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 and Derivatives,
(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 Managing a Collective Investment Fund, Acting as the Administrator of a Collective Investment Fund or Acting as the Trustee of an Investment Trust, or that is carried on by a person carrying on any of those Regulated Activities in connection with and for the purposes of the relevant Collective Investment Fund.
(4) For the purposes of this section–
(a) “insurance business” means business that consists in Effecting Contracts of Insurance or Carrying Out Contracts of Insurance as Principal, and
(aa) "managing of investments" means the Regulated Activity of Managing Assets.