Financial Services Act 1986 (Restriction of Scope of Act and Meaning of Collective Investment Scheme) Order 1996
1996 No. 2996
FINANCIAL SERVICES
The Financial Services Act 1986 (Restriction of Scope of Act and Meaning of Collective Investment Scheme) Order 1996
Made 28th November 1996
Laid before Parliament 29th November 1996
Coming into force 1st January 1997
The Treasury, in exercise of the powers conferred on them1by sections 2 and 75(9) of the Financial Services Act 19862and of all other powers enabling them in that behalf hereby make the following Order:
Citation, commencement and interpretation
1.—(1) This Order may be cited as the Financial Services Act 1986 (Restriction of Scope of Act and Meaning of Collective Investment Scheme) Order 1996.
(2) This Order shall come into force on 1st January 1997.
(3) In this Order, “the Act” means the Financial Services Act 1986.
Restriction of scope of Act
Amendment of Part III of Schedule 1 to the Act
2.—(1) Nothing in paragraphs 17 to 19 and 21 of Schedule 1 to the Act shall have the effect that the provision of any core investment service to third parties on a professional basis is excluded from the activities which fall within the paragraphs in Part II of that Schedule in any case in which the service is provided—
(a)
(a) by a UK investment firm; or
(b)
(b) by an investment firm which would be a UK investment firm if it was incorporated in or formed under the law of any part of the United Kingdom or, being an individual, had his head office in the United Kingdom.
(2) In this article, “core investment service”, “investment firm” and “UK investment firm” have the meanings assigned to those expressions by regulation 2 of the Investment Services Regulations 19953.
(3) In consequence of the provisions made by this article, paragraph (1) of article 6 of the Financial Services Act 1986 (Investment Services) (Extension of Scope of Act) Order 19954is hereby revoked.
Meaning of collective investment scheme
Meaning of collective investment scheme
3.—(1) In section 75(6)(1)5of the Act, for the words “paragraph 34 or 35” there shall be substituted “any of paragraphs 34 to 36”.
(2) In Schedule 1 to the Act, after paragraph 356there shall be inserted—
S-36 “36.—(1) For the purposes of this Schedule, arrangements are not a collective investment scheme if they are operated by a body corporate, a body corporate connected with it or a relevant trustee, for the purpose of enabling or facilitating transactions in shares in or debentures of the first-mentioned body between or for the benefit of any of the persons mentioned in sub-paragraph (2) below or the holding of such shares or debentures by or for the benefit of any such persons.
(2) The persons referred to in sub-paragraph (1) above are—
(a)
(a) the bona fide employees or former employees of the...
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