Section 564B | Meaning of “financial institution” ^F1

(1)In this Part “financial institution” means—

(a)a bank, as defined by section 991,

(b)a building society,

(c)a wholly-owned subsidiary—

(i)of a bank within paragraph (a), or

(ii)of a building society,

(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);^F2

(e)a bond-issuer, within the meaning of section 564G, but only in relation to any bond assets which are rights under purchase and resale arrangements, diminishing shared ownership arrangements or profit share agency arrangements,

(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,

(g)an insurance company as defined in section 65 of FA 2012, or^F3

(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 section 139(1) of FA 2012.^F4

(1A)Subsection (1)(d) must be read with—^F5

(a)section 22 of the Financial Services and Markets Act 2000,^F5

(b)any relevant order under that section, and^F5

(c)Schedule 2 to that Act.^F5

(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.