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
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