BKM202200 | Bank compensation restriction: definitions: meaning of customer

CTA09/S133J

Customer includes any person who uses, has used or may have contemplated using a financial service provided by a company, or who has relevant rights or interests in relation to such a service. The definition is widely drawn to ensure that it captures situations where, for example, banks provided inappropriate advice that dissuaded prospective customers from taking up services which would have been to their benefit.

The definition also ensures that intermediaries and representatives are scoped into the legislation.