4.—(1) In this Schedule “the particular restrictions for payments services vehicles” means, subject to subparagraph (3) below, the provisions set out in subparagraph (2) below.
(2) A body corporate is not an appropriate payments services vehicle for a society where—
(a)it is a market maker,
(b)its business includes lending money, secured or unsecured, on its own account, save in so far as the subscription for or the purchase or sale of investments on behalf of any other person, in advance of being put in funds by or on behalf of that other person to complete that transaction, comprises or gives rise to such lending,
(c)it is an authorised institution, or its business requires it to be authorised, for the purposes of the Banking Act 1987(1),
(d)its business includes activities in the range from which the society is restricted, or
(e)it has a subordinate organisation which is not within the prescribed range.
(3) For the purposes of subparagraph (1) above, a subordinate organisation comes within the prescribed range where it is—
(a)a particular body designated by Order under section 18 of the Act,
(b)a body corporate of a description designated by this Order or another Order under section 18 of the Act, which is a one tier organisation, or
(c)a body corporate, being a one tier organisation, whose objects do not include the carrying on of activities which, by virtue of section 18(4), the society could not invest in or support it so as to enable it to carry them on.
(4) The restriction subparagraph (2) will not apply where there is no relevant holding of the society in the appropriate payments services vehicle.