Subsidiary of person with paragraph 23 permission7.

(1)

This article applies where—

(a)

a person (“S”) is a subsidiary undertaking of another person (“PP”);

(b)

PP is a person in respect of whom a paragraph 23 permission was in effect immediately before commencement;

(c)

S has, on or before 31 October 2001, made an application to the Authority under section 40 or 44 for permission under Part IV to carry on regulated activities which relate to the paragraph 23 permitted business carried on by PP;

(d)

PP was, at the date when S made the application referred to in sub-paragraph (c), carrying on paragraph 23 permitted business;

(e)

PP has not made an application to the Authority under section 40 or 44 for permission under Part IV to carry on regulated activities which correspond to his paragraph 23 permitted business;

(f)

S notifies the Authority on or before 31 October 2001 that he wishes to have a Part IV permission by virtue of this article.

(2)

In a case where this article applies—

(a)

S is to be treated as a Relevant Applicant for the purposes of this Order; and

(b)

S is to be treated as having, at commencement, a Part IV permission to carry on the paragraph 23 permitted business covered by his application.

(3)

For the purposes of this article—

(a)

a “paragraph 23 permission” is a permission granted to a person under paragraph 23 of Schedule 1 to the Financial Services Act;

(b)

“paragraph 23 permitted business” is business which PP was able to carry on before commencement without contravening section 3 of the Financial Services Act by reason of his paragraph 23 permission.