• Chapter 7 Chapter 7 Credit

    • The Activity

      • 48. Providing Credit

        (1) Entering into a Credit Agreement with a person in his capacity as a Borrower or potential Borrower is a specified kind of activity.
        (2) It is a specified kind of activity for the Lender or another person to exercise, or to have the right to exercise, the Lender's rights and duties under a Credit Agreement.

    • Exclusions

      • 49. Incidental or connected lending and general exclusions

        (1) An Authorised Person does not enter into a Credit Agreement as Lender where entering into the agreement is incidental to or in connection with transactions in Specified Investments (other than Credit Agreements) or the carrying on of the Regulated Activities of Effecting Contracts of Insurance or Carrying Out Contracts of Insurance as Principal.
        (2) Paragraph 48 is also subject to the exclusions in paragraphs 76, 77 and 83.

    • The activity

      • 50. Arranging Credit

        Making arrangements for another person, whether as principal or agent, to borrow money by way of a Credit Agreement is a specified kind of activity.

      • 51. Exclusions

        (1) A person does not Arrange Credit by —
        (a) providing means by which one party to a transaction is able to communicate with other such parties;
        (b) making arrangements under which another person accepts or is to accept an instrument creating or acknowledging indebtedness in respect of any loan, Credit, guarantee or other similar financial accommodation which he or his principal has made or provided;
        (c) making arrangements having as their sole purpose the provision of finance to enable a person to Buy, Sell, subscribe for or underwrite investments; or
        (d) making arrangements for the issue or redemption of Securities issued by it.
        (2) A person does not Arrange Credit if the activity —
        (a) is carried on in the course of carrying on the activities specified in Rules 4 or 5 of the Commercial Licensing Regulations 2015 (Controlled Activities) Rules 2015, which does not otherwise consist of the carrying on of Regulated Activities;
        (b) may reasonably be regarded as a necessary part of any other services provided in the course of carrying on the activities specified in those rules; and
        (c) is not remunerated separately from the other services.