The Financial Services and Markets Act 2000 (Excluded Activities and Prohibitions) Order 2014
| Jurisdiction | UK Non-devolved |
| Citation | SI 2014/2080 |
| Year | 2014 |
(1) This Order may be cited as the Financial Services and Markets Act 2000 (Excluded Activities and Prohibitions) Order 2014.(2) This article, articles 2 and 3 and the Schedule to this Order come into force on 1st January 2015.(3) The other provisions of this Order come into force on 1st January 2019.(4) In this Order—
- “account holder” means any person, other than a relevant financial institution, who has an account with a ring-fenced body ;
- “the Act” means the Financial Services and Markets Act 2000;
- F91“alternative investment fund” has the meaning given in regulation 3 of the Alternative Investment Fund Managers Regulations 2013, but as if in paragraph (1) (b) of that regulation for “UK UCITS” there were substituted “UCITS;
- F92“alternative investment fund manager” means a legal person whose regular business is managing one or more alternative investment funds;
- F93“Annex 1 activities” has the meaning given in article 4.1(26A) of the prudential requirements regulation;
- “building society” means a building society incorporated (or deemed to be incorporated) under the Building Societies Act 1986 ;
- “capital market arrangement” has the meaning given in paragraph 1 of Schedule 2A to the Insolvency Act 1986 ;
- F26“charity” has the meaning given in section 1 of the Charities Act 2011, section 1 of the Charities Act (Northern Ireland) 2008 or section 106 of the Charities and Trustee Investment (Scotland) Act 2005;
- “CIO” means a body constituted and registered as a charitable incorporated organisation under Part 11 of the Charities Act 2011 or Part 11 of the Charities Act (Northern Ireland) 2008, or as a Scottish charitable incorporated organisation under Part 1 of the Charities and Trustee Investment (Scotland) Act 2005;
- “commodity” means any goods of a fungible nature that are capable of being delivered including metals and their ores and alloys, agricultural products, and energy such as electricity;
- “conduit vehicle” of a ring-fenced body means an undertaking which satisfies the conditions set out in article 17(2) for the relevant financial institution described as D;
- F27“core deposit” has the meaning given in article 2(2) of the Financial Services and Markets Act 2000 (Ring-fenced Bodies and Core Activities) Order 2014;
- “correspondent banking” means an arrangement between two credit institutions pursuant to which one credit institution provides payment services to the clients of the other credit institution on behalf of that credit institution;
- “covered bond vehicle” means a body corporate, partnership or unincorporated association—
- (a) which is a party to a capital market arrangement, or a transaction in pursuance of a capital market arrangement, and
-
(b) whose business consists (apart from incidental activities) only of—
- (i) providing guarantees, and
- (ii) acquiring, owning and managing assets directly or indirectly forming the whole or part of the security for a capital market arrangement;
- “credit institution” has the meaning given in Article 4.1(1) of the prudential requirements regulation;
- “credit institutions directive” means the Directive of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC;
- “credit union” means a credit union as defined by section 31 of the Credit Unions Act 1979 or a credit union as defined by Article 2(2) of the Credit Unions (Northern Ireland) Order 1985 ;
- “debentures” include any investment of the kind specified by article 77 of the Regulated Activities Order 2001 ;
- “default risk”, in relation to a ring-fenced body, means the risk that—
- (a) one or more persons will default under a transaction with a ring-fenced body or with a subsidiary undertaking of the ring-fenced body or will become unlikely, unwilling or unable to pay or repay sums owing at law or in equity to the ring-fenced body or to a subsidiary undertaking of the ring-fenced body,
- (b) an obligation to pay or repay sums owing at law or in equity to the ring-fenced body or to a subsidiary undertaking of the ring-fenced body will be restructured so as to reduce or postpone the payments due as principal, interest or fees resulting in a loss to the ring-fenced body or to its subsidiary undertaking, or
- (c) the value of any security or collateral taken by the ring-fenced body or a subsidiary undertaking of the ring-fenced body in connection with one or more transactions entered into by the ring-fenced body or its subsidiary undertaking will be insufficient to meet the obligations of the counterparty to the transaction when the security is enforced or the collateral is sold;
- F94“derivative instrument” includes any instruments within the meaning of article 2.1(29) of the markets in financial instruments regulation;
- “exposure” means—
- (a) an asset referred to in Part Three, Title II, Chapter 2 of the prudential requirements regulation, or
- (b) an off-balance sheet item listed in Annex I to the prudential requirements regulation ,
-
F95“financial conglomerate” means—
- (a) a financial conglomerate within the meaning of regulation 1(2) of the Financial Conglomerates and Other Financial Groups Regulations 2004 (but disregarding any decision taken under Article 3(3) of the conglomerates directive as applied and modified by those Regulations) , or
- (b) a financial conglomerate within the meaning of Article 2.14 of Directive 2002/87/EC of the European Parliament and of the Council of 16 December 2002 on the supplementary supervision of credit institutions, insurance undertakings and investment firms in a financial conglomerate (but disregarding any decision taken under Article 3(3) of that directive) ;
- “financial holding company” means a financial institution which is not a mixed financial holding company, the subsidiary undertakings of which are either exclusively or mainly credit institutions, investment firms or financial institutions and which has at least one subsidiary undertaking which is a credit institution or investment firm, and for the purposes of this definition, a financial institution is an undertaking other than a credit institution, the principal activity of which is to acquire holdings or to pursue one or more of the activities listed in points 2 to 12 and 15 of F96the Annex 1 activities;
- “financial institution exposure” means an exposure to a relevant financial institution or an...
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