428.—(1) Schedule 3 to the Local Authorities (Funds) (England) Regulations 1992 is amended as follows.
(2) The existing text is numbered paragraph (1).
(3) In paragraph (1)(a) (as renumbered) for “an institution authorised under Part I of the Banking Act 1987” substitute “an authorised deposit taker”.
(4) Sub-paragraph (b) of that paragraph is revoked.
(5) For sub-paragraph (c) of that paragraph substitute—
“(c)if the deposit is repayable at not more than 7 days notice, a deposit with a relevant body (other than the billing authority) which may accept deposits without contravening the prohibition imposed by section 19 of the Financial Services and Markets Act 2000, by reason of being an exempt person under section 38 of that Act.”.
(6) After paragraph (1) insert—
“(2) In this Schedule—
(a)“an authorised deposit taker” means—
(i)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits, or
(ii)an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12(1) of that Schedule), to accept deposits;
(b)“relevant body” means—
(i)a local authority, within the meaning of the Local Government Act 1972(1), the Common Council of the City, or the Council of the Isles of Scilly, or
(ii)any other body which by virtue of any enactment has power to issue a precept to a local authority in England or Wales or a requisition to a local authority in Scotland.
(3) The definition of “authorised deposit-taker” in paragraph (1) must be read with—
(a)section 22 of the Financial Services and Markets Act 2000,
(b)any relevant order under that section, and
(c)Schedule 2 to that Act.”.