Relevant entities and groups: banking groups: conditions to be met to be a banking group: the exempt activities condition: related activities
Paragraph 13(4) of Schedule 19
Exempt activities include related activities. ‘Related activities’ means:
- activities which are ancillary to insurance activities (see BKLM242700) of any entity which is a member of the group
- activities which are ancillary to asset management activities (see BKLM242720) of any entity which is a member of the group, and
- activities which would not be carried on if such insurance activities or asset management activities were not being carried on.
It does not make any difference whether the entity carrying on the ancillary activities is itself carrying on insurance activities or asset management activities.
‘Activities’ includes buying, holding, managing and selling assets.
It should be noted that ‘dealing on own account’ is not a related activity. Dealing on own account has the same meaning as in Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments (see Article 4(1)(6)).
Article 4(1)(6) sets out that:
‘Dealing on own account’ means trading against proprietary capital resulting in the conclusion of transactions in one or more financial instruments.