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HMRC internal manual

Banking Manual

Banking surcharge: definition of banking company: financial sector condition


The financial sector condition captures a company, branch or partnership that has UK regulatory permission to undertake regulated activities in the UK. This includes entities that are not commonly referred to as ‘banks’, but which provide other financial services.

The financial sector condition is met when the company or partnership is an authorised person under FSMA00/S31 that is

  • a company that has permission to undertake regulated activities in the UK
  • an EEA firm that is passported into the UK for regulatory purposes
  • a non-EEA treaty firm
  • anyone else that is authorised under the Act

A firm authorised in an EEA state can offer certain products or services in the UK if it has the relevant passport. Firms that passport into the UK are normally regulated by the regulatory authority in their home state.

A non-EEA treaty firm is a firm resident in a non-EEA territory that the Prudential Regulation Authority (PRA) regards as having a strong regulatory regime.