BKM402750 - Banking surcharge: definition of banking company: excluded entities - spread betting

A company which deals in contracts for difference including spread betting is an excluded company. The company is excluded if:

• Its only line of business is to carry on relevant regulated activities for the purpose of dealing in contracts for differences as principal with persons all (or all but an insignificant proportion) of whom are retail clients
• it only carries on relevant regulated activities for the purpose of dealing in contracts for differences with another person (‘P’) to enable it or P to deal in contracts for differences as principal with persons all (or all but an insignificant proportion) of whom are retail clients.

This exclusion also applies if a company carries on a second line of business, which is not deposit taking and the company’s activities in that line of business would not, on their own, result in it being both an IFPRU 730K firm and a full scope IFPRU investment firm if it only carried on this second line of business.

Contract for difference has the meaning given by CTA09/S582 and is explained at CFM50380.

The definition of a retail client is taken from the FCA Handbook.