SCHEDULE 1
PART IControlled Activities
F1Operating an electronic system in relation to lending4C
1
2
The condition F3in this sub-paragraph is that the system operated by A is capable of determining which agreements should be made available to each of B and C (whether in accordance with general instructions provided to A by B or C or otherwise).
F42A
The condition in this sub-paragraph is that A, or another person (“X”) acting under an arrangement with A or at A’s direction, undertakes to—
a
receive payments in respect of interest and capital due under the agreement from C, and
b
make payments in respect of interest and capital due under the agreement to B.
2B
For the purposes of sub-paragraph (2A)—
a
an agreement by A to appoint X to perform the activities in that paragraph is to be treated as an undertaking by A within the meaning of that sub-paragraph;
b
it is immaterial that—
i
payments may be subject to conditions;
ii
A, or X, may be entitled to retain a portion or the entirety of any payment received from C.
2C
The condition in this sub-paragraph is that A, or another person (“X”) acting under an arrangement with A or at A’s direction, undertakes to perform, or A undertakes to appoint or direct another person to perform, either or both of the following—
a
to take steps to procure the payment of a debt under the agreement;
b
to exercise or enforce rights under the agreement on behalf of B.
3
The following are controlled activities if carried on by A in the course of, or in connection with, the carrying on by A of the activity specified by F5paragraphF5sub-paragraph (1)—
a
presenting or offering paragraph 4C agreements to B and C with a view to B becoming the lender under the paragraph 4C agreement and C becoming the borrower under the paragraph 4C agreement,
b
furnishing information relevant to the financial standing of a person (“Y”) with a view to assisting in the determination as to whether another person should—
i
enter into, as the lender, a paragraph 4C agreement with Y, or
ii
assume the rights of the lender under a paragraph 4C agreement under which Y is the borrower,
c
taking steps to procure the payment of a debt due under a paragraph 4C agreement,
d
performing duties, or exercising or enforcing rights under a paragraph 4C agreement on behalf of the lender,
e
ascertaining whether a credit information agency (within the meaning given by article 89A(6)) holds information relevant to the financial standing of an individual or relevant person,
f
ascertaining the contents of such information,
g
securing the correction of, the omission of anything from, or the making of any other kind of modification of, such information, or
h
securing that a credit information agency which holds such information—
i
stops holding the information, or
ii
does not provide it to any other person.
4
5
6
The condition in this F8paragraphF8sub-paragraph is that the borrower is an individual or relevant person and—
a
the lender provides the borrower with credit less than or equal to £25,000, or
b
the agreement is not 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.
7
Paragraphs (5) and (6) of article 60C of the Regulated Activities Order (exempt agreements: exemptions relating to nature of agreement) apply for the purposes of paragraph (6)(b).
8
It is immaterial for the purposes of this paragraph whether the lender is carrying on a regulated activity.
9
In this paragraph, “relevant person” means—
a
a partnership consisting of two or three persons not all of whom are bodies corporate, or
b
an unincorporated body of persons which does not consist entirely of bodies corporate and is not a partnership.
F910
For the purposes of the application of section 21(9) and (10) of the Act (restrictions on financial promotion) to an activity of a kind specified by this paragraph, paragraph 26D of this Schedule (relevant credit agreements), and article 4 (definition of controlled activities and controlled investments) in so far as it relates to that paragraph, has effect as if the reference to a relevant credit agreement in paragraph 26D includes a reference to a paragraph 4C agreement.