BCOBS 1.1 General application

The general application rule

BCOBS 1.1.1R

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.

Application to payment services and electronic money

BCOBS 1.1.1AR

14In addition to the general application rule, Chapter 2 of BCOBS applies to a firm (other than a credit union), an electronic money institution, an EEA authorised electronic institution, a payment institution, a registered account information service provider and an EEA 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”.

Limitations on the general application rule and BCOBS 1.1.1AR

BCOBS 1.1.2R

The general application rule is modified:9

  1. (1)

    in the chapters of this sourcebook for particular purposes; and9

  2. (2)

    in BCOBS 1 Annex 1 for certain types of firm in relation to the sale of structured deposits.9

BCOBS 1.1.3R

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

  1. (1)

    payment services where Parts 6 and 710 of the Payment Services Regulations apply2; 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.

BCOBS 1.1.4R
  1. (1)

    Chapters 2, 2A,6 5 and 6 of BCOBS (except for BCOBS 5.1.10AR10 to BCOBS 5.1.19 R) and BCOBS 4.38 apply to payment services where Parts 6 and 710 of the Payment Services Regulations apply2.

  2. (2)

    Chapter 3 of BCOBS applies to payment services where Parts 6 and 710 of the Payment Services Regulations apply 2with the modifications set out in BCOBS 3.1.2 R(2).

  3. (3)

    A firm will not be subject to BCOBS to the extent that it would be contrary to the United Kingdom's obligations under an EU3 instrument.2

    3
BCOBS 1.1.4AG

10Guidance on the application of the Payment Services Regulations can be found in PERG 15.

BCOBS 1.1.5R

2BCOBS 2.2A, BCOBS 4.1.2G(2A) to (2E), (3A), (6A) and (6B),7 BCOBS 4.1.4AG(2)(a), BCOBS 5.1.3AG, BCOBS 5.1.3BG, BCOBS 5.1.5AR, BCOBS 5.1.5BG, BCOBS 5.1.13R and BCOBS 7 (except as applied by BCOBS 7.1.4R)11 do not apply to a credit union.

744
BCOBS 1.1.5AR

14BCOBS 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.

Exclusion of liability

BCOBS 1.1.6R

2A firm or a provider14 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 customer14 unless it is reasonable for it to do so and the duty or liability arises other than under the regulatory system.

BCOBS 1.1.7G

2The general law, including the Unfair Terms Regulations (for contracts entered into before 1 October 2015) and the CRA, 5also limits the scope for a firm to exclude or restrict any duty or liability to a consumer.

Structured deposits

BCOBS 1.1.8G

9A firm that carries on the activity of accepting deposits which are structured deposits should refer to BCOBS 1 Annex 1.