The Investment Bank (Amendment of Definition) Order 2011

• Citation: S.I. 2011/239
• Sections: 3

Section 1 Citation, commencement and interpretation

(1) This Order may be cited as the Investment Bank (Amendment of Definition) Order 2011 and comes into force on the day after the day on which it is made.

(2) In this Order, “ the Act ” means the Banking Act 2009.

Section 2 Meaning of “client assets”

(1) For the purposes of sections 232 to 236 of the Act, “client assets”—

(a) includes money, but

(b) does not include anything which an institution holds for the purposes of carrying on an insurance mediation activity unless—

(i) the activity arises in the course of carrying on an investment activity, or

(ii) the institution has elected, in relation to the thing, to comply with rules that would apply in relation to it if the activity were not an insurance mediation activity.

(2) In this article, the definitions in section 232(5B) of the Act (inserted by article 3(2)) apply.

Section 3 Amendments consequential on article 2

(1) Section 232 of the Act (definition of “investment bank”) is amended as follows.

(2) After subsection (5) insert—

(5A) In subsection (4), “assets”—

(a) includes money, but

(b) does not include anything which an institution holds for the purposes of carrying on an insurance mediation activity unless—

(i) the activity arises in the course of carrying on an investment activity, or

(ii) the institution has elected, in relation to the thing, to comply with rules that would apply in relation to it if the activity were not an insurance mediation activity.

(5B) In this section—

“rules” means general rules (within the meaning of the Financial Services and Markets Act 2000 ) made by virtue of section 139(1) of that Act;

“insurance mediation activity” has the meaning given by paragraph 2(5) of Schedule 6 to that Act (read as mentioned in paragraph 2(6) of that Schedule); and

“investment activity” means—

anything that falls within the definition of “investment services and activities” in section 417(1) of that Act; or

anything that is “designated investment business” within the meaning of the Financial Services Authority Handbook.