The Financial Services Act 1986 (Exemption) Order 1996

• Citation: S.I. 1996/1587
• Sections: 3

Section 1 Citation, commencement and interpretation

(1) This Order may be cited as the Financial Services Act 1986 (Exemption) Order 1996.

(2) Articles 1 and 2 of this Order shall come into force on 10th July 1996 and article 3 shall come into force on 15th July 1996.

(3) In this Order—

“Operator” means a person approved as such by the Treasury under the Uncertificated Securities Regulations 1995 ;

“dematerialised instruction” has the meaning given in the Uncertificated Securities Regulations 1995; and

the expression “properly authenticated”, when used to describe a dematerialised instruction shall be construed in accordance with regulation 3(2)(a) of those Regulations.

Section 2 Exemption of Operator

An Operator is an exempted person as respects anything done by him, otherwise than in his capacity as a person providing clearing services for the transaction of investment business, for the purposes of operating a computer-based system and procedures which—

(a) enable title to investments to be evidenced and transferred without a written instrument; and

(b) facilitate matters supplementary and incidental to those specified in sub-paragraph (a) above.

Section 3 Exemption of network providers

A person who engages in an activity within paragraph 16A of Schedule 1 to the Financial Services Act 1986 in the course of providing a network, the purpose of which is to carry dematerialised instructions which are at all times properly authenticated, is an exempted person as respects an activity falling within that paragraph of that Schedule in which he engages as a necessary part of his provision of that network.