UNITED KINGDOM STATUTORY INSTRUMENT
1995 No. 3271
FINANCIAL SERVICES
The Financial Services Act 1986 (Investment Services) (Extension of Scope of Act) Order 1995
Made 18th December 1995
Laid before Parliament 18th December 1995
Coming into force 1st January 1996
The Treasury, in exercise of the powers conferred on them by sections 2 and 205Aof the Financial Services Act 1986and of all other powers enabling them in that behalf, hereby make the following Order:—
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Citation and commencementCitation and commencement
1. This Order may be cited as the Financial Services Act 1986 (Investment Services) Extension of Scope of Act) Order 1995 and shall come into force on 1st January 1996.
Interpretation
2. — In this Order—
“the Act” means the Financial Services Act 1986;
“core investment service” means a service listed in Section A of the Annex to the Investment Services Directive, the text of which is set out in Part I of Schedule 1 to this Order together with the text of Section B of that Annex which is relevant to the interpretation of Section A;
“investment firm” has the meaning given in paragraph (2) below;
“the Investment Services Directive” means the Council Directive on investment services in the securities field (No. 93/22/EEC); and
“listed service” means a service listed in Section A or C of the Annex to the Investment Services Directive.
(2) In this Order references to an investment firm are references to any person, other than one within paragraph (3) below, whose regular occupation or business is the provision of any one or more core investment services to third parties on a professional basis.
(3) The persons within this paragraph are persons to whom the Investment Services Directive does not apply by virtue of the provisions of Article 2(2) of that Directive, the text of which is set out in Schedule 2 to this Order.
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Shares in industrial and provident societiesShares in industrial and provident societies
3. Paragraph 1 of Schedule 1 to the Act shall have effect as if transferable shares in a body incorporated under the law of, or of any part of, the United Kingdom relating to industrial and provident societies fell within that paragraph.
Bills of exchange
4. Paragraph 2 of Schedule 1 to the Act shall have effect as if bills of exchange accepted by a banker fell within that paragraph.
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Amendment of Part II of Schedule 1 to the Act for certain purposesAmendment of Part II of Schedule 1 to the Act for certain purposes
5. For the purposes of the provisions of sections 47A and 48 of the Act, Part II of Schedule 1 to the Act shall have effect as if amongst the activities falling within that Part of that Schedule were those listed services falling within Section C of the Annex to the Investment Services Directive; and for these purposes none of the exclusions in Part III of that Schedule shall have effect.
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Amendment of Part III of Schedule 1 to the Act
Amendment of Part III of Schedule 1 to the Act
6.—(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 Schedule 1 to the Act.
(2) Paragraph 23 of Schedule 1 to the Act shall have effect as if it precluded a permission being granted to any person who is an investment firm.
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Transitional provisionsTransitional provisions
7. The prohibitions in section 3 of the Act shall not, until 1st January 1997, extend to any person who is, by virtue only of any provision of this Order, carrying on, or purporting to carry on, investment business in the United Kingdom.
Derek Conway
Simon Burns
Two of the Lords Commissioners of Her Majesty’s Treasury
18th December 1995
SCHEDULE 1
Article 2(1).
ANNEX TO THE INVESTMENT SERVICES DIRECTIVE
“ANNEX
SECTION A
Services
(1) (a)
(1) (a) Reception and transmission, on behalf of investors, of orders in relation to one or more instruments listed in section B.
(b)
(b) Execution of such orders other than for own account.
(2) Dealing in any of the instruments listed in Section B for own account.
(3) Managing portfolios of investments in accordance with mandates given by investors on a discretionary, client-by-client basis where such portfolios include one or more of the instruments listed in section B.
(4) Underwriting in respect of issues of any of the instruments listed in section B and/or the placing of such issues.
SECTION B
Instruments
(1) (a)
(1) (a) Transferable securities.
(b)
(b) Units in collective investment undertakings.
(2) Money-market instruments.
(3) Financial-futures contracts, including equivalent cash-settled instruments.
(4) Forward interest-rate agreements (FRAs).
(5) Interest-rate, currency and equity swaps.
(6) Options to acquire or dispose of any instruments falling within this section of the Annex, including equivalent cash-settled instruments. This category includes in particular options on currency and on interest rates.
SECTION C
Non-core services
(1) Safekeeping and administration in relation to one or more of the instruments listed in Section B.
(2) Safe custody services.
(3) Granting credits or loans to an investor to allow him to carry out a transaction in one or more of the instruments listed in Section B, where the firm...
