The Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001

The Local Authorities (Funds) (Wales) Regulations 1992 (S.I. 1992/2929)

Meaning of “the reference banks”

430.—(1) For paragraph (3) of regulation 8 of the Local Authorities (Funds) (Wales) Regulations 1992 (calculation of interest on amount of instalments) substitute—

“(3) For the purposes of paragraph (1), the reference banks are the seven largest persons for the time being who—

(i) have permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits,

(ii) are incorporated in the United Kingdom and carrying on there a regulated activity of accepting deposits, and

(iii) quote a base rate in sterling.”.

(2) In paragraph (4) of that regulation, for “an institution” substitute “a person” and for “its” (in both places) substitute “his”.

(3) In paragraph (5) of that regulation—

(a) in the definition of “consolidated gross assets” for “an institution” substitute “a person” and for “that institution” substitute “that person”, and

(b) the definition of “a deposit-taking business” is revoked.

(4) After paragraph (5) of that regulation insert—

“(6) Paragraph (3) 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.”.

Prescribed investments

431.—(1) Schedule 3 to the Local Authorities (Funds) (Wales) 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, 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, or to the expenses of which, by virtue of any enactment, a local authority in the United Kingdom is or can be required to contribute.

(3) The definition of “authorised deposit-taker” in paragraph (2) 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.”.