(1)If it appears to the Secretary of State or the Treasury that by reason of—
(a)the law of any country outside the United Kingdom; or
(b)any action taken by or the practices of the government or any other authority or body in that country,
persons connected with the United Kingdom are unable to carry on investment, insurance or banking business in, or in relation to, that country on terms as favourable as those on which persons connected with that country are able to carry on any such business in, or in relation to, the United Kingdom, the Secretary of State or, as the case may be, the Treasury may serve a notice under this subsection on any person connected with that country who is carrying on or appears to them to intend to carry on any such business in, or in relation to, the United Kingdom.
(2)No notice shall be served under subsection (1) above unless the Secretary of State or, as the case may be, the Treasury consider it in the national interest to serve it; and before doing so the Secretary of State or, as the case may be, the Treasury shall so far as they consider expedient consult such body or bodies as appear to them to represent the interests of persons likely to be affected.
(3)A notice under subsection (1) above shall state the grounds on which it is given (identifying the country in relation to which those grounds are considered to exist); and any such notice shall come into force on such date as may be specified in it.
(4)For the purposes of this section a person is connected with a country if it appears to the Secretary of State or, as the case may be, the Treasury—
(a)in the case of an individual, that he is a national of or resident in that country or carries on investment, insurance or banking business from a principal place of business there;
(b)in the case of a body corporate, that it is incorporated or has a principal place of business in that country or is controlled by a person or persons connected with that country;
(c)in the case of a partnership, that it has a principal place of business in that country or that any partner is connected with that country;
(d)in the case of an unincorporated association which is not a partnership, that it is formed under the law of that country, has a principal place of business there or is controlled by a person or persons connected with that country.
(5)In this section “country” includes any territory or part of a country or territory; and where it appears to the Secretary of State or, as the case may be, the Treasury that there are such grounds as are mentioned in subsection (1) above in the case of any part of a country or territory their powers under that subsection shall also be exercisable in respect of any person who is connected with that country or territory or any other part of it.
Modifications etc. (not altering text)
C1S. 183 explained by Banking Act 1987 (c. 22, SIF 10), s. 91
S. 183: certain functions of the Secretary of State made exercisable jointly by the Secretary of State and the Treasury (7.6.1992) by S.I. 1992/1315, art. 4, Sch. 2 para. 4(a).