The Financial Services and Markets Act 2000 (Consequential Amendments) (Taxes) Order 2001

The Finance Act 1996 (c. 8)

Introduction

92.  Amend the Finance Act 1996 in accordance with Articles 93 to 96.

Mis-sold personal pensions

93.—(1) Amend section 148(6) (mis-sold personal pensions: interpretation) as follows.

(2) In the definition of “bad investment advice” for paragraph (d) substitute—

“(d) by reason of a contravention which is actionable—

(i) under section 62 of the Financial Services Act 1986; or

(ii) under section 150 of the Financial Services and Markets Act 2000;”.

(3) For the definition of “investment advice” substitute—

• ““investment advice”—

  (a)

  in relation to a time before 1st December 2001, means advice such as is mentioned in paragraph 15 of Schedule 1 to the Financial Services Act 1986; and

  (b)

  in relation to a time on or after that date, means advice such as is mentioned in Article 53 of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001;”.

Loan relationships: continuity of treatment

94.—(1) Amend paragraph 12 of Schedule 9 (loan relationships: continuity of treatment) as follows.

(2) In sub-paragraph (1) for paragraph (c) substitute—

“(c) a transfer between two companies of business consisting of the effecting or carrying out of contracts of long-term insurance which has effect under an insurance business transfer scheme;”.

(3) For paragraph (9) substitute—

“(9) In this paragraph—

“contracts of long-term insurance” means contracts which fall within Part II of Schedule 1 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001;

“insurance business transfer scheme” means a scheme falling within section 105 of the Financial Services and Markets Act 2000, including an excluded scheme falling within Case 2, 3 or 4 of subsection (3) of that section;

“overseas life insurance company” has the same meaning as in Chapter 1 of Part 12 of the Taxes Act 1988.”.

(4) This Article has effect in relation to any transfer under a scheme falling within section 105 of the Financial Services and Markets Act 2000, including an excluded scheme falling within Case 2, 3 or 4 of subsection (3) of that section.

Loan relationships: collective investment schemes

95.—(1) Amend paragraph 8 of Schedule 10 (loan relationships: non-qualifying investment test for collective investment schemes)(1) as follows.

(2) In sub-paragraph (7A)—

(a) in paragraph (a) for “75 of the Financial Services Act 1986” substitute “235 of the Financial Services and Markets Act 2000”;

(b) in paragraph (b) for “75(8) of the Financial Services Act 1986” substitute “236 of the Financial Services and Markets Act 2000”.

(3) In sub-paragraph (7D)—

(a) in paragraph (a) for “75(8) of the Financial Services Act 1986” substitute “236 of the Financial Services and Markets Act 2000”;

(b) in paragraph (c) for “75(3)(a)” substitute “235(3)(a)”.

Miscellaneous amendments

96.—(1) In the following provisions for “long term” substitute “long-term”—

(a) paragraph 12(3) of Schedule 9;

(b) the following paragraphs of Schedule 11(2)—

(i) paragraph 3(b);

(ii) paragraph 3A(1)(b), (2), (3)(a) and (4);

(iii) paragraph 5(1)(a);

(iv) paragraph 6;

(c) paragraph 1(3) of Schedule 15.

(2) In paragraph 3A(1)(a) of Schedule 11 for “long term business” substitute “long-term insurance”.

(1)

Paragraph 8 was relevantly amended by Article 10 of S.I. 1997/213.

(2)

Schedule 11 was relevantly amended by section 109(8) of the Finance Act 2000.