Part III U.K. Licensing of Credit and Hire Businesses

Licensing principles U.K.

25 Licensee to be a fit person. U.K.

(1) A standard licence shall be granted on the application of any person if he satisfies the [F1 OFT] that—

(a) he is a fit person to engage in activities covered by the licence, and

(b) the name or names under which he applies to be licensed is or are not misleading or otherwise undesirable.

[F2 (1A) The [F1 OFT] shall refuse an application for the grant of standard licence made by a consumer credit EEA firm if all of the activities described in the licence are activities for which the firm has permission, or could obtain permission, under paragraph 15 of Schedule 3 to the Financial Services and Markets Act 2000.

F2 (1B) If an application for the grant of a standard licence—

(a) is made by a person with permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits, and

(b) relates to a listed activity,

the Financial Services Authority may, if it considers that the [F1 OFT] ought to refuse the application, notify him of that fact.

F2 (1C) In subsection (1B) “listed activity ” means an activity listed in Annex 1 to the banking consolidation directive (2000/12/EC) or in the Annex to the investment services directive (93/22/EEC) and references to deposits and to their acceptance must be read with—

(a) section 22 of the Financial Services and Markets Act 2000;

(b) any relevant order under that section; and

(c) Schedule 2 to that Act.]

(2) In determining whether an applicant for a standard licence is a fit person to engage in any activities, the [F1 OFT] shall have regard to any circumstances appearing to [F3 it] to be relevant, and in particular any evidence tending to show that the applicant, or any of the applicant’s employees, agents or associates (whether past or present) or, where the applicant is a body corporate, any person appearing to the [F1 OFT] to be a controller of the body corporate or an associate of any such person, has—

(a) committed any offence involving fraud or other dishonesty, or violence,

(b) contravened any provision made by or under this Act, or by or under any other enactment regulating the provision of credit to individuals or other transactions with individuals,

[F4 (bb) contravened any provision in force in an EEA State which corresponds to a provision of the kind mentioned in paragraph (b);]

(c) practised discrimination on grounds of sex, colour, race or ethnic or national origins in, or in connection with, the carrying on of any business, or

(d) engaged in business practices appearing to the [F1 OFT] to be deceitful or oppressive, or otherwise unfair or improper (whether unlawful or not).

(3) In subsection (2), “associate ”, in addition to the persons specified in section 184, includes a business associate.

Textual Amendments

F1 Words in s. 25 substituted (1.4.2003) by Enterprise Act 2002 (c. 40), ss. 278, 279, Sch. 25 para. 6(8)(a); S.I. 2003/766, art. 2, Sch. (with art. 3)

F2 S. 25(1A)(1B)(1C) inserted (1.12.2001) by S.I. 2001/3649, art. 167(1)(2)

F3 Word in s. 25(2) substituted (1.4.2003) by Enterprise Act 2002 (c. 40), ss. 278, 279, Sch. 25 para. 6(8)(b); S.I. 2003/766, art. 2, Sch. (with art. 3)

F4 S. 25(2)(bb) inserted (1.12.2001) by S.I. 2001/3649, art. 167(1)(3)

Modifications etc. (not altering text)

C1 S. 25, 25(2)(b) extended (1.1.1993) by S.I. 1992/3218, reg. 58(1)

S. 25 modified (1.1.1996) by S.I. 1995/3275, reg. 35