The Competition Act 1998 (Determination of Turnover for Penalties) Order 2000

Article 2

SCHEDULE U.K. Applicable turnover

Interpretation U.K.

1.—(1) In this Schedule:

F1 ...

[F2 “credit institution” means a credit institution for the purposes of [F3 [F4 Article 4(1)] of Directive 2006/48/EC of the European Parliament and of the Council of 14 June 2006] relating to the taking up and pursuit of the business of credit institutions; [F5 as last amended by Directive 2009/111/EC]]

[F6 “financial institution” means a financial institution for the purposes of [F7 Article 4(5) of Directive 2006/48/EC of the European Parliament and of the Council of 14 June 2006 relating to the taking up and pursuit of the business of credit institutions;] [F8 as last amended by Directive 2009/111/EC]]

“insurance undertaking” means an insurance undertaking carrying on the business of direct insurance of a class set out in the Annex to Council Directive (EEC) 73/239 the First Council Directive on the co-ordination of laws, regulations and administrative provisions relating to the taking-up and pursuit of the business of direct insurance other than life assurance(1) or in [F9 Article 2 of Directive 2002/83/EC of the European Parliament and of the Council of 5th November 2002 concerning life assurance]; and

terms used in this Schedule in respect of the determination of the applicable turnover of credit institutions, financial institutions and insurance undertakings shall (except where the contrary intention appears) have the same meaning as in the relevant Directive.

Textual Amendments

F1 Words in Sch. para. 1(1) cease to have effect (1.5.2004) by virtue of The Competition Act 1998 (Determination of Turnover for Penalties) (Amendment) Order 2004 (S.I. 2004/1259), arts. 1, 2(4)(a)

F2 Words in Sch. para. 1 substituted (22.11.2000) by The Banking Consolidation Directive (Consequential Amendments) Regulations 2000 (S.I. 2000/2952), regs. 1, 16(2)(a)

F3 Words in Sch. para. 1 substituted (1.1.2007) by The Capital Requirements Regulations 2006 (S.I. 2006/3221), reg. 1(1), Sch. 6 para. 5(a)

F4 Words in Sch. para. 1(1) substituted (9.2.2011 for specified purposes, 30.4.2011 in so far as not already in force) by The Electronic Money Regulations 2011 (S.I. 2011/99), reg. 1(2), Sch. 4 para. 10(a)(i) (with reg. 3)

F5 Words in Sch. para. 1(1) inserted (9.2.2011 for specified purposes, 30.4.2011 in so far as not already in force) by The Electronic Money Regulations 2011 (S.I. 2011/99), reg. 1(2), Sch. 4 para. 10(a)(ii) (with reg. 3)

F6 Words in Sch. para. 1 substituted (22.11.2000) by The Banking Consolidation Directive (Consequential Amendments) Regulations 2000 (S.I. 2000/2952), regs. 1, 16(2)(b)

F7 Words in Sch. para. 1 substituted (1.1.2007) by The Capital Requirements Regulations 2006 (S.I. 2006/3221), reg. 1(1), Sch. 6 para. 5(b)

F8 Words in Sch. para. 1(1) inserted (9.2.2011 for specified purposes, 30.4.2011 in so far as not already in force) by The Electronic Money Regulations 2011 (S.I. 2011/99), reg. 1(2), Sch. 4 para. 10(b) (with reg. 3)

F9 Words in Sch. para. 1 substituted (11.1.2005) by The Life Assurance Consolidation Directive (Consequential Amendments) Regulations 2004 (S.I. 2004/3379), regs. 1, 14

Commencement Information

I1 Sch. para. 1 in force at 1.3.2000, see art. 1(1)

2.  The provisions of this Schedule shall be interpreted in accordance with generally accepted accounting principles and practices.

Commencement Information

I2 Sch. para. 2 in force at 1.3.2000, see art. 1(1)

General U.K.

3.  The applicable turnover of an undertaking, other than a credit institution, financial institution, insurance undertaking, or an association of undertakings, shall be limited to the amounts derived by the undertaking from the sale of products and the provision of services falling within the undertaking’s ordinary activities F10 ... after deduction of sales rebates, value added tax and other taxes directly related to turnover.

Textual Amendments

F10 Words in Sch. para. 3 cease to have effect (1.5.2004) by virtue of The Competition Act 1998 (Determination of Turnover for Penalties) (Amendment) Order 2004 (S.I. 2004/1259), arts. 1, 2(4)(b)

Commencement Information

I3 Sch. para. 3 in force at 1.3.2000, see art. 1(1)

4.  Where an undertaking consists of two or more undertakings that each prepare accounts then the applicable turnover shall be calculated by adding together the respective applicable turnover of each, save that no account shall be taken of any turnover resulting from the sale of products or the provision of services between them.

Commencement Information

I4 Sch. para. 4 in force at 1.3.2000, see art. 1(1)

Credit institutions and financial institutions U.K.

5.  The applicable turnover of a credit institution or financial institution shall be limited to the sum of the following income [F11 items listed] in Council Directive (EEC) 86/635(2) received by F12 ... that institution F13 ... after deduction of value added tax and other taxes directly related to those items:

(i) interest income and similar income;

(ii) income from securities:

• income from shares and other variable yield securities;

• income from participating interests;

• income from shares in affiliated undertakings;

(iii) commissions receivable;

(iv) net profit on financial operations;

(v) other operating income.

Textual Amendments

F11 Words in Sch. para. 5 substituted (1.5.2004) by The Competition Act 1998 (Determination of Turnover for Penalties) (Amendment) Order 2004 (S.I. 2004/1259), arts. 1, 2(4)(c)(i)

F12 Words in Sch. para. 5 cease to have effect (1.5.2004) by virtue of The Competition Act 1998 (Determination of Turnover for Penalties) (Amendment) Order 2004 (S.I. 2004/1259), arts. 1, 2(4)(c)(ii)

F13 Words in Sch. para. 5 cease to have effect (1.5.2004) by virtue of The Competition Act 1998 (Determination of Turnover for Penalties) (Amendment) Order 2004 (S.I. 2004/1259), arts. 1, 2(4)(c)(iii)

Commencement Information

I5 Sch. para. 5 in force at 1.3.2000, see art. 1(1)

Insurance undertakings U.K.

6.  The applicable turnover of an insurance undertaking shall be limited to the value of gross premiums received F14 ... which shall comprise all amounts received and receivable in respect of insurance contracts issued by or on behalf of the undertaking, including outgoing reinsurance premiums, and after deduction of taxes and parafiscal contributions or levies charged by reference to the amounts of individual premiums or the total volume of premiums.

Textual Amendments

F14 Words in Sch. para. 6 cease to have effect (1.5.2004) by virtue of The Competition Act 1998 (Determination of Turnover for Penalties) (Amendment) Order 2004 (S.I. 2004/1259), arts. 1, 2(4)(d)

Commencement Information

I6 Sch. para. 6 in force at 1.3.2000, see art. 1(1)

Turnover of associations of undertakings U.K.

7.  The turnover of an association of undertakings shall be the aggregate applicable turnover of the undertakings that are members of the association.

Commencement Information

I7 Sch. para. 7 in force at 1.3.2000, see art. 1(1)

Aid granted to undertakings U.K.

8.  Any aid granted by a public body to an undertaking which relates to one of the undertaking’s ordinary activities shall be included in the calculation of turnover if the undertaking is itself the recipient of the aid and if the aid is directly linked to the sale of products or the provision of services by the undertaking and is therefore reflected in the price.

Commencement Information

I8 Sch. para. 8 in force at 1.3.2000, see art. 1(1)

Kim Howells

Parliamentary Under Secretary of State for Consumers and Corporate Affairs,

Department of Trade and Industry

10th February 2000

(1)

OJ No. L228, 16.8.73, p.3.

(2)

OJ No. L372, 31.12.86, p.1.