UK Offence Report

The Banking Coordination (Second Council Directive) (Amendment) Regulations 1993 (revoked)

UK Statutory Instrument 1993 No. 3225 — creates 1 criminal offence.

1offences created
0recorded in force
0revoked
Made
22 December 1993
In force from
1 January 1994
Extent
Not stated
Subject
Corporate, financial services, company law, employment, charity, electoral and tax
Made under
Act and by section 2(2)(b) of the European Economic Area Act 1993, European Communities Act 1972

Explanatory note

(This note is not part of the Regulations) — published with the instrument by the department that made it. © Crown copyright, reused under the Open Government Licence v3.0.

These Regulations amend the Banking Coordination (Second Council Directive) Regulations 1992 to give effect to the adaptations made to the Second Council Directive 89/646/EEC on the coordination of laws, regulations and administrative provisions relating to the taking up and pursuit of the business of credit institutions (OJ No. L368, 30.12.89, p.1) in its application to the European Economic Area by paragraph 16 of Annex IX to the Agreement on the European Economic Area signed at Oporto on 2nd May 1992 (Cm 2073) as amended by the Protocol adjusting the Agreement signed at Brussels on 17th March 1993 (Cm 2183). The European Economic Area will comprise the territory of the member States of the European Communities together with that of certain members of the European Free Trade Association (EFTA). Within this area there shall be free movement of goods, persons, services and capital to the extent specified in the Agreement. Section 2(1) of the European Economic Area Act 1993 provides for the general substitution on and after the date on which the Agreement comes into force of limitations in enactments by reference to the European Economic Area for limitations by reference to the Communities where the enactments concern a matter to which the Agreement relates. The Agreement, together with the Protocol dated 17th March 1993, enters into force in respect of all the Contracting Parties except Liechtenstein on 1st January 1994. Specific amendments to the 1992 Regulations are needed both for clarity and to give effect to adaptations to the Second Council Directive by the Agreement in its application to the European Economic Area. The 1992 Regulations are stated to apply from 1st January 1994 in relation to the carrying on by credit institutions and financial institutions based in the European Communities of listed activities in a relevant EFTA State and the carrying on by credit institutions and financial institutions based in a relevant EFTA State of listed activities in the European Economic Area (regulation 2(a)). Relevant EFTA States are the member States of EFTA in respect of which the Agreement and the Protocol are to enter into force (regulation 2(c)). A new regulation 2A is inserted in the 1992 Regulations to give effect to paragraph 16(c) of Annex IX to the Agreement under which Iceland is to implement the Second Council Directive by 1st January 1995. Although Iceland is immediately to recognise authorisations granted to credit institutions by the other Contracting Parties, authorisations granted to credit institutions by the Icelandic authorities are not to have EEA—wide validity before the full application of the Directive to Iceland. The expressions “another member State”, “member State” and “relevant EFTA State” in the 1992 Regulations are not to apply to Iceland except in relation to UK—based credit institutions operating in Iceland until the date Iceland notifies its implementation of the Second Council Directive (regulation 2(d)). The Regulations also insert a new regulation 13A in the 1992 Regulations to give effect to the provision in paragraph 16(a) 2(b) of Annex IX to the Agreement concerning the treatment of credit institutions within the European Economic Area which are the subsidiaries of undertakings based in third countries which impose restrictions on credit institutions based in the European Economic Area. The Treasury is empowered, following consultation with the Bank of England, to determine that certain credit institutions authorised in a relevant EFTA State which are not allowed to carry on listed activities in the UK because they have not yet complied with paragraph 1 of Schedule 2 to the 1992 Regulations shall not thereafter be allowed to do so (regulation 2(g)). Determinations are to be made in respect of credit institutions which are the subsidiaries of undertakings based in a third country which is the subject of a decision by the Council or the Commission under article 9.4 of the Second Council Directive. Failure to comply with a determination is to be an offence and the prohibition on unauthorised deposit— taking in section 3(1) of the Banking Act 1987 shall apply to an institution in respect of which a determination is in force (regulation 2(f) and (g)). UK credit institutions which do not notify the Bank of England under Part I of Schedule 11 to the 1992 Regulations of listed activities which they were carrying on in relevant EFTA States before 1st January 1994 will not commit an offence (regulation 2(h)).

Offences created by this instrument

What Parliament said about it

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