# The Financial Services Act 1986 (Gas Industry Exemption) Order 1999, Introduction: Introductory text


FINANCIAL SERVICES
Made 15th September 1999
Laid before Parliament 15th September 1999
Coming into force 1st October 1999
Whereas it appears to the Treasury that BG plc is the holder of a licence (“the BG Licence”) treated as granted under section 7 of the Gas Act 1986 as a public gas transporter;
Whereas it appears to the Treasury that BG plc is obliged, under the conditions of the BG Licence (as determined by the Secretary of State pursuant to section 8(2) of the Gas Act 1995), to prepare a code governing the conveyance and storage of gas and that BG plc has prepared such a code (“the Network Code”);
Whereas, as from 1 October 1999, the Network Code provides for BG plc to appoint a person to operate a market to regulate the delivery and off-take of gas in BG plc’s pipeline system (“the balancing market”) for the purpose of balancing the volume of gas in that system;
Whereas the Director General of Gas Supply has designated ENMO Ltd (“ENMO”) for the purposes of paragraph 4B of Standard Condition 7 of the BG Licence and BG plc has duly appointed ENMO to be the operator of the balancing market from 1 October 1999;
Whereas participation in the balancing market to be operated by ENMO will be limited to BG plc and gas shippers who hold licences granted, or treated as granted, by the Director General of Gas Supply pursuant section 7A(2) of the Gas Act 1986 and who have entered into subscription agreements with ENMO in order to participate in the balancing market;
Whereas the participants in the market may in the course of that participation engage in investment business falling within paragraph 12 or 13 of Schedule 1 to the Financial Services Act 1986 involving investments falling within paragraph 8 or 9 of that Schedule;
Whereas it appears to the Treasury that any such investment business will be incidental to the primary purpose of the market which is to ensure the balancing of in-put and off-take of gas in BG plc’s pipeline in accordance with the Network Code and that this is not intended or likely to facilitate or enable the development of a market for speculation in such investments;
Whereas it further appears to the Treasury that the participants in the market will be persons sufficiently expert to understand the risks involved and that the conditions on which the gas shippers operate are subject to control by the Director General of Gas Supply pursuant to the Gas Acts 1986 and 1995;
Now, therefore, the Treasury in the exercise of powers conferred on them by sections 46 and 205A of the Financial Services Act 1986 and of all other powers enabling them in that behalf hereby make the following Order—

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Source: https://www.legislation.gov.uk/uksi/1999/2586/introduction (the official version)
Page: https://openlegislation.uk/financial-services-act-1986-gas-industry-exemption-order-1999/introduction
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.