Part II Regulated And Prohibited Activities

Enforceability of agreements

C127 Agreements made through unauthorised persons.

F11

This section applies to an agreement that—

a

is made by an authorised person (“the provider”) in the course of carrying on a regulated activity,

b

is not made in contravention of the general prohibition,

c

if it relates to a credit-related regulated activity, is not made in contravention of section 20, and

d

is made in consequence of something said or done by another person (“the third party”) in the course of—

i

a regulated activity carried on by the third party in contravention of the general prohibition, or

ii

a credit-related regulated activity carried on by the third party in contravention of section 20.

1A

The agreement is unenforceable against the other party.

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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.