Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes I902 Sch. 12 para. 8 in force at 29.8.2023, see s. 86(2)(e) I903 Sch. 12 para. 9 in force at 29.8.2023, see s. 86(2)(e) I904 Sch. 12 para. 10 in force at 29.8.2023, see s. 86(2)(e) I905 Sch. 12 para. 11 in force at 29.8.2023, see s. 86(2)(e) Financial Services and Markets Act 2000 (Disclosure of Confidential Information) 12 In Part 1 of Schedule 1 to the Financial Services and Markets Act 2000 (Disclosure of Confidential Information) Regulations 2001 ( S.I. 2001/2188 ) (disclosure of confidential information whether or not subject to retained EU law restrictions), at “A person appointed under section 377G of the Act to act as the manager of a That person’s functions in relation to the I906 Sch. 12 para. 12 in force at 29.8.2023, see s. 86(2)(e) 1 (1) Part 24 of FSMA 2000 (insolvency) is amended as follows. (2) After section 377J (further provision about write-down orders), inserted by Part 1 of Schedule 12 to this Act, insert— “377K Insurers in financial enforcement of contracts Schedule 19C makes provision about the enforcement of certain contracts to which an insurer is a party while the insurer is in financial difficulties (within the meaning given by the Schedule).” (3) After Schedule 19B (further provision about write-down orders), inserted by Part 3 of Schedule 12 to this Act, insert—

Financial Services and Markets Act 2023 (c. 29) SCHEDULE 19C – Insurers in financial enforcement of contracts Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes 1 This Schedule applies in relation to an insurer while the insurer is in 2 (1) An insurer is in “financial difficulties” for the purposes of this Schedule (a) Part 1 of Schedule 19B (write-down restrictions on enforcement) has effect in relation to the insurer (see paragraph 1(1) and (2) of that Schedule); (b) the insurer is in administration, within the meaning of Schedule B1 to the 1986 Act or Schedule B1 to the 1989 Order, or (c) a petition for the winding up of the insurer has been presented and has not been withdrawn or determined. (2) For the purposes of sub-paragraph (1)(b), an insurer is awaiting administration while an application for an administration order in respect of the insurer has been made to the court and— (a) the application has not yet been granted or dismissed, or (b) the application has been granted but the administration order has (3) For the purposes of this Schedule, an insurer “enters into financial (a) in a case to which sub-paragraph (1)(a) applies, on the date on which Part 1 of Schedule 19B first has effect in relation to the (b) in a case to which sub-paragraph (1)(b) applies, on the date on which the application for the administration order is made to the (c) in a case to which sub-paragraph (1)(c) applies, on the date on which the winding-up petition is presented. 392 Financial Services and Markets Act 2023 (c. 29) SCHEDULE 13 – Insurers in financial enforcement of contracts Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes Restriction on policyholder surrender rights 3 (1) Where this Schedule applies in relation to an insurer, the total value of a policyholder’s rights under a relevant contract of insurance which the policyholder may surrender in a relevant period must not exceed the surrender limit for that period. “relevant contract of insurance” means a contract of long- term insurance which is not a contract in respect of which the (a) the benefits under the contract are payable only on death or in respect of incapacity due to injury, sickness or infirmity; (b) the contract has no surrender value, or the consideration consists of a single premium and the surrender value does (c) the contract makes no provision for its conversion or extension in a manner which would result in it ceasing to comply with either of the above conditions; (a) the period of 12 months beginning with the date on which the insurer entered into financial difficulties, and (b) each subsequent period of 12 months; “surrender limit”, in relation to a relevant contract of insurance and relevant period, is an amount equal to 5% of the total surrender value of the contract on the day on which the 4 (1) This paragraph applies where the value of a right under a relevant contract of insurance is wholly or partly determined by reference to (2) The reference in paragraph 3(1) to the surrender of rights by a policyholder includes the exercise by the policyholder of a contractual right to change the property by reference to which the value of a right is (wholly or partly) determined.
Consent to exceed surrender limit 5 (1) Paragraph 3(1) does not apply if, or to the extent that, consent for the surrender of an amount that would exceed the surrender limit for the relevant period has been given by— (b) a relevant office-holder, or

Financial Services and Markets Act 2023 (c. 29) SCHEDULE 13 – Insurers in financial enforcement of contracts Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (c) where there is no relevant office-holder, the insurer. (2) For these purposes, “relevant office-holder” means— (a) a provisional liquidator of the insurer; (b) an administrator of the insurer; (c) a person appointed to act as the manager of a write-down order that has effect in relation to the insurer. (3) The court, a relevant office-holder or the insurer (as the case may be) may give consent under sub-paragraph (1) only if satisfied that not doing so would cause the policyholder hardship. (4) Where a provisional liquidator of an insurer has been appointed, the manager of a write-down order that has effect in relation to the insurer must obtain the consent of the provisional liquidator before giving consent under sub-paragraph (1). (5) As soon as reasonably practicable after giving consent under sub- paragraph (1), a relevant office-holder or the insurer must notify the 6 (1) For the purposes of this Part of this Schedule, a contract to which an insurer is a party is a “relevant contract” if it is— (a) a contract for the supply of goods or services to the insurer, (c) a reinsurance contract under which contracts of insurance the insurer carries out as principal are reinsured. (2) “Financial contract” means— (a) a contract for the provision of financial services consisting of— (i) lending (including the factoring and financing of (iii) providing guarantees or commitments; (b) a securities contract, including— (i) a contract for the purchase, sale or loan of a security or (ii) an option on a security or group or index of securities; (iii) a repurchase or reverse repurchase transaction on any such security, group or index; (c) a commodities contract, including— (i) a contract for the purchase, sale or loan of a commodity or group or index of commodities for future delivery;

394 Financial Services and Markets Act 2023 (c. 29) SCHEDULE 13 – Insurers in financial enforcement of contracts Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (ii) an option on a commodity or group or index of (iii) a repurchase or reverse repurchase transaction on any such commodity, group or index; (d) a futures or forwards contract, including a contract (other than a commodities contract) for the purchase, sale or transfer of a commodity or property of any other description, service, right or interest for a specified price at a future date; (e) a swap agreement, including— (i) a swap or option relating to interest rates, spot or other foreign exchange agreements, currency, an equity index or equity, a debt index or debt, commodity indexes or commodities, weather, emissions or inflation; (ii) a total return, credit spread or credit swap; (iii) any agreement or transaction similar to an agreement that is referred to in sub-paragraph (i) or (ii) and is the subject of recurrent dealing in the swaps or derivatives (3) But a master agreement for any contract or agreement referred to in sub- paragraph (2) is not a relevant contract for the purposes of this Part of (4) For the purposes of sub-paragraph (2), “commodities” includes— (a) units recognised for compliance with the requirements of EU Directive 2003/87/EC establishing a scheme for greenhouse gas (b) allowances under paragraph 5 of Schedule 2 to the Climate Change Act 2008 relating to a trading scheme dealt with under Part 1 of that Schedule (schemes limiting activities relating to emissions of greenhouse gas), and (c) renewables obligation certificates issued— (i) by the Gas and Electricity Markets Authority under an order made under section 32B of the Electricity Act (ii) by the Northern Ireland Authority for Utility Regulation under the Energy (Northern Ireland) Order 2003 (S.I. 2003/419 (N.I. 6)) and pursuant to an order made under Articles 52 to 55F of that Order. Restriction on termination etc 7 (1) Where this Schedule applies in relation to an insurer, a provision of a relevant contract, entered into by the insurer before the insurer first enters into financial difficulties, ceases to have effect if, and to the extent (a) the contract would terminate, a supply would cease, or any other thing would occur, because the insurer is in financial difficulties,

Financial Services and Markets Act 2023 (c. 29) SCHEDULE 13 – Insurers in financial enforcement of contracts Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
(See end of Document for details) View outstanding changes (b) another party to the contract would be entitled to terminate the contract, cease a supply, or do any other thing, because the insurer is in financial difficulties. (a) under a provision of a relevant contract, another party to the contract is entitled to terminate the contract, cease a supply, or do any other thing because of an event occurring before the insurer was in financial difficulties, and (b) the entitlement arises before the insurer was in financial the entitlement may not be exercised while the insurer is in financial (3) A supplier of goods or services to an insurer must not— (a) make it a condition of a supply of goods or services, while the insurer is in financial difficulties, that any outstanding charges in respect of a supply made to the insurer before the insurer is in financial difficulties are paid, or (b) do anything which has that effect. Consent to terminate relevant contracts 8 (1) Sub-paragraph (2) applies where— (a) a provision of a relevant contract ceases to have effect under (b) an entitlement under a provision of a relevant contract is not exercisable under paragraph 7(2). (2) A party to the contract (other than the insurer) may terminate the contract, or do another thing in relation to the contract, if consent to terminate the contract or do that other thing (as the case may be) has (b) a relevant office holder, or (c) where there is no relevant office-holder, the insurer. (3) For these purposes, “relevant office-holder” means an administrator or provisional liquidator of the insurer (but does not include a person appointed to act as the manager of a write-down order that has effect in (4) The court, a relevant office-holder or the insurer (as the case may be) may give consent under sub-paragraph (2) only if satisfied that not doing so would cause hardship to any person. (5) As soon as reasonably practicable after giving consent under sub- paragraph (2), a relevant office-holder or the insurer must notify the

396 Financial Services and Markets Act 2023 (c. 29) SCHEDULE 13 – Insurers in financial enforcement of contracts Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes 9 (1) Nothing in this Schedule affects the operation of— (a) Part 7 of the Companies Act 1989 (financial markets and (b) the Financial Markets and Insolvency Regulations 1996 ( S.I. (c) the Financial Markets and Insolvency (Settlement Finality) Regulations 1999 (S.I. 1999/2979); (d) the Financial Collateral Arrangements (No.2) Regulations 2003 (2) Nothing in this Schedule affects any protected arrangements within the meaning of section 48P of the Banking Act 2009. Disapplication of this Schedule by the court 10 (1) The court may order that this Schedule, or a specified provision of this (a) does not apply (insofar as it would otherwise) in relation to one or more contracts to which the insurer is a party, or (b) applies with specified modifications in relation to one or more (2) An order under this paragraph— (a) must specify the contracts to which it applies; (b) may specify all of the contracts to which the insurer is a party (and to which one or more provisions of this Schedule would (3) For the purposes of an order under this paragraph— “contract” includes a contract of insurance; “specified” means specified or described in the order. (4) The court may make an order under this paragraph only if satisfied that one or more of the following grounds is made out— (a) not making the order would be likely to cause hardship to any person (other than the insurer); (b) where the insurer is in financial difficulties by virtue of paragraph 2(1)(a) (write-down order), making the order is reasonably likely to lead to a better outcome for the insurer’s policyholders and other creditors (taken as a whole) than not (c) where the insurer is in financial difficulties by virtue of paragraph 2(1)(b) (administration), making the order is reasonably likely to promote the purpose of administration. Financial Services and Markets Act 2023 (c. 29) SCHEDULE 13 – Insurers in financial enforcement of contracts Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (5) The “purpose of administration” means— (a) where the insurer is in, or is awaiting, administration under Part 2 of the 1986 Act (as modified, in relation to insurers, by the Financial Services and Markets Act 2000 (Administration Orders Relating to Insurers) Order 2010 ( S.I. 2010/3023)), an objective specified in paragraph 3 or 3A of Schedule B1 to the (b) where the insurer is in, or is awaiting, administration under Part 3 of the 1989 Order (as modified, in relation to insurers, by the Financial Services and Markets Act 2000 (Administration Orders Relating to Insurers) (Northern Ireland) Order 2007 (S.I.
2007/846)), an objective specified in paragraph 4 of Schedule 11 (1) An order under paragraph 10 may be made on the court’s own motion (a) where the insurer is in financial difficulties by virtue of paragraph 2(1)(a) (write-down order), a person mentioned in paragraph 1(4) of Schedule 19B; (b) where the insurer is in financial difficulties by virtue of paragraph 2(1)(b) (administration), a person mentioned in sub- (c) where the insurer is in financial difficulties by virtue of paragraph 2(1)(c) (winding up), a person entitled to petition for the winding up of the insurer; (d) a provisional liquidator of the insurer; (2) For the purposes of sub-paragraph (1)(b), the persons are— (a) where an administrator has been appointed, the administrator; (b) where the insurer is in, or is awaiting, administration under Part 2 of the 1986 Act, a person mentioned in paragraph 12(1) of (c) where the insurer is in, or is awaiting, administration under Part 3 of the 1989 Order, a person mentioned in paragraph 13(1) of (3) Before making an application for an order under paragraph 10— (a) a person other than a person mentioned in sub-paragraph (4) must obtain the consent of the PRA; (b) a person mentioned in sub-paragraph (4) must consult the PRA. (4) The persons mentioned in this sub-paragraph are— (b) an administrator of the insurer; (c) a provisional liquidator of the insurer;

398 Financial Services and Markets Act 2023 (c. 29) Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (d) a person appointed to act as the manager of the write-down order by virtue of which the insurer is in financial difficulties for the (5) Consent under sub-paragraph (3)(a)— (b) must be filed with the court with the relevant application. (6) The PRA must consult the FCA before giving or refusing consent under 12 The Treasury may by regulations amend this Schedule so as to— (a) vary or omit any of paragraphs (a), (b) and (c) of paragraph 2(1); “surrender limit” in paragraph 3(2); (c) amend paragraph 6 (meaning of “relevant contract”); (d) amend paragraph 9 (exclusions from the operation of this I907 Sch. 13 para. 1 in force at 29.8.2023, see s. 86(2)(e) 2 In section 429 of FSMA 2000 (Parliamentary control of statutory instruments), in subsection (2B), at the end insert— “(e) provision made under paragraph 12 of Schedule 19C.” I908 Sch. 13 para. 2 in force at 29.8.2023, see s. 86(2)(e) 1 The Credit Unions Act 1979 is amended as follows. Financial Services and Markets Act 2023 (c. 29) Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes I909 Sch. 14 para. 1 not in force at Royal Assent, see s. 86(3) I910 Sch. 14 para. 1 in force at 29.8.2023 by S.I. 2023/779, reg. 4(eee) Specified financial activities 2 (1) Section 1 (registration) is amended as follows. (2) After subsection (2) insert— “(2A) The objects of a credit union are— (a) each of the mandatory objects specified in subsection (3), or (b) each of those mandatory objects together with the optional object specified in subsection (3ZZA).” (3) In subsection (3), in the words before paragraph (a), before “objects” insert (4) After subsection (3) insert— “(3ZZA) The optional object of a credit union is to carry on one or more of the financial activities specified in section 1ZA(1) for the benefit of the members (5) In subsection (3ZA), for “subsection (3)” substitute “subsections (3) and (3ZZA)”. I911 Sch. 14 para. 2 not in force at Royal Assent, see s. 86(3) I912 Sch. 14 para. 2 in force at 29.8.2023 by S.I. 2023/779, reg. 4(eee) “1ZA Specified financial activities (1) The financial activities specified for the purposes of the optional object of a credit union (see section 1(3ZZA)) are— (a) entering into conditional sale agreements, as the seller; (b) entering into hire purchase agreements, as the person from whom goods are bailed or (in Scotland) hired; (c) insurance distribution activities. (2) The Treasury may by regulations specify requirements or restrictions in relation to the carrying on by a credit union of a financial activity specified 1ZB Power to specify further financial activities (1) The Treasury may by regulations— (a) amend section 1ZA so as to specify further financial activities for the purposes of the optional object of a credit union;

400 Financial Services and Markets Act 2023 (c. 29) Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
(See end of Document for details) View outstanding changes (b) make such amendments of this Act, or any other enactment, as appear to them to be appropriate in consequence of any provision (2) Amendments made by regulations under subsection (1) may, in particular, provide that a credit union may carry on a financial activity specified in the regulations if the credit union has the optional object specified in (3) Regulations under section 1ZA(2) made in relation to a financial activity specified in regulations under subsection (1) may, in particular, make provision about fees or other charges payable in respect of the activity or activities that are ancillary to the activity. (4) Before making regulations under this section, the Treasury must consult such persons as appear to them to be appropriate. (5) A statutory instrument containing (whether alone or with other provision) regulations under this section may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House I913 Sch. 14 para. 3 not in force at Royal Assent, see s. 86(3) I914 Sch. 14 para. 3 in force at 29.8.2023 by S.I. 2023/779, reg. 4(eee) 4 In section 2 (supplementary and transitional provisions as to registration), in (a) for “those” substitute “the mandatory objects”; (b) after “section 1(3) above” insert “(whether or not the society also has the optional object specified in section 1(3ZZA) above)”. I915 Sch. 14 para. 4 not in force at Royal Assent, see s. 86(3) I916 Sch. 14 para. 4 in force at 29.8.2023 by S.I. 2023/779, reg. 4(eee) I911 Sch. 14 para. 2 not in force at Royal Assent, see s. 86(3) I912 Sch. 14 para. 2 in force at 29.8.2023 by S.I. 2023/779, reg. 4(eee) I913 Sch. 14 para. 3 not in force at Royal Assent, see s. 86(3) I914 Sch. 14 para. 3 in force at 29.8.2023 by S.I. 2023/779, reg. 4(eee) I915 Sch. 14 para. 4 not in force at Royal Assent, see s. 86(3) I916 Sch. 14 para. 4 in force at 29.8.2023 by S.I. 2023/779, reg. 4(eee) 5 In section 7 (shares), in subsection (5)— (a) at the beginning insert “Subsection (5A) applies”;

Financial Services and Markets Act 2023 (c. 29) Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (b) the words from “made a loan” to “secured loan” become paragraph (a); (c) at the end of that paragraph insert “, or (b) entered into an agreement mentioned in section 11E(1) with a member, which is treated by virtue of section 11F(2) (d) the words from “the member” to the end become subsection (5A). I917 Sch. 14 para. 5 not in force at Royal Assent, see s. 86(3) I918 Sch. 14 para. 5 in force at 29.8.2023 by S.I. 2023/779, reg. 4(eee) 6 (1) Section 9A (power to charge for ancillary services) is amended as follows. (2) In subsection (2), in the words before paragraph (a), for “the activity of accepting a deposit or making a loan” substitute “an activity mentioned in subsection (3)”. (3) After subsection (2) insert— “(3) The activities mentioned in this subsection are— (c) entering into a conditional sale agreement, as the seller; (d) entering into a hire purchase agreement, as the person from whom goods are bailed or (in Scotland) hired.” I919 Sch. 14 para. 6 not in force at Royal Assent, see s. 86(3) I920 Sch. 14 para. 6 in force at 29.8.2023 by S.I. 2023/779, reg. 4(eee) 7 (1) Section 11 (loans) is amended as follows. (b) another credit union (whether or not a member).” (3) After subsection (1) insert— “(1ZA) Where a loan is made under subsection (1)(b) to a credit union that is not a member of the lending credit union, the maximum period within which the loan must be repaid is six months.” (4) After subsection (7) insert— “(8) An order under subsection (5) may make different provision in relation to—

402 Financial Services and Markets Act 2023 (c. 29) Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (b) loans made to a credit union that is not a member of the lending I921 Sch. 14 para. 7 not in force at Royal Assent, see s. 86(3) I922 Sch. 14 para. 7 in force at 29.8.2023 by S.I. 2023/779, reg.
4(eee) Conditional sale and hire purchase agreements 8 Before section 12 (power to hold land for limited purposes) insert— “11E Conditional sale and hire purchase agreements (1) If the objects of a credit union include the optional object specified in section 1(3ZZA) it may (subject to such terms, including as to security, as (a) enter into a conditional sale agreement, as the seller, with a member (b) enter into a hire purchase agreement, as the person from whom goods are bailed or (in Scotland) hired, with a member of the credit (2) A credit union may only enter into an agreement mentioned in subsection (1) (a) the credit union’s rules provide that it may do so, and (b) entering into the agreement would not result in the aggregate of the outstanding balances under all such agreements made by the credit union with corporate members exceeding 10% of the aggregate of the outstanding balances under all such agreements made by the credit union with members, or such higher percentage as may be specified in regulations made by the Treasury. (3) Subsection (4) applies where— (a) an agreement mentioned in subsection (1) is entered into by a credit (b) the agreement is not a secured agreement within the meaning of (4) The terms of the agreement must include provision as to whether, for the duration of the agreement, the member is permitted to withdraw shares where the member’s paid-up shareholding in the credit union is, or following the withdrawal would be, less than the member’s total liability (including contingent liability) to the credit union. (5) Any interest charged under an agreement mentioned in subsection (1)— (a) must not exceed the rate specified in subsection (7), and (b) must be inclusive of all administrative and other expenses incurred in connection with the making of the agreement. Financial Services and Markets Act 2023 (c. 29) Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (6) The rate specified in this subsection is 3% per month on the sum outstanding (7) The Treasury may by regulations amend subsection (7) to substitute a different rate for the rate that is for the time being specified. 11F Agreements to be treated as secured (1) This section applies where— (a) a credit union enters into an agreement mentioned in section 11E(1) with a member of the credit union, and (b) at the time the agreement is entered into, the member’s paid-up shareholding in the credit union is equal to or greater than the member’s total liability (including contingent liability) to the credit (2) On the application of the member to the credit union, the agreement is to be treated for the purposes of this Act as a secured agreement.” I923 Sch. 14 para. 8 not in force at Royal Assent, see s. 86(3) I924 Sch. 14 para. 8 in force at 29.8.2023 by S.I. 2023/779, reg. 4(eee) Insurance distribution activities 9 After section 11F (inserted by paragraph 8) insert— “11G Insurance distribution activities If the objects of a credit union include the optional object specified in section 1(3ZZA), it may (subject to such terms as the rules of the credit union (a) carry on an insurance distribution activity which constitutes or involves the provision of a service to a member, and (b) charge such fee as it considers appropriate for providing the I925 Sch. 14 para. 9 not in force at Royal Assent, see s. 86(3) I926 Sch. 14 para. 9 in force at 29.8.2023 by S.I. 2023/779, reg. 4(eee) Minor and consequential amendments 10 In section 12 (power to hold land for limited purposes), in subsection (3)— (a) the words from “making loans” to the end become paragraph (a); (b) at the end of that paragraph insert “, or

404 Financial Services and Markets Act 2023 (c. 29) Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (b) entering into agreements mentioned in section 11E(1) with members on the security of an interest in land and of I927 Sch. 14 para. 10 not in force at Royal Assent, see s. 86(3) I928 Sch. 14 para. 10 in force at 29.8.2023 by S.I. 2023/779, reg. 4(eee) 11 In section 23A (power to make provision corresponding to provision applying to building societies), omit subsection (5). I929 Sch. 14 para. 11 not in force at Royal Assent, see s. 86(3) I930 Sch. 14 para. 11 in force at 29.8.2023 by S.I. 2023/779, reg. 4(eee) 12 In section 29 (orders and regulations), in subsection (2) for “section” substitute I931 Sch. 14 para. 12 not in force at Royal Assent, see s. 86(3) I932 Sch. 14 para. 12 in force at 29.8.2023 by S.I. 2023/779, reg. 4(eee) 13 (1) Section 31 (interpretation, etc.) is amended as follows.
(2) In subsection (1), at the appropriate places insert— ““conditional sale agreement” means an agreement for the sale of goods (a) the purchase price or part of it is payable by instalments, and (b) the property in the goods is to remain with the seller (notwithstanding that the buyer is to be in possession of the goods) until such conditions as to the payment of instalments or otherwise as may be specified in the agreement are fulfilled;”; (a) an enactment contained in subordinate legislation within the meaning of the Interpretation Act 1978; (b) an enactment contained in, or in an instrument made under, an Act of (c) an enactment contained in, or in an instrument made under, Northern Ireland legislation within the meaning of the Interpretation Act 1978; (d) an enactment contained in, or in an instrument made under, a Measure or Act of the National Assembly for Wales;”; ““hire purchase agreement” means an agreement— (a) which is not a conditional sale agreement, (b) under which goods are bailed or (in Scotland) hired to a person (“P”) in return for periodical payments by P, and (c) the property in the goods will pass to P if the terms of the agreement are complied with and one or more of the following occurs—

Financial Services and Markets Act 2023 (c. 29) Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes (i) the exercise by P of an option to purchase the goods; (ii) the doing by any party to the agreement of any other act (iii) the happening of any event specified in the agreement;”. (3) After subsection (1A) insert— “(1B) In this Act, “insurance distribution activity” means any of the following (a) dealing in rights under a contract of insurance as agent; (b) arranging deals in rights under a contract of insurance; (c) assisting in the administration and performance of a contract of (d) advising on buying or selling rights under a contract of insurance; (e) agreeing to do any of the activities specified in paragraphs (a) to (d). (1C) Subsection (1B) must be read with— (a) section 22 of the 2000 Act; (b) any relevant order under that section; and (a) in the words before paragraph (a), omit “(which are replaced by, or are inconsistent with, provisions of the 2000 Act)”; I933 Sch. 14 para. 13 not in force at Royal Assent, see s. 86(3) I934 Sch. 14 para. 13 in force at 29.8.2023 by S.I. 2023/779, reg. 4(eee) 14 In Schedule 1 (matters to be provided for in rules of credit union), in paragraph 9, after “members”, in both places, insert “or other credit unions”. I935 Sch. 14 para. 14 not in force at Royal Assent, see s. 86(3) I936 Sch. 14 para. 14 in force at 29.8.2023 by S.I. 2023/779, reg. 4(eee) I927 Sch. 14 para. 10 not in force at Royal Assent, see s. 86(3) I928 Sch. 14 para. 10 in force at 29.8.2023 by S.I. 2023/779, reg. 4(eee) I929 Sch. 14 para. 11 not in force at Royal Assent, see s. 86(3) I930 Sch. 14 para. 11 in force at 29.8.2023 by S.I. 2023/779, reg. 4(eee) I931 Sch. 14 para. 12 not in force at Royal Assent, see s. 86(3) I932 Sch. 14 para. 12 in force at 29.8.2023 by S.I. 2023/779, reg. 4(eee) I933 Sch. 14 para. 13 not in force at Royal Assent, see s. 86(3) I934 Sch. 14 para. 13 in force at 29.8.2023 by S.I. 2023/779, reg. 4(eee)

406 Financial Services and Markets Act 2023 (c. 29) Document 2025-04-01 This version of this Act contains provisions that are prospective. Changes to Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes I935 Sch. 14 para. 14 not in force at Royal Assent, see s. 86(3) I936 Sch. 14 para. 14 in force at 29.8.2023 by S.I. 2023/779, reg. 4(eee) 15 The amendments made by paragraphs 7(3) and 14 do not apply in relation to a loan made by a credit union to another credit union before the earliest date on which either of those amendments comes into force (whether or not any amount of the loan remains outstanding on or after that date). I937 Sch. 14 para. 15 not in force at Royal Assent, see s. 86(3) I938 Sch. 14 para. 15 in force at 29.8.2023 by S.I. 2023/779, reg. 4(eee) 16 The amendment made by paragraph 13(4)(b) does not apply in relation to a year of account of a credit union beginning before the date on which that amendment comes in force (and accordingly, sections 77 and 78 of the Co-operative and Community Benefit Societies Act 2014 do not apply in relation to any such year of account). I939 Sch. 14 para. 16 not in force at Royal Assent, see s. 86(3) I940 Sch. 14 para. 16 in force at 29.8.2023 by S.I. 2023/779, reg. 4(eee) I937 Sch. 14 para. 15 not in force at Royal Assent, see s. 86(3) I938 Sch. 14 para. 15 in force at 29.8.2023 by S.I. 2023/779, reg. 4(eee) I939 Sch. 14 para. 16 not in force at Royal Assent, see s. 86(3) I940 Sch. 14 para. 16 in force at 29.8.2023 by S.I. 2023/779, reg. 4(eee)

Financial Services and Markets Act 2023 (c. 29) Document 2025-04-01 This version of this Act contains provisions that are prospective.
Financial Services and Markets Act 2023 is up to date with all changes known to be in force on or before 01 April 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Changes and effects yet to be applied to : – s. 2(1) coming into force by S.I. 2024/1071 reg. 7(a) – s. 2(1) coming into force by S.I. 2024/1071 reg. 8(a) – s. 2(1) coming into force by S.I. 2024/1071 reg. 9(a) – Sch. 2 para. 1 coming into force by S.I. 2024/1071 reg. 7(b)(i) – Sch. 2 para. 18 coming into force by S.I. 2024/1071 reg. 7(b)(ii) – Sch. 2 para. 1 coming into force by S.I. 2024/1071 reg. 8(b)(i) – Sch. 2 para. 8 coming into force by S.I. 2024/1071 reg. 8(b)(ii) – Sch. 2 para. 12 coming into force by S.I. 2024/1071 reg. 8(b)(iii) – Sch. 2 para. 44 coming into force by S.I. 2024/1071 reg. 9(b)(i) – Sch. 2 para. 45 coming into force by S.I. 2024/1071 reg. 9(b)(ii) – Sch. 2 para. 46 coming into force by S.I. 2024/1071 reg. 9(b)(iii) – Sch. 2 para. 49 coming into force by S.I. 2024/1071 reg. 9(b)(iv) – Sch. 2 para. 50 coming into force by S.I. 2024/1071 reg. 9(b)(v)