Part 6Relationships treated as loan relationships etc
Chapter 6Alternative finance arrangements
Introduction
501Introduction to Chapter
1
This Chapter provides for alternative finance arrangements F5... to be treated as loan relationships (see sections 509 and 510).
2
In this Part “alternative finance arrangements” means—
a
purchase and resale arrangements,
b
diminishing shared ownership arrangements,
c
deposit arrangements,
d
profit share agency arrangements, and
e
investment bond arrangements.
3
In this Chapter—
a
“purchase and resale arrangements” means arrangements to which section 503 applies,
b
“diminishing shared ownership arrangements” means arrangements to which section 504 applies,
c
“deposit arrangements” means arrangements to which section 505 applies,
d
“profit share agency arrangements” means arrangements to which section 506 applies, and
e
“investment bond arrangements” means arrangements to which section 507 applies.
4
For the meaning of “financial institution”, see section 502.
502Meaning of “financial institution”
1
In this Chapter “financial institution” means—
a
a bank, as defined by F7section 1120 of CTA 2010,
b
a building society within the meaning of the Building Societies Act 1986 (c. 53),
c
a wholly-owned subsidiary of a bank within paragraph (a) or a building society within paragraph (b),
F2d
a person authorised by a licence under Part 3 of the Consumer Credit Act 1974 (c. 39) to carry on a consumer credit business or consumer hire business within the meaning of that Act,
F2d
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);
e
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,
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 F6section 139(1) of FA 2012.
F31A
Subsection (1)(d) must be read with—
a
section 22 of the Financial Services and Markets Act 2000,
b
any relevant order under that section, and
c
Schedule 2 to that Act.
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.