PART II SPECIFIED ACTIVITIES

F1Chapter 6BOperating an Electronic System in Relation to Lending

Annotations:
Amendments (Textual)
F1

Pt. II Ch. 6A, 6B 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), 4

Supplemental

Meaning of “consumer”36J

1

For the purposes of sections 1G, 404E and 425A of the Act (meaning of “consumer”), a person (“C”) is only to be regarded as a person who uses, may use, has, may have used or has or may have contemplated using, services provided by authorised persons in carrying on a regulated activity of the kind specified by article 36H or article 64 in so far as relevant to that activity if—

a

C is, may be, has been or may have been the lender under a relevant agreement and is an individual or relevant person, or

b

C is, may be, has been or may have been the borrower under a relevant agreement, C is an individual or relevant person and one of the conditions in paragraph (2) is satisfied, or

c

C meets the following conditions—

i

C is, was or would be the lender under a relevant agreement, and

ii

C is not, was not or would not be, as a result, carrying on a regulated activity.

2

The conditions in this paragraph are that—

a

the lender provides, provided or would provide the borrower with credit (within the meaning given by article 60L) less than or equal to £25,000, or

b

the agreement is not, was not or would not be entered into by the borrower wholly or predominantly for the purposes of a business carried on, or intended to be carried on, by the borrower.

3

Paragraphs (5) and (6) of article 60C (exempt agreements: exemptions relating to the nature of the agreement) apply for the purposes of paragraph (2)(b).

4

In paragraph (1)—

  • “relevant agreement” means an agreement between one person (“the borrower”) and another person (“the lender”) by which the lender provides the borrower with credit (within the meaning given by article 60L);

  • “relevant person” has the meaning given in article 36H.