Related provisions for EG 12.3.3
401 - 420 of 1080 items.
A firm does not have to give notice to the FCA2 under SUP 15.9.1 R if it or another member of the consolidation group has already given notice of the relevant fact to:55(1) the FCA2 or55(2) (if another competent authority is co-ordinator of the financial conglomerate ) that competent authority; or(3) (in the case of a financial conglomerate that does not yet have a co-ordinator ) the competent authority who would be co-ordinator under Regulation 1(2) of the Financial Groups
(1) 3A firm must, at the level of the financial conglomerate in the United Kingdom4, regularly provide the FCA2 with details on the financial conglomerate's legal structure and governance and organisational structure, including all regulated entities , and non-regulated subsidiaries4.(2) A firm must disclose publicly, at the level of the financial conglomerate in the United Kingdom4, on an annual basis, either in full or by way of references to equivalent information, a description
Perpetual long-term subordinated loans and perpetual cumulative preference share capital may not be included in the calculation of own funds unless they meet the following requirements:
(1) it may not be reimbursed on the holder's initiative or without the prior agreement of the FCA;
(2) the instrument must provide for the firm to have the option of deferring the dividend payment on the share capital; (3) the shareholder's
A long-term subordinated loan may not be included in the calculation of own funds unless it meets the following requirements:
(1) it must be fully paid-up; (2) it has an original maturity of at least five years; (3) the extent to which it may be used in the calculation of own funds shall be amortised on a straight line basis during at least the five years before repayment; and (4) it must not become repayable before the agreed repayment date other than in the
1In determining whether or not the conduct of an approved person performing an accountable higher management function under APER 4.6.5G, APER 4.6.6G and APER 4.6.8G complies with Statement of Principle 6, the following are factors which, in the opinion of the FCA, are to be taken into account:(1) the
competence, knowledge or seniority of the delegate; and (2) the
past performance and record of the delegate.
An approved person performing an accountable higher management function1 will not always manage the business on a day-to-day basis1. The extent to which the approved person1 does so will depend on a number of factors, including the nature, scale and complexity of the business and their1 position within it. The larger and more complex the business, the greater the need for clear and effective delegation and reporting lines. The FCA1 will look to the approved person performing an
(1) An approved person performing an accountable higher management function1may delegate
the investigation, resolution or management of an issue or authority for dealing
with a part of the business to individuals who report to them 1or to others.(2) The approved person performing an accountable higher management function1should have
reasonable grounds for believing that the delegate has the competence, knowledge,
skill and time to deal with the issue. For instance, if the compliance
An ROIE1 is required to notify the FCA1 of certain events and give information to it on a regular basis and when certain specified events occur. Section 295 of the Act (Notification: overseas investment exchanges and overseas clearing houses) requires each ROIE1 to provide the FCA1 with a report (at least once a year) which contains:111(1) a statement as to whether any events have occurred which are likely to affect the FCA's assessment of whether it is satisfied that the ROIE
The following events are examples of events likely to affect an assessment of whether an ROIE1 is continuing to satisfy the recognition requirements11(1) significant changes to any relevant law or regulation in its home territory, including laws or regulations:(a) governing exchanges or, if relevant to an ROIE's satisfaction of the recognition requirements,1clearing houses;(b) designed to prevent insider dealing, market manipulation or other forms of market abuse or misconduct;(c)
A parent undertaking which wishes to make use of the exemption in relation to issuers subject to this chapter whose shares are admitted to trading on a regulated market must without delay, notify the following to the FCA:1(1) a list of the names of those management companies, investment firms or other entities, indicating the competent authorities that supervise them, but with no reference to the issuers concerned; and(2) a statement that, in the case of each such management company
Where the parent undertaking intends to benefit from the exemptions only in relation to the financial instruments4 referred to in DTR 5.3.1R6, it must4 notify to the FCA only the list referred to in paragraph (1) of DTR 5.4.4 R.[Note: article 10(3) of the TD implementing Directiveand article 13 of theTD6]
A parent undertaking of a management company or of an investment firm must in relation to issuers subject to this chapter whose shares are admitted to trading on a regulated market be able to demonstrate to the FCA on request that:1(1) the organisational structures of the parent undertaking and the management company or investment firm are such that the voting rights are exercised independently of the parent undertaking;(2) the persons who decide how the voting rights are exercised
A parent undertaking of a third country6 undertaking must comply with the notification requirements in DTR 5.4.4 R (1) and DTR 5.4.5 R and in addition: (1) must make a statement that in respect of each management company or investment firm concerned, the parent undertaking complies with the conditions of independence set down in DTR 5.4.10 R; and (2) must1 be able to demonstrate to the FCA on request that the requirements of DTR 5.4.6 R are respected.[Note: article 23 of the TD
3The FCA is the single statutory regulator for all financial business in the UK. Its strategic objective under the Financial Services and Markets Act 2000 (the 2000 Act) is to ensure that the relevant markets function well. The FCA's operational objectives are: securing an appropriate degree of protection for consumers;protecting and enhancing the integrity of the UK financial system; andpromoting effective competition in the interests of consumers in the markets.(Note: The 2000
3Under the 2000 Act the FCA has powers to investigate concerns including: • regulatory concerns about authorised firms and individuals employed by them;suspected contraventions of the Market Abuse Regulation or any supplementary market abuse legislation (as defined in Part 8 of the Act)5252• suspected misleading statements and practices under s.397 of the 2000 Act and Part 7 of the Financial Services Act 2012;• suspected insiderdealing under of Part V of the Criminal Justice
3The FCA has the power to take the following enforcement action: • discipline authorised firms under Part XIV of the 2000 Act and approved persons and other individuals1under s.66 of the 2000 Act;• impose penalties on persons that perform controlled functions4without approval under s.63A of the 2000 Act;• impose civil penalties2under s.123 of the 2000 Act;5• 2temporarily prohibit an individual from exercising management functions in MiFID investment firms or from dealing in
For the purpose of article 282(6) of the UK CRR1 (Hedging sets), a firm must apply the CCR Mark-to-market method as set out in Part Three, Title II, Chapter 6, Section 3 (Mark-to-market method) of the UK CRR1 to: (1) transactions with non-linear risk profile; or(2) payment legs and transactions with debt instruments as underlying;for which it cannot determine the delta or the modified duration, as the case may be, using an internal model approved by the FCA under Part Three Title
(1) This guidance sets out the FCA's expectations for granting permission to a firm to use its own one-sided credit valuation adjustment internal models (an "internal CVA model") for the purpose of estimating the maturity factor "M", as proposed under article 162(2)(h) of the UK CRR1 (Maturity).(2) In the context of counterparty credit risk, the maturity factor "M" is intended to increase the own funds requirements to reflect potential higher risks associated with medium and long-term
(1) This guidance sets out the FCA's expectations for permitting a firm with the permission to use the Internal Model Method set out in Part Three, Title II, Chapter 6, Section 6 (Internal model method) and the permission to use an internal VaR model for specific risk set out in Part Three, Title IV, Chapter 5 (Use of internal models) associated with traded debt instruments to set to 1 the maturity factor "M" defined in article 162 of the UK CRR1. (2) In the context of counterparty
(1) The following must apply to their consolidating supervisor for approval of any proposed RRD group financial support agreement or of any amendment to that agreement:(a) a firm that is the UK parent undertaking3 of an RRD group;(b) a qualifying parent undertaking that is the UK parent undertaking3 of an RRD group; and(c) [deleted]3(2) An application for the approval or amendment of an RRD group financial support agreement must: (a) include the proposed RRD group financial support
The FCA will not approve an RRD group financial support agreement unless:(1) in its opinion, none of the parties has infringed an RRD early intervention condition or is likely to infringe one of those conditions in the near future;(2) the agreement complies with the conditions for entering into an RRD group financial support agreement in IFPRU 11.5.9 R to IFPRU 11.5.12 R; and(3) the terms of the proposed agreement are consistent with the conditions for giving financial support
An RRD group member may only give financial support using an RRD group financial support agreement if the FCA has:(1) agreed to the giving of the support with restrictions; or(2) agreed to the giving of the support without restrictions; or(3) not prohibited the support within five business days of receiving a notice of intention to give financial support.[Note: article 25(2) and (5) of RRD]
The FCA will not grant an investment firm consolidation waiver unless:(1) the UK consolidation group or non-UK sub-group3 meets the conditions for being a CAD Article 22 group;(2) the FCA is satisfied that each BIPRU firm in the UK consolidation group or non-UK sub-group3 will be able to meet its capital requirements using the calculation of capital resources in GENPRU 2 Annex 6R (Capital resources table for a BIPRU 2firm with a waiver from consolidated supervision); and(3) the
Compliance with the capital requirements set out in BIPRU 8.4.11 R is a condition under the Capital Adequacy Directive for the exemption from capital requirements as it applies in accordance with article 95(2) of the UK CRR3. Thus if they are breached the FCA is likely to revoke the investment firm consolidation waiver.
If a firm has an investment firm consolidation waiver, it must:(1) ensure that each CAD investment firm in the UK consolidation group or non-UK sub-group3 which is a firm3has in place systems to monitor and control the sources of capital and funding of all the members in the UK consolidation group or non-UK sub-group3;(2) notify the FCA of any serious risk that could undermine the financial stability of the UK consolidation group or non-UK sub-group3, as soon as the firm becomes
Although an investment firm consolidation waiver switches off most of this chapter, a firm should still carry out the capital adequacy calculations in BIPRU 8.3 to BIPRU 8.8 as if those parts of this chapter still applied to the UK consolidation group or non-UK sub-group3 and report these to the FCA. It should also still monitor large exposure risk on a consolidated basis.
In seeking to comply with its obligation to carry out checks on its internal records and accounts, a CASS small debt management firm may choose to follow the steps specifically required of CASS large debt management firms in undertaking a CASS large debt management firm internal client money reconciliation and CASS large debt management firm external client money reconciliation. A CASS small debt management firm which follows that procedure is likely to be regarded by the FCA
A CASS debt management firm must inform the FCA in writing without delay if:(1) its internal records and accounts of client money are materially out of date or materially inaccurate so that the firm is no longer able to comply with the requirements in CASS 11.11.1 R to CASS 11.11.4 R; or(2) it becomes aware that, at any time in the preceding 12 months, the amount of client money segregated in its client bank accounts materially differed from the total aggregate amount of client
A CASS large debt management firm must inform the FCA in writing without delay if:(1) after having carried out a CASS large debt management firm internal client money reconciliation in accordance with CASS 11.11.13 R it will be unable to, or materially fails to, pay any shortfall into (or withdraw any excess from) a client bank account so that the firm is unable to comply with CASS 11.11.23 R;(2) after having carried out a CASS large debt management firm external client money
2Normally, where the outcome is potentially a financial penalty, suspension, restriction, condition or disciplinary prohibition,3 the FCA will send a letter at an early point in the enforcement process to the subject of the investigation. This is what the FCA refers to as a stage 1 letter. The FCA will aim to give 28 days’ notice of the beginning of stage 1 to allow the parties involved to make administrative arrangements, e.g. ensuring that key staff can be available to participate
2There is no set form for a stage 1 letter though it will always explain the nature of the misconduct, the FCA's view on the sanction3, and the period within which the FCA expects any settlement discussions to be concluded. In some cases, a draft statutory notice setting out the alleged rule breaches and the proposed sanction3 may form part of the letter, to convey the substance of the case team’s concerns and reasons for arriving at a particular level of sanction3. The FCA will
2The timing of the stage 1 letter will vary from case to case. Sufficient investigative work must have taken place for the FCA to be able to satisfy itself that the settlement is the right regulatory outcome. In many cases, the FCA can send out the stage 1 letter substantially before the person concerned is provided with the FCA's preliminary investigation report (see paragraphs 4.13.1 to 4.13.4). The latest point the FCA will send a stage 1 letter is when the person is provided
2The FCA considers that 28 days following a stage 1 letter will normally be the ‘reasonable opportunity to reach agreement as to the amount of penalty’ before the expiry of stage 1 contemplated by DEPP 6.7.3G3. Extensions to this period will be granted in exceptional circumstances only, and factors that will be taken into account in considering an application will include the extent to which factors outside the firm’s or individual’s control will have a material impact on their
A credit union must provide the FCA, once a year, with a report in the format set out in CREDS 9 Annex 1 R (Credit Union complaints return) which contains (for the relevant reporting period) information about:(1) the total number of complaints received by the credit union;(2) (for the product/service groupings within section 5)3 the number of complaints closed by the credit union:(a) within eight weeks of receipt; and(b) more than eight weeks after receipt;(2A) (for other lending
A report under this section must be given or addressed, and delivered, in the way set out in SUP 16.3.6 R to SUP 16.3.16 G (General provisions on reporting), except that, instead of the credit union's usual supervisory contact, the report must be given to or addressed for the attention of the Central Reporting team at the FCA.22
Once every calendar year, a CASS debt management firm must notify the FCA, in writing, of the information in (1), (2) or (3), as applicable, and the information in (4), in each case no later than the day specified in (1) to (4):(1) if it held client money in the previous calendar year, the highest total amount of client money held during the previous calendar year, notification of which must be made no later than the fifteenth business day of January; or (2) if it did not hold
(1) Notwithstanding CASS 11.2.3 R, provided that the conditions in (2) are satisfied, a CASS debt management firm that would otherwise be classified as a CASS small debt management firm under the limits provided for in CASS 11.2.3 R may elect to be treated as a CASS large debt management firm.(2) The conditions to which (1) refers are that in either case: (a) the election is notified to the FCA in writing;(b) the notification in accordance with (a) is made at least one week before
A firm's 'CASS debt management firm type' and any change to it takes effect:(1) if the firm notifies the FCA in accordance with CASS 11.2.4 R (1) or CASS 11.2.4 R (2), on 1 February following the notification; or(2) if the firm notifies the FCA in accordance with CASS 11.2.4 R (3), on the day it begins to hold client money; or(3) if the firm makes an election under CASS 11.2.7 R and provided the conditions in CASS 11.2.7 R (2) are satisfied, on the day the notification made under
Section 333T of the Act (Funding of action against illegal money lending) requires the Treasury to notify the FCA of the amount of the Treasury’s illegal money lending costs. The FCA must make rules requiring authorised persons, or any specified class of authorised person, to pay to the FCA the specified amounts or amounts calculated in a specified way, with a view to recovering the amounts notified to it by the Treasury.
The FCA will determine, following consultation, the amount to be raised from each industry block. This will be based on the budgeted costs and numbers of Financial Ombudsman Service staff required to deal with the volume of complaints which the Financial Ombudsman Service expects to receive about the firms in each industry block. Modified arrangements have been made for certain types of small firms (see FEES 5.5.3 R to FEES 5.5.5 G).
(1) An issuer must forward to the FCA, for publication through the document viewing facility, two copies of any document required by LR 17.3 or LR 17.4 at the same time the document is issued.(2) An issuer must notify a RIS as soon as possible when a document has been forwarded to the FCA under paragraph (1) unless the full text of the document is provided to the RIS.(3) A notification made under paragraph (2) must set out where copies of the relevant document can be obtain
(1) An issuer'ssecurities must be admitted to trading on a RIE's market for listed securities at all times.(2) An issuer must inform the FCA in writing without delay if it has:(a) requested a RIE to admit or re-admit any of its listed securities to trading; or(b) requested a RIE to cancel or suspend trading of any of its listed securities; or(c) been informed by a RIE that the trading of any of its listed securities will be cancelled or suspended.
(1) If an issuer prepares both own and consolidated annual accounts it may publish either form provided that the unpublished accounts do not contain any significant additional information.1(2) If the annual accounts do not give a true and fair view of the assets and liabilities, financial position and profits or losses of the issuer or group, additional information must be provided to the satisfaction of the FCA.1(3) An issuer incorporated or established in a third country5 which
An issuer must ensure that any circular it issues to holders of its listed securities about proposed amendments to a trust deed includes:(1) an explanation of the effect of the proposed amendments; and(2) either the full terms of the proposed amendments, or a statement that they will be available for inspection:(a) from the date the circular is sent until the close of the relevant general meeting at a place in or near the City of London or such other place as the FCA may determine;
2The FCA3 will seek to deprive an individual of the financial benefit derived directly from the breach (which may include the profit made or loss avoided) where it is practicable to quantify this. The FCA3 will ordinarily also charge interest on the benefit. Where the success of a firm’s entire business model is dependent on breaching FCA3rules or other requirements of the regulatory system and the individual’s breach is at the core of the firm’s regulated activities, the FCA3
(1) The FCA3 will determine a figure which will be based on a percentage of an individual’s “relevant income”. “Relevant income” will be the gross amount of all benefits received by the individual from the employment in connection with which the breach occurred (the “relevant employment”), and for the period of the breach. In determining an individual’s relevant income, “benefits” includes, but is not limited to, salary, bonus, pension contributions, share options and share schemes;
(1) The FCA3 may increase or decrease the amount of the financial penalty arrived at after Step 2, but not including any amount to be disgorged as set out in Step 1, to take into account factors which aggravate or mitigate the breach. Any such adjustments will be made by way of a percentage adjustment to the figure determined at Step 2.3(2) The following list of factors may have the effect of aggravating or mitigating the breach:(a) the conduct of the individual in bringing (or
(1) If the FCA3 considers the figure arrived at after Step 3 is insufficient to deter the individual who committed the breach, or others, from committing further or similar breaches then the FCA3 may increase the penalty. Circumstances where the FCA3 may do this include:333(a) where the FCA3 considers the absolute value of the penalty too small in relation to the breach to meet its objective of credible deterrence;3(b) where previous FCA3 action in respect of similar breaches
The FCA3 and the individual on whom a penalty is to be imposed may seek to agree the amount of any financial penalty and other terms. In recognition of the benefits of such agreements, DEPP 6.7 provides that the amount of the financial penalty which might otherwise have been payable will be reduced to reflect the stage at which the FCA3 and the individual concerned reached an agreement. The settlement discount does not apply to the disgorgement of any benefit calculated at Step
Application of different sections of SUP 16 (excluding49 SUP 16.13, SUP 16.15, SUP 16.16, SUP 16.17, SUP 16.22 and56 SUP 16.2656)50534266393927
(1) Section(s) |
(2) Categories of firm to which section applies |
(3) Applicable rules and guidance |
|||
All categories of firm except: |
Entire sections |
||||
(a) |
an ICVC; |
||||
(b) |
[deleted]51 |
||||
| 20 | |||||
| 49 | |||||
| 3 | 141439 | ||||
| 39 | |||||
(c) |
[deleted]51 |
||||
All categories of firm except: |
Entire sections |
||||
(-a) |
|||||
(a) |
an ICVC; |
||||
(b) |
[deleted]51 |
||||
(c) |
[deleted]51 |
||||
(d) |
|||||
(e)4 |
[deleted]4 |
||||
(f) |
a sole trader; |
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(g) |
|||||
(h) |
[deleted]51 88 |
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(i)8 |
a firm with permission to carry on only retail investment activities;8 |
8 | |||
(ia)38 |
a firm with permission only to advise on P2P agreements (unless that activity is carried on exclusively with or for professional clients);38 |
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(j)8 |
a firm with permission to carry on only insurance distribution activity52, home finance mediation activity,16 or both;8 16 |
8 | |||
(ja)30 |
an FCA-authorised person with permission to carry on only credit-related regulated activity; |
||||
48(jb) |
a firm with permission to carry on only regulated claims management activities; |
||||
(k)8 |
a firm falling within a combination of (i), (ia), (j), (ja) and (jb)48. 303830 |
8 | |||
46(l) |
a firm with permission to carry on only the regulated activity of administering a benchmark; |
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| 27 | |||||
| 2628 | |||||
| 28 | 28 | ||||
Depositary of an authorised fund41 |
|||||
A firm subject to the requirement in SUP 16.7A.3 R or SUP 16.7A.5 R |
Sections as relevant |
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Insurer with permission to effect or carry out life policies, unless it is a non-directive friendly society3 |
Entire section |
||||
3Firm with permission to establish, operate or wind up a personal pension scheme or a stakeholder pension scheme14 14 |
Entire section3 |
||||
Firm with permission to advise on investments; arrange (bring about) deals in investments; make arrangements with a view to transactions in investments; or arrange safeguarding and administration of assets5 |
Entire section5 |
||||
Entire section9 |
9
|||||
(a)9 |
9 | ||||
(b)9 |
[deleted]51 2142 |
9 | |||
(c)9 |
[deleted]42 219 |
9 | |||
21(d) |
|||||
(1) |
A firm, other than a managing agent, which is: |
||||
(a) |
a home finance provider; or |
Entire section |
|||
(b) |
an insurer; or |
Entire section |
|||
(c) |
the operator of a regulated collective investment scheme or an investment trust savings scheme; or |
Entire section |
|||
(d) |
a person who issues or manages the relevant assets of the issuer of a structured capital-at-risk product; or |
Entire section |
|||
(e) |
a firm with permission to enter into a regulated credit agreement as lender in respect of high-cost short-term credit or home credit loan agreements; or |
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(2) |
a firm in whom the rights and obligations of the lender under a regulated mortgage contract are vested. |
The provisions governing performance data reports in SUP 16.11 and SUP 16 Annex 21 |
|||
A firm undertaking the regulated activities as listed in SUP 16.12.4 R, unless exempted in SUP 16.12.1 G |
Sections as relevant to regulated activities as listed in SUP 16.12.4 R23 |
||||
A CASS large firm and a CASS medium firm |
Entire section29 |
||||
An IFPRU 730k firm and a qualifying parent undertaking that is required to send a recovery plan, a group recovery plan or information for a resolution plan to the FCA43. |
Entire Section |
||||
A firm subject to the Money Laundering Regulations and within the scope of SUP 16.23.1R |
Entire Section |
||||
A firm undertaking the regulated activities in SUP 16.23A.1R51 |
Entire section |
||||
A firm with permission to effect or carry out contracts of insurance in relation to life and annuitycontracts of insurance45 to the extent that the firm and its business falls within the scope of SUP 16.24.1R. |
Entire Section |
||||
A firm with permission to carry on regulated claims management activities. |
Entire section |
||||
A firm which, in respect of general insurance contracts, is: |
Entire section |
||||
(a) |
an insurer; |
||||
(b) |
55a 55(i) TP firm which has temporary permission; or 55 (ii) a Gibraltar-based firm, treated as having permission, to effect contract of insurance 55 including those providing services from an establishment outside the UK with a customer in the UK55; |
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(c) |
a managing agent; or |
||||
(d) |
|||||
to the extent that the firm and its business falls within the scope of SUP 16.27.7R. |
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27Note 2 50The application of SUP 16.13 is set out under SUP 16.13.1 G;66 the application of SUP 16.15 is set out under SUP 16.15.1 G; the application of SUP 16.16 is set out SUP 16.16.1 R and SUP 16.16.2 R the application of SUP 16.17 is set out in SUP 16.17.3 R and SUP 16.17.4 R66; and the application of SUP 16.26 is set out in SUP 16.26.1R50. 4366 |
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29Note 3 50The application of SUP 16.18 for the types of AIFMs specified in SUP 16.1.1C G is set out in SUP 16.18.2 G. 43 |
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(1) This chapter contains requirements to report to the FCA37 on a regular basis. These requirements include reports relating to a firm's financial condition, and to its compliance with other rules and requirements which apply to the firm. Where the relevant requirements are set out in another section of the Handbook, this chapter contains cross references. An example of this is financial reporting for insurers and friendly societies.6666(2) Where such requirements already apply
The FOS ADR levy is
calculated as follows:(1) Determine the number of hours, or part of an
hour, taken by the FCA, in performing functions
under the ADR Regulations.(2) Using the table at FEES 3 Annex 9R(11),
determine the relevant pay grades of those employed by the
FCA to perform the functions under the
ADR Regulations.(3) Next, multiply the applicable rate in the table
at FEES 3 Annex 9R(11) by the number of hours or part hours obtained under
(1).(4) Then add any fees and disbursements
In the FCA's view, credit intermediation under the MCD covers the same activities as the regulated activity of arranging (bringing about) regulated mortgage contracts, except that: (1) credit intermediation only applies if the intermediary acts for remuneration; and(2) the MCD does not cover the regulated mortgage contracts listed in PERG 4.10A.5 G; and(3) the MCD only applies to services provided to consumers;(4) if the intermediary only acts for the creditor, the MCD intermediation
(1) The MCD applies to credit intermediation activities performed for the creditor, as well as for the borrower. (2) However, the activities carried out for the creditor are defined differently from the ones carried out for the borrower. They seem to be narrower. The activities are limited to concluding regulated mortgage contracts with consumers on behalf of the creditor.(3) Just assisting the creditor by undertaking preparatory work or other pre-contractual administration is