The Financial Services and Markets Act 2000 (Consequential Amendments) (No. 2) Order 2001

• “relevant institution” means—

  1. a

     a person who has permission under Part IV of the Financial Services and Markets Act 2000 to accept deposits;

  2. b

     an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12(1) of that Schedule) to accept deposits; or

  3. c

     an institution, not falling within paragraph (a), which continues to have a liability in respect of a deposit which was held by it in accordance with the Banking Act 1979 or the Banking Act 1987,

  but does not include a person of the kind mentioned in paragraph (a) who has permission to accept deposits for the purpose of effecting or carrying out contracts of insurance;

2

The definition of “relevant institution” in paragraph (1) 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

For the purposes of the definition of “relevant institution” in paragraph (1)—

a

the activity of accepting deposits has the meaning given in any relevant order made under section 22 of the Financial Services and Markets Act 2000; and

b

a person is not regarded as accepting deposits by way of business if—

i

he does not hold himself out as accepting deposits on a day to day basis, and

ii

any deposits which he accepts are accepted only on particular occasions, whether or not involving the issue of any securities.

3

In determining for the purposes of paragraph (2)(b)(ii) whether deposits are accepted only on particular occasions, regard is to be had to the frequency of those occasions and to any characteristics distinguishing them from each other.