SCHEDULE 2FURTHER AMENDMENTS TO PART VII OF THE 1985 ACT

Regulation 6.

1.

Section 254(3) of the 1985 Act7 is amended by the insertion of the words “if the company is a banking company or the parent company of a banking group or” after the word “apply” therein.

2.

Section 260(6)8 of the 1985 Act is amended by the insertion of the words “and in Chapter I of Part I of Schedule 9” after the words “Schedule 4”.

3.

The index of defined expressions set out in section 262A of the 1985 Act9 is amended:

(a)

by the substitution, against the entries relating to the following expressions, of the following new references in place of those already existing:

(i)

“banking group”: section 255A(4); and

(ii)

“insurance group”: section 255A(5);

(b)

by the substitution of the words “Schedule 9A” for the words “Schedule 9” where they occur in the index;

(c)

by the insertion of the following entries into the index at their appropriate position:

“banking activities (in Schedule 9)

paragraph 82 of Part I of that Schedule”

“banking transactions (in Schedule 9)

paragraph 82 of Part I of that Schedule”

“financial fixed assets (in Schedule 9)

paragraph 82 of Part I of that Schedule”

“listed security (in Schedule 9)

paragraph 82 of Part I of that Schedule”

“repayable on demand (in Schedule 9)

paragraph 82 of Part I of that Schedule”

“sale and repurchase transaction (in Schedule 9)

paragraph 82 of Part I of that Schedule”

“sale and option to resell transaction (in Schedule 9)

paragraph 82 of Part I of that Schedule”

(d)

by the insertion of the following entries in substitution for the existing entries dealing with the same subject matter:

“historical cost accounting rules

– in Schedule 4

Paragraph 29 of that Schedule

– in Schedule 9

Paragraph 39 of Part I of of that Schedule”

“pension costs

– in Schedule 4

Paragraph 94(2) and (3) of that Schedule

– in Schedule 9

Paragraph 87(b) and (c) of I of of that Schedule”

“social security costs

– in Schedule 4

Paragraph 94(1) and (3) of that Schedule

– in Schedule 9

Paragraph 87(a) and (c) of I of of that Schedule”

  • and

    1. (a)

      by the:

      1. (i)
        insertion of the following words at the appropriate place in the entry relating to “land of freehold tenure and land of leasehold tenure” :

        “– in Schedule 9

        paragraph 86 of Part I of that Schedule”;

      2. (ii)
        insertion of the following words at the appropriate place in the entry relating to “lease, long lease and short lease”:

        “– in Schedule 9

        paragraph 82 of Part I of that Schedule”;

      3. (iii)
        insertion of the following words at the appropriate place in the entry relating to “provision”:

        “– in Schedule 9

        paragraph 85 of Part I of that Schedule”.

4.

Parts I and II of Schedule 9 to the 1985 Act, formed into a new Schedule by Regulation 5 of these Regulations and numbered Schedule 9A, shall be amended as follows:

(a)

in paragraph 17(2) of Part I, the words from “except in so far as” to the end shall be omitted;

(b)

paragraph 27 of Part I is repealed;

(c)

in paragraph 28A10 of Part I, the words “27 or” shall be omitted;

(d)

the words “Banking or” shall be omitted from the heading to Part II;

(e)

the following shall be substituted for paragraph 1 of Part II:

“1.

An undertaking (other than one carrying on insurance business) whose activities are a direct extension of or ancillary to insurance business shall not be excluded from consolidation under section 229(4) (exclusion of undertakings whose activities are different from those of the undertakings consolidated).”;

(f)

in paragraph 5 of Part II, the word “an” shall be substituted for the words “a banking or” in sub-paragraph (1) and the words “27 or” in that sub-paragraph and “27(4)” in subparagraph (2) shall be omitted; and

(g)

paragraph 6 of Part II is repealed.

5.

Schedule 10 to the 1985 Act (Directors' Report where Accounts Prepared in Accordance with Special Provisions for Banking or Insurance Companies or Groups)11 shall be amended as follows:

(a)

the words “banking or” shall be omitted from the heading to the Schedule and also from paragraphs 1(1), 2(1) and 3(1) where they occur; and

(b)

the words “(other than banking …Schedule 9)” in paragraph 2(2) shall be omitted.