Part II Regulated And Prohibited Activities

Enforceability of agreements

C127 Agreements made through unauthorised persons.

1

An agreement made by an authorised person (“the provider”)—

a

in the course of carrying on a regulated activity (not in contravention of the general prohibition), but

b

in consequence of something said or done by another person (“the third party”) in the course of a regulated activity carried on by the third party in contravention of the general prohibition,

is unenforceable against the other party.

C12

The other party is entitled to recover—

a

any money or other property paid or transferred by him under the agreement; and

b

compensation for any loss sustained by him as a result of having parted with it.

3

“Agreement” means an agreement—

a

made after this section comes into force; and

b

the making or performance of which constitutes, or is part of, the regulated activity in question carried on by the provider.

4

This section does not apply if the regulated activity is accepting deposits.