PART II SPECIFIED ACTIVITIES

F1Chapter 6ACredit Broking

Exclusions

Introducing by individuals in the course of canvassing off trade premises36B.

(1)

There are excluded from article 36A activities carried on by an individual by canvassing off trade premises—

(a)

a restricted-use credit agreement used to finance a transaction between the lender or a member of the lender’s group and the borrower whether forming part of that agreement or not, or

(b)

a regulated consumer hire agreement.

(2)

But paragraph (1) does not apply if A carries on any other activity of a kind specified by article 36A(1)(a) to (c).

(3)

A canvasses a restricted-use credit agreement or a regulated consumer hire agreement off trade premises for the purposes of this article if—

(a)

A solicits the entry of an individual or relevant recipient of credit (“B”) into such an agreement by making oral representations to B during a visit by A to any place (not excluded by paragraph (4)) where B is, and

(b)

that visit is made by A for the purpose of making such oral representations.

(4)

A place is excluded from paragraph (3) if it is a place where a business is carried on (whether on a permanent or temporary basis) by—

(a)

the lender or owner,

(b)

the supplier under the restricted-use credit agreement,

(c)

A,

(d)

a person who employs A or has appointed A as an agent, or

(e)

B.

Activities for which no fee is paid36C.

(1)

There are excluded from sub-paragraphs (d), (e) and (f) of article 36A(1) activities carried on by a person for which that person does not receive a fee.

(2)

For the purposes of this article, “fee” includes pecuniary consideration or any other form of financial consideration.

Transaction to which the broker is a party36D.

There are excluded from article 36A activities in relation to a regulated credit agreement (or an agreement which would be a regulated credit agreement but for the exclusions in articles 60C to 60H) or a regulated consumer hire agreement (or an agreement which would be a regulated consumer hire agreement but for the exclusions in articles 60O to 60Q) into which the person carrying on the activity enters or is to enter as lender or owner.

Activities in relation to certain agreements relating to land36E.

F2(1)

There are excluded from article 36A activities carried on with a view to an individual or relevant recipient of credit entering into a regulated mortgage contract if the person carrying on the activity is an authorised person who has permission to—

(a)

enter into such a contract as lender, or

(b)

make an introduction to an authorised person who has permission to enter into such a contract as lender.

(2)

There are excluded from article 36A activities carried on with a view to an individual or relevant recipient of credit entering into a regulated home purchase plan if the person carrying on the activity is an authorised person who has permission to—

(a)

enter into such a plan as home purchase provider, or

(b)

make arrangements for another person (“the client”) to enter into such a plan by introducing the client to an authorised person who has permission to enter into such a plan as home purchase provider.

F2(1)

There are excluded from article 36A activities carried on with a view to an individual or a relevant recipient of credit entering into an investment property loan, as defined in article 61A(6) (mortgage contracts which are not regulated mortgage contracts).

(2)

There are excluded from article 36A activities of a kind specified by article 25A (arranging regulated mortgage contracts) or 25C (arranging regulated home purchase plans).

(3)

There are excluded from article 36A other activities not excluded by paragraph (1) or (2) which consist of effecting an introduction with a view to an individual or relevant recipient of credit entering into a relevant agreement, if the person to whom the introduction is made is an authorised person who has permission to—

(a)

enter into such an agreement as lender or home purchase provider (as the case may be), or

(b)

make an introduction to an authorised person who has permission to enter into such an agreement as lender or home purchase provider (as the case may be).

(4)

In paragraph (3) “relevant agreement” means a regulated mortgage contract or a regulated home purchase plan.

F3Activities carried on by members of the legal profession etc36F.

(1)

There are excluded from article 36A (credit broking) activities carried on by—

(a)

a barrister or advocate acting in that capacity;

(b)

a solicitor (within the meaning of the Solicitors Act 1974) in the course of providing advocacy services or litigation services;

(c)

a solicitor (within the meaning of the Solicitors (Scotland) Act 1980) in the course of providing advocacy services or litigation services;

(d)

a solicitor (within the meaning of the Solicitors (Northern Ireland) Order 1976) in the course of providing advocacy services or litigation services;

(e)

a relevant person (other than a person falling within sub-paragraph (a) to (d)) in the course of providing advocacy services or litigation services.

(2)

In paragraph (1)—

“advocacy services” means any services which it would be reasonable to expect a person who is exercising, or contemplating exercising, a right of audience in relation to any proceedings, or contemplated proceedings, to provide for the purpose of those proceedings or contemplated proceedings;

“litigation services” means any services which it would be reasonable to expect a person who is exercising, or contemplating exercising, a right to conduct litigation in relation to any proceedings, or contemplated proceedings, to provide for the purpose of those proceedings or contemplated proceedings;

“relevant person” means a person who, for the purposes of the Legal Services Act 2007, is an authorised person in relation to an activity which constitutes the exercise of a right of audience or the conduct of litigation (within the meaning of that Act).

F4Other exclusions36G.

Article 36A is also subject to F5the exclusion in article 72A (information society services) F6and the exclusion in article 72G (local authorities) F5the exclusions in articles 72A (information society services), 72G (local authorities) and 72I (registered consumer buy-to-let mortgage firms).