137. Subsidiary acting as authorised dealer in securities

(1) The prohibition in section 133(prohibition on subsidiary being a member of its holding company) does not apply where the shares are held by the subsidiary in the ordinary course of its business as an intermediary.
(2) For this purpose a person is an intermediary if he—
(a) carries on a bona fide business of dealing in securities,
(b) is a member of or has access to a recognised investment exchange, and
(c) does not carry on an excluded business.
(3) The following are excluded businesses—
(a) a business that consists wholly or mainly in the making or managing of investments,
(b) a business that consists wholly or mainly in, or is carried on wholly or mainly for the purposes of, providing services to persons who are connected with the person carrying on the business,
(c) a business that consists in insurance business,
(d) a business that consists in managing or acting as trustee in relation to a pension scheme, or that is carried on by the manager or trustee of such a scheme in connection with or for the purposes of the scheme,
(e) a business that consists in operating or acting as trustee in relation to a collective investment scheme, or that is carried on by the operator or trustee of such a scheme in connection with and for the purposes of the scheme.
(4) For the purposes of this section—
(a) "insurance business" means business that consists in the effecting or carrying out of contracts of insurance,
(b) "securities" includes, without limitation,—
(i) options,
(ii) futures, and
(iii) contracts for differences,
and rights or interests in those investments.