BKM402800 - Banking surcharge: definition of banking company: excluded entities - companies carrying on a second line of business

CTA10/S269BA(1A), (1B)

Several of the excluded entities rules in CTA09/S269BA require that the entity does not carry on any relevant regulated activities other than for the purpose of one particular line of business.

Where a company would meet the requirements in the excluded entities list but for the fact it has one other line of business that carries on relevant regulated activities the company will still be an excluded entity if the second line of business does not involve deposit taking and the company’s activities in that line of business would not, on their own, result in it being an FCA investment firm that meets the conditions in CTA10/S269B(6B) if it only carried on this second line of business.

In practice this means that a company will still be an excluded entity if it takes on another regulated activity which on its own would not be regarded as investment banking.