SECTION C
DISCLOSURE OF ACCOUNTS FOR CREDIT AND FINANCIAL INSTITUTIONS
To which institutions do these special rules apply?
C-1 The Bank Branches Directive (89/117/EEC), although dealing only with credit and financial institutions, goes wider than the Eleventh Directive (89/666/EEC) in a number of respects. Credit and financial institutions if they have a branch, therefore, are required to file accounts as explained in this section, whether or not they are registered under the branch regime. This applies additionally to credit institutions that are not companies if they establish a branch. The reason for this is that the Bank Branches Directive applies additionally to credit institutions that are unincorporated or unlimited companies. These special rules on accounts apply to any credit or financial institution:
(a)
(b)
(c)
which is incorporated or, in the case of a credit institution, otherwise formed outside the United Kingdom and Gibraltar;
whose head office is outside the United Kingdom and Gibraltar; and which has a branch in Great Britain.
Explanations of the terms "branch" (in this context), "credit institutions", "financial institutions" and "parent law" are given below.
What is a branch?
C-2 The Companies Act 1985 (as amended) defines "branch", in relation to a credit or financial institution, as "a place of business which forms a legally dependent part of the institution and which conducts directly all or some of the operations inherent in its business". It is possible that this will apply to some credit institutions which can only register under the place of business regime because they are unlimited. Or to some credit institutions that are not required to register because they are not companies. Legal advice should be sought on this point in cases where there is doubt.
What is a credit institution?
C-3
A "credit institution" is defined in Article 1 of the First Council Directive on the co-ordination of laws, regulations and administrative provisions relating to the taking up and pursuit of the business of credit institutions (77/780/EEC). That is to say an undertaking whose business is to receive deposits or other repayable funds from the public and to grant credits for its own account. It can be a company but may be some other form of entity.
What is a financial institution?
C-4 "Financial institution" is given meaning in the Companies Act 1985 (as amended) by reference to Article 1 of the Bank Branches Directive (89/117/EEC). This Article does not provide a definition
6
Under the narrower definition than for branch registration (see paragraph C-2).
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