Legal Services Act 2007

Prospective

108 “Low risk body” E+W

(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).