BKM207350 | Bank compensation restriction: definition of banking company: deposit taker condition

CTA09/S133E(4)(a), (5)

The deposit taker condition is met if the entity accepts deposits and it carries on this activity wholly or mainly in the course of its trade. The test is modified slightly depending on the date of the relevant conduct.

From 1 December 2001 onwards the deposit taker condition will be met if the entity’s activities include the regulated activity of accepting deposits as described in article 5 of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (SI2001/544).

Before 1 December 2001 the deposit taker condition will be met if the entity’s activities include the regulated activity of accepting deposits described in article 5 of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (SI2001/544) in the form that these regulations had effect on 1 December 2001.

The PRA regularly publishes a list of all banks (including UK permanent establishments) and building societies which are authorised to take deposits in the UK.

The PRA list includes the names of banks incorporated in the UK, banks incorporated outside the EEA that are authorised to accept deposits in the UK through a branch in the UK , banks incorporated in the EEA that are entitled to accept deposits in the UK while in the Temporary Permissions Regime or while in the Supervised Run Off Regime, or banks incorporated in Gibraltar entitled to accept deposits through a branch in the UK.

Entities on the PRA’s list will normally meet the deposit-taker condition.