SCHEDULES

SCHEDULE 7 Special Provisions for Banking and Insurance Companies and Groups

Part II [Part II of Schedule 9 to the Companies Act 1985]

Accounts of Banking or Insurance Group

Undertakings to be included in consolidation

1

The following descriptions of undertaking shall not be excluded from consolidation under section 229(4) (exclusion of undertakings whose activities are different from those of the undertakings consolidated)—

a

in the case of a banking group, an undertaking (other than a credit institution) whose activities are a direct extension of or ancillary to banking business;

b

in the case of an insurance group, an undertaking (other than one carrying on insurance business) whose activities are a direct extension of or ancillary to insurance business.

For the purposes of paragraph (a) “banking” means the carrying on of a deposit-taking business within the meaning of the M1Banking Act 1987.