BCOBS 1 Application

This sourcebook applies to a firm with respect to the activity of accepting deposits from banking customers carried on from an establishment maintained by it in the United Kingdom and activities connected with that activity.

In addition to the general application rule, Chapter 2 of BCOBS applies to a firm (other than a credit union), an electronic money institution, a payment institution and a registered account information service provider with respect to the provision of payment services or issuance or redemption of electronic money carried on from an establishment maintained by it or its agent in the United Kingdom and activities connected with those activities. These persons are referred to collectively in Chapters 1 and 2 of BCOBS as “providers”.

The general application rule is modified:

1. (1)

   in the chapters of this sourcebook for particular purposes; and

2. (2)

   in BCOBS 1 Annex 1 for certain types of firm in relation to the sale of structured deposits.

Except as provided for in BCOBS 1.1.4R, this sourcebook does not apply to:

1. (1)

   payment services where Parts 6 and 7 of the Payment Services Regulations apply; or

2. (2)

   a person or firm which has permission for accepting deposits but only for the purposes of, or in the course of, an activity other than accepting deposits.

1. (1)

   Chapters 2, 2A, 5 and 6 of BCOBS (except for BCOBS 5.1.10AR to BCOBS 5.1.19 R) and BCOBS 4.3 and 4.4 apply to payment services where Parts 6 and 7 of the Payment Services Regulations apply.

2. (2)

   Chapter 3 of BCOBS applies to payment services where Parts 6 and 7 of the Payment Services Regulations apply with the modifications set out in BCOBS 3.1.2 R(2).

3. (3)

   [deleted]

BCOBS 2.2A, BCOBS 2.2B, BCOBS 4.1.2G(2A) to (2E), (3A), (6A) and (6B), BCOBS 4.1.4AG(2)(a), BCOBS 4.4, BCOBS 5.1.3AG, BCOBS 5.1.3BG, BCOBS 5.1.5AR, BCOBS 5.1.5BG, BCOBS 5.1.13R, BCOBS 7 (except as applied by BCOBS 7.1.4R) and BCOBS 8 do not apply to a credit union.

BCOBS 2 (Communications and financial promotions) does not apply to the provision of payment services, the issuance of electronic money or activities connected to those activities by a credit union, except to the extent that the activity is connected to the activity of accepting deposits from banking customers.

A firm or a provider must not seek to exclude or restrict, or rely on any exclusion or restriction of, any duty or liability it may have to a banking customer, a payment service customer or an electronic money customer unless it is reasonable for it to do so and the duty or liability arises other than under the regulatory system.