Paragraph 7 Specification of particular restrictions

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

Sch, Pt II para(ii) amended by Building Societies (Designation of Qualifying Bodies) 1991
Sch, Pt II para(iii) amended by Building Societies (Designation of Qualifying Bodies) 1991
Sch, Pt II para(iv)(v)(vi) revoked by Building Societies (Designation of Qualifying Bodies) 1991
Sch, Pt II para(vii) amended by Building Societies (Designation of Qualifying Bodies) 1991

(1)

In this Schedule “the particular restrictions for financial service vehicles” means the provisions set out in subparagraph (2) below, “the particular restrictions for life insurance vehicles” means the provisions set out in subparagraph (3) below, “the particular restrictions for general insurance companies” means the provisions set out in subparagraph (4) below, “the particular restrictions for estate agency vehicles” means the provisions set out in subparagraph (5) below, “the particular restrictions for appropriate mortgage companies” means the provisions set out in subparagraph (6) below, and “the particular restrictions for appropriate territorial corporations” means the provisions set out in subparagraph (7) below.

(2)

A body corporate is not an appropriate financial service vehicle for a society where—

(a)

the body is not an exempted person under the Financial Services Act 1986^f1 and is neither an authorised person under that Act nor a candidate for authorisation under that Act,

(b)

it is a market maker,

(c)

its business includes lending money, secured or unsecured, on its own account, save insofar as the subscription for or the purchase or sale of investments on behalf of any other person, in advance of being put in funds by or on behalf of that other person to complete that transaction, comprises or gives rise to such lending,

(d)

it is an authorised institution, or its business requires it to be authorised, for the purposes of the Banking Act 1987^f2, or

(e)

its business includes activities in the range from which the society is restricted.

(3)

A body corporate is not an appropriate life insurance vehicle for a society where—

(a)

the body is neither authorised under section 3 (authorisation by Secretary of State) or by section 4 (existing insurance companies) of the Insurance Companies Act 1982^f3 nor a candidate for authorisation under section 3 of that Act to carry on insurance business of any class specified in Schedule 1 to that Act,

(b)

it is a market maker, or

(c)

the body or any subordinate organisation of the body comes within the description of an appropriate general insurance company as specified in this Schedule.

(4)

A company is not an appropriate general insurance company for a society where—

(a)

the company is not authorised under section 3 or by section 4 of the Insurance Companies Act 1982^f4 to carry on insurance business including business of a class or classes specified in Part I of Schedule 2 to the Act, or

(b)

the company is not a company limited by shares.

(5)

A body corporate is not an appropriate estate agency vehicle for a society where—

(a)

the business of the body corporate includes the lending of money, secured or unsecured, on its own account,

(b)

it is a market maker,

(c)

it is an authorised institution, or its business requires it to be authorised, for the purposes of the Banking Act 1987^f5, or

(d)

its business includes activities in the range from which the society is restricted.

(6)

A company is not an appropriate mortgage company for a society where—

(a)

it is a market maker,

(b)

it is an authorised institution, or its business requires it to be authorised, for the purposes of the Banking Act 1987,

(c)

its business includes activities in the range from which the society is restricted, or

(d)

any of its employees performs any service for a subsidiary or other associated body of the society being a subsidiary or other associated body which carries on estate agency work.

(7)

A body corporate is not an appropriate territorial corporation for a society where—

(a)

it is a market maker,

(b)

its business includes the carrying on of estate agency work,

(c)

its business includes activities in the range from which the society is restricted,

(d)

any of its employees performs any service for a subsidiary or other associated body of the society being a subsidiary or other associated body which carries on estate agency work, or

(e)

its business includes lending money secured upon land in the specified territory other than by

(i)

a form of security which is specified as the form of security which may be taken for advances under section 14 of the Act (power to make advances secured on land overseas) by an Order designating the specified territory for the purposes of that section, or

(ii)

otherwise than in the circumstances specified by that Order.

Annotations

Footnotes

f1: 1986 c. 60.
f2: 1987 c. 22
f3: 1982 c. 50.
f4: 1982 c. 50; Part I of Schedule 2 was amended by S.I. 1987/2130.
f5: 1987 c. 22.