NOTICE OF AMENDMENTS TABLED ON
30 SEPTEMBER 2002 FOR CONSIDERATION STAGE
Clause 8, Page 5, Line 19
At end insert¾
'( ) Any order issued under paragraph 2 should not require a joint tenant who is a widow or widower of the deceased, or who during the whole of the period of two years ending immediately before the date when the deceased died was living as husband or wife of the deceased, to pay the trustee any amount in respect of the principal home.'
Chair, Statutory Committee for Enterprise, Trade and Investment
Clause 8, Page 6, Line 2
At end insert¾
'"principal home" means the normal residence of the deceased person at the time of death,'
Chair, Statutory Committee for Enterprise, Trade and Investment
Schedule 1, Page 9, Line 21
Leave out from beginning to end of line 28 and insert¾
'(a) it effects or carries out contracts of insurance, but is not exempt from the general prohibition, within the meaning of section 19 of the Financial Services and Markets Act 2000, in relation to that activity,
(b) it has permission under Part IV of that Act to accept deposits,
(c) it has a liability in respect of a deposit which it accepted in accordance with the Banking Act 1979 or the Banking Act 1987,".'
Minister of Enterprise, Trade and Investment
Schedule 1, Page 10, Line 9
At end insert¾
'(4) A company does not meet the requirements of this paragraph if it is a holding company of a group of companies which does not qualify as a small group or a medium-sized group in respect of the financial year of the company which ended last before the date of filing.
(5) For the purposes of sub-paragraph (4) "group" has the meaning given by Article 270 of the Companies (Northern Ireland) Order 1986 (definitions for Part VIII) and a group qualifies as small or medium-sized if it qualifies as such under Article 257 of the Companies (Northern Ireland) Order 1986 (qualification of group as small or medium-sized).'
Minister of Enterprise, Trade and Investment
Schedule 1, Page 10, Line 31
At end insert¾
'Capital market arrangement
4A. A company is also excluded from being eligible for a moratorium if, on the date of filing, it is a party to an agreement which is or forms part of a capital market arrangement under which¾
(a) a party has incurred, or when the agreement was entered into was expected to incur, a debt of at least £10 million under the arrangement, and
(b) the arrangement involves the issue of a capital market investment.
Public private partnership
4B. A company is also excluded from being eligible for a moratorium if, on the date of filing, it is a project company of a project which¾
(a) is a public-private partnership project, and
(b) includes step-in rights.
Liability under an arrangement
4C.¾ (1) A company is also excluded from being eligible for a moratorium if, on the date of filing, it has incurred a liability under an agreement of £10 million or more.
(2) Where the liability in sub-paragraph (1) is a contingent liability under or by virtue of a guarantee or an indemnity or security provided on behalf of another person, the amount of that liability is the full amount of the liability in relation to which the guarantee, indemnity or security is provided.
(3) In this paragraph¾
(a) the reference to "liability" includes a present or future liability whether, in either case, it is certain or contingent,
(b) the reference to "liability" includes a reference to a liability to be paid wholly or partly in foreign currency (in which case the sterling equivalent shall be calculated as at the time when the liability is incurred).
Interpretation of capital market arrangement
4D.¾ (1) For the purposes of paragraph 4A an arrangement is a capital market arrangement if¾
(a) it involves a grant of security to a person holding it as trustee for a person who holds a capital market investment issued by a party to the arrangement, or
(b) at least one party guarantees the performance of obligations of another party, or
(c) at least one party provides security in respect of the performance of obligations of another party, or
(d) the arrangement involves an investment of a kind described in Articles 83 to 85 of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (options, futures and contracts for differences).
(2) For the purposes of sub-paragraph (1)¾
(a) a reference to a holding as trustee includes a reference to holding as nominee or agent,
(b) a reference to holding for a person who holds a capital market investment includes a reference to holding for a number of persons at least one of whom holds a capital market investment, and
(c) a person holds a capital market investment if he has a legal or beneficial interest in it.
(3) In paragraph 4A, 4C, 4J and this paragraph¾
"agreement" includes an agreement or undertaking effected by¾
(a) contract,
(b) deed, or
(c) any other instrument intended to have effect in accordance with the law of Northern Ireland or another jurisdiction, and
"party" to an arrangement includes a party to an agreement which¾
(a) forms part of the arrangement,
(b) provides for the raising of finance as part of the arrangement, or
(c) is necessary for the purposes of implementing the arrangement.
Capital market investment
4E.¾ (1) For the purposes of paragraphs 4A and 4D, an investment is a capital market investment if¾
(a) it is within Article 77 of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (debt instruments), and
(b) it is rated, listed or traded or designed to be rated, listed or traded.
(2) In sub-paragraph (1)¾
"listed" means admitted to the official list within the meaning given by section 103(1) of the Financial Services and Markets Act 2000 (interpretation),
"rated" means rated for the purposes of investment by an internationally recognised rating agency,
"traded" means admitted to trading on a market established under the rules of a recognised investment exchange or on a foreign market.
(3) In sub-paragraph (2)¾
"foreign market" has the same meaning as "relevant market" in Article 67(2) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (foreign markets),
"recognised investment exchange" has the meaning given by section 285 of the Financial Services and Markets Act 2000 (recognised investment exchange).
4F.¾ (1) For the purposes of paragraphs 4A and 4D an investment is also a capital market investment if it consists of a bond or commercial paper issued to one or more of the following¾
(a) an investment professional within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001,
(b) a person who is, when the agreement mentioned in paragraph 4A is entered into, a certified high net worth individual in relation to a communication within the meaning of Article 48(2) of that Order,
(c) a person to whom Article 49(2) of that Order applies (high net worth company, &c.),
(d) a person who is, when the agreement mentioned in paragraph 4A is entered into, a certified sophisticated investor in relation to a communication within the meaning of Article 50(1) of that Order, and
(e) a person in a State other than the United Kingdom who under the law of that State is not prohibited from investing in bonds or commercial paper.
(2) For the purposes of sub-paragraph (1)¾
(a) in applying Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 for the purposes of sub-paragraph (1)(a)¾
(i) in Article 19(5)(b), ignore the words after "exempt person",
(ii) in Article 19(5)(c)(i), for the words from "the controlled activity" to the end substitute "a controlled activity", and
(iii) in Article 19(5)(e) ignore the words from "where the communication" to the end, and
(b) in applying Article 49(2) of that Order for the purposes of sub-paragraph (1)(c), ignore Article 49(2)(e).
(3) In sub-paragraph (1)¾
"bond" shall be construed in accordance with Article 77 of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, and
"commercial paper" has the meaning given by Article 9(3) of that Order.
Debt
4G. The debt of at least £10 million referred to in paragraph 4A¾
(a) may be incurred at any time during the life of the capital market arrangement, and
(b) may be expressed wholly or partly in a foreign currency (in which case the sterling equivalent shall be calculated as at the time when the arrangement is entered into).
Interpretation of project company
4H.¾ (1) For the purposes of paragraph 4B a company is a "project company" of a project if¾
(a) it holds property for the purpose of the project,
(b) it has sole or principal responsibility under an agreement for carrying out all or part of the project,
(c) it is one of a number of companies which together carry out the project,
(d) it has the purpose of supplying finance to enable the project to be carried out, or
(e) it is the holding company of a company within any of paragraphs (a) to (d).
(2) But a company is not a "project company" of a project if¾
(a) it performs a function within sub-paragraph (1)(a) to (d) or is within sub-paragraph (1)(e), but
(b) it also performs a function which is not¾
(i) within sub-paragraph (1)(a) to (d),
(ii) related to a function within sub-paragraph (1)(a) to (d), or
(iii) related to the project.
(3) For the purposes of this paragraph a company carries out all or part of a project whether or not it acts wholly or partly through agents.
Public-private partnership project
4I.¾ (1) In paragraph 4B "public-private partnership project" means a project¾
(a) the resources for which are provided partly by one or more public bodies and partly by one or more private persons, or
(b) which is designed wholly or mainly for the purpose of assisting a public body to discharge a function.
(2) In sub-paragraph (1) "resources" includes¾
(a) funds (including payment for the provision of services or facilities),
(b) assets,
(c) professional skill,
(d) the grant of a concession or franchise, and
(e) any other commercial resource.
(3) In sub-paragraph (1) "public body" means¾
(a) a body which exercises public functions,
(b) a body specified for the purposes of this paragraph by the Department, and
(c) a body within a class specified for the purposes of this paragraph by the Department.
(4) A specification under sub-paragraph (3) may be¾
(a) general, or
(b) for the purpose of the application of paragraph 4B to a specified case.
Step-in rights
4J.¾ (1) For the purposes of paragraph 4B a project has "step-in rights" if a person who provides finance in connection with the project has a conditional entitlement under an agreement to¾
(a) assume sole or principal responsibility under an agreement for carrying out all or part of the project, or
(b) make arrangements for carrying out all or part of the project.
(2) In sub-paragraph (1) a reference to the provision of finance includes a reference to the provision of an indemnity.
"Person"
4K. For the purposes of paragraphs 4A to 4J, a reference to a person includes a reference to a partnership or another unincorporated group of persons.".'
Minister of Enterprise, Trade and Investment
Schedule 2, Page 41, Line 16
Leave out from beginning to end of line 22 and insert¾
'Amendments of the Building Societies Act 1986
13.¾ (1) The Financial Services Authority may appoint one or more competent persons to investigate and report on any matter reported to the Authority under Article 20A(2) of the Insolvency (Northern Ireland) Order 1989 (NI 19); and section 55 of the Building Societies Act 1986 (c. 53) (investigations) applies to such a person and the investigations as it applies to a person appointed under section 55(1) and an investigation under that section.
(2) Section 57(5) to (5B) of that Act (use in evidence of answers given to questions) applies to answers given under section 55(3) as extended by sub-paragraph (1) as it applies to answers given under section 57.
14.¾ (1) Schedule 15A to the Building Societies Act 1986 (application of companies insolvency legislation to building societies) shall be amended as follows.
(2) In paragraph 1(2)(b), for "Parts I to" substitute "Part I, Part II (except Article 14A), Parts III,".
(3) At the end of paragraph 30 insert¾
"and paragraph (1) of Article 15 shall have effect with the omission of the words from "and the directions to the end.
30A. In paragraph (2) of Article 17A of the Order (approval of arrangement) as applied to a building society, sub-paragraph (b) and the word "or" immediately preceding that sub-paragraph are omitted.".
(4) After paragraph 31 insert¾
"31A. In Article 20A of the Order (prosecution of delinquent officers) as applied to a building society)¾
(a) in paragraph (2) for the words "the Department", in each place where they occur, there are substituted the words "the Financial Services Authority",
(b) paragraphs (3) to (7) are omitted,
(c) in paragraph (8)¾
(i) after the words "Northern Ireland" there are inserted the words "or the Financial Services Authority", and
(ii) after the words "Northern Ireland" and the words "the Director", in the second place where they occur, there are inserted the words "or the Financial Services Authority",
(d) in paragraph (9) after the words "for Northern Ireland" there are inserted the words "or the Financial Services Authority".'
Minister of Enterprise, Trade and Investment