Statutory Instrument 2002 No. 1555

The Financial Services and Markets Act 2000 (Consequential Amendments) Order 2002

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© Crown Copyright 2002

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    " (5) An industrial assurance company, a collecting society or a friendly society which fails to comply with the provisions of this Part or of regulations under this section shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 4 on the standard scale.".

    (3) Subsections (5A) and (5B) are omitted.

" (a) any of the following kinds of investments, namely - 


(i) shares,

(ii) instruments creating or acknowledging indebtedness,

(iii) government and public securities,

(iv) instruments giving entitlement to investments,

(v) certificates representing securities,

(vi) units in a collective investment scheme,

(vii) rights to, or interests in, any security of a kind mentioned in sub-paragraphs (i) to (vi); or".

    (2) After subsection (2) of section 98 insert - 

    " (3) Paragraph (a) of subsection (1) must be read with - 


(a) section 22 of the Financial Services and Markets Act 2000;

(b) any relevant order under that section; and

(c) Schedule 2 to that Act.".


The Welsh Development Agency Act 1975 (c. 70)

Disapplication of section 21 of the Financial Services and Markets Act 2000
     6. In Schedule 1 to the Welsh Development Agency Act 1975 (the Welsh Development Agency), for paragraph 21[10] (circulars) substitute - 

     " 21 Section 21(1) of the Financial Services and Markets Act 2000 (restrictions on financial promotion) does not apply to any invitation or inducement to engage in an investment activity (within the meaning of section 21(8) of that Act) which the Agency communicate or cause to be communicated in discharge of their functions.".

" (hh) Chapter III of Part X (competition scrutiny of regulating provisions and practices of the Authority), and Chapter II of Part XVIII (competition scrutiny of regulatory provisions and practices of recognised clearing houses and recognised investment exchanges), of the Financial Services and Markets Act 2000;".


The Licensing (Alcohol Education and Research) Act 1981 (c. 28)

Meaning of "securities"
     9.  - (1) In subsection (6) of section 3 of the Licensing (Alcohol Education and Research) Act 1981 (final accounts of authorities and powers of liquidators), for the definition of "securities"[12] substitute - 

" "securities" means - 
(a) shares,

(b) instruments creating or acknowledging indebtedness,

(c) government and public securities,

(d) instruments giving entitlement to investments,

(e) certificates representing securities,

(f) units in a collective investment scheme,

(g) rights to, or interests in, any security of a kind mentioned in paragraphs (a) to (f).".

    (2) After subsection (6) insert - 

    " (7) The definition of "securities" in subsection (6) must be read with - 


(a) section 22 of the Financial Services and Markets Act 2000;

(b) any relevant order under that section; and

(c) Schedule 2 to that Act.".


The Insurance Companies Act 1981 (c. 31)

Repeal of the 1981 Act
     10. The Insurance Companies Act 1981 is repealed.

    " (6) Subsection (1), or any corresponding provision previously in force, does not invalidate the formation of any insurance company which immediately before 3rd November 1966 was carrying on in Great Britain insurance business of any class relevant for the purposes of Part I of the Insurance Companies Act 1974 and was carrying on business of that class on 25th July 1973.".

Meaning of "manager"
     12. In Part IV of Schedule 9 to the Companies Act 1985 (special provisions for banking companies and groups)[14], paragraph (3) is amended as follows.

    (2) In sub-paragraph (1)(b) the words "(within the meaning of the Financial Services and Markets Act 2000)"[15] are repealed.

    (3) For sub-paragraph (3) substitute - 

    " (3) In this paragraph - 


(a) "director" includes a shadow director;

(b) "chief executive" has the meaning given in section 417 of the Financial Services and Markets Act 2000; and

(c) "manager" has the meaning given in section 423(3) of that Act.".


The Insurance (Fees) Act 1985 (c. 46)

Repeal of the 1985 Act
     13. The Insurance (Fees) Act 1985 is repealed.

" (a) it effects or carries out contracts of insurance, but is not - 


(i) exempt from the general prohibition, within the meaning of section 19 of the Financial Services and Markets Act 2000, in relation to effecting or carrying out contracts of insurance, or

(ii) an authorised deposit taker within the meaning given by subsection (IB), and effecting or carrying out contracts of insurance in the course of a banking business;".

    (3) In paragraph (b), after "the Banking Act 1987" insert ", but is not an authorised deposit taker, within the meaning given by subsection (1B)".

Supplementary powers of the court: winding up of an insolvent partnership
     15.  - (1) The repeal of subsection (5C) of section 168 of the Insolvency Act 1986 (supplementary powers (England and Wales))[17] by article 306 of the Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001[18] is treated as if it had not been made, and instead that subsection is amended in accordance with paragraph (2).

    (2) For subsection (5C) substitute - 

    " (5C) Where the court makes an order for the winding up of an insolvent partnership under - 


(a) section 72(1)(a) of the Financial Services Act 1986;

(b) section 92(1)(a) of the Banking Act 1987; or

(c) section 367(3)(a) of the Financial Services and Markets Act 2000,



the court may make an order as to the future conduct of the winding up proceedings, and any such order may apply any provisions of the Insolvent Partnerships Order 1994 with any necessary modifications.".

Power to apply first group of Parts to formerly authorised banks
     16.  - (1) Section 422 of the Insolvency Act 1986 (recognised banks, etc.) is amended as follows.

    (2) For the cross heading to that section substitute "Formerly authorised banks".

    (3) In subsection (1)[19], after "in relation to any person" insert "(other than an authorised deposit taker)".

    (4) After subsection (1) insert - 

    " (1A) For the purposes of subsection (1), "authorised deposit taker" has the meaning given in section 8(1B).".

(a) for paragraph (a) substitute - 


" (a) a deposit taker;";



(b) paragraph (b) is repealed; and

(c) for paragraph (c) substitute - 



" (c) an insurer;".

    (3) In subsection (4), before the definition of "mortgage interest" insert - 

" "deposit taker" means - 
(a) a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits, or

(b) an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to accept deposits;


"insurer" means - 
(a) a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of insurance, or

(b) an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of insurance;".

    (4) After subsection (4) insert - 

    " (4A) The definitions of "deposit taker" and "insurer" in subsection (4) must be read with - 


(a) section 22 of the Financial Services and Markets Act 2000;

(b) any relevant order under that section; and

(c) Schedule 2 to that Act.".


The Pension Schemes (Northern Ireland) Act 1993 (c. 49)

Discharge of protected rights on winding up: insurance policies
     19.  - (1) The amendments made to section 28A of the Pension Schemes (Northern Ireland) Act 1993 (discharge of protected rights on winding up: insurance policies)[23] by article 131 of the Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001[24] are treated as if they had not been made, and instead section 28A is amended as follows.

    (2) In subsection (2)(a) - 

(a) for "insurance company" substitute "insurer"; and

(b) in sub-paragraph (i), the word "ordinary" and the words "(within the meaning of the Insurance Companies Act 1982)" are repealed.

Entitlement to guaranteed minimum pensions: treatment of entitlements
     20. In section 43(3)(d) of the Pension Schemes (Northern Ireland) Act 1993 (further provisions concerning entitlement to guaranteed minimum pensions for the purposes of section 42), for "Policyholders Protection Act 1975" substitute "Financial Services Compensation Scheme".

Determination of questions by the Department
     21. In section 165(1)(c) of the Pension Schemes (Northern Ireland) Act 1993 (determination of questions by the Department) for "Policyholders Protection Act 1975" substitute "Financial Services Compensation Scheme".

Interpretation: Financial Services Compensation Scheme
     22. In section 176(1) of the Pension Schemes (Northern Ireland) Act 1993, at the appropriate place insert - 

""Financial Services Compensation Scheme" means the Financial Services Compensation Scheme referred to in section 213(2) of the Financial Services and Markets Act 2000;".

Interpretation of section 55: relevant functions and designated person
     24.  - (1) Schedule 11 to the Competition Act 1998 (interpretation of section 55) is amended as follows.

    (2) In paragraph 1, for sub-paragraph (h) substitute - 

" (h) the Financial Services and Markets Act 2000 (c. 11);".

    (3) In paragraph 2, for sub-paragraph (r) substitute - 

" (r) the Financial Services Authority;".


The Data Protection Act 1998 (c. 29)

Exemption in connection with corporate finance services
     25.  - (1) In Schedule 7 to the Data Protection Act 1998 (miscellaneous exemptions), paragraph 6 (corporate finance) is amended as follows.

    (2) In sub-paragraph (3), in the definition of "instrument", omit ", as set out in Schedule 1 to the Investment Services Regulations 1995".

    (3) In that sub-paragraph, in the definition of "relevant person", for paragraphs (a) to (c) substitute - 

" (a) any person who, by reason of any permission he has under Part IV of the Financial Services and Markets Act 2000, is able to carry on a corporate finance service without contravening the general prohibition, within the meaning of section 19 of that Act;

(b) an EEA firm of the kind mentioned in paragraph 5(a) or (b) of Schedule 3 to that Act which has qualified for authorisation under paragraph 12 of that Schedule, and may lawfully carry on a corporate finance service;

(c) any person who is exempt from the general prohibition in respect of any corporate finance service - 


(i) as a result of an exemption order made under section 38(1) of that Act, or

(ii) by reason of section 39(1) of that Act (appointed representatives);



(cc) any person, not falling within paragraph (a), (b) or (c) who may lawfully carry on a corporate finance service without contravening the general prohibition;".



The Regulation of Investigatory Powers Act 2000 (c. 23)

Repeal of unnecessary provision
     26. In Schedule 1 to the Regulation of Investigatory Powers Act 2000, in Part I (relevant authorities for the purposes of sections 28 and 29), paragraph 22 (the Personal Investment Authority) is repealed.

(a) in paragraph (c) omit "by the Financial Services Act 1986 or" and ", insurance companies"; and

(b) after paragraph (d) insert - 


" (da) for the purpose of facilitating the performance by the Secretary of State, the Treasury or the Financial Services Authority of any functions under the Financial Services and Markets Act 2000;

(db) for the purpose of facilitating the discharge of any function by a person appointed under - 


(i) section 97 of the financial Services and Markets Act 2000 (investigations into a breach of listing rules etc.),

(ii) section 167 of that Act (general investigations), or

(iii) section 168 of that Act (investigations in particular cases);".


The Insolvency Act 2000 (c. 39)

Repeal of unnecessary provisions
     28.  - (1) In Schedule 1 to the Insolvency Act 2000 (amendments of the Insolvency Act 1986), Schedule A1 to the Insolvency Act 1986 (moratorium where directors propose voluntary arrangement)[26] is amended as follows.

    (2) In paragraph 1 (interpretation), the definitions of "money market contract" and "money market charge", and "related contract" are repealed.

    (3) In paragraph 2 (eligible companies), in sub-paragraph (2)(c) omit ", a money market contract or a related contract" and ", a money market charge".

    (4) In paragraph 23 (market contracts, etc.) - 

(a) in sub-paragraph (2)(a) omit "a money market contract or a related contract,";

(b) in sub-paragraph (2)(c) omit ", a money market charge"; and

(c) in sub-paragraph (5) omit "a money market charge,".

Companies not eligible for a moratorium
     29.  - (1) In Schedule 1 to the Insolvency Act 2000 (amendments of the Insolvency Act 1986), paragraph 2 of Schedule A1 to the Insolvency Act 1986 (moratorium where directors propose voluntary arrangement) is amended as follows.

    (2) In sub-paragraph (2) (eligible companies) for paragraphs (a) and (b) substitute - 

" (a) it effects or carries out contracts of insurance, but is not exempt from the general prohibition, within the meaning of section 19 of the Financial Services and Markets Act 2000, in relation to that activity,

(b) it has permission under Part IV of that Act to accept deposits,

(bb) it has a liability in respect of a deposit which it accepted in accordance with the Banking Act 1979 (c. 37) or 1987 (c. 22),";

    (3) After sub-paragraph (2) insert - 

    " (3) Paragraphs (a), (b) and (bb) of sub-paragraph (2) must be read with - 


(a) section 22 of the Financial Services and Markets Act 2000;

(b) any relevant order under that section; and

(c) Schedule 2 to that Act.".

Excepted petitions
     30. In Schedule 1 to the Insolvency Act 2000, in paragraph 12 (effect on creditors etc.) of Schedule A1 to the Insolvency Act 1986, after paragraph (c) of sub-paragraph (5) insert - 

" (d) section 367 of the Financial Services and Markets Act 2000 on the ground mentioned in subsection (3)(b) of that section.".

Application of companies insolvency legislation to building societies
     31. In Part II of Schedule 2 to the Insolvency Act 2000 (company voluntary arrangements: amendments of the Building Societies Act 1986), in paragraph 13(1), for "the Commission" (in each place it appears) substitute "the Authority".

(a) in paragraph (a)[29] for "regulation 2(1)(a)" substitute "regulation 2(2)(a)"; and

(b) in paragraph (d)[30] for "regulation 2(1)(c)" substitute "regulation 2(2)(c)".

    (3) In regulation 3 (requirements to be complied with by liable schemes in event of insolvency), in paragraph (1) and paragraph (3)[31] for "regulation 2(1)" (in each place it appears) substitute "regulation 2(2)".

Designated systems
     39.  - (1) The Financial Markets and Insolvency (Settlement Finality) Regulations 1999 are amended as follows.

    (2) In paragraph (1) of regulation 2 (interpretation) - 

(a) for the definition of "the 1986 Act" substitute - 

""the 2000 Act" means the Financial Services and Markets Act 2000;"; and

(b) in sub-paragraph (a)(i) of the definition of "designating authority" for "the 1986 Act" substitute "the 2000 Act".

    (3) In paragraph (1) of regulation 6 (certain bodies deemed to satisfy the requirements for designation) for "the 1986 Act" substitute "the 2000 Act".

    (4) In paragraph (2) of regulation 7 (revocation of designation) - 

(a) for "Subsections (2) to (9) of section 11 of the 1986 Act" substitute "Subsections (1) to (7) of section 298 of the 2000 Act";

(b) for "under subsection (1) of that section" substitute "section 297(2) of that Act"; and

(c) for sub-paragraphs (a) and (b) substitute - 


" (a) any reference to a recognised body shall be taken to be a reference to a designated system;

(b) any reference to members of a recognised body shall be taken to be a reference to participants in a designated system;

(c) references to the Authority shall, in cases where the Bank of England is the designating authority, be taken to be a reference to the Bank of England; and

(d) subsection (4)(a) shall have effect as if for "two months" there were substituted "three months".".

    (5) In regulation 7, after paragraph (2) insert - 

    " (3) An order revoking a designation order - 


(a) shall state the date on which it takes effect, being no earlier than three months after the day on which the revocation order is made; and

(b) may contain such transitional provisions as the designating authority thinks necessary or expedient.



    (4) A designation order may be revoked at the request or with the consent of the designated system, and any such revocation shall not be subject to the restriction imposed by paragraph (3)(a), or to the requirements imposed by subsections (1) to (6) of section 298 of the 2000 Act.".

    (6) In paragraph (5) of regulation 10 (provision of information by designated systems), for "section 41 of the 1986 Act" substitute "section 293 of the 2000 Act".

(a) in the definition of "securities"[37] for "unit trust" substitute "investment trust"; and

(b) in the definition of "with-profits fund", for "insurance company" (in both places) substitute "insurer".

    (3) In paragraphs (4) and (5) of regulation 15 (requirement for trustees or manager to satisfy certain conditions in relation to with-profits fund), for "insurance company" (in each place it appears) substitute "insurer".

(a) paragraphs (c), (d), (e), (g), (h), (j), (k), (1) and (m) are revoked, and

(b) for paragraph (f) substitute - 


" (f) a designated professional body within the meaning of section 326(2) of the Financial Services and Markets Act 2000;".


The Transport Act 2000 (Civil Aviation Authority Pension Scheme) Order 2001(S.I. 2001/853)

Meaning of "investments"
     44. In Schedule 1 to the Transport Act 2000 (Civil Aviation Authority Pension Scheme) Order 2001 (the new provisions), in paragraph 14.1 for "within the meaning of the Financial Services Act 1986" substitute "within the meaning of section 22 of the Financial Services and Markets Act 2000 and any relevant order made under that section".

Meaning of "authorised deposit taker" and "former authorised institution"
     46.  - (1) Rule 2.8 of the Railway Administration Order Rules 2001 (manner in which service of the petition is to be effected) is amended as follows.

    (2) For paragraph (5)(a) substitute - 

" (a) is an authorised deposit taker or a former authorised institution,".

    (3) After paragraph (6) insert - 

    " (6A) For the purposes of paragraph (5) - 


(a) "authorised deposit taker" means a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits; and

(b) "former authorised institution" means an institution which continues to have a liability in respect of a deposit which was held by it in accordance with the Banking Act 1979 or the Banking Act 1987, but is not an authorised deposit taker.



    (6B) References in paragraph (6A) to deposits and their acceptance must be read with - 



(a) section 22 of the Financial Services and Markets Act 2000;

(b) any relevant order under that section; and

(c) Schedule 2 to that Act.".


The Terrorism (United Nations Measures) (Isle of Man) Order 2001 (S.I. 2001/3364)

Construction of the 2001 Order: "relevant institution"
     47.  - (1) Article 2 of the Terrorism (United Nations Measures) (Isle of Man) Order 2001 (interpretation: general)[39] is amended as follows.

    (2) The existing text is numbered paragraph (1).

    (3) In paragraph (1), in the definition of "relevant institution" for paragraph (d) substitute - 

" (d) an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to the Financial Services and Markets Act 2000, which has lawfully established a branch in the Isle of Man for the purpose of accepting deposits or other repayable funds from the public;".

    (4) After paragraph (1) insert - 

    " (2) For the purpose of paragraph (d) of the definition of "relevant institution" in paragraph (1), the activity of accepting deposits has the meaning given in any relevant order under section 22 of the Financial Services and Markets Act 2000.".

     " 36A. In relation to the Channel Islands, section 16 of the 1948 Act (offences)[40] has effect with the substitution for subsection (2) of the following - 

    (2) Any collecting society or industrial assurance company which contravenes or fails to comply with any of the provisions of this Act, or of regulations made for the purposes of section 8 of this Act, shall be guilty of an offence under the Industrial Assurance Act 1923.".

    " (3A) In paragraph (3)(d), the reference to a deposit must be read with - 


(a) section 22 of the Financial Services and Markets Act 2000;

(b) any relevant order under that section; and

(c) Schedule 2 to that Act.".


The Superannuation (Northern Ireland) Order 1972 (S.I 1972/1703 (N.I 10))

Authorised providers in relation to superannuation schemes for civil servants etc.
     50.  - (1) Article 3 of the Superannuation (Northern Ireland) Order 1972 (superannuation schemes in respect of civil servants etc.) is amended as follows.

    (2) In paragraph (8)[42], for the definition of "authorised provider" substitute - 

" "authorised provider", in relation to the investment of any sums paid by way of voluntary contributions or the provision of any benefit, means - 
(a) a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to invest such sums or, as the case may be, to provide that benefit;

(b) an EEA firm of a kind mentioned in paragraph 5(a), (b) or (c) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to invest such sums or, as the case may be, to provide that benefit and which satisfies the conditions applicable to it which are specified in paragraph (8B), (8C) or (8D); or

(c) an EEA firm of a kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to invest such sums or, as the case may be to provide that benefit;".

    (3) After that paragraph insert - 

    " (8A) In paragraph (8), the definition of "authorised provider" must be read with - 


(a) section 22 to the Financial Services and Markets Act 2000;

(b) any relevant order made under that section; and

(c) Schedule 2 to that Act.



    (8B) If the EEA firm concerned is of the kind mentioned in paragraph 5(a) of Schedule 3 to the Financial Services and Markets Act 2000, the conditions are - 



(a) that, in investing of the sums in question, or in providing the benefit in question, the firm is carrying on a service falling within section A or C of the Annex to the Investment Services Directive; and

(b) that firm is authorised by its home state authorisation to carry on that service.



    (8C) If the EEA firm concerned is of the kind mentioned in paragraph 5(b) of that Schedule, the conditions are - 



(a) that, in investing of the sums in question, or in providing the benefit in question, the firm is carrying on an activity falling within Annex 1 to the Banking Consolidation Directive; and

(b) that the activity in question is one in relation to which an authority in the firm's home State has regulatory functions.



    (8D) If the EEA firm concerned is of the kind mentioned in paragraph 5(c) of that Schedule, the conditions are - 



(a) that, in investing of the sums in question, or in providing the benefit in question, the firm is carrying on an activity falling within Annex 1 to the Banking Consolidation Directive;

(b) that the activity in question is one in relation to which an authority in the firm's home State has regulatory functions; and

(c) that the firm also carries on the activity in question in its home State.



    (8E) Expressions used in paragraphs (8B) to (8D) which are also used in Schedule 3 to the Financial Services and Markets Act 2000 have the same meanings in those paragraphs as they have in that Schedule.".

Authorised providers in relation to superannuation schemes for teachers
     51. In Article 11(6) of the Superannuation (Northern Ireland) Order 1972 (superannuation schemes as respects teachers) for the definition of "authorised provider"[43] substitute - 

""authorised provider" has the meaning given in Article 3;".

Authorised providers in relation to superannuation schemes for persons engaged in health services etc.
     52. In Article 12(6) of the Superannuation (Northern Ireland) Order 1972 (superannuation schemes as respects persons engaged in health services, etc.) for the definition of "authorised provider"[44] substitute - 

""authorised provider" has the meaning given in Article 3;".

""relevant insurer" means a person, whether incorporated or not, who carried on industrial assurance business before 1st December 2001;".

    (3) In Article 20 (illegal policies), in paragraph (1)[48] for "entitled" (in the second place it occurs) substitute "liable".

" (a) a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits;

(ab) an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12(1) of that Schedule) to accept deposits;

(ac) a municipal bank, that is to say a company which, immediately before the 1st December 2001 fell within the definition in section 103 of the Banking Act 1987[49];".

    (3) After paragraph (2) insert - 

    " (2A) Sub-paragraphs (a) and (ab) of the definition of "authorised bank" in paragraph (2) must be read with - 


(a) section 22 of the Financial Services and Markets Act 2000;

(b) any relevant order under that section; and

(c) Schedule 2 to that Act.".

General prohibition on deposit taking
     55. In Article 25(2) of the Credit Unions (Northern Ireland) Order 1985 (general prohibition on deposit taking)[50], for the words "has the meaning given in section 5 of the Barking Act 1987" substitute - 

" must be read with - 
(a) section 22 of the Financial Services and Markets Act 2000;

(b) any relevant order under that section; and

(c) Schedule 2 to that Act.".

Insurance against fraud or other dishonesty
     56.  - (1) Article 37 of the Credit Unions (Northern Ireland) Order 1985 (insurance against fraud or other dishonesty) is amended as follows.

    (2) In paragraph (2), for sub-paragraph (d) substitute - 

" (d) must be issued by - 


(i) a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect and carry out contracts of insurance of a relevant class, or

(ii) an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect and carry out contracts of insurance of a relevant class.".

    (3) After paragraph (2) insert - 

    " (2A) Sub-paragraph (d) of paragraph (2) must be read with - 


(a) section 22 of the Financial Services and Markets Act 2000;

(b) any relevant order made under that section; and

(c) Schedule 2 to that Act.".


The Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2045 (N.I. 19))

Limitation of power to make an administration order
     57.  - (1) Paragraph (5)[51] of Article 21 of the Insolvency (Northern Ireland) Order 1989 (restrictions on making of administration order) is amended as follows.

    (2) For sub-paragraph (a) substitute - 

" (a) it carries on a regulated activity of effecting or carrying out contracts of insurance but is not - 


(i) exempt from the general prohibition, within the meaning of section 19 of the Financial Services and Markets Act 2000, in respect of that activity, or

(ii) an authorised deposit taker within the meaning given by paragraph (1B), and carrying on that activity in the course of, or for the purposes of, a banking business;".

    (3) In sub-paragraph (b), after "the Banking Act 1987" insert ", but is not an authorised deposit taker, within the meaning given by paragraph (1B)".

Winding-up on petition of the Authority: partnerships
     58. In paragraph (5C) of Article 143 of the Insolvency (Northern Ireland) Order 1989[52], for "under section 72(1)(a) of the Financial Services Act 1986 or section 92(1)(a) of the Banking Act 1987" substitute "under section 367(3)(a) of the Financial Services and Markets Act 2000".

Power to apply Parts 2 to 7 to formerly authorised banks
     59.  - (1) Article 366 of the Insolvency (Northern Ireland) Order 1989 (power to apply Parts 2 to 7 to banks etc.)[53] is amended as follows.

    (2) For the cross heading to that Article substitute "Power to apply Parts II to VII to formerly authorised banks etc.".

    (3) The existing text is numbered paragraph (1).

    (4) In paragraph (1), after "any company" insert "(other than an authorised deposit taker)".

    (4) After paragraph (1) insert - 

    " (2) For the purposes of paragraph (1), "authorised deposit taker" has the meaning given in Article 21(1B).".

Application of Part III of the 1989 Order to former authorised institutions
     62.  - (1) The Banks (Administration Proceedings) Order (Northern Ireland) 1991 is amended as follows.

    (2) In Article 3 (application of the 1989 Order with modifications to banks) the words "authorised institutions and" and "within the meaning of the Banking Act 1987" are revoked.

    (3) In the sub-heading to the Schedule (modifications of Part III of the Insolvency (Northern Ireland) Order 1989 in relation to companies which are authorised or former authorised institutions under the Banking Act 1987) the words "authorised or" and "under the Banking Act 1987" are revoked.

    (4) In paragraph 2 of the Schedule, for "Article 21(4)" substitute "Article 21(5)".


Nick Ainger

John Heppell
Two of the Lords Commissioners of Her Majesty's Treasury

12th June 2002

[2] The Industrial Assurance Act 1923 was repealed by section 416(1)(a) of the Financial Services and Markets Act 2000 (c. 8) as from 1st December 2001.back

[3] S.I. 2001/3647, article 3(3), Schedule 1, Part I, paragraphs 1 to 18.back

[4] Section 5(1) as it has effect from 1st December 2001, was substituted by S.I. 2001/3647, Schedule 1, Part I, paragraph 4.back

[5] Subsection (5) was substituted by S.I. 2001/3647, Schedule 3, paragraph 5(3).back

[6] Part VI of the Reserve and Auxiliary Forces (Protection of Civil Interests) Act 1951 (protection against loss of benefits under contracts with industrial assurance companies and friendly societies) was extended to the Channel Islands by S.I. 1952/165.back

[7] Subsection (5) was substituted, together with subsections (5A) and (5B), by S.I. 2001/3657, article 5, Schedule 3, paragraph 5(3), (4). (That substitution is not affected by this article, and continues to have effect in relation to England and Wales.)back

[8] Section 98 was repealed prospectively by the Local Government Act 2000 (c. 22), Schedules 5 and 6, from a date to be appointed. No such date has been appointed at the date of the making of this Order.back

[9] Paragraph (a) was substituted, together with paragraph (b), by the Financial Services Act 1986 (c. 60), section 212(2), Schedule 16, paragraph 8.back

[10] Paragraph 21 was substituted by the Financial Services Act 1986, section 212(2), Schedule 16, paragraph 12.back

[11] The second paragraph (h) (referring to Chapter XIV of Part I of the Financial Services Act (1986)) was inserted by the Financial Services Act 1986, section 182, Schedule 13, paragraph 5. (The first paragraph (h) refers to the Gas Act 1986 (c. 44), and was inserted by that Act, section 67(1), Schedule 7, paragraph 28(2).)back

[12] The definition of "securities" was substituted by the Financial Services Act 1986, section 212(2), Schedule 16, paragraph 15.back

[13] Section 716 was amended by sections 145 and 212 of, and paragraph 15 of Schedule 19 to and Schedule 24 to, the Companies Act 1989 (c. 40); by section 263 of the Financial Services and Markets Act 2000 (c. 8); by regulation 2 of, and paragraph 53 of the Schedule to, S.I. 1991/1997, and by regulation 84 of, and paragraph 7 of Schedule 7 to, S.I. 2001/1228. This provision reproduces the effect of section 89 of the Insurance Companies Act 1982 (c. 50), which was repealed by S.I. 2001/3649, article 3.back

[14] Part IV was inserted by the Companies Act 1989 (c. 40), section 18(3), (4), Schedule 7.back

[15] The words "within the meaning of the Financial Services and Markets Act 2000" were substituted by S.I. 2001/3649, article 35(3).back

[16] Subsection (5) was substituted, together with subsections (4) and (6), for subsection (4) by S.I. 2001/3649, article 304.back

[17] Subsection (5C) was inserted, together with subsections (5A) and (5B), by S.I. 1994/2421, article 14(1).back

[18] S.I. 2001/3649.back

[19] Subsection (1) was amended by S.I. 2001/3649, article 307.back

[20] Section 15A was inserted by Social Security (Mortgage Interest Payments) Act 1992 (c. 33), section 1(2), Schedule, paragraph 1.back

[21] The definition of "insurer" was inserted by S.I. 2001/3649, article 330(3).back

[22] Article 13A was inserted by the Social Security (Mortgage Interest Payments) (Northern Ireland) Order 1992, S.I. 1992/1309 (N.I. 9), Schedule.back

[23] Section 28A was inserted by the Pensions (Northern Ireland) Order 1995, S.I. 1995/3213 (N.I. 22), Article 143.back

[24] S.I. 2001/3649.back

[25] S.I. 2001/3649.back

[26] Schedule A1 is to be inserted into the Insolvency Act 1986 (c. 45) from a date to be appointed under section 16(1) of the Insolvency Act 2000, but not yet appointed at the time of the making of this Order.back

[27] Paragraph (5) was inserted by S.I. 1992/1531, regulation 21.back

[28] Paragraph 4 was inserted by S.I. 1992/1531; regulation 24.back

[29] Paragraph (a) was substituted by S.I. 2001/3649, article 394(1).back

[30] Paragraph (d) was substituted by S.I. 2001/3649, article 394(4).back

[31] Paragraphs (1) and (3) were was substituted by S.I. 2001/3649, article 395(4).back

[32] The sub-heading to article 2 was amended by S.I. 2001/3649, article 398(4).back

[33] Amendments to the Schedule which are not relevant to this amendment were made by S.I. 1998/1129, article 2, Schedule 1 paragraph 9 and S.I. 2001/3649, article 398(5), (6).back

[34] Paragraph (4) of regulation 13 was amended by S.I. 2001/3649, article 44(1).back

[35] Subsection (5) of the modified text of section 8 of the Insolvency Act 1986 was substituted by S.I. 2001/3649, article 468(3).back

[36] Paragraph (1) was substituted by S.I. 2001/3649, article 539.back

[37] The definition of "securities" was substituted by S.I. 2001/3649, article 595(1).back

[38] S.I. 2001/3649.back

[39] Article 2 is amended (in a way not relevant to this article) by S.I. 2002/259.back

[40] Section 16(2) was repealed in so far as it related to industrial assurance companies by the Companies Act 1969 (c. 81), section 130(4)(d), Schedule 8, Part IV. Section 89(1)(a) of that Act made equivalent provision in relation to industrial assurance companies. That Act was repealed by S.I. 2001/3647, Schedule 3, paragraph 8, and this amendment is consequential upon that repeal.back

[41] Section 38A was inserted by the Deregulation (Northern Ireland) Order 1997, S.I. 1997/2984 (N.I. 22), Schedule 2, paragraph 6(2).back

[42] Paragraph (8) was inserted by the Pensions (Miscellaneous Provisions) (Northern Ireland) Order 1990, S.I. 1990/1509 (N.I. 13), Article 10, and amended by the Pension Schemes (Northern Ireland) Act 1993 (c. 49), Schedule 7, paragraph 14.back

[43] The definition of "authorised provider" was inserted by S.I. 1990/1509, (N.I. 13), Article 10(4).back

[44] The definition of "authorised provider" was inserted by S.I. 1990/1509 (N.I. 13), Article 10(6).back

[45] The Industrial Assurance (Northern Ireland) Order 1979 was revoked by section 416(2) of the Financial Services and Markets Act 2000 (c. 8) as from 1st December 2001.back

[46] S.I. 2001/3647, article 3(3), Schedule 1, Part IV, paragraphs 37 to 58.back

[47] Article 2 is saved with modifications by S.I. 2001/3647, Schedule 1, Part IV, paragraph 38.back

[48] Paragraph (1) of Article 20, as it has effect from 1st December 2001, was substituted by S.I. 2001/3647, Schedule 1, Part IV, paragraph 35.back

[49] The Banking Act 1987 (c. 22) was repealed on 1st December 2001 by S.I. 2001/3649, article 3(1)(d).back

[50] Article 25(2) was substituted for paragraphs (2) and (3) by the Banking Act 1987 (c. 22), section 108(1), Schedule 6, paragraph 23(2).back

[51] Paragraph (5) was substituted, together with paragraphs (4) and (6), for paragraph (4) by S.I. 2001/3649, article 401.back

[52] Paragraph (5C) was inserted by the Insolvent Partnerships Order (Northern Ireland) 1995, S.R. (N.I.) 1995 No. 225, Article 15(1).back

[53] Article 366 was amended by the Bank of England Act 1998 (c. 11), Schedule 5, paragraph 40, and by S.I. 2001/3649, article 403.back