The following Financial Services practice note provides comprehensive and up to date legal information covering:
This Practice Note looks at the regulated activity of accepting deposits (often referred to as deposit taking). Accepting deposits is a key hallmark of banks, credit unions or building societies. Firms should consider whether their proposed business models and plans require the firm to apply for authorisation to carry on regulated activities or to extend their permissions. Accepting deposits is a specified activity and deposits are a specified investment under the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, SI 2001/544 (RAO).
The Financial Services and Markets Act 2000 (FSMA 2000) provides the framework for the regulation of financial services and markets in the UK. Under FSMA 2000, s 19, any person who carries on a regulated activity in the UK must be authorised by either the Financial Conduct Authority (FCA) or the Prudential Regulatory Authority (PRA) (depending on the regulated activities the person intends to carry on) or exempt. Breach of FSMA 2000, s 19 may be a criminal offence. The details of the specific activities and investments covered by FSMA 2000, s 19 are set out in RAO, which is secondary legislation under FSMA 2000.
The regulated activity relating to deposit taking is the activity of accepting deposits as set out in RAO SI 2001/544, arts 5 and 74. The definition is also described in the PRA Rulebook glossary and
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ContractWhere a contract is made by two or more parties it may contain a promise or obligation made by two or more of those parties. Any such promise may be:•joint•several, or•joint and severalWhether an undertaking is joint, several, or joint and several in contract is a question of construction
Coronavirus (COVID-19): The guidance detailing normal practice set out in this Practice Note may be affected by measures concerning process and procedure in the civil courts that have been introduced as a result of the coronavirus (COVID-19) pandemic. For guidance, see Practice Note: Coronavirus
BREXIT: UK is leaving EU on Exit Day (as defined in the European Union (Withdrawal) Act 2018). This has an impact on this Practice Note. For further guidance on the impact of Brexit on e-money requirements, see Practice Note: Impact of Brexit: Payment services and electronic money directives—quick
A declaratory judgment is a judgment identifying the rights, duties or obligations of one or more parties in a dispute. It is legally binding, but does not order any action by a party. A court may issue it alone or in conjunction with some other relief such as an injunction and can be granted on an
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