Explanatory note

These Regulations prescribe certain transactions as transactions to which the prohibition on deposit-taking imposed by section 3 of the Banking Act 1987 does not apply. They re-enact the Banking Act 1979 (Exempt Transactions) Regulations 1986 with amendments. In addition to minor and drafting amendments they make the following three changes of substance.

First, regulation 10 and Schedule 2 (public undertakings) no longer refer to British Gas plc, British Airways Plc and BAA plc as these are no longer wholly owned by the Crown. Schedule 2 has been extended to include any company which succeeds the British Steel Corporation, so long as its shares are wholly owned by the Crown.

Secondly, a new regulation 14 exempts from the prohibition on deposit-taking the acceptance of deposits in certain circumstances by authorised or exempted persons under the Financial Services Act 1986. This replaces a similar provision formerly contained in section 193 of that Act which was repealed by the Banking Act 1987. It also replaces the exemption for members of The Stock Exchange which was contained in regulation 13 of the previous Regulations.

Thirdly, the exemption for commodity brokers, and clearing houses, which was contained in regulation 12 of the previous Regulations, has been deleted.