{
  "url": "https://openlegislation.uk/financial-services-and-markets-act-2000-excluded-activities-and-prohibitions-order-2014/article-15",
  "json_url": "https://openlegislation.uk/financial-services-and-markets-act-2000-excluded-activities-and-prohibitions-order-2014/article-15.json",
  "legislation": "uksi/2014/2080",
  "legislation_title": "The Financial Services and Markets Act 2000 (Excluded Activities and Prohibitions) Order 2014",
  "legislation_url": "https://openlegislation.uk/financial-services-and-markets-act-2000-excluded-activities-and-prohibitions-order-2014",
  "path": "article/15",
  "kind": "article",
  "number": "15",
  "heading": "Financial institutions exposures: trade finance",
  "text": "(1) A ring-fenced body may incur a financial institution exposure provided that both the following conditions are satisfied—\n(a) the purpose of the transaction giving rise to the exposure is—\n(i) to provide finance or make a payment in connection with the supply of goods or services by or to a person or an undertaking which is not a relevant financial institution; or\n(ii) to guarantee or otherwise provide an indemnity or security for the obligations of a customer of the ring-fenced body or a third party in connection with the supply of goods or services by or to a person or an undertaking which is not a relevant financial institution;\n(b) the ring-fenced body enters into a relevant agreement, which specifies, or together with other connected agreements specifies—\n(i) the supplies of goods or services to which the transaction relates, and\n(ii) the maximum payments which the ring-fenced body may be required to make under the relevant agreement and any connected agreements.\n(1A) For the purpose of paragraph (1)(b)—\n(a) an agreement is a “relevant agreement” if—\n(i) it gives effect to the transaction described in paragraph (1)(a) (“the finance transaction”),\n(ii) it is made under a master agreement which gives effect to the finance transaction, or\n(iii) it is one of a number of connected agreements entered into in relation to the finance transaction;\n(b) an agreement is a “connected agreement” if it is one of a number of agreements which—\n(i) are entered into by a party to the finance transaction, or to the supply of goods or services to which the finance transaction relates, with one or more other such parties; and\n(ii) collectively give effect to the finance transaction.\n(2) For the purpose of paragraph (1)(b)(ii), the maximum payments payable under the agreement may be expressed—\n(a) as a defined sum, or\n(b) as a multiple of an average price of a commodity, where the average price is determined by reference to prices quoted on a specified index of prices for that commodity over a specified period, and for these purposes “specified” means specified in the agreement.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Words in art. 15(1)(b) substituted (4.2.2025) by The Financial Services and Markets Act 2000 (Ring-fenced Bodies, Core Activities, Excluded Activities and Prohibitions) (Amendment) Order 2025 (S.I. 2025/30), arts. 1(2), 10(3)(a)(i)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Words in art. 15(1)(b)(ii) substituted (4.2.2025) by The Financial Services and Markets Act 2000 (Ring-fenced Bodies, Core Activities, Excluded Activities and Prohibitions) (Amendment) Order 2025 (S.I. 2025/30), arts. 1(2), 10(3)(a)(ii)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Art. 15(1A) inserted (4.2.2025) by The Financial Services and Markets Act 2000 (Ring-fenced Bodies, Core Activities, Excluded Activities and Prohibitions) (Amendment) Order 2025 (S.I. 2025/30), arts. 1(2), 10(3)(b)"
    },
    {
      "type": "I",
      "label": "I1",
      "text": "Art. 15 in force at 1.1.2019, see art. 1(3)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/2014/2080/article/15",
    "retrieved_at": "2026-10-29T00:07:08.968961+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}