Markets in Financial Instruments and Miscellaneous Provisions Act 2007
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Amendments to Investment Intermediaries Act 1995. |
11.— Section 52 of the Investment Intermediaries Act 1995 (as amended by the Investor Compensation Act 1998 ) is amended— | |
(a) in subsection (2)(c) and (d), by deleting “, controlled” in each of the 2 places in which it appears, | ||
(b) in subsection (7)(a), (b) and (c) by deleting “, controlled” in each of the 3 places in which it appears, and | ||
(c) by inserting the following after subsection (9): | ||
“(10) For the purposes of this section, an investment business firm is deemed to hold client money where— | ||
(a) the money has been lodged on behalf of a client of the firm to an account with a credit institution or relevant party in the name of the firm or of any nominee of the firm, and | ||
(b) the firm has the capacity to effect transactions on that account. | ||
(11) For the purposes of this section, an investment business firm is deemed to hold client investment instruments where the firm— | ||
(a) has been entrusted by or on account of a client with those instruments, and | ||
(b) either— | ||
(i) holds those instruments, including by way of holding documents of title to them, or | ||
(ii) entrusts those instruments to any nominee, | ||
and the firm has the capacity to effect transactions in respect of those instruments. | ||
(12) In this section— | ||
(a) ‘nominee’ means a person acting on behalf of an investment business firm as nominee, custodian, or otherwise, and includes an eligible custodian and a nominee company, and | ||
(b) ‘ relevant party ’ means an exchange, clearing house, intermediate broker, OTC counterparty or investment business firm.”. |