F1PART 7ABanking companies

CHAPTER 2Key definitions

“Banking company”

269BCBanking companies: supplementary definitions

(1)

This section contains definitions of terms used in sections 269B to 269BB (and this section).

(2)

“Asset management activities” means activities which consist (or, if they were carried on in the United Kingdom, would consist) of any or all of the following—

(a)

acting as the operator of a collective investment scheme (within the meaning of Part 17 of FISMA 2000: see sections 235 and 237 of that Act),

(b)

acting as a discretionary investment manager for clients none of which is a linked entity (see subsection (3)), and

(c)

acting as an authorised corporate director.

(3)

In subsection (2)(b) “linked entity”, in relation to an entity (“E”), means—

(a)

a member of the same group as E,

(b)

a company in which a company which is a member of the same group as E has a major interest (within the meaning of Part 5 of CTA 2009: see section 473 of that Act), or

(c)

a partnership the members of which include an entity—

(i)

which is a member of the same group as E, and

(ii)

whose share of the profits or losses of a trade carried on by the partnership for an accounting period of the partnership any part of which falls within the relevant accounting period is at least a 40% share (see Part 17 of CTA 2009 for provisions about shares of partnership profits and losses).

“The relevant accounting period” means the accounting period referred to in section 269B(3).

(4)

“Building society” has the same meaning as in the Building Societies Act 1986.

(5)

“Insurance company” and “insurance special purpose vehicle” have the meanings given by sections 65 and 139 of FA 2012 respectively.

(6)

“Partnership” includes—

(a)

a limited liability partnership, and

(b)

an entity established under the law of a territory outside the United Kingdom of a similar character to a partnership,

and “member”, in relation to a partnership, is to be read accordingly.

(7)

The terms in subsection (8)—

(a)

in relation to a PRA-authorised person, have the meaning given by the PRA Handbook;

(b)

in relation to any other authorised person, have the meaning given by the FCA Handbook.

(8)

The terms referred to in subsection (7) are—

  • “authorised corporate director”;

  • F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

  • “contracts for differences”;

  • “discretionary investment manager”;

  • F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

  • “exempt IFPRU commodities firm”;

  • F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

  • “full scope IFPRU investment firm”;

  • “IFPRU 730k firm”;

  • “pension scheme”;

  • “principal”;

  • “retail client”.

F3(9)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(10)

A company or partnership which would be an IFPRU 730k firm and a full scope IFPRU investment firm by virtue of activities carried on in the United Kingdom but for the fact that its registered office (or, if it does not have a registered office, its head office) is not in the United Kingdom is to be treated as being one for the purposes of section 269B.

(11)

In subsection (7)—

“authorised person” and “PRA-authorised person” have the same meaning as in FISMA 2000;

“the FCA Handbook” means the Handbook made by the Financial Conduct Authority under FISMA 2000 (as that Handbook has effect from time to time);

“the PRA Handbook” means the Handbook made by the Prudential Regulation Authority under FISMA 2000 (as that Handbook has effect from time to time).