Banking Act 2009

232Definition

This section has no associated Explanatory Notes

(1)In this group of sections “investment bank” means an institution which satisfies the following conditions.

(2)Condition 1 is that the institution has permission under Part 4 of the Financial Services and Markets Act 2000 to carry on the regulated activity of—

(a)safeguarding and administering investments,

(b)dealing in investments as principal, or

(c)dealing in investments as agent.

(3)Condition 2 is that the institution holds client assets.

(4)In this group of sections “client assets” means assets which an institution has undertaken to hold for a client (whether or not on trust and whether or not the undertaking has been complied with).

(5)Condition 3 is that the institution is incorporated in, or formed under the law of any part of, the United Kingdom.

(6)The Treasury may by order—

(a)provide that a specified class of institution, which has a permission under Part 4 of the Financial Services and Markets Act 2000 to carry on a regulated activity, is to be treated as an investment bank for the purpose of this group of sections;

(b)provide that a specified class of institution is not to be treated as an investment bank for the purpose of this group of sections;

(c)provide that assets of a specified kind, or held in specified circumstances, are to be or not to be treated as client assets for the purpose of this group of sections;

(d)amend a provision of this section in consequence of provision under paragraph (a), (b) or (c).