PART IIIRECOGNITION IN OTHER MEMBER STATES OF UK INSTITUTIONS
Regulation of UK subsidiaries for recognition purposes
Restriction on activities of UK subsidiaries23.
(1)
In this regulation “restriction” means a direction that a UK subsidiary to which section 22(1) above applies—
(a)
may not carry on in the United Kingdom any listed activity stated in its recognition notice which is specified in the direction; or
(b)
may not carry on in the United Kingdom, otherwise than in accordance with such condition or conditions as may be specified in the direction, any such activity which is so specified.
(2)
Where it appears to the UK authority that the situation as respects a UK subsidiary is such that, if it were authorised by the Bank under the Banking Act, the Bank could revoke its authorisation on the ground specified in section 11(1)(a) of that Act, the UK authority may impose on the institution such restriction as appears to it desirable.
(3)
Subsection (4) of section 12 of the Banking Act (examples of conditions that may be imposed) applies for the purposes of this regulation as it applies for the purposes of that section; and Schedule 3 to that Act (minimum criteria for authorisation) as applied by this regulation shall have effect as if—
(a)
paragraph 6 (minimum initial capital) were omitted; and
(b)
where the Commission is the UK authority, the reference to that Act in paragraph 4(8) were a reference to the Building Societies Act.
(4)
Any restriction imposed under this regulation—
(a)
may be withdrawn; or
(b)
may be varied with the agreement of the institution concerned,
by written notice served by the UK authority on the institution; and any such notice shall take effect on such date as is specified in the notice.
(5)
An institution which contravenes or fails to comply with a restriction shall be guilty of an offence and liable—
(a)
on conviction on indictment, to a fine;
(b)
on summary conviction, to a fine not exceeding the statutory maximum.
(6)
The fact that a restriction has not been complied with (whether or not constituting an offence under paragraph (5) above) shall not invalidate any transaction.
(7)
Schedule 7 to these Regulations (which makes supplemental provision with respect to restrictions imposed under this regulation) shall have effect.