What requirements must a company meet to legally call itself a bank in the UK?

Asked Dec 11, 2012· 1 answer ·Developed Markets, EMEA, UK and Ireland, United Kingdom, Western Europe
Faisal KhanAnswered Dec 11, 2012
In the UK, you would need to be regulated by the Financial Services Authority. FSA's Official website can be accessed at: Financial Services Authority

FSA's website lists areas for which you need to be licensed:

What are the regulated activities?
Specified activities are defined in Part II of the RAO and comprise:
  • accepting deposits;
  • issuing e-money;
  • effecting or carrying out contracts of insurance as principal;
  • dealing in investments (as principal or agent);
  • arranging deals in investments;
  • arranging home finance activities;
  • operating a multilateral trading facility;
  • managing investments;
  • assisting in the administration and performance of a contract of insurance;
  • safeguarding and administering investments;
  • sending dematerialised instructions;
  • establishing etc collective investment schemes;
  • establishing etc stakeholder pension schemes;
  • providing basic advice on stakeholder products;
  • advising on investments;
  • advising on home finance activities;
  • Lloyd's market activities;
  • entering funeral plan contracts;
  • entering into a home finance activity;
  • administering a home finance activity;
  • agreeing to do most of the above activities.
Specified investments are defined in Part III of the RAO and comprise:
  • deposits;
  • electronic money;
  • rights under a contract of insurance;
  • shares etc;
  • instruments creating or acknowledging indebtedness;
  • sukuk (shariah compliant debt instruments)
  • government and public securities;
  • instruments giving entitlement to investments;
  • certificates representing certain securities;
  • units in a collective investment scheme;
  • rights under a stakeholder pension scheme;
  • rights under personal pension scheme;
  • options;
  • futures;
  • contracts for differences;
  • Lloyd's syndicate capacity and syndicate membership;
  • rights under funeral plan contracts;
  • rights under regulated mortgage contracts;
  • rights under a home reversion plan;
  • rights under a home purchase plan;
  • Rights to or interests in anything that is a specified investment listed, excluding 'Rights under regulated mortgage contracts', 'Rights under regulated home reversion plans' and Rights under regulated home purchase plans'.

Source: Do I need to be authorised?
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