COND 2.1 Threshold condition 1: Legal status
Paragraph 1, Schedule 6 to the Act
(1) |
If the regulated activity concerned is the effecting or carrying out of contracts of insurance the authorised person must be a body corporate (other than a limited liability partnership), a registered friendly society or a member of Lloyd's. |
(2) |
If the person concerned appears to the [FSA] to be seeking to carry on, or to be carrying on, a regulated activity constituting accepting deposits or issuing electronic money, it must be- |
(a) |
a body corporate; or |
(b) |
Section 40(1) of the Act (Application for permission) allows an application to be made to the FSA for Part IV permission by an individual, a body corporate, a partnership or an unincorporated association. However, in the case of the regulated activities of accepting deposits and effecting or carrying out contracts of insurance, article 1 of the Banking Consolidation Directive and article 8(1) of the First Non-Life Directive and ofthe First Life Directive place further limits on the legal forms a firm may take. The Act implements the provisions of the directives and extends some of these limits to firms that are outside the scope of the directives.
The words "or issuing electronic money" in paragraph 1(2) of Schedule 6 to the Act were added by the Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2002 with effect from 27 April 2002.1