Funds) Regulations 1998 (S.I. 1998/1831)

Interpretation of the 1998 Regulations: general

574

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

Definition of “investment”

575

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

Definition of “investment manager”

576

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

Limits on investments

577

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

Definition of “open-ended investment company”

578

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

The Investor Compensation Scheme Regulations 1998 (S.I. 1998/2169)

Revocation of the 1998 Regulations

579

The Investor Compensation Scheme Regulations 1998 are revoked.

The Residuary Body for Wales (Winding Up) Order 1998 (S.I. 1998/2859)

Interpretation of the 1998 Order

580

• (1) In paragraph (1) of article 2 of the Residuary Body for Wales (Winding Up Order) 1998 (interpretation and general provisions)—

• (a) for the definition of “contract for banking services” substitute—

• “contract for banking services” means a contract for the provision of services for the Residuary Body by— a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits; or 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;

• (b) the definition of “contract of insurance” is revoked.

• (2) After paragraph (3) of that article insert—

(4) The definition of “contract for banking services” in paragraph (1), and references in this Order to 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.

The Social Landlords (Additional Purposes or Objects) Order 1999 (S.I. 1999/985)

Meaning of “qualifying lending institution”

581

• (1) Article 3 of the Social Landlords (Additional Purposes or Objects) Order 1999 (priority of mortgages) is amended as follows.

• (2) In paragraph (3), for the definition of “qualifying lending institution” substitute—

• “qualifying lending institution” means— the Corporation; a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits or to effect or carry out contracts of insurance; or an EEA firm of the kind mentioned in paragraph 5(b) or (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) either— to accept deposits; or to effect or carry out contracts of insurance;

• (3) after paragraph (3) insert—

(4) The definition of “qualifying lending institution” in 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 Scotland Act 1998 (Functions Exercisable in or as regards Scotland) Order 1999 (S.I. 1999/1748)

Revocation of references to former tribunals

582

In Schedule 1 to the Scotland Act 1998 (Functions Exercisable in or as Regards Scotland) Order 1999—

• (a) paragraphs 8 and 23 (which relate to the tribunal established under section 47 of the Building Societies Act 1986³⁴⁷), and

• (b) paragraph 9 (which relates to the Financial Services Tribunal),

are revoked.

Unfair Terms in Consumer Contracts Regulations 1999 (S.I. 1999/2083)

Functions of the Financial Services Authority

583

In article 16³⁴⁸ of the Unfair Terms in Consumer Contracts Regulations 1999 (the functions of the Financial Services Authority), for “Financial Services Act 1986” substitute “Financial Services and Markets Act 2000”.

The Banking (Gibraltar) Regulations 1999 (S.I. 1999/2094)

Revocation of the 1999 Regulations

584

The Banking (Gibraltar) Regulations 1999 are revoked.

The Education (School Government) (England) Regulations 1999 (S.I. 1999/2163)

Restrictions on persons taking part in proceedings of the governing body or their committees

585

In paragraph 2 of Schedule 6 to the Education (School Government) (England) Regulations 1999 (pecuniary interests), for sub-paragraph (8) substitute—

(8) In this paragraph, “securities” means any investments which are treated as securities for the purposes of any relevant order made under section 22 of the Financial Services and Markets Act 2000.

The Education (School Government) (Wales) Regulations 1999 (S.I. 1999/2242)

Restrictions on persons taking part in proceedings of the governing body or their committees

586

In paragraph 2 of Schedule 7 to the Education (School Government) (Wales) Regulations 1999 (pecuniary interests), for sub-paragraph (8) substitute—

(8) In this paragraph, “securities” means any investments which are treated as securities for the purposes of any relevant order made under section 22 of the Financial Services and Markets Act 2000.

The Data Protection (Processing of Sensitive Personal Data) Order 2000 (S.I. 2000/417)

Interpretation of the 2000 Order: Insurance business

587

• (1) The Schedule to the Data Protection (Processing of Sensitive Personal Data) Order 2000 (Circumstances in which sensitive personal data may be processed) is amended as follows.

• (2) In sub-paragraph (2) of paragraph 5 of that Schedule, for paragraph (a) substitute—

(a) “insurance business” means business which consists of effecting or carrying out contracts of insurance of the following kind— (i) life and annuity, (ii) linked long term, (iii) permanent health, (iv) accident, or (v) sickness; and

• (3) After sub-paragraph (2) of paragraph 5 insert—

(2A) The definition of “insurance business” in sub-paragraph (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 paragraph 6(b) of that Schedule for paragraph (i) substitute—

(i) effecting or carrying out contracts of long-term insurance of the kind mentioned in sub-paragraph (2)(a)(i), (ii) or (iii) of paragraph 5 above.

The Community Legal Service (Costs) Regulations 2000 (S.I. 2000/441)

Interpretation of regulation 24 of the 2000 Regulations

588

• (1) Regulation 24 of the Community Legal Service (Costs) Regulations 2000 (interest on damages) is amended as follows.

• (2) In paragraph (2) of that regulation for “a bank or building society” substitute “a deposit-taker”.

• (3) In paragraph (6) of that regulation—

• (a) the definitions of “bank” and “building society” are revoked; and

• (b) after the definition of “business day” insert—

• “deposit taker” means the Bank of England, or the branch, situated in England or Wales, of either— a person with permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits, or 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;

• (4) After paragraph (6) of that Regulation insert—

(7) The definition of “deposit taker” in paragraph (6) 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 National Health Service Pension Scheme (Additional Voluntary Contributions) Regulations 2000 (S.I. 2000/619)

Interpretation of the 2000 Regulations

589

• (1) The National Health Service Pension Scheme (Additional Voluntary Contributions) Regulations 2000 are amended as follows.

• (2) In paragraph (1) of regulation 2 (Interpretation) the definition of “insurance company” is revoked, and in the same place insert—

• “insurer” means— a person with permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of long-term 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(1) of that Schedule) to effect or carry out contracts of long-term insurance;

• (3) After paragraph (2) of regulation 2 insert—

(3) The definition of “insurer” in paragraph (1) 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 regulations 7(2) and 11(1) and (6), and paragraphs 1(1) and 4(8) of Schedule 2 to those Regulations, for “insurance company” substitute “insurer”.

The Pension Sharing (Implementation and Discharge of Liability) Regulations 2000 (S.I. 2000/1053)

Interpretation of the 2000 Regulations

590

• (1) In paragraph (2) of regulation 1 of the Pension Sharing (Implementation and Discharge of Liability) Regulations 2000 (Citation, commencement and interpretation), for the definition of “the reference banks”³⁴⁹ substitute—

• “the reference banks” means the seven largest persons for the time being who— have permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits, are incorporated in the United Kingdom and carrying on there the regulated activity of accepting deposits, and quote a base rate in sterling; and for the purpose of this definition the size of a person at any time is to be determined by the gross assets denominated in sterling of that person, together with any subsidiary (as defined in section 736 of the Companies Act 1985), as shown in the end of year accounts last published before that time;

• (2) After paragraph (2) of that regulation insert—

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

Qualifying arrangements

591

• (1) In paragraph (1) of regulation 11 of the Pension Sharing (Implementation and Discharge of Liability) Regulations 2000 (qualifying arrangements), for sub-paragraphs (a) to (c) substitute—

(a) a person who has permission under Part 4 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.

• (2) For paragraph (2) of that regulation substitute—

(2) Paragraph (1)(a) and (b) 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 Pension Sharing (Pension Credit Benefit) Regulations 2000 (S.I. 2000/1054)

Interpretation of the 2000 Regulations

592

• (1) In paragraph (2) of regulation 1 of the Pension Sharing (Pension Credit Benefit) Regulations 2000 (Citation, commencement and interpretation), for the definition of “the reference banks”³⁵⁰ substitute—

• “the reference banks” means the seven largest persons for the time being who— have permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits; are incorporated in the United Kingdom and carrying on there a regulated activity of accepting deposits; and quote a base rate in sterling; and for the purpose of this definition the size of a person at any time is to be determined by reference to the gross assets denominated in sterling of that person, together with any subsidiary (as defined in section 736 of the Companies Act 1985), as shown in the audited end of year accounts last published before that time.

• (2) After paragraph (2) of that regulation insert—

(3) The definition of “the reference banks” in 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.

Means of assuring pension credit benefit

593

• (1) In paragraph (3) of regulation 5 of the Pension Sharing (Pension Credit Benefit) Regulations 2000 (means of assuring pension credit benefit), for sub-paragraphs (a) to (c) substitute—

(a) a person who has permission under Part 4 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.

• (2) For paragraph (4) of that regulation substitute—

(4) Paragraph (3)(a) and (b) 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 Pension Sharing (Safeguarded Rights) Regulations 2000 (S.I. 2000/1055)

Insurance companies that may provide safeguarded rights by way of annuities

594

• (1) In regulation 8 of the Pension Sharing (Safeguarded Rights) Regulations 2000 (insurance companies that may provide safeguarded rights by way of annuities), for paragraph (2) substitute—

(2) The insurance company must be— (a) a person who has permission under Part 4 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.

• (2) In paragraph (4) of that regulation, for the words from the beginning of that paragraph to “as described in paragraph (2)(b),” substitute “Where the annuities are issued by an insurance company which is a friendly society, within the meaning given by section 116 of the Friendly Societies Act 1992,”.

• (3) After that paragraph insert—

(5) 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.

The Stakeholder Pension Schemes Regulations 2000 (S.I. 2000/1403)

Interpretation of the 2000 Regulations: general

595

• (1) In paragraph (3) of regulation 1 of the Stakeholder Pension Schemes Regulations 2000 (Citation, commencement and interpretation)—

• (a) the definition of “insurance company” is revoked, and in the same place insert—

• “insurer” 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;

; and

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

• “securities” means investments of the following kinds— shares, instruments creating or acknowledging indebtedness, government and public securities, instruments giving entitlements to investments, certificates representing securities, but does not include shares in a unit trust;

• (2) After paragraph (3) of that regulation insert—

(3A) The definitions of “insurer” and “securities” in 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.

• (3) In regulation 8(5) of those Regulations for “insurance company” substitute “insurer”.

• (4) In regulation 15(3) of those Regulations for “insurance company” substitute “insurer”.

Interpretation of regulation 8

596

• (1) In paragraph (4) of regulation 8 of the Stakeholder Pension Schemes Regulations 2000 (Requirement applying to all stakeholder pension schemes as regards investments), for “section 75 of the Financial Services Act 1986” substitute “section 235 of the Financial Services and Markets Act 2000”.

• (2) In paragraph (6) of that regulation—

• (a) for the definition of “contract of insurance”³⁵¹ substitute—

• “contract of insurance” means a contract— which, or any part of which, is of one or more of the following kinds— life and annuity, linked long term, pension fund management, and which is carried out by an insurer who has permission, as the case may be, under— Part 4 of the Financial Services and Markets Act 2000, or paragraph 15 of Schedule 3 to that Act, to effect or carry out contracts of insurance of that kind;

• (b) the definition of “deposit” is revoked; and

• (c) for the definition of “reference banks” substitute—

• “reference banks” means the seven largest persons for the time being who— have permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits, are incorporated in the United Kingdom and carrying on there a regulated activity of accepting deposits; and quote a base rate applicable to sterling deposits, and for the purpose of this definition the size of a person at any time is to be determined by reference to the gross assets denominated in sterling of that person, together with any subsidiary (as defined in section 736 of the Companies Act 1985), as shown in the audited end of year accounts last published before that time.

• (3) After paragraph (6) of that regulation insert—

(7) References to a “deposit” in this regulation, together with the definitions of “contract of insurance” and “reference banks” in paragraph (6) 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 “proper advice”

597

• (1) In regulation 10 of the Stakeholder Pension Schemes Regulations 2000 (Requirement for manager of schemes not established under a trust to have regard to certain matters, and to take advice, relating to investment), for sub-paragraph (a) of paragraph (5) substitute—

(a) where the giving of advice constitutes a regulated activity of advising on investments (or would constitute such a regulated activity but for the identity of the person carrying on that activity), advice given by a person who may give that advice without contravening the prohibition imposed by section 19 of the Financial Services and Markets Act 2000;

• (2) After paragraph (5) of that regulation insert—

(5A) Paragraph (5)(a) 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 Local Government (Early Termination of Employment) (Discretionary Compensation) (England and Wales) Regulations 2000 (S.I. 2000/1410)

Interpretation of the 2000 Regulations: “reference banks”

598

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

The Iraq (United Nations Sanctions) Order 2000 (S.I. 2000/3241)

Construction of the 2000 Order—“relevant institution”

599

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

The Iraq (United Nations Sanctions) (Overseas Territories) Order 2000 (S.I. 2000/3242)

Construction of the 2000 Order—“relevant institution”

600

• (1) Article 2 of the Iraq (United Nations Sanctions) (Overseas Territories) Order 2000 (interpretation) is amended as follows.

• (2) The existing text is numbered paragraph (1).

• (3) In paragraph (1), in the definition of “relevant institution”—

• (a) for paragraph (b) substitute—

(b) a person who may lawfully accept deposits in or from within the Territory by way of business;

• (b) for paragraph (c) substitute—

(c) an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to the Financial Services and Markets Act 2000, which has lawfully established a branch in Gibraltar for the purpose of accepting deposits;

• (4) After paragraph (1) insert—

(2) For the purpose of the definition of “relevant institution” in paragraph (1)— (a) the activity of accepting deposits has the meaning given in any relevant order under section 22 of the Financial Services and Markets Act 2000; and (b) a person is not regarded as accepting deposits by way of business if— (i) he does not hold himself out as accepting deposits on a day to day basis, and (ii) any deposits which he accepts are accepted only on particular occasions, whether or not involving the issue of any securities. (3) In determining for the purposes of paragraph (2)(b)(ii) whether deposits are accepted only on particular occasions, regard is to be had to the frequency of those occasions and to any characteristics distinguishing them from each other.

The Iraq (United Nations Sanctions) (Isle of Man) Order 2000 (S.I. 2000/3245)

Construction of the 2000 Order—“relevant institution”

601

• (1) Article 2 of the Iraq (United Nations Sanctions) (Isle of Man) Order 2000 (interpretation) is amended as follows.

• (2) The existing text is numbered paragraph (1).

• (3) In paragraph (1), in the definition of “relevant institution” for paragraph (d) substitute—

(d) an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to the Financial Services and Markets Act 2000, which has lawfully established a branch in the Isle of Man for the purpose of accepting deposits or other repayable funds from the public;

• (4) After paragraph (1) insert—

(2) For the purpose of paragraph (d) of the definition of “relevant institution” in paragraph (1) the activity of accepting deposits has the meaning given in any relevant order under section 22 of the Financial Services and Markets Act 2000.

The Whole of Government Accounts (Designation of Bodies) Order 2000 (S.I. 2000/3357)

Revocation of reference to Policyholders Protection Board

602

In the Schedule to the Whole of Government Accounts (Designation of Bodies) Order 2000, the words “Policyholders Protection Board” are revoked.

The Terrorism Act 2000 (Crown Servants and Regulators) Regulations 2001 (S.I. 2001/192)

Revocation of references to person no longer performing regulatory functions

603

In regulation 4(1) of the Terrorism Act 2000 (Crown Servants and Regulators) Regulations 2001 (Disapplication of section 19 in relation to persons performing functions of a public nature)—

• (a) sub-paragraphs (b), (c), (d), (f), (g), (i), (j), (k) and (l) are revoked; and

• (b) for sub-paragraph (e) substitute—

(e) a designated professional body within the meaning of section 326(2) of the Financial Services and Markets Act 2000;

The Pig Industry Restructuring (Capital Grant) Scheme 2001 (S.I. 2001/251)

Meaning of “bank”

604

• (1) Paragraph 2 of the Pig Industry Restructuring (Capital Grant) Scheme 2001 (interpretation) is amended as follows.

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

• “bank” means— 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, the National Savings Bank, 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, or a credit union within the meaning of the Credit Unions Act 1979;

• (3) After sub-paragraph (1) insert—

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

The Pig Industry Restructuring Grant (Non-capital Grant) Scheme 2001 (S.I. 2001/252)

Meaning of “bank”

605

• (1) Paragraph 2 of the Pig Industry Restructuring (Non-Capital Grant) Scheme 2001 (interpretation) is amended as follows.

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