Banking Act 1979 (Exempt Transactions) (Amendment) Regulations 1983

JurisdictionUK Non-devolved
CitationSI 1983/510

1983 No. 510

BANKS AND BANKING

The Banking Act 1979 (Exempt Transactions) (Amendment) Regulations 1983

30thMarch 1983

5thApril 1983

26thApril 1983

The Treasury, in exercise of the powers conferred upon them by sections 2(1) and (5) of the Banking Act 1979(a) and of all other powers enabling them in that behalf, hereby make the following Regulations:—

Citation and commencement

1.—(1) These Regulations may be cited as the Banking Act 1979 (Exempt Transactions) (Amendment) Regulations 1983 and shall come into operation on 26th April 1983.

Interpretation

2. In these Regulations the expression "the principal Regulations" means the Banking Act 1979 (Exempt Transactions) Regulations 1979(b).

Addition to principal Regulations of Regulation 14 and Schedule 3

3. The principal Regulations shall be further amended as follows:—

(a) after Regulation 13, by the addition of the following Regulation:—

"Commodity brokers and clearing houses

14.—(1) The acceptance by a member of a market organisation listed in Part 1 of Schedule 3 to these Regulations (in this Regulation described as a "broker") of a deposit from a client is an exempt transaction if the deposit is taken either:—

(a) as security in respect of any loss which the broker may incur as a result of entering into a contract to which this paragraph applies or of the client's failure to perform an obligation under such a contract; or

(b) on terms that it will be repaid on demand if it is not applied by the broker:—

(i) as security as described in sub-paragraph (a) above, or

(ii) on behalf of the client, as consideration under a contract to which this paragraph applies.

(a) 1979 c.37.

(b) S.I. 1979/1204; relevant amending instruments are S.I. 1980/345, 346, 1981/112.

(2) Paragraph (1) above applies to a contract made by a broker with or on behalf of a client which is subject to the contract terms or conditions prescribed by, or otherwise subject to the rules of, the London Gold Market, The London Metal Exchange or the London Silver Market or a futures market, whether or not such futures market is regulated by a market organisation listed in Part 1 of Schedule 3 to these Regulations.

(3) In paragraph (1) above the reference to a member of a market organisation listed in Part 1 of Schedule 3 to these Regulations includes:—

(a) an institution which is represented on the market by a director or employee of or partner in the institution who is himself a member of the market organisation, and

(b) in...

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