- Latest available (Revised)
- Point in Time (01/07/2017)
- Original (As made)
Version Superseded: 31/12/2020
Point in time view as at 01/07/2017. This version of this provision has been superseded.
You are viewing this legislation item as it stood at a particular point in time. A later version of this or provision, including subsequent changes and effects, supersedes this version.
Note the term provision is used to describe a definable element in a piece of legislation that has legislative effect – such as a Part, Chapter or section.
The Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, Section 60G is up to date with all changes known to be in force on or before 18 August 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
Changes and effects yet to be applied by the editorial team are only applicable when viewing the latest version or prospective version of legislation. They are therefore not accessible when viewing legislation as at a specific point in time. To view the ‘Changes to Legislation’ information for this provision return to the latest version view using the options provided in the ‘What Version’ box above.
60G.—(1) A credit agreement is an exempt agreement for the purposes of this Chapter in the following cases.
(2) A credit agreement is an exempt agreement if—
(a)it is a borrower-lender agreement, F2...
(b)the lender is a credit union and the rate of the total charge for credit does not exceed 42.6 per cent[F3, and
(c)paragraph (2A) applies to the agreement.]
[F4(2A) This paragraph applies to the agreement if—
(a)the agreement is not of a type described in Article 3(1) of the mortgages directive; F5...
(b)the agreement is of such a type and—
(i)the agreement is of a kind to which the mortgages directive does not apply by virtue of Article 3(2) of that directive,
(ii)the agreement is a bridging loan within the meaning of Article 4(23) of the mortgages directive, or
(iii)in relation to the agreement—
(aa)the borrower receives timely information on the main features, risks and costs of the agreement at the pre-contractual stage, and
(bb)any advertising of the agreement is fair, clear and not misleading[F6; or
(c)the agreement was entered into before 21st March 2016.]]
(3) [F7Subject to paragraph (8), a credit agreement] is an exempt agreement if—
(a)it is a borrower-lender agreement,
(b)it is an agreement of a kind offered to a particular class of individual or relevant recipient of credit and not offered to the public generally,
(c)it provides that the only charge included in the total charge for credit is interest,
(d)interest under the agreement may not at any time be more than the sum of one per cent and the highest of the base rates published by the banks specified in paragraph (7) on the date 28 days before the date on which the interest is charged, and
(e)paragraph (5) does not apply to the agreement.
(4) [F8Subject to paragraph (8), a credit agreement] is an exempt agreement if—
(a)it is a borrower-lender agreement,
(b)it is an agreement of a kind offered to a particular class of individual or relevant recipient of credit and not offered to the public generally,
(c)it does not provide for or permit an increase in the rate or amount of any item which is included in the total charge for credit,
(d)the total charge for credit under the agreement is not more than the sum of one per cent and the highest of the base rates published by the banks specified in paragraph (7) on the date 28 days before the date on which the charge is imposed, and
(e)paragraph (5) does not apply to the agreement.
(5) This paragraph applies to an agreement if—
(a)the total amount to be repaid by the borrower to discharge the borrower’s indebtedness may vary according to a formula which is specified in the agreement and which has effect by reference to movements in the level of any index or other factor, or
[F9(b)the agreement—
(i)is not—
(aa)secured on land, or
[F10(bb)offered by a lender to a borrower as an incident of the borrower’s employment with the lender or with an undertaking in the same group as the lender;]
(ii)does not meet the general interest test.]
(6) For the purposes of [F11paragraphs (5) and (8)], an agreement meets the general interest test if—
(a)the agreement is offered under an enactment with a general interest purpose, and
(b)the terms on which the credit is provided are more favourable to the borrower than those prevailing on the market, either because the rate of interest is lower than that prevailing on the market, or because the rate of interest is no higher than that prevailing on the market but the other terms on which credit is provided are more favourable to the borrower.
(7) The banks specified in this paragraph are—
(a)the Bank of England;
(b)Bank of Scotland;
(c)Barclays Bank plc;
(d)Clydesdale Bank plc;
(e)Co-operative Bank Public Limited Company;
(f)Coutts & Co;
(g)National Westminster Bank Public Limited Company;
(h)the Royal Bank of Scotland plc.
[F12(8) A credit agreement of a type described in Article 3(1) of the mortgages directive [F13which is entered into on or after 21st March 2016] is an exempt agreement pursuant to paragraph (3) or (4) only if—
(a)the agreement meets the general interest test;
(b)the borrower receives timely information on the main features, risks and costs of the agreement at the pre-contractual stage; and
(c)any advertising of the agreement is fair, clear and not misleading.]]
Textual Amendments
F1Pt. II Ch. 14A, 14B inserted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013 (S.I. 2013/1881), art. 1(2)(6), 6
F2Word in art. 60G(2) omitted (20.4.2015 for specified purposes, 21.12.2015 for specified purposes, 21.3.2016 in so far as not already in force) by virtue of The Mortgage Credit Directive Order 2015 (S.I. 2015/910), art. 1(5), Sch. 1 para. 4(17)(a)(i) (with Pt. 4)
F3Art. 60G(2)(c) and word inserted (20.4.2015 for specified purposes, 21.12.2015 for specified purposes, 21.3.2016 in so far as not already in force) by The Mortgage Credit Directive Order 2015 (S.I. 2015/910), art. 1(5), Sch. 1 para. 4(17)(a)(ii) (with Pt. 4)
F4Art. 60G(2A) inserted (20.4.2015 for specified purposes, 21.12.2015 for specified purposes, 21.3.2016 in so far as not already in force) by The Mortgage Credit Directive Order 2015 (S.I. 2015/910), art. 1(5), Sch. 1 para. 4(17)(b) (with Pt. 4)
F5Word in art. 60G(2A) omitted (17.3.2016 for specified purposes, 21.3.2016 in so far as not already in force) by virtue of The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2016 (S.I. 2016/392), art. 1(2)(3)(c), 2(14)(a)(i) (with Pt. 5)
F6Art. 60G(2A)(c) and word inserted (17.3.2016 for specified purposes, 21.3.2016 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2016 (S.I. 2016/392), art. 1(2)(3)(c), 2(14)(a)(ii) (with Pt. 5)
F7Words in art. 60G(3) substituted (20.4.2015 for specified purposes, 21.12.2015 for specified purposes, 21.3.2016 in so far as not already in force) by The Mortgage Credit Directive Order 2015 (S.I. 2015/910), art. 1(5), Sch. 1 para. 4(17)(c) (with Pt. 4)
F8Words in art. 60G(4) substituted (20.4.2015 for specified purposes, 21.12.2015 for specified purposes, 21.3.2016 in so far as not already in force) by The Mortgage Credit Directive Order 2015 (S.I. 2015/910), art. 1(5), Sch. 1 para. 4(17)(d) (with Pt. 4)
F9Art. 60G(5)(b) substituted (14.2.2014 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2014 (S.I. 2014/366), art. 1(3)(4), 2(28)
F10Art. 60G(5)(b)(i)(bb) substituted (18.3.2015) by The Financial Services and Markets Act 2000 (Miscellaneous Provisions) (No. 2) Order 2015 (S.I. 2015/352), arts. 1, 2(b)
F11Words in art. 60G(6) substituted (20.4.2015 for specified purposes, 21.12.2015 for specified purposes, 21.3.2016 in so far as not already in force) by The Mortgage Credit Directive Order 2015 (S.I. 2015/910), art. 1(5), Sch. 1 para. 4(17)(e) (with Pt. 4)
F12Art. 60G(8) inserted (20.4.2015 for specified purposes, 21.12.2015 for specified purposes, 21.3.2016 in so far as not already in force) by The Mortgage Credit Directive Order 2015 (S.I. 2015/910), art. 1(5), Sch. 1 para. 4(17)(f) (with Pt. 4)
The Whole Instrument you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Instrument you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Instrument without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Instrument without Schedules you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Instrument you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Instrument without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Point in Time: This becomes available after navigating to view revised legislation as it stood at a certain point in time via Advanced Features > Show Timeline of Changes or via a point in time advanced search.
Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.
Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: