Banking Act 1987 (Exempt Transactions) Regulations 1988
| Jurisdiction | UK Non-devolved |
| Citation | SI 1988/646 |
| Year | 1988 |
1988 No. 646
BANKS AND BANKING
The Banking Act 1987 (Exempt Transactions) Regulations 1988
Made 29th March 1988
Laid before Parliament 30th March 1988
Coming into force 29th April 1988
The Treasury, in exercise of the powers conferred upon them by section 4(4) and (5) of the Banking Act 19871and of all other powers enabling them in that behalf, hereby make the following Regulations:
Citation, commencement and interpretation
1.—(1) These Regulations may be cited as the Banking Act 1987 (Exempt Transactions) Regulations 1988, and shall come into force on 29th April 1988.
(2) In these Regulations, unless the context otherwise requires—
“the Act” means the Banking Act 1987;
“company” means a body corporate, including a body corporate constituted under the law of a country or territory outside the United Kingdom;
“the corresponding Northern Ireland legislation” means, in relation to any of the provisions of the Companies Act 19852specified in these Regulations, the corresponding provisions of the Companies (Northern Ireland) Order 19863;
“the Council” means the Council of The Stock Exchange;
“debt security” includes bonds, notes, debentures and debenture stock;
“deposit”, except in the expressions “pre-contract deposit” and “deposit fund”, shall be construed in accordance with section 5 of the Act;
“exempt transaction” shall be construed in accordance with regulation 2 of these Regulations;
“industrial and provident society” means a society registered or deemed to be registered under the Industrial and Provident Societies Act 19654or under the Industrial and Provident Societies Act (Northern Ireland) 19695but does not include a credit union within the meaning of the Credit Unions Act 19796or the Credit Unions (Northern Ireland) Order 19857;
“the listing rules” means any rules made pursuant to section 142(6) of the Financial Services Act 19868;
“net assets” has the meaning ascribed to it by section 264(2) of the Companies Act 1985;
“the Official List” means the Official List of The Stock Exchange;
“redemption value”, in relation to any debt security, means the amount of the principal which is payable upon redemption of that security;
“sterling commercial paper” means a sterling debt security which may not be redeemed in whole or in part until after seven days beginning with the date of issue but which must be redeemed within one year beginning with the date of issue;
“sterling debt security” means a debt security in relation to which the principal, interest and subscription moneys are payable solely in sterling;
“The Stock Exchange” means The International Stock Exchange of the United Kingdom and Republic of Ireland Limited;
“subsidiary” and “wholly-owned subsidiary” shall be construed in accordance with section 736 of the Companies Act 1985;
“successor to the British Steel Corporation” means any company in which property, rights and liabilities of the British Steel Corporation shall have become vested by virtue of an Act; and
“the Unlisted Securities Market” means the Unlisted Securities Market of The Stock Exchange.
Exempt transactions
2. The transactions referred to in the following regulations are prescribed for the purposes of section 4(4) of the Act as transactions to which the prohibition in section 3 of the Act on the acceptance of a deposit does not apply. Such transactions are referred to in these Regulations as “exempt transactions”.
Charities
3.—(1) The acceptance by a charity of a deposit is an exempt transaction if—
(a)
(a) the deposit is made by another charity, or
(b)
(b) there is payable in respect of the deposit neither interest nor a premium.
(2) In this regulation “charity” means any institution, trust or undertaking, whether corporate or not, which is established solely for charitable purposes, and in the application of this regulation to Scotland “charitable” shall be construed in the same way as in the Income Tax Acts.
Church deposit funds
4.—(1) The acceptance by the Central Board of Finance of the Church of England of a deposit in the course of administering a deposit fund within the meaning of paragraph 1 of the scheme contained in the Schedule to the Church Funds Investment Measure 19589is an exempt transaction.
(2) The acceptance by the Central Finance Board of the Methodist Church of a deposit in the course of administering a deposit fund within the meaning of paragraph 1 of the scheme contained in the First Schedule to the Methodist Church Funds Act 196010is an exempt transaction.
Industrial and provident societies
5. The acceptance by an industrial and provident society of a deposit in the form of a withdrawable share capital is an exempt transaction.
Agricultural, forestry and fisheries associations
6.—(1) Without prejudice to regulation 5, the acceptance by an association to which section 33 of the Restrictive Trade Practices Act 197611applies of a deposit by a member of that association is an exempt transaction.
(2) The reference in paragraph (1) of this regulation to a member of an association to which section 33 of the Restrictive Trade Practices Act 1976 applies includes a reference to—
(a)
(a) a member of any such association which is a member of that association, and
(b)
(b) a prospective member, provided that the deposit is made in order to qualify him for membership of the association.
Retail and other co-operative societies
7.—(1) Without prejudice to regulation 5, the acceptance by a co-operative society of a deposit is an exempt transaction if the society fulfils the requirements of paragraph (2) of this regulation and the deposit is not taken in breach of the society’s obligations under the Scheme.
(2) The requirements of this paragraph are—
(a)
(a) that the society is an industrial and provident society,
(b)
(b) that either—
(i) the principal business of the society is the sale by retail of goods for the domestic or personal use of individuals dealing with the society, or the provision of services for such individuals, or
(ii) at least seventy-five per cent. of the votes which may be cast to determine the conduct of the society’s affairs and at least ninety per cent. of its shares by reference to their nominal value are held by qualifying shareholders, and
(c)
(c) the society participates in the Scheme and accordingly is a Participating Society within the meaning of clause 2(4) thereof.
(3) In this regulation—
(a)
(a) references to the Scheme are to the Scheme constituted by deed dated the 29th February 1980 between the Co-operative Union Limited of the one part and the Co-operative Bank Limited of the other part the provisions of which are set out in Schedule 1 to these Regulations, and such references do not include references to the Scheme as amended or varied;
(b)
(b) the reference to qualifying shareholders is to industrial and provident societies which have the principal business described in paragraph 2(b)(i) of this regulation and societies which are registered within the meaning of the Friendly Societies Act 197412or are registered or deemed to be registered under the Friendly Societies Act (Northern Ireland) 197013.
Solicitors
8.—(1) The acceptance by a practising solicitor in the course of his profession of a deposit is an exempt transaction.
(2) In this regulation “practising solicitor” means a solicitor who is qualified to act as such under section 1 of the Solicitors Act 197414, article 4 of the Solicitors (Northern Ireland) Order 197615or section 4 of the Solicitors (Scotland) Act 198016, and in Scotland includes a firm of practising solicitors.
Deposits accepted in the course of estate agency work
9.—(1) The acceptance in the course of estate agency work of a deposit which is a pre-contract deposit is an exempt transaction.
(2) In this regulation “estate agency work” has the meaning assigned to it by section 1(1) of the Estate Agents Act 197917, and “pre-contract deposit” has the meaning assigned to it by section 12(3) of that Act.
Certain public undertakings
10.—(1) Subject to paragraph (2) of this...
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