BKM207500 | Bank compensation restriction: definition of banking company: excluded company

CTA09/S133F

A company is not a banking company if it is an excluded company. An excluded company is one which either:

• carries on a type of business to which the compensation restriction is not intended to apply; this includes insurers, credit unions and friendly societies

• only undertakes a single specified activity (line of business) that would not commonly be considered to constitute banking , or

• in addition to carrying on this single line of business referred to above it undertakes a second line of business, other than deposit taking, and the company’s activities in that line of business would not, on their own, result in it being an FCA investment firm that met the criteria in CTA09/S133H(1B), if it only carried on this second line of business

Some types of business are specifically excluded from being banking companies and are therefore outside the scope of the compensation restriction. The following types of companies are excluded companies:

• insurance

• asset management

• commodities and emission allowances

• spread betting

• certain other companies