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General Restriction On Services Abroad

Volume 98: debated on Wednesday 4 June 1986

The text on this page has been created from Hansard archive content, it may contain typographical errors.

(1) Subject to sub-paragraph (2) below, no power to provide a service of a description specified in Part I of this Schedule includes power to maintain a place of business in a country or territory outside the United Kingdom for that purpose unless the society also conducts the principal business of a building society in that country or territory.

(2) This paragraph does not apply to the power to provide estate agency services.'.

No. 313, in page 182, line 10, leave out paragraph 5

No. 314, in page 182, line 30, at end insert—

'Pensions management etc.

8A. The power to establish and manage unit trust schemes is available only to a subsidiary of the society.'.

No. 316, in page 182, line 33, leave out from `provision' to end of line 34 and insert

'primarily to individuals; but this restriction does not apply to, nor in determining whether over any period insurance is being provided primarily to individuals is any account to be taken of income derived from, insurance relating to land which is to secure advances by the society.'.

No. 317, in page 182, line 41, leave out paragraph 12.

No. 318, in page 183, line 25, at end insert—

`Status as bankers

2A. —(1) So far as regards the provision by it of a service which is a qualifying banking service for the purposes of this paragraph a building society shall be treated for all purposes as a bank and a banker and as carrying on the business of banking or a banking undertaking whether or not it would be so treated apart from this paragraph.

(2) A building society provides a qualifying banking service for the purposes of this paragraph if, with or without any restriction, it provides either or both of the services falling within paragraph 1 or 3 of Part I.

(3) This paragraph does not affect the determination of any question as to the status of a building society as a bank or banker for other purposes.

Foreign exchange services to individuals

2B. — (1) For the purpose of determining whether a transaction consists in the provision of foreign exchange services to an individual it shall be presumed that a transaction does so consist if the value of the transaction is less than the standard amount.

(2) The standard amount is, subject to sub-paragraph (3) below, £5,000.

(3) The Commission, with the consent of the Treasury, may by order amend sub-paragraph (2) above so as to substitute for the amount for the time being specified in that sub-paragraph such other amount as it considers appropriate for the purposes of this paragraph.

(4) For the purposes of sub-paragraph (1) above the value of a transaction consisting in the provision of foreign exchange services is, where the society is selling the foreign currency, the sum paid to it and, where the society is purchasing the foreign currency, the sum paid by it.'

No. 319, in page 183, line 30, at end insert—

`3A. This Schedule is to be construed as relating only to the capacity of building societies or their subsidiaries to provide the services for the time being specified in it and not as making lawful any activity which would not be lawful apart from this Schedule.'.

No. 320, in page 183, in line 32, leave out from `services"' to 'Schedule' in line 33 and insert

`has the same meaning as in'.

No. 403, in page 183, line 37, at end insert

'"pension scheme" means a personal pension scheme (within the meaning of the Social Security Act 1986) or an occupational pension scheme (as defined in section 66(1) of the Social Security Pensions Act 1975 or in relation to Northern Ireland, Article 2(2) of the Social Security Pensions (Northern Ireland) order 1975) and the "provision of pensions" means the provision of benefits which are "money purchase benefits" within the meaning of that Act of 1986;'

No. 428, in page 183, line 37, at end insert—

'"the principal business of a building society" means the business of raising funds (whether by the issue of shares or receiving deposits) for the purposes of the society or of making advances secured on land;'.

No. 322, in page 183, line 38, after 'limit"', insert `, in relation to guarantees'.

No. 323, in page 183, line 41, at end add

': and "'unit trust scheme" has the same meaning as in the Financial Services Act 1986.'. —[Mr. Ian Stewart.]