The Financial Services and Markets Act 2000 (Consequential Amendments) Order 2002

• Citation: S.I. 2002/1555
• Sections: 62

Section 1 Citation and commencement

This Order may be cited as the Financial Services and Markets Act 2000 (Consequential Amendments) Order 2002 and comes into force on 3rd July 2002.

Section 2 Illegal policies: liability of insurer

(1) The Industrial Assurance Act 1923 (as that Act has effect, notwithstanding its repeal , by virtue of the Financial Services and Markets Act 2000 (Consequential Amendments and Savings) (Industrial Assurance) Order 2001 ) is amended as follows.

(3) In section 5 (prohibition on issue of illegal policies), in subsection (1) for “entitled” (in the second place it occurs) substitute “liable”.

Section 3 Contraventions of the 1951 Act

In subsection (5) of section 57 of the Reserve and Auxiliary Forces (Protection of Civil Interests) Act 1951 (provisions supplementary to the three preceding sections), before “of regulations under this section” insert “this Part or”.

Section 4 Offences under the 1951 Act: application to Guernsey and Jersey

(1) In relation to the Channel Islands , section 57 of the Reserve and Auxiliary Forces (Protection of Civil Interests) Act 1951 is amended as follows.

(2) For subsection (5) substitute—

(5) An industrial assurance company, a collecting society or a friendly society which fails to comply with the provisions of this Part or of regulations under this section shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 4 on the standard scale.

(3) Subsections (5A) and (5B) are omitted.

Section 5 Meaning of “securities”

(1) In subsection (1) of section 98 of the Local Government Act 1972 (interpretation of sections 95 and 97) for paragraph (a) substitute—

(a) any of the following kinds of investments, namely—

(i) shares,

(ii) instruments creating or acknowledging indebtedness,

(iii) government and public securities,

(iv) instruments giving entitlement to investments,

(v) certificates representing securities,

(vi) units in a collective investment scheme,

(vii) rights to, or interests in, any security of a kind mentioned in sub-paragraphs (i) to (vi); or

(2) After subsection (2) of section 98 insert—

(3) Paragraph (a) of 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.

Section 6 Disapplication of section 21 of the Financial Services and Markets Act 2000

In Schedule 1 to the Welsh Development Agency Act 1975 (the Welsh Development Agency), for paragraph 21 (circulars) substitute—

(21) Section 21(1) of the Financial Services and Markets Act 2000 (restrictions on financial promotion) does not apply to any invitation or inducement to engage in an investment activity (within the meaning of section 21(8) of that Act) which the Agency communicate or cause to be communicated in discharge of their functions.

Section 7 Repeal of unnecessary provisions

(1) The Credit Unions Act 1979 is amended as follows.

(2) In section 4 (rules), subsection (4) is repealed.

(3) In subsection (2) of section 31 (interpretation), omit “71,”.

(4) In subsection (2) of section 32 (Northern Ireland), omit “under section 71 of the 1965 Act”.

Section 8 Restriction on disclosure of information

In subsection (3) of section 19 of the Competition Act 1980 (restriction on disclosure of information), for the second paragraph (h) substitute—

(hh) Chapter III of Part X (competition scrutiny of regulating provisions and practices of the Authority), and Chapter II of Part XVIII (competition scrutiny of regulatory provisions and practices of recognised clearing houses and recognised investment exchanges), of the Financial Services and Markets Act 2000;

Section 9 Meaning of “securities”

(1) In subsection (6) of section 3 of the Licensing (Alcohol Education and Research) Act 1981 (final accounts of authorities and powers of liquidators), for the definition of “securities” substitute—

“securities” means—

shares,

instruments creating or acknowledging indebtedness,

government and public securities,

instruments giving entitlement to investments,

certificates representing securities,

units in a collective investment scheme,

rights to, or interests in, any security of a kind mentioned in paragraphs (a) to (f).

(2) After subsection (6) insert—

(7) The definition of “securities” in subsection (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.

Section 10 Repeal of the 1981 Act

The Insurance Companies Act 1981 is repealed.

Section 11 Insurance companies formed before 3rd November 1966 in contravention of section 434 of the Companies Act 1948

In section 716 of the Companies Act 1985 (prohibition of partnerships with more than 20 members), after subsection (5) insert —

(6) Subsection (1), or any corresponding provision previously in force, does not invalidate the formation of any insurance company which immediately before 3rd November 1966 was carrying on in Great Britain insurance business of any class relevant for the purposes of Part I of the Insurance Companies Act 1974 and was carrying on business of that class on 25th July 1973.

Section 12 Meaning of “manager”

In Part IV of Schedule 9 to the Companies Act 1985 (special provisions for banking companies and groups) , paragraph (3) is amended as follows.

(2) In sub-paragraph (1)(b) the words “(within the meaning of the Financial Services and Markets Act 2000)” are repealed.

(3) For sub-paragraph (3) substitute—

(3) In this paragraph—

(a) “director” includes a shadow director;

(b) “chief executive” has the meaning given in section 417 of the Financial Services and Markets Act 2000; and

(c) “manager” has the meaning given in section 423(3) of that Act.

Section 13 Repeal of the 1985 Act

The Insurance (Fees) Act 1985 is repealed.

Section 14 Limitation on power to make administration order

(1) Subsection (5) of section 8 of the Insolvency Act 1986 (power of court to make order) is amended as follows.

(2) For paragraph (a) substitute—

(a) it effects or carries out contracts of insurance, but is not—

(i) exempt from the general prohibition, within the meaning of section 19 of the Financial Services and Markets Act 2000, in relation to effecting or carrying out contracts of insurance, or

(ii) an authorised deposit taker within the meaning given by subsection (IB), and effecting or carrying out contracts of insurance in the course of a banking business;

(3) In paragraph (b), after “the Banking Act 1987” insert “, but is not an authorised deposit taker, within the meaning given by subsection (1B)”.

Section 15 Supplementary powers of the court: winding up of an insolvent partnership

(1) The repeal of subsection (5C) of section 168 of the Insolvency Act 1986 (supplementary powers (England and Wales)) by article 306 of the Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001 is treated as if it had not been made, and instead that subsection is amended in accordance with paragraph (2).

(2) For subsection (5C) substitute—

(5C) Where the court makes an order for the winding up of an insolvent partnership under—

(a) section 72(1)(a) of the Financial Services Act 1986;

(b) section 92(1)(a) of the Banking Act 1987; or

(c) section 367(3)(a) of the Financial Services and Markets Act 2000,

the court may make an order as to the future conduct of the winding up proceedings, and any such order may apply any provisions of the Insolvent Partnerships Order 1994 with any necessary modifications.

Section 16 Power to apply first group of Parts to formerly authorised banks

(1) Section 422 of the Insolvency Act 1986 (recognised banks, etc.) is amended as follows.

(2) For the cross heading to that section substitute “Formerly authorised banks”.

(3) In subsection (1) , after “in relation to any person” insert “(other than an authorised deposit taker)”.

(4) After subsection (1) insert—

(1A) For the purposes of subsection (1), “authorised deposit taker” has the meaning given in section 8(1B).

Section 17 Definition of “insurer”

In subsection (4) of section 15A of the Social Security Administration Act 1992 (payment out of benefit of sums in respect of mortgage interest etc.) , in paragraph (b) of the definition of “insurer” for “paragraph 5(b)” substitute “paragraph 5(d)”.

Section 18 Meaning of “qualifying lender”

(1) Section 13A of the Social Security Administration (Northern Ireland) Act 1992 is amended as follows.

(2) In subsection (3)—

(a) for paragraph (a) substitute—

(a) a deposit taker;

(b) paragraph (b) is repealed; and

(c) for paragraph (c) substitute—

(c) an insurer;

(3) In subsection (4), before the definition of “mortgage interest” insert—

“deposit taker” means—

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;

“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;

(4) After subsection (4) insert—

(4A) The definitions of “deposit taker” and “insurer” in subsection (4) must be read with—

(a) section 22 of the Financial Services and Markets Act 2000;

(b) any relevant order under that section; and

(c) Schedule 2 to that Act.

Section 19 Discharge of protected rights on winding up: insurance policies

(1) The amendments made to section 28A of the Pension Schemes (Northern Ireland) Act 1993 (discharge of protected rights on winding up: insurance policies) by article 131 of the Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001 are treated as if they had not been made, and instead section 28A is amended as follows.

(2) In subsection (2)(a)—

(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.

Section 20 Entitlement to guaranteed minimum pensions: treatment of entitlements

In section 43(3)(d) of the Pension Schemes (Northern Ireland) Act 1993 (further provisions concerning entitlement to guaranteed minimum pensions for the purposes of section 42), for “Policyholders Protection Act 1975” substitute “Financial Services Compensation Scheme”.

Section 21 Determination of questions by the Department

In section 165(1)(c) of the Pension Schemes (Northern Ireland) Act 1993 (determination of questions by the Department) for “Policyholders Protection Act 1975” substitute “Financial Services Compensation Scheme”.

Section 22 Interpretation: Financial Services Compensation Scheme

In section 176(1) of the Pension Schemes (Northern Ireland) Act 1993, at the appropriate place 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;

Section 23 Restriction on disclosure of information

For paragraph (b) of section 59(3) of the Coal Industry Act 1994 (information to be kept confidential by the Authority) substitute—

(b) the Secretary of State, the Treasury and the Financial Services Authority are relevant authorities in relation to their functions under the Financial Services and Markets Act 2000 and the enactments relating to companies and insolvency;

Section 24 Interpretation of section 55: relevant functions and designated person

(1) Schedule 11 to the Competition Act 1998 (interpretation of section 55) is amended as follows.

(2) In paragraph 1, for sub-paragraph (h) substitute—

(h) the Financial Services and Markets Act 2000 (c. 11) ;

(3) In paragraph 2, for sub-paragraph (r) substitute—

(r) the Financial Services Authority;

Section 25 Exemption in connection with corporate finance services

(1) In Schedule 7 to the Data Protection Act 1998 (miscellaneous exemptions), paragraph 6 (corporate finance) is amended as follows.

(2) In sub-paragraph (3), in the definition of “instrument”, omit “, as set out in Schedule 1 to the Investment Services Regulations 1995”.

(3) In that sub-paragraph, in the definition of “relevant person”, for paragraphs (a) to (c) substitute—

(a) any person who, by reason of any permission he has under Part IV of the Financial Services and Markets Act 2000, is able to carry on a corporate finance service without contravening the general prohibition, within the meaning of section 19 of that Act;

(b) an EEA firm of the kind mentioned in paragraph 5(a) or (b) of Schedule 3 to that Act which has qualified for authorisation under paragraph 12 of that Schedule, and may lawfully carry on a corporate finance service;

(c) any person who is exempt from the general prohibition in respect of any corporate finance service—

(i) as a result of an exemption order made under section 38(1) of that Act, or

(ii) by reason of section 39(1) of that Act (appointed representatives);

(cc) any person, not falling within paragraph (a), (b) or (c) who may lawfully carry on a corporate finance service without contravening the general prohibition;

Section 26 Repeal of unnecessary provision

In Schedule 1 to the Regulation of Investigatory Powers Act 2000, in Part I (relevant authorities for the purposes of sections 28 and 29), paragraph 22 (the Personal Investment Authority) is repealed.

Section 27 Restriction on disclosure of information

The amendments made to section 105(4) of the Utilities Act 2000 (general restrictions on disclosure of information) by article 363 of the Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001 are treated as if they had not been made, and instead section 105(4) is amended as follows—

(a) in paragraph (c) omit “by the Financial Services Act 1986 or” and “, insurance companies”; and

(b) after paragraph (d) insert—

(da) for the purpose of facilitating the performance by the Secretary of State, the Treasury or the Financial Services Authority of any functions under the Financial Services and Markets Act 2000;

(db) for the purpose of facilitating the discharge of any function by a person appointed under—

(i) section 97 of the financial Services and Markets Act 2000 (investigations into a breach of listing rules etc.),

(ii) section 167 of that Act (general investigations), or

(iii) section 168 of that Act (investigations in particular cases);

Section 28 Repeal of unnecessary provisions

(1) In Schedule 1 to the Insolvency Act 2000 (amendments of the Insolvency Act 1986), Schedule A1 to the Insolvency Act 1986 (moratorium where directors propose voluntary arrangement) is amended as follows.

(2) In paragraph 1 (interpretation), the definitions of “money market contract” and “money market charge”, and “related contract” are repealed.

(3) In paragraph 2 (eligible companies), in sub-paragraph (2)(c) omit “, a money market contract or a related contract” and “, a money market charge”.

(4) In paragraph 23 (market contracts, etc.)—

(a) in sub-paragraph (2)(a) omit “a money market contract or a related contract,”;

(b) in sub-paragraph (2)(c) omit “, a money market charge”; and

(c) in sub-paragraph (5) omit “a money market charge,”.

Section 29 Companies not eligible for a moratorium

(1) In Schedule 1 to the Insolvency Act 2000 (amendments of the Insolvency Act 1986), paragraph 2 of Schedule A1 to the Insolvency Act 1986 (moratorium where directors propose voluntary arrangement) is amended as follows.

(2) In sub-paragraph (2) (eligible companies) for paragraphs (a) and (b) substitute—

(a) it effects or carries out contracts of insurance, but is not exempt from the general prohibition, within the meaning of section 19 of the Financial Services and Markets Act 2000, in relation to that activity,

(b) it has permission under Part IV of that Act to accept deposits,

(bb) it has a liability in respect of a deposit which it accepted in accordance with the Banking Act 1979 (c. 37) or 1987 (c. 22) ,

(3) After sub-paragraph (2) insert—

(3) Paragraphs (a), (b) and (bb) of 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.

Section 30 Excepted petitions

In Schedule 1 to the Insolvency Act 2000, in paragraph 12 (effect on creditors etc.) of Schedule A1 to the Insolvency Act 1986, after paragraph (c) of sub-paragraph (5) insert—

(d) section 367 of the Financial Services and Markets Act 2000 on the ground mentioned in subsection (3)(b) of that section.

Section 31 Application of companies insolvency legislation to building societies

In Part II of Schedule 2 to the Insolvency Act 2000 (company voluntary arrangements: amendments of the Building Societies Act 1986), in paragraph 13(1), for “the Commission” (in each place it appears) substitute “the Authority”.

Section 32 Availability of information to scheme members

(1) The Person Pension Schemes (Disclosure of Information) Regulations 1987 are amended as follows.

(2) In paragraph (5) of regulation 6 (availability of other information) , for “Part 10 (reports) of the Financial Services (Regulated Schemes) Regulations 1991 issued by the Securities and Investments Board” substitute “Chapter 10 (reports and accounts) of the Collective Investment Schemes Sourcebook made by the Financial Services Authority under Part X of the Financial Services and Markets Act 2000”.

(3) In paragraph 4 of Schedule 3 (other information) , for “by Schedule 3 to the Financial Services (Regulated Schemes) Regulations 1991 issued by the Securities and Investments Board” substitute “by section 10.3 (contents of annual and half-yearly reports) of the Collective Investment Schemes Sourcebook made by the Financial Services Authority under Part X of the Financial Services and Markets Act 2000”.

Section 33 Appropriate schemes

(1) The Personal Pension Schemes (Compensation) Regulations 1988 are amended as follows.

(2) In regulation 2 (application of regulations)—

(a) in paragraph (a) for “regulation 2(1)(a)” substitute “regulation 2(2)(a)”; and

(b) in paragraph (d) for “regulation 2(1)(c)” substitute “regulation 2(2)(c)”.

(3) In regulation 3 (requirements to be complied with by liable schemes in event of insolvency), in paragraph (1) and paragraph (3) for “regulation 2(1)” (in each place it appears) substitute “regulation 2(2)”.

Section 34 Application of Part II of the Insolvency Act 1986 to former authorised institutions

(1) The Banks (Administration Proceedings) Order 1989 is amended as follows.

(2) In article 2 (application of provisions in the Insolvency Act 1986 with modifications in relation to companies which are former authorised institutions) the words “authorised institutions and” and “within the meaning of the Banking Act 1987” are revoked.

(3) In paragraph 2 of the Schedule , for “section 8(4)” substitute “section 8(5)”.

Section 35 Record-keeping procedures: appointed representatives

In regulation 13(4) of the Money Laundering Regulations 1993 (record-keeping procedures: supplementary provisions) , omit “which is investment business carried on by him”.

Section 36 Application of Part II of the Insolvency Act 1986 to partnerships which are former authorised institutions

In paragraph 2 of Schedule 2 to the Insolvent Partnerships Order 1994 (modified provisions of Part II of the Insolvency Act), in paragraph (b) of the text of section 8(5) of the Insolvency Act 1986 (as modified by that paragraph) , after “the Banking Act 1987” insert “, but is not an authorised deposit taker, within the meaning given by subsection (1B)”.

Section 37 Exclusions from jurisdiction of Pensions Ombudsman

In paragraph (1) of regulation 4 of the Personal and Occupational Pension Schemes (Pensions Ombudsman) Regulations 1996 (exclusions from jurisdiction) , after “which can be” insert “(and is in fact)”.

Section 38 Prescribed persons

(1) The Schedule to the Public Interest Disclosure (Prescribed Persons) Order 1999 is amended as follows.

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

The Building Societies Commission;

The Chief Registrar of Friendly Societies;

The Assistant Registrar of Friendly Societies for Scotland;

The Friendly Societies Commission;

The Investment Management Regulatory Organisation;

The Personal Investment Authority; and

The Securities and Futures Authority.

(3) In the first column of the entry relating to the competent authority under Part IV of the Financial Services Act 1986, for “Part IV of the Financial Services Act 1986” substitute “Part VI of the Financial Services and Markets Act 2000”.

(4) In the second column of the entry relating to the Financial Services Authority—

(a) after “the operation of banks” insert “ and building societies”;

(b) after “wholesale money market regimes;” insert “the operation of friendly societies, benevolent societies, working men’s clubs, specially authorised societies, and industrial and provident societies;”; and

(c) omit “the functioning of other financial regulators;”.

Section 39 Designated systems

(1) The Financial Markets and Insolvency (Settlement Finality) Regulations 1999 are amended as follows.

(2) In paragraph (1) of regulation 2 (interpretation)—

(a) for the definition of “the 1986 Act” substitute—

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

(b) in sub-paragraph (a)(i) of the definition of “designating authority” for “the 1986 Act” substitute “the 2000 Act”.

(3) In paragraph (1) of regulation 6 (certain bodies deemed to satisfy the requirements for designation) for “the 1986 Act” substitute “the 2000 Act”.

(4) In paragraph (2) of regulation 7 (revocation of designation)—

(a) for “Subsections (2) to (9) of section 11 of the 1986 Act” substitute “Subsections (1) to (7) of section 298 of the 2000 Act”;

(b) for “under subsection (1) of that section” substitute “section 297(2) of that Act”; and

(c) for sub-paragraphs (a) and (b) substitute—

(a) any reference to a recognised body shall be taken to be a reference to a designated system;

(b) any reference to members of a recognised body shall be taken to be a reference to participants in a designated system;

(c) references to the Authority shall, in cases where the Bank of England is the designating authority, be taken to be a reference to the Bank of England; and

(d) subsection (4)(a) shall have effect as if for “two months” there were substituted “three months”.

(5) In regulation 7, after paragraph (2) insert—

(3) An order revoking a designation order—

(a) shall state the date on which it takes effect, being no earlier than three months after the day on which the revocation order is made; and

(b) may contain such transitional provisions as the designating authority thinks necessary or expedient.

(4) A designation order may be revoked at the request or with the consent of the designated system, and any such revocation shall not be subject to the restriction imposed by paragraph (3)(a), or to the requirements imposed by subsections (1) to (6) of section 298 of the 2000 Act.

(6) In paragraph (5) of regulation 10 (provision of information by designated systems), for “section 41 of the 1986 Act” substitute “section 293 of the 2000 Act”.

Section 40 Meaning of “securities” and references to “insurers”

(1) The Stakeholder Pension Schemes Regulations 2000 are amended as follows.

(2) In paragraph (3) of regulation 1 (citation, commencement and interpretation)—

(a) in the definition of “securities” for “unit trust” substitute “investment trust”; and

(b) in the definition of “with-profits fund”, for “insurance company” (in both places) substitute “insurer”.

(3) In paragraphs (4) and (5) of regulation 15 (requirement for trustees or manager to satisfy certain conditions in relation to with-profits fund), for “insurance company” (in each place it appears) substitute “insurer”.

Section 41 Revocation of unnecessary provision

In the Schedule to the Regulation of Investigatory Powers (Prescription of Offices, Ranks and Positions) Order 2000, in Part I (prescriptions for public authorities which are relevant public authorities for the purposes of sections 28 and 29 of the Regulation of Investigatory Powers Act 2000) the entry relating to the Personal Investment Authority is revoked.

Section 42 Revocation of unnecessary provision

In the Schedule to the Regulation of Investigatory Powers (Authorisations Extending to Scotland) Order 2000, the entry relating to the Personal Investment Authority is revoked.

Section 43 Revocation of references to persons no longer performing regulatory functions

The amendments made to regulation 4 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) by article 603 of the Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001 are treated as if they had not been made, and instead regulation 4 is amended as follows—

(a) paragraphs (c), (d), (e), (g), (h), (j), (k), (1) and (m) are revoked, and

(b) for paragraph (f) substitute—

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

Section 44 Meaning of “investments”

In Schedule 1 to the Transport Act 2000 (Civil Aviation Authority Pension Scheme) Order 2001 (the new provisions), in paragraph 14.1 for “within the meaning of the Financial Services Act 1986” substitute “within the meaning of section 22 of the Financial Services and Markets Act 2000 and any relevant order made under that section”.

Section 45 Partnerships authorised to carry on investment business

(1) The Partnerships (Unrestricted Size) No 16 Regulations 2001 are amended as follows.

(2) In paragraph (1) of regulation 2, for the words from “which is—” to the end of the paragraph substitute

which—

has permission under Part 4 of the Financial Services and Markets Act 2000 to carry on that business,

in an EEA firm of the kind mentioned in paragraph 5(a) 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 carry on that business,

is an authorised person by virtue of paragraph 1 of Schedule 5 to that Act, and has permission under paragraph 2 of that Schedule to carry on investment business of a kind mentioned in that paragraph (activities in connection with a recognised collective investment scheme), or

is a Treaty firm which has permission under paragraph 4 of Schedule 4 to that Act (as a result of qualifying for authorisation under paragraph 3 of that Schedule) to carry on that business.

(3) Omit paragraph (2) of regulation 2.

(4) After regulation 2 insert—

(3)

(1) For the purposes of regulation 2, “investment business” means the business which consists of carrying on one or more of the following regulated activities—

(a) dealing in investments as principal or as agent;

(b) arranging deals in investments;

(c) managing investments;

(d) safeguarding and administering investments;

(e) sending dematerialised instructions;

(f) establishing (and taking other steps in relation to) collective investment schemes;

(g) advising on investments;

(h) entering as a provider into a funeral plan contract;

(i) entering into a regulated mortgage contract as a lender;

(j) administering a regulated mortgage contract.

(2) 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.

Section 46 Meaning of “authorised deposit taker” and “former authorised institution”

(1) Rule 2.8 of the Railway Administration Order Rules 2001 (manner in which service of the petition is to be effected) is amended as follows.

(2) For paragraph (5)(a) substitute—

(a) is an authorised deposit taker or a former authorised institution,

(3) After paragraph (6) insert—

(6A) For the purposes of paragraph (5)—

(a) “authorised deposit taker” means a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits; and

(b) “former authorised institution” means an institution which 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, but is not an authorised deposit taker.

(6B) References in paragraph (6A) to deposits and 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.

Section 47 Construction of the 2001 Order: “relevant institution”

(1) Article 2 of the Terrorism (United Nations Measures) (Isle of Man) Order 2001 (interpretation: general) 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.

Section 48 Offences under the Industrial Assurance Acts: application in relation to Guernsey and Jersey

(1) Schedule 1 to the Financial Services and Markets Act 2000 (Consequential Amendments and Savings) (Industrial Assurance) Order 2001 is amended as follows.

(2) In paragraph 31, for “paragraphs 20 and 25” substitute “paragraphs 20, 24 and 25”.

(3) Paragraph 34 is revoked, and in its place insert—

(34) In relation to the Channel Islands, section 39 of the 1923 Act (offences) has effect with the substitution for subsection (1) of the following—

(1) Any collecting society or industrial assurance company which contravenes or fails to comply with any of the provisions of this Act shall be guilty of an offence and liable, on summary conviction, to a fine not exceeding level 4 on the standard scale.

After paragraph 36 insert—

(36A) In relation to the Channel Islands, section 16 of the 1948 Act (offences) has effect with the substitution for subsection (2) of the following—

(2) Any collecting society or industrial assurance company which contravenes or fails to comply with any of the provisions of this Act, or of regulations made for the purposes of section 8 of this Act, shall be guilty of an offence under the Industrial Assurance Act 1923.

Section 49 Power of societies to disapply obligation to appoint auditors

(1) Section 38A of the Industrial and Provident Societies Act (Northern Ireland) 1969 is amended as follows.

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

(3) After paragraph (3) insert—

(3A) In paragraph (3)(d), 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; and

(c) Schedule 2 to that Act.

Section 50 Authorised providers in relation to superannuation schemes for civil servants etc.

(1) Article 3 of the Superannuation (Northern Ireland) Order 1972 (superannuation schemes in respect of civil servants etc.) is amended as follows.

(2) In paragraph (8) , for the definition of “authorised provider” substitute—

“authorised provider”, in relation to the investment of any sums paid by way of voluntary contributions or the provision of any benefit, means—

a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to invest such sums or, as the case may be, to provide that benefit;

an EEA firm of a kind mentioned in paragraph 5(a), (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 of that Schedule) to invest such sums or, as the case may be, to provide that benefit and which satisfies the conditions applicable to it which are specified in paragraph (8B), (8C) or (8D); or

an EEA firm of a 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 invest such sums or, as the case may be to provide that benefit;

(3) After that paragraph insert—

(8A) In paragraph (8), the definition of “authorised provider” must be read with—

(a) section 22 to the Financial Services and Markets Act 2000;

(b) any relevant order made under that section; and

(c) Schedule 2 to that Act.

(8B) If the EEA firm concerned is of the kind mentioned in paragraph 5(a) of Schedule 3 to the Financial Services and Markets Act 2000, the conditions are—

(a) that, in investing of the sums in question, or in providing the benefit in question, the firm is carrying on a service falling within section A or C of the Annex to the Investment Services Directive; and

(b) that firm is authorised by its home state authorisation to carry on that service.

(8C) If the EEA firm concerned is of the kind mentioned in paragraph 5(b) of that Schedule, the conditions are—

(a) that, in investing of the sums in question, or in providing the benefit in question, the firm is carrying on an activity falling within Annex 1 to the Banking Consolidation Directive; and

(b) that the activity in question is one in relation to which an authority in the firm’s home State has regulatory functions.

(8D) If the EEA firm concerned is of the kind mentioned in paragraph 5(c) of that Schedule, the conditions are—

(a) that, in investing of the sums in question, or in providing the benefit in question, the firm is carrying on an activity falling within Annex 1 to the Banking Consolidation Directive;

(b) that the activity in question is one in relation to which an authority in the firm’s home State has regulatory functions; and

(c) that the firm also carries on the activity in question in its home State.

(8E) Expressions used in paragraphs (8B) to (8D) which are also used in Schedule 3 to the Financial Services and Markets Act 2000 have the same meanings in those paragraphs as they have in that Schedule.