Part 5Alternative business structures

Special kinds of body

108Low risk body

1

A body (“B”) is a low risk body if the management condition and the ownership condition are satisfied in relation to it.

2

The management condition is that the number of managers of the body who are within subsection (4) is less than 10% of the total number of managers.

3

The ownership condition is that—

a

the proportion of shares in B held by persons within subsection (4) is less than 10%, and

b

the proportion of the voting rights in B which such persons are entitled to exercise, or control the exercise of, is less than 10%, and

c

if B has a parent undertaking (“P”)—

i

the proportion of shares in P held by such persons is less than 10%, and

ii

the proportion of the voting rights in P which such persons are entitled to exercise, or control the exercise of, is less than 10%.

4

The persons within this subsection are—

a

non-authorised persons;

b

licensed bodies.

5

For the purposes of this section “parent undertaking” has the same meaning as in the Financial Services and Markets Act 2000 (c. 8) (see section 420 of that Act).