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

Establishment of schemes

41.—(1) Amend section 632 (establishment of schemes)(1) as follows.

(2) In subsection (1)(a) for the words from “is authorised” to the end substitute “has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of long-term insurance or to manage unit trust schemes authorised under section 243 of that Act;”.

(3) In subsection (1) for paragraph (aa) substitute—

“(aa)an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to the Financial Services and Markets Act 2000 which—

(i)has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of long-term insurance; and

(ii)fulfils any one of the requirements under subsections (5), (6) or (7) of section 659B(2);

(ab)a firm which has permission under paragraph 4 of Schedule 4 to the Financial Services and Markets Act 2000 (as a result of qualifying for authorisation under paragraph 2 of that Schedule) to manage unit trust schemes authorised under section 243 of that Act;

(ac)a person who qualifies for authorisation under Schedule 5 to the Financial Services and Markets Act 2000;”.

(4) Omit subsection (1)(bb).

(5) In subsection (1) for paragraph (c) substitute—

“(c) a person falling within section 840A(1)(b);”.

(6) In subsection (1)(cc)—

(a)for “an institution authorised under the Banking Act 1987” substitute “a person falling within section 840A(1)(b)”;

(b)for “such an institution” substitute “such a person”.

(7) Omit subsection (1)(d).

(8) In subsection (1)(e) for sub-paragraphs (i) and (ii) substitute—

“(i)is an EEA firm of the kind mentioned in paragraph 5(a), (b) or (c) of Schedule 3 to the Financial Services and Markets Act 2000,

(ii)qualifies for authorisation under paragraph 12(1) or (2) of that Schedule, and

(iii)has permission under that Act to manage portfolios of investments.”.

(9) For subsection (2) and (2ZA) substitute—

“(2) In subsection (1)(a) above “contracts of long-term insurance” means contracts which fall within Part II of Schedule 1 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001.”.

(10) Omit subsection (2B).