The Financial Services and Markets Act 2000 (Regulated Activities) Order 2001

[F1Operating an electronic system in relation to lendingU.K.

36H.—(1) Where the condition in paragraph (2) is satisfied, operating an electronic system which enables the operator (“A”) to facilitate persons (“B” and “C”) becoming the lender and borrower under an article 36H agreement is a specified kind of activity.

(2) The condition is that the system operated by A is capable of determining which agreements should be made available to each of B and C (whether in accordance with general instructions provided to A by B or C or otherwise).

(3) The following are specified kinds of activities if carried on by A in the course of, or in connection with, the carrying on by A of the activity specified by paragraph (1)—

(a)presenting or offering article 36H agreements to B and C with a view to B becoming the lender under the article 36H agreement and C becoming the borrower under the article 36H agreement,

(b)furnishing information relevant to the financial standing of a person (“Y”) with a view to assisting in the determination as to whether another person should—

(i)enter into, as the lender, an article 36H agreement with Y, or

(ii)assume the rights of the lender under an article 36H agreement under which Y is the borrower,

(c)taking steps to procure the payment of a debt due under an article 36H agreement,

(d)performing duties, or exercising or enforcing rights under an article 36H agreement on behalf of the lender,

(e)ascertaining whether a credit information agency (within the meaning given by article 89A(6)) holds information relevant to the financial standing of an individual or relevant person,

(f)ascertaining the contents of such information,

(g)securing the correction of, the omission of anything from, or the making of any other kind of modification of, such information, or

(h)securing that a credit information agency which holds such information—

(i)stops holding the information, or

(ii)does not provide it to any other person.

(4) An “article 36H agreement” is an agreement between one person (“the borrower”) and another person (“the lender”) by which the lender provides the borrower with credit (within the meaning given by article 60L) and in relation to which the condition in either paragraph (5) or (6) is satisfied.

(5) The condition in this paragraph is that the lender is an individual or relevant person.

(6) The condition in this paragraph is that the borrower is an individual or relevant person and—

(a)the lender provides the borrower with credit less than or equal to £25,000, or

(b)the agreement is not entered into by the borrower wholly or predominantly for the purposes of a business carried on, or intended to be carried on, by the borrower.

(7) Paragraphs (5) and (6) of article 60C (exempt agreements: exemptions relating to the nature of the agreement) apply for the purposes of paragraph (6)(b).

(8) It is immaterial for the purposes of this article whether the lender is carrying on a regulated activity.

(9) In this article, “relevant person” means—

(a)a partnership consisting of two or three persons not all of whom are bodies corporate, or

(b)an unincorporated body of persons which does not consist entirely of bodies corporate and is not a partnership.]

Textual Amendments