The Financial Services and Markets Act 2000 (Regulated Activities) Order 2001

[F1Exempt agreements: exemptions not permitted under the mortgages directiveU.K.

60HA.—(1) A credit agreement is not an exempt agreement pursuant to article 60E(2) or (5), 60F(4) or 60H(1) if—

(a)the agreement is of a type described in Article 3(1) of the mortgages directive, and

(b)paragraph (2) does not apply.

(2) This paragraph applies if—

(a)the agreement is of a kind to which the mortgages directive does not apply by virtue of Article 3(2) of that directive;

(b)the agreement is a bridging loan within the meaning of Article 4(23) of that directive; or

(c)the agreement is a restricted public loan in respect of which—

(i)the borrower receives timely information on the main features, risks and costs at the pre-contractual stage; and

(ii)any advertising is fair, clear and not misleading.

(3) In paragraph (2)(c) “restricted public loan” means a credit agreement that is—

(a)offered to a particular class of borrower and not offered to the public generally;

(b)offered under an enactment with a general interest purpose; and

(c)provided on terms which are more favourable to the borrower than those prevailing on the market, because it meets one of the following conditions—

(i)it is interest free;

(ii)the rate of interest is lower than that prevailing on the market; or

(iii)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.]

Textual Amendments