TAXES 1 1 These Regulations may be cited as the Finance Act 1986 (Stamp Duty and Stamp Duty Reserve Tax) (Amendment) Regulations 1992 and shall come into force on 1st January 1993. 2 The day specified in these Regulations for the purpose of regulations under subsection (5) of section 81 of the Finance Act 1986 in accordance with subsection (6) of that section is 1st January 1993. 2 For subsection (3) of section 81 of the Finance Act 1986 there shall be substituted the following subsection— 3 For the purposes of this section a person is a market maker in stock of a particular kind— a if he— i holds himself out at all normal times in compliance with the rules of The Stock Exchange as willing to buy and sell stock of that kind at a price specified by him, and ii is recognised as doing so by the Council of The Stock Exchange; or b if— i he is an authorised person under Chapter III of Part I of the Financial Services Act 1986 , ii he carried out the transaction in the course of his business as a dealer in investments, within the meaning of paragraph 12 of Schedule 1 to the Financial Services Act 1986 , as a principal and in circumstances where that paragraph was applicable for the purposes of that Act, iii he did not carry out the transaction in the course of any activities which fall within paragraph 14 or 16 of Schedule 1 to the Financial Services Act 1986, and iv the stock was not at the time the transaction was carried out dealt in on a recognised investment exchange; or c if— i that person is a European institution, within the meaning of regulation 3 of the Banking Coordination (Second Council Directive) Regulations 1992 , which carries on investment business, within the meaning of section 1(2) of the Financial Services Act 1986, in the United Kingdom, ii the transaction was carried out by the institution as a principal in the course of its investment business, iii the transaction was not carried out in the course of any activities which fall within paragraph 14 or 16 of Schedule 1 to the Financial Services Act 1986, and iv the stock was not at the time the transaction was carried out dealt in on a recognised investment exchange. . 3 For subsection (3) of section 89 of the Finance Act 1986 there shall be substituted the following subsection— 3 For the purposes of this section a person is a market maker in securities of a particular kind— a if he— i holds himself out at all normal times in compliance with the rules of The Stock Exchange as willing to buy and sell securities of that kind at a price specified by him, and ii is recognised as doing so by the Council of The Stock Exchange; or b if— i he is an authorised person under Chapter III of Part I of the Financial Services Act 1986, ii he makes the agreement in the course of his business as a dealer in investments, within the meaning of paragraph 12 of Schedule 1 to the Financial Services Act 1986, as a principal and in circumstances where that paragraph is applicable for the purposes of that Act, iii he does not make the agreement in the course of any activities which fall within paragraph 14 or 16 of Schedule 1 to the Financial Services Act 1986, and iv the securities are not at the time the agreement is made dealt in on a recognised investment exchange within the meaning of the Financial Services Act 1986; or c if— i that person is a European institution, within the meaning of regulation 3 of the Banking Coordination (Second Council Directive) Regulations 1992, which carries on investment business, within the meaning of section 1(2) of the Financial Services Act 1986, in the United Kingdom, ii the agreement is made by the institution as a principal in the course of its investment business, iii the agreement is not made in the course of any activities which fall within paragraph 14 or 16 of Schedule 1 to the Financial Services Act 1986, and iv the securities are not at the time the agreement is made dealt in on a recognised investment exchange within the meaning of the Financial Services Act 1986. . 4 The Finance Act 1986 (Stamp Duty and Stamp Duty Reserve Tax) (Amendment) Regulations 1988 are hereby revoked. Tim Wood Norman Lamont Two of the Lords Commissioners of Her Majesty’s Treasury 23rd December 1992