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Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.

pre-existing arrangements

    111in relation to a borrower-lender agreement or a borrower-lender-supplier agreement, a credit agreement is entered into under pre-existing arrangements between a lender and a supplier if it is entered into in accordance with, or in connection with, arrangements previously made between the lender (or the lender's associate) and the supplier (or the supplier's associate) unless the arrangements are:

      1. (a) for the making, in circumstances specified in the credit agreement, of payments to the supplier by the lender ("L") and L indicates that L is willing to make, in such circumstances, payments of the kind to suppliers generally, or
      1. (b) for the electronic transfer of funds from a current account held with an authorised person with permission to accept deposits,

    but if a lender is an associate of the supplier's, the credit agreement is to be treated as entered into under pre-existing arrangements between the lender and the supplier unless the lender can show that this is not the case.