502Meaning of “financial institution”U.K.
(1)In this Chapter “financial institution” means—
(a)a bank, as defined by [F1section 1120 of CTA 2010],
(b)a building society within the meaning of the Building Societies Act 1986 (c. 53),
(c)a wholly-owned subsidiary of a bank within paragraph (a) or a building society within paragraph (b),
[F2(d)a person authorised by a licence under Part 3 of the Consumer Credit Act 1974 (c. 39) to carry on a consumer credit business or consumer hire business within the meaning of that Act,]
[F2(d)a person with permission under Part 4A of the Financial Services and Markets Act 2000 to enter into, or to exercise or have the right to exercise rights and duties under, a contract of the kind mentioned in paragraph 23 or paragraph 23B of Schedule 2 to that Act (credit agreements and contracts for hire of goods);]
(e)a bond-issuer, within the meaning of section 507, but only in relation to any bond assets which are rights under purchase and resale arrangements[F3, diminishing shared ownership arrangements or profit share agency arrangements], F4...
(f)a person authorised in a jurisdiction outside the United Kingdom—
(i)to receive deposits or other repayable funds from the public, and
(ii)to grant credits for its own account,
[F5(g)an insurance company, as defined by [F6section 65 of FA 2012], or
(h)a person who is authorised in a jurisdiction outside the United Kingdom to carry on a business which consists of effecting or carrying out contracts of insurance or substantially similar business but not an insurance special purpose vehicle as defined in [F7section 139(1) of FA 2012].]
[F8(1A)Subsection (1)(d) must be read with—
(a)section 22 of the Financial Services and Markets Act 2000,
(b)any relevant order under that section, and
(c)Schedule 2 to that Act.]
(2)For the purposes of subsection (1)(c) a company is a wholly-owned subsidiary of a bank or building society (“the parent”) if it has no members except—
(a)the parent or persons acting on behalf of the parent, and
(b)the parent's wholly-owned subsidiaries or persons acting on behalf of the parent's wholly-owned subsidiaries.
Textual Amendments
F1Words in s. 502(1)(a) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 630 (with Sch. 2)
F2S. 502(1)(d) substituted (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), Sch. para. 16(a)
F3Words in s. 502(1)(e) substituted (with effect in accordance with art. 1(3) of the amending S.I.) by Alternative Finance Arrangements (Amendment) Order 2009 (S.I. 2009/2568), arts. 1(2), 3(2)(a)
F4Word in s. 502(1)(e) omitted (with effect in accordance with art. 1(3) of the amending S.I.) by virtue of Alternative Finance Arrangements (Amendment) Order 2009 (S.I. 2009/2568), arts. 1(2), 3(2)(b)
F5S. 502(1)(g)(h) inserted (with effect in accordance with art. 1(3) of the amending S.I.) by Alternative Finance Arrangements (Amendment) Order 2009 (S.I. 2009/2568), arts. 1(2), 3(2)(c)
F6Words in s. 502(1)(g) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 163(a)
F7Words in s. 502(1)(h) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 163(b)
F8S. 502(1A) 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), Sch. para. 16(b)