FINANCIAL SERVICES Citation and interpretation 1 This Order may be cited as the Companies Act 1989 (Commencement No. 3, Transitional Provisions and Transfer of Functions under the Financial Services Act 1986) Order 1990. 2 In this Order: — “ SIB ” means the body known as The Securities and Investments Board; “the 1986 Act ” means the Financial Services Act 1986 ; and “the 1989 Act ” means the Companies Act 1989. Provisions of the 1989 Act commenced by this Order 3 The following provisions of the 1989 Act shall come into force on 15th March 1990 subject to the transitional provisions and savings set out in article 6 below: Section 192 insofar as it inserts section 47A into the 1986 Act Section 193 insofar as is necessary in order to enable regulations to be made under section 62A of, and paragraph 22A of Schedule 11 to, the 1986 Act as amended by the 1989 Act Sections 194 to 200 Sections 203 to 205 Section 206(1) except insofar as it relates to the insertion by paragraph 32 of Schedule 23 to the 1989 Act of paragraph 13B into Schedule 11 to the 1986 Act Section 206(2) to (4) Schedule 23 (except that paragraph 32 of the said Schedule shall come into force only insofar as it inserts paragraph 13A into Schedule 11 to the 1986 Act) Section 212 and Schedule 24 to the extent that they relate to the repeals in, or of, sections 48, 55, 119, 159 and 160 of, and paragraphs 4, 10 and 14 of Schedule 11 to, the 1986 Act. Transfer of functions 4 1 All those functions of the Secretary of State which are specified in paragraphs (2) and (3) of this article shall be transferred to SIB on 15th March 1990, in the case of those functions specified in paragraph (2), without limitation and, in the case of those functions specified in paragraph (3), subject to the limitations specified in the said paragraph (3). 2 The functions specified in this paragraph are — a all functions under section 63A of the 1986 Act; b all functions under section 128A of the 1986 Act. 3 The functions specified in this paragraph are — a all functions under section 47A of the 1986 Act except that the function of taking disciplinary action under that section is transferred only to the extent that the functions under the provisions referred to in section 47A(4) have been transferred to SIB; b all functions under section 63C of the 1986 Act insofar as those functions relate to: i statements of principle; and ii rules and regulations the function of making of which has been transferred to SIB; c all functions under section 128B(1) to (4) of the 1986 Act to the extent that such functions relate to functions of the Secretary of State under the 1986 Act which have been transferred to SIB; d all functions under section 128C of the 1986 Act except that: i the function of taking disciplinary action under that section is transferred only to the extent that the functions under the provisions referred to insection 128C(2) have been transferred to SIB; and ii the function of prescribing functions under section 128C(3)(c) is not transferred. 4 The references in paragraphs (2) and (3) of this article to the 1986 Act are to the 1986 Act as amended by those provisions of the 1989 Act brought into force by this Order. 5 Where any amendment made by Part I of Schedule 23 to the 1989 Act to the provisions contained in Chapters III to XI of Part I of the 1986 Act or to section 206 of the 1986 Act confers a new function on the Secretary of State or alters a function already conferred on him by the 1986 Act the new function or the function as altered, as the case may be, is hereby transferred to SIB. 6 Sections 204(2) and (3) of the 1989 Act shall have effect as if the references to the Secretary of State therein were to SIB and in relation to a recognised self-regulating organisation for friendly societies or transferee body the references to the Secretary of State in the said sections 204(2) and (3) (which by virtue of section 204(7) of the 1989 Act are to be construed as references to the Registrar (within the meaning of Schedule 11 to the 1986 Act)) shall have effect as if they were references to SIB. 5 1 All the functions of the Registrar (within the meaning of Schedule 11 to the 1986 Act) under paragraphs 13A, 22B and 22D of Schedule 11 to the 1986 Act (as amended by those provisions of the 1989 Act brought into force by this Order) are hereby transferred to SIB. 2 Where any amendment made by Part II of Schedule 23 to the 1989 Act to the provisions contained in paragraphs 2 to 25 and 38 of Schedule 11 to the 1986 Act confers a new function on the Registrar (within the meaning of Schedule 11 to the 1986 Act) or alters a function already conferred on him by the 1986 Act the new function or the function as altered, as the case may be, is hereby transferred to SIB. Transitional provisions and savings 6 1 For a transitional period as mentioned in subsection (3) of section 203 of the 1989 Act beginning on 15th March 1990, a self-regulating organisation or professional body may elect whether to comply with the new requirement having effect by virtue of subsection 1 or (2) of that section or with the requirement which it replaces (“the equivalence test”). 2 For the transitional period referred to above: — a statements of principle, rules, regulations and codes of practice to which (in the case of a self-regulating organisation) its members or (in the case of a professional body) persons certified by it are subject under Chapter V of Part I of the 1986 Act (as amended by those provisions of the 1989 Act brought into force by this Order) shall be taken into account for the purposes of the equivalence test, so that — i in the case of a self-regulating organisation the requirement is for the rules of the organisation governing the carrying on of investment business of any kind by its members, together with any relevant statements of principle, rules, regulations or codes of practice as mentioned above, to afford investors protection at least equivalent to that afforded in respect of investment business of that kind by the statements of principle, rules, regulations and codes of practice for the time being in force under Chapter V of Part I of the 1986 Act (as amended by those provisions of the 1989 Act brought into force by this Order); ii in the case of a professional body the requirement is for the rules regulating the carrying on of investment business of any kind by persons certified by it, together with any relevant statements of principle, rules, regulations or codes of practice as mentioned above, to afford to investors protection at least equivalent to that afforded in respect of investment business of that kind by the statements of principle, rules, regulations and codes of practice for the time being in force under Chapter V of Part I of the 1986 Act (as amended by those provisions of the 1989 Act brought into force by this Order); b the amendments made to section 13 of the 1986 Act by paragraph 1 of Schedule 23 to the 1989 Act and the omission of paragraph 7 of Schedule 11 to the 1986 Act by paragraph 29 of Schedule 23 to the 1989 Act shall not have effect in any case where the equivalence test applies. 3 Any election under this article shall be notified in writing to SIB which shall send a copy of the notice to the Secretary of State and, where the election is made by a self-regulating organisation for friendly societies, to the Registrar (within the meaning of Schedule 11 to the 1986 Act); the Secretary of State shall send a copy of any notice received by him to the Director General of Fair Trading. 4 The amendments made to section 55 of the 1986 Act by paragraph 6 of Schedule 23 to the 1989 Act and to paragraph 19 of Schedule 11 to the 1986 Act by paragraph 34 of the said Schedule 23 and the related repeals under Schedule 24 to the 1989 Act shall not affect the validity or application of any regulations which have been made under the said section 55 or the said paragraph 19. John Redwood Parliamentary Under-Secretary of State Department of Trade and Industry 26th February 1990