Financial Services Act 1986 (Restriction of Scope of Act) Order 1988

JurisdictionUK Non-devolved
CitationSI 1988/318

1988 No. 318

FINANCIAL SERVICES

The Financial Services Act 1986 (Restriction of Scope of Act) Order 1988

Made 25th February 1988

Laid before Parliament 25th February 1988

Coming into force 27th February 1988

The Secretary of State, in exercise of the powers conferred on him by section 2 of the Financial Services Act 19861, and of all other powers enabling him in that behalf, hereby makes the following Order:—

S-1 Citation, commencement and interpretation

Citation, commencement and interpretation

1.—(1) This Order may be cited as the Financial Services Act 1986 (Restriction of Scope of Act) Order 1988 and shall come into force on 27th February 1988.

(2) In this Order“the Act” means the Financial Services Act 1986.

S-2 Arranging deals in investments

Arranging deals in investments

2. The following note shall be added to paragraph 13 of Schedule 1 to the Act—

S-3

“3 This paragraph does not apply to a person (“the relevant person”) who is either a money-lending company within the meaning of section 338 of the Companies Act 19852or a body corporate incorporated under the law of, or of any part of, the United Kingdom relating to building societies or a person whose ordinary business includes the making of loans or the giving of guarantees in connection with loans by reason of the relevant person making, or offering or agreeing to make, arrangements with a view to a person (“the authorised person”) who is either authorised under section 22 or 23 of this Act or who is authorised under section 31 of this Act and carries on insurance business which is investment business selling an investment which falls within paragraph 10 above or, so far as relevant to that paragraph, paragraph 11 above if the arrangements are either—

(a) that the authorised person or a person on his behalf will introduce persons to whom the authorised person has sold or proposes to sell an investment of the kind described above, or will advise such persons to approach, the relevant person with a view to the relevant person lending money on the security of that investment; or

(b) that the authorised person gives an assurance to the relevant person as to the amount which will or may be received by the relevant person, should that person lend money to a person to whom the authorised person has sold or proposes to sell an investment of the kind described above, on the surrender or maturity of that investment if it is taken as security for the loan.”.

S-3 Dealings as principal

Dealings as principal

3.—(1) Paragraph 17(3) of Schedule 1 to the Act shall be deleted and the following substituted—

S-3

“3 Sub-paragraph (1) above applies only—

(a) if the investment to which the transaction relates or will relate falls within any of paragraphs 1 to 6 above or, so far as relevant to any of those paragraphs, paragraph 11 above; or

(b) if the transaction is the assignment (or, in Scotland, the assignation) of an investment falling within paragraph 10 above or is the assignment (or, in Scotland, the assignation) of an investment falling within paragraph 11 above which confers rights to or interests in an investment falling within paragraph 10 above.”.

(2) Paragraph 17(4) of Schedule 1 to the Act shall be amended by substituting for the words from“a transaction” to the words“and which” the following words—

“any transaction, other than a transaction of a kind described in sub-paragraph (3)(a) or (b) above, which relates or is to relate to an investment which falls within paragraph 10 above or, so far as relevant to that paragraph, paragraph 11 above...

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