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405.—(1) Regulation 1 of the Local Authorities (Capital Finance) (Approved Investments) Regulations 1990 is amended as follows.
(2) In paragraph (2) of that regulation the definition of “authorised institution” is revoked.
(3) In that paragraph before the definition of “bill of exchange” insert—
““authorised deposit taker” means—
a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits, or
an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12(1) of that Schedule) to accept deposits;”.
(4) In that paragraph in the definition of “relevant lender”(1) for the words from “an authorised institution” to the end of that definition substitute “or an authorised deposit taker;”.
(5) After that paragraph insert—
“(3) The definition of “authorised deposit taker” in paragraph (2) must be read with—
(a)section 22 of the Financial Services and Markets Act 2000;
(b)any relevant order under that section; and
(c)Schedule 2 to that Act.”.
406.—(1) In regulation 2 of the Local Authorities (Capital Finance) (Approved Investments) Regulations 1990 the existing text is numbered as paragraph (1).
(2) For sub-paragraphs (b) and (c) of paragraph (1) substitute—
“(b)any deposit made with an authorised deposit taker or the Bank of England, or any certificate of such a deposit;
(c)any shares in a building society, and for this purpose “share” and “building society” have the meaning given by section 119 of the Building Societies Act 1986(2);”.
(3) In sub-paragraph (d) of paragraph (1), for “an authorised institution” substitute “an authorised deposit taker”.
(4) After paragraph (1) of regulation 2 insert—
“(2) Paragraph (1)(b) must be read with—
(a)section 22 of the Financial Services and Markets Act 2000,
(b)any relevant order under that section, and
(c)Schedule 2 to that Act,
but for the purposes of this regulation a deposit includes a sum paid by a local authority.”.
The definition of 'relevant lender' was inserted by S.I. 1995/1982, regulation 12(a).
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