Q&As

'A' is not a regulated entity with the FCA and wishes to lend money to an individual in which the security is to be a first legal charge over a dwelling. The dwelling is not the residence of the borrower, but a property occupied by tenants on assured shorthold tenancies. Would it be possible for a non-regulated entity to lend money to be secured as a first legal charge over an investment property?

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Published on LexisPSL on 26/01/2016

The following Financial Services Q&A provides comprehensive and up to date legal information covering:

  • 'A' is not a regulated entity with the FCA and wishes to lend money to an individual in which the security is to be a first legal charge over a dwelling. The dwelling is not the residence of the borrower, but a property occupied by tenants on assured shorthold tenancies. Would it be possible for a non-regulated entity to lend money to be secured as a first legal charge over an investment property?

Under section 19 of the Financial Services and Markets Act 2000 (FSMA 2000) a person cannot carry out a regulated activity, or purport to do so, in the UK unless they are either an authorised person (ie authorised by the Prudential Regulation Authority (PRA) and/or the Financial Conduct Authority (FCA)), or an exempt person (eg by being an appointed representative). For an overview of the regulated activities regime in the UK, see the Practice Note: What are regulated activities? from our Lexis®PSL Financial Services module.

As you can see in this Note, activities are regulated if they are of a 'specified kind' (ie specified by the Financial Services and

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