Credit-related regulated financial services activities

You are reading current version in effect from 25 November 2019
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You are reading current version in effect from 25 November 2019

Glossary terms


means the person for whom you act and, where the context permits, includes prospective and former clients

in the SRA Financial Services (Scope) Rules, in relation to any regulated financial services activities carried on by an authorised body for a trust or the estate of a deceased person (including a controlled trust), means the trustees or personal representatives in their capacity as such and not any person who is a beneficiary under the trust or interested in the estate

credit tokens

means a card, check, voucher, coupon, stamp, form, booklet or other document or thing given to a client by a person carrying on a credit-related regulated financial services activity ("the provider"), who undertakes that:

  1. on production of it (whether or not some other action is also required) the provider will supply cash, goods or services (or any of them) on credit; or
  2. where, on the production of it to a third party (whether or not any other action is also required), the third party supplies cash, goods and services (or any of them), the provider will pay the third party for them (whether or not deducting any discount or commission), in return for payment to the provider by the client and the provider shall, without prejudice to the definition of credit, be taken to provide credit drawn on whenever a third party supplies the client with cash, goods or services, and

the use of an object to operate a machine provided by the person giving the object or a third party shall be treated as the production of the object to that person or third party

running account credit

means a facility under a credit agreement under which the borrower or another person is enabled to receive from time to time from the lender, or a third party, cash, goods or services to an amount or value such that, taking into account payments made by or to the credit of the borrower, the credit limit (if any) is not at any time exceeded

high-cost short-term credit

means a regulated credit agreement:

  1. which is a borrower-lender agreement or a P2P agreement;
  2. in relation to which the APR is equal to or exceeds 100%;
  3. either:
    1. in relation to which a financial promotion indicates (by express words or otherwise) that the credit is to be provided for any period up to a maximum of 12 months or otherwise indicates (by express words or otherwise) that the credit is to be provided for a short term; or
    2. under which the credit is due to be repaid or substantially repaid within a maximum of 12 months of the date on which the credit is advanced;
  4. which is not secured by a mortgage, charge or pledge; and
  5. which is not:
    1. a credit agreement in relation to which the lender is a community finance organisation; or
    2. a home credit loan agreement, a bill of sale loan agreement or a borrower-lender agreement enabling a borrower to overdraw on a current account or arising where the holder of a current account overdraws on the account without a pre-arranged overdraft or exceeds a pre-arranged overdraft limit
continuous payment authority

means consent given to a client for a firm to make one or more requests to a payment service provider for one or more payments from the client's payment account, but excluding:

  1. a direct debit to which the direct debit guarantee applies; and
  2. separate consent given by a client to a firm, following the making of the regulated credit agreement, for the firm to make a single request to a payment service provider for one payment of a specified amount from the client's payment account on the same day as the consent is given or on a specified day

means a pawnee's rights over an article taken in pawn


means any article subject to a pledge

regulated credit agreement

has the meaning given by article 60B(3) of the Regulated Activities Order

legal or equitable mortgage

includes a legal or equitable charge and, in Scotland, a heritable security

debt management plan

means a non-statutory agreement between a client and one or more of the client's lenders the aim of which is to discharge or liquidate the client's debts, by making regular payments to a third party which administers the plan and distributes the money to the lenders

credit broking

means an activity of the kind specified in article 36A of the Regulated Activities Order.