BKM402500 | Banking surcharge: definition of banking company: excluded entity

CTA10/S269BA

A company is not a banking company if it is an excluded entity.

An excluded entity is one which either:

• carries on a type of business to which this measure is not intended to apply: insurers, credit unions and friendly societies, or

• 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 CTA10/S269B(6B) if it only carried on this second line of business (BKM402800)

Some types of business are specifically excluded from being banking companies and are therefore outside the scope of the banking surcharge.

The following types of entities are excluded entities:

• insurance

• asset management

• commodities and emission allowances

• spread betting

• certain other companies