WHAT IS INVESTMENT BUSINESS?
| Published date | 01 February 1992 |
| Date | 01 February 1992 |
| Pages | 215-219 |
| DOI | https://doi.org/10.1108/eb024770 |
| Author | DENNIS ROSENTHAL |
| Subject Matter | Accounting & finance |
WHAT IS INVESTMENT BUSINESS?
Received: 7th August, 1992.
DENNIS ROSENTHAL
DENNIS ROSENTHAL
IS
A PARTNER WITH THE LAW FIRM
SAUNDERS SOBELL LEIGH & DOBIN.
ABSTRACT
ness'
as
the
business
of engaging in
one
or
more
of
the activities
which fall within the
paragraphs in Part II of
Schedule
I
to
the
Act and
are
not
excluded by Part
III of that
Schedule. The word 'business' is not
defined —
a
rather
common feature of legis-
lation. It
clearly
means more than
merely
engaging in one or
more
of
the
activities
referred
to.
Moreover,
it
is submitted that
it
means more than merely the activity of
engaging in any of
those
activities.
This
briefing examines some meanings which
have
been
given to the word
'business'
and
possible applications
of that word in the
context
of the Act.
'BUSINESS'
In ordinary parlance, business might
be defined as a habitual occupation,
profession or trade.1 However, in a
legal context such activity may not
constitute a business. This is espe-
cially so where 'business' is defined
in a particular context, as for exam-
ple 'deposit-taking business' which is
defined in s. 6 of the Banking Act
1987.
Even then, however, the legis-
lature has the tendency of indulging
in tautologous definitions. Thus, a
business is a deposit-taking business
if in the
course
of the
business
money
received by way of deposit is lent to
others or any other activity of
the
bus-
iness is financed, wholly or to any
material extent, out of the capital of
or the interest of money received by
way of deposit. It is with some relief
for interpreters of the statute that s.
6(2) qualifies s. 6(1) by stating when a
business is not a deposit-taking busi-
ness.
A further example of tautologous
definition can be found in the Con-
sumer Credit Act 1974 where con-
sumer credit business, for example,
is defined as any
business
so far as it
comprises or relates to the provision
of credit under regulated consumer
credit agreements. Similar negative
qualification to the definition of
deposit-taking business is found in a
subsequent provision which states
that a person is not to be treated as
carrying on a particular type of busi-
215
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