{
  "url": "https://openlegislation.uk/building-societies-designation-of-qualifying-bodies-order-1995/schedule/paragraph-2",
  "json_url": "https://openlegislation.uk/building-societies-designation-of-qualifying-bodies-order-1995/schedule/paragraph-2.json",
  "legislation": "uksi/1995/1188",
  "legislation_title": "The Building Societies (Designation of Qualifying Bodies) Order 1995",
  "legislation_url": "https://openlegislation.uk/building-societies-designation-of-qualifying-bodies-order-1995",
  "path": "schedule/paragraph/2",
  "kind": "paragraph",
  "number": "2",
  "heading": "Meaning of “particular restrictions for financing bodies”",
  "text": "(1) In this Schedule “the particular restrictions for financing bodies” means the provisions set out in sub-paragraph (2) below.\n(2) A body corporate is not a financing body for a society where—\n(a) it is a market maker, or\n(b) it carries on the business of trading in derivatives.\n(3) For the purposes of this paragraph—\n“market maker” means—\n(a) in relation to the United Kingdom, a person who—\n(i) holds himself out at all normal times in compliance with the rules of the Stock Exchange as willing to buy and sell securities of a particular kind at a price specified by him, and\n(ii) is recognised as doing so by the Council of the Stock Exchange; or\n(b) in relation to any country or territory outside the United Kingdom, a person who holds himself out at all normal times as willing to buy and sell at a price specified by him securities of a particular kind which are traded on any exchange in that country or territory;\n“the Stock Exchange” means The International Stock Exchange of the United Kingdom and the Republic of Ireland Limited; and\n“trading in derivatives” means trading as principal in any investment of a description falling within one or more of paragraphs 4 (instruments entitling to shares or securities), 7 (options), 8 (futures) and 9 (contracts for differences) of Part I of Schedule 1 to the Financial Services Act 1986.\n(4) The restrictions in sub-paragraph (2) above do not apply to any body corporate in which the society holds less than 5 per cent. of the issued shares or corresponding membership rights.\n(5) If a society becomes aware that a body corporate in which the society directly holds 5 per cent. or more of the issued shares or corresponding membership rights is for the time being excluded from being a body by the restrictions in sub-paragraph (2) above, the society shall, as soon as it is conveniently practicable to do so without undue loss, dispose of sufficient of its shares or corresponding membership rights so that it ceases to hold 5 per cent. or more of the issued shares or corresponding membership rights in that body corporate.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "footnote",
      "label": "f1",
      "text": "1986 c. 41, Part I of Schedule 1 was amended by S.I. 1988/496, 1990/349 and 1991/1104."
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/1995/1188/schedule/paragraph/2",
    "retrieved_at": "2026-10-29T13:10:13.341282+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}