2001 No. 544

FINANCIAL SERVICES AND MARKETS

The Financial Services and Markets Act 2000

(Regulated Activities) Order 2001

Thomson Reuters (Legal) Limited.

UK Statutory Instruments Crown Copyright. Reproduced by permission of the Controller of Her Majesty's Stationery Office.

Made 26th February 2001

Laid before Parliament 27th February 2001

Coming into force in accordance with article 2

The Treasury, in exercise of the powers conferred on them by sections 22(1) and (5), 426 and 428(3)

of, and paragraph 25 of Schedule 2 to, the Financial Services and Markets Act 2000, hereby make

the following Order:

Extent

Preamble: United Kingdom 

PART I

GENERAL

Law In Force

1. Citation

This Order may be cited as the Financial Services and Markets Act 2000 (Regulated Activities)

Order 2001.

Commencement

Pt I art. 1: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI 2001/544

Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt I art. 1: United Kingdom 

SI 2001/544 Page 1
Law In Force

2.— Commencement

(1) Except as provided by paragraph (2), this Order comes into force on the day on which section

19 of the Act comes into force.

(2) This Order comes into force—

(a) for the purposes of articles 59, 60 and 87 (funeral plan contracts) on 1st January 2002;

and

(b) for the purposes of articles 61 to 63, 88, 90 and 91 (regulated mortgage contracts) [ on

such a day as the Treasury may specify ]

1

 .

[ (3) Any day specified under paragraph (2)(b) must be caused to be notified in the London,

Edinburgh and Belfast Gazettes published not later than one week before that day. ]

2

Notes

1 Words substituted by Financial Services and Markets Act 2000 (Commencement of Mortgage Regulation)

(Amendment) Order 2002/1777 art.2(2) (August 30, 2002)

2 Added by Financial Services and Markets Act 2000 (Commencement of Mortgage Regulation) (Amendment)

Order 2002/1777 art.2(3) (August 30, 2002)

Commencement

Pt I art. 2(1)-(2)(b): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt I art. 2(1)-(3): United Kingdom 

P Partially In Force

3.— Interpretation

(1) In this Order—

“the Act” means the Financial Services and Markets Act 2000;

[ “agreement provider”has the meaning given by article 63J(3);

“agreement seller”has the meaning given by article 63J(3); ]

1

[ “AIFM”has the meaning given by regulation 4 of the Alternative Investment Fund Managers

Regulations 2013; ]

2

[ “aircraft operator”has the same meaning as in the emission allowance trading directive; ]

3

“annuities on human life”does not include superannuation allowances and annuities payable

out of any fund applicable solely to the relief and maintenance of persons engaged, or who

have been engaged, in any particular profession, trade or employment, or of the dependants

of such persons;

[ “assignment”, in relation to a credit agreement, has the meaning given by article 60L; ]

4

[ “auction platform” means a platform on which auctions of greenhouse gas emissions

allowances are held in accordance with the emission allowance auctioning regulation; ]

3

[ “borrower”—

SI 2001/544 Page 2
(a) in relation to a credit agreement other than a regulated mortgage contract or an

article 36H agreement (within the meaning given by article 36H), has the meaning

given by article 60L;

(b) in relation to an article 36H agreement (within the meaning given by that article)

other than a regulated mortgage contract, is to be read with article 36H(4);

]

4

“buying”includes acquiring for valuable consideration;

“close relative” in relation to a person means—

(a) his spouse [ or civil partner ]

5

 ;

(b) his children and step children, his parents and step-parents, his brothers and

sisters and his step-brothers and step-sisters; and

(c) the spouse [ or civil partner ]

5

 of any person within sub-paragraph (b);

[ “the Commission Regulation” means Commission Regulation 1287/2006 of 10 August

2006; ]

6

[ “consumer hire agreement”has the meaning given by article 60N; ]

4

“contract of general insurance” means any contract falling within Part I of Schedule 1;

“contract of insurance” means any contract of insurance which is a contract of long-term

insurance or a contract of general insurance, and includes—

(a) fidelity bonds, performance bonds, administration bonds, bail bonds, customs

bonds or similar contracts of guarantee, where these are—

(i) effected or carried out by a person not carrying on a banking business;

(ii) not effected merely incidentally to some other business carried on by

the person effecting them; and

(iii) effected in return for the payment of one or more premiums;

(b) tontines;

(c) capital redemption contracts or pension fund management contracts, where these

are effected or carried out by a person who—

(i) does not carry on a banking business; and

(ii) otherwise carries on a regulated activity of the kind specified by article

10(1) or (2);

(d) contracts to pay annuities on human life;

(e) contracts of a kind referred to in article 1(2)(e) of the first life insurance directive

(collective insurance etc.); and

(f) contracts of a kind referred to in article 1(3) of the first life insurance directive

(social insurance);

but does not include a funeral plan contract (or a contract which would be a funeral plan

contract but for the exclusion in article 60);

“contract of long-term insurance” means any contract falling within Part II of Schedule 1;

“contractually based investment” means—

(a) rights under a qualifying contract of insurance;

(b) any investment of the kind specified by any of articles 83, 84, 85 and 87; or

(c) any investment of the kind specified by article 89 so far as relevant to an

investment falling within (a) or (b);

[ “credit agreement”has the meaning given by article 60B; ]

4

[ “credit institution” means—

(a) a credit institution authorised under the banking consolidation directive [ (as

last amended by Directive 2009/111/EC)]

7

 other than an institution to which Article

SI 2001/544 Page 3
2.1 of the markets in financial instruments directive (the text of which is set out in

Schedule 3) applies, or

(b) an institution which would satisfy the requirements for authorisation as a credit

institution under that directive (other than an institution to which Article 2.1 of the

markets in financial instruments directive would apply) if it had its registered office

(or if it does not have a registered office, its head office) in an EEA State;

]

6

“deposit”has the meaning given by article 5 [ except where the definition given in article

60L applies]

8

;

[ “EEA AIFM”has the meaning given by regulation 2(1) of the Alternative Investment Fund

Managers Regulations 2013; ]

2

[ “electronic money”has the meaning given by regulation 2(1) of the Electronic Money

Regulations 2011; ]

9

[ “emission allowance auctioning regulation” means Commission Regulation (EU) No

1031/2010 of 12 November 2010 on the timing, administration and other aspects of

auctioning of greenhouse gas emission allowances pursuant to the emission allowance

trading directive 11 ;

“emission allowance trading directive” means Directive 2003/87/EC of the European

Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse

gas emission allowances trading within the Community12 ; ]

10

[ “financial instrument” means any instrument listed in Section C of Annex I to the markets

in financial instruments directive (the text of which is set out in Part 1 of Schedule 2) read

with Chapter VI of the Commission Regulation (the text of which is set out in Part 2 of

Schedule 2); ]

6

[ “full-scope UK AIFM”has the meaning given by regulation 2(1) of the Alternative

Investment Fund Managers Regulations 2013; ]

2

“funeral plan contract”has the meaning given by article 59;

[ “greenhouse gas emissions allowances” mean “allowances” as defined in Article 3(a) of

the emission allowance trading directive; ]

3

[ “hire-purchase agreement”has the meaning given by article 60L;

“hirer”is to be read with the definition of “consumer hire agreement” in article 60N; ]

13

[ “home Member State”, in relation to an investment firm, has the meaning given by Article

4.1.20 of the markets in financial instruments directive, and in relation to a credit institution,

has the meaning given by Article 4.7 of the banking consolidation directive; ]

6

[ “home purchase provider”has the meaning given by article 63F(3);

“home purchaser”has the meaning given by article 63F(3); ]

14

“instrument”includes any record whether or not in the form of a document;

[ “investment firm” means a person whose regular occupation or business is the provision

or performance of investment services and activities on a professional basis but does not

include—

(a) a person to whom the markets in financial instruments directive does not apply

by virtue of Article 2 of that directive (the text of which is set out in Schedule 3);

(b) a person whose home Member State is an EEA State other than the United

Kingdom and to whom, by reason of the fact that the State has given effect to Article

3 of that directive, that directive does not apply by virtue of that Article;

(c) a person who does not have a home Member State and to whom (if he had his

registered office in an EEA State, or, being a person other than a body corporate or

SI 2001/544 Page 4
a body corporate not having a registered office, if he had his head office in an EEA

State) the markets in financial instruments directive would not apply by virtue of

Article 2 of that directive;

[ “investment services and activities” means—

(a) any service provided to third parties listed in Section A of Annex 1 to the markets

in financial instruments directive (the text of which is set out in Part 3 of Schedule

2) read with Article 52 of Commission Directive 2006/73/EC of 10 August 200617

(the text of which is set out in Part 4 of Schedule 2), including the reception,

transmission or submission of a bid by an investment firm or credit institution on

any auction platform, in relation to any financial instrument; or

(b) any activity listed in Section A of Annex 1 to that directive, in relation to any

financial instrument;

]

16

]

15

“joint enterprise” means an enterprise into which two or more persons (“the participators”)

enter for commercial purposes related to a business or businesses (other than the business

of engaging in a regulated activity) carried on by them; and, where a participator is a member

of a group, each other member of the group is also to be regarded as a participator in the

enterprise;

[ “lender”—

(c) in relation to a credit agreement other than a regulated mortgage contract or an

article 36H agreement (within the meaning given by article 36H), has the meaning

given by article 60L;

(d) in relation to an article 36H agreement (within the meaning given by that article)

other than a regulated mortgage contract, is to be read with article 36H(4);

]

4

“local authority” means—

(a) in England and Wales, a local authority within the meaning of the Local

Government Act 197218 , the Greater London Authority, the Common Council of

the City of London or the Council of the Isles of Scilly;

(b) in Scotland, a local authority within the meaning of the Local Government

(Scotland) Act 197319 ;

(c) in Northern Ireland, a district council within the meaning of the Local

Government Act (Northern Ireland) 1972;

[ “management company”has the meaning given by Article 2.1(b) of the UCITS directive;]

20

“managing agent” means a person who is permitted by the Council of Lloyd's in the conduct

of his business as an underwriting agent to perform for a member of Lloyd's one or more

of the following functions—

(a) underwriting contracts of insurance at Lloyd's;

(b) reinsuring such contracts in whole or in part;

(c) paying claims on such contracts;

[ “market operator” means a market operator within the meaning of Article 4.1.13 of the

markets in financial instruments directive, or a person who would be a market operator if

he had his registered office, or if he does not have a registered office his head office, in an

EEA State, but does not include—

(a) a person to whom the markets in financial instruments directive does not apply

by virtue of Article 2 of that directive (the text of which is set out in Schedule 3);

SI 2001/544 Page 5
(b) a person who does not have a home Member State to whom (if he had his

registered office, or if he does not have a registered office his head office, in an EEA

State) the markets in financial instruments directive would not apply by virtue of

Article 2 of that directive;

“multilateral trading facility” means—

(a) a multilateral trading facility (within the meaning of Article 4.1.15 of the markets

in financial instruments directive) operated by an investment firm, a credit institution

or a market operator, or

(b) a facility which—

(i) is operated by an investment firm, a credit institution or market operator

which does not have a home Member State, and

(ii) if its operator had a home Member State, would be a multilateral trading

facility within the meaning of Article 4.1.15 of the markets in financial

instruments directive;

]

15

[ “occupational pension scheme”has the meaning given by section 1 of the Pension Schemes

Act 199322 but with paragraph (b) of the definition omitted; ]

21

[ “operator”has the same meaning as in the emission allowance trading directive; ]

3

“overseas person” means a person who—

(a) carries on activities of the kind specified by any of [ articles 14, 21, 25, 25A,

25B, 25C, 25D, 25E, 37, 39A, 40, 45, 51ZA, 51ZB, 51ZC, 51ZD, 51ZE,, 52,53,

53A, 53B, 53C, 53D61, 63B, 63F and 63J]

23 or, so far as relevant to any of those

articles, article 64 (or activities of a kind which would be so specified but for the

exclusion in article 72); but

(b) does not carry on any such activities, or offer to do so, from a permanent place

of business maintained by him in the United Kingdom;

[ “owner”, in relation to a hire purchase agreement, has the meaning given by article 60N; ]

4

“pension fund management contract” means a contract to manage the investments of pension

funds (other than funds solely for the benefit of the officers or employees of the person

effecting or carrying out the contract and their dependants or, in the case of a company,

partly for the benefit of officers and employees and their dependants of its subsidiary or

holding company or a subsidiary of its holding company); and for the purposes of this

definition, “subsidiary” and “holding company” are to be construed in accordance with

[section 1159 of the Companies Act 2006 ]

24 ;

[ “personal pension scheme” means a scheme or arrangement which is not an occupational

pension scheme or a stakeholder pension scheme and which is comprised in one or more

instruments or agreements, having or capable of having effect so as to provide benefits to

or in respect of people—

(a) on retirement,

(b) on having reached a particular age, or

(c) on termination of service in an employment;

]

25

[ “plan provider”has the meaning given by paragraph (3) of article 63B, read with paragraphs

(7) and (8) of that article; ]

26

“property”includes currency of the United Kingdom or any other country or territory;

“qualifying contract of insurance” means a contract of long-term insurance which is not—

(a) a reinsurance contract; nor

SI 2001/544 Page 6
(b) a contract in respect of which the following conditions are met—

(i) the benefits under the contract are payable only on death or in respect of

incapacity due to injury, sickness or infirmity;

(ii) [...]27

(iii) the contract has no surrender value, or the consideration consists of a

single premium and the surrender value does not exceed that premium; and

(iv) the contract makes no provision for its conversion or extension in a

manner which would result in it ceasing to comply with any of the above

conditions;

[ “reception”, “transmission” and “submission”have the same meaning in relation to a bid

at an auction for an investment of the kind specified in article 82A as in the emission

allowance auctioning regulation; ]

28

[ “regulated consumer hire agreement”has the meaning given by article 60N;

“regulated credit agreement”has the meaning given by article 60B; ]

13

[ “regulated home purchase plan”has the meaning given by article 63F(3);

“regulated home reversion plan”has the meaning given by article 63B(3); ]

29

“regulated mortgage contract”has the meaning given by article 61(3);

[ “regulated sale and rent back agreement”has the meaning given by article 63J(3); ]

30

[ “relevant investment” means–

(a) rights under a qualifying contract of insurance;

(b) rights under any other contract of insurance;

(c) any investment of the kind specified by any of articles 83, 84, 85 and 87; or

(d) any investment of the kind specified by article 89 so far as relevant to an

investment falling within (a) or (c);

]

31

[ “relevant recipient of credit”has the meaning given by article 60L;

“restricted-use credit agreement”has the meaning given in article 60L; ]

13

[ “reversion seller”has the meaning given by article 63B(3); ]

32

“security” means (except where the context otherwise requires) any investment of the kind

specified by any of articles 76 to 82 or, so far as relevant to any such investment, article

89;

“selling”, in relation to any investment, includes disposing of the investment for valuable

consideration, and for these purposes “disposing” includes—

(a) in the case of an investment consisting of rights under a contract—

(i) surrendering, assigning or converting those rights; or

(ii) assuming the corresponding liabilities under the contract;

(b) in the case of an investment consisting of rights under other arrangements,

assuming the corresponding liabilities under the arrangements; and

(c) in the case of any other investment, issuing or creating the investment or granting

the rights or interests of which it consists;

[ “small registered UK AIFM”has the meaning given by regulation 2(1) of the Alternative

Investment Fund Managers Regulations 2013; ]

2

[ “stakeholder pension scheme”has the meaning given by section 1 of the Welfare Reform

and Pensions Act 1999

in relation to Great Britain and has the meaning given by article 3 of the Welfare

Reform and Pensions (Northern Ireland) Order 199934 in relation to Northern Ireland

SI 2001/544 Page 7
; ]

33

“syndicate” means one or more persons, to whom a particular syndicate number has been

assigned by or under the authority of the Council of Lloyd's, carrying out or effecting

contracts of insurance written at Lloyd's;

[ “trade repository” means a person registered with ESMA under Article 55 of Regulation

(EU) 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC

derivatives, central counterparties and trade repositories or a person recognised by ESMA

under Article 77 of that Regulation; ]

35

[ “UCITS”has the meaning given by Article 1.2 of the UCITS directive;

“UK AIF”has the meaning given by regulation 2(1) of the Alternative Investment Fund

Managers Regulations 2013; ]

36

“voting shares”, in relation to a body corporate, means shares carrying voting rights

attributable to share capital which are exercisable in all circumstances at any general meeting

of that body corporate.

(2) For the purposes of this Order, a transaction is entered into through a person if he enters into it

as agent or arranges, in a manner constituting the carrying on of an activity of the kind specified

by [ article 25(1), 25A(1), 25B(1), 25C(1) or 25E(1) ]

37 , for it to be entered into by another person

as agent or principal.

(3) For the purposes of this Order, a contract of insurance is to be treated as falling within Part II

of Schedule 1, notwithstanding the fact that it contains related and subsidiary provisions such that

it might also be regarded as falling within Part I of that Schedule, if its principal object is that of a

contract falling within Part II and it is effected or carried out by an authorised person who has

permission to effect or carry out contracts falling within paragraph I of Part II of Schedule 1.

Notes

1 Definitions inserted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order

2009/1342 Pt 2 art.3(1)(a) (July 1, 2009: insertion has effect subject to transitional provisions specified in SI

2009/1342 art.32)

2 Definition inserted by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(2)(b) (July

22, 2013: insertion has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

3 Definition inserted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order

2012/1906 Pt 2 art.2(2)(b) (July 20, 2012)

4 Definition inserted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order

2013/1881 Pt 2 art.3(1) (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

5 Words inserted by Civil Partnership Act 2004 (Amendments to Subordinate Legislation) Order 2005/2114 Sch.16(1)

para.1(2) (December 5, 2005)

6 Definition inserted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment No. 3) Order

2006/3384 Pt 2 art.3(b) (April 1, 2007: insertion has effect on April 1, 2007 for the purposes specified in SI

2006/3384 art.1(2)(a); November 1, 2007 otherwise)

7 Words inserted by Electronic Money Regulations 2011/99 Sch.4(2) para.12(a)(i) (April 30, 2011)

8 Words inserted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order

2013/1881 Pt 2 art.3(2) (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

9 Definition substituted by Electronic Money Regulations 2011/99 Sch.4(2) para.12(a)(ii) (April 30, 2011)

10 Definitions inserted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order

2012/1906 Pt 2 art.2(2)(b) (July 20, 2012)

11 OJ L 302, 18.11.2010, p.1.

12 OJ L 275, 25.10.2003, p.32.

SI 2001/544 Page 8
13 Definitions inserted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2)

Order 2013/1881 Pt 2 art.3(1) (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014

otherwise)

14 Definitions inserted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2)

Order 2006/2383 Pt 2 art.3(1)(a) (November 6, 2006 for the purposes of enabling applications as specified in SI

2006/2383 art.1(2)(a); April 6, 2007 otherwise)

15 Definitions inserted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment No. 3) Order

2006/3384 Pt 2 art.3(b) (April 1, 2007: insertion has effect on April 1, 2007 for the purposes specified in SI

2006/3384 art.1(2)(a); November 1, 2007 otherwise)

16 Definition substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order

2012/1906 Pt 2 art.2(2)(a) (July 20, 2012)

17 OJ L 241, 2.9.2006, p.26.

18 The definition of “local authority” in section 270 of the 1972 Act has been amended by Sch. 17 to the Local

Government Act 1985 (c. 51); and by section 1(5) of the Local Government (Wales) Act 1994 (c. 19).

19 The definition of “local authority” in section 235 of the 1973 Act was substituted by para. 92(66) of Sch. 13 to

the Local Government etc. (Scotland) Act 1994 (c. 39).

20 Definition substituted by Undertakings for Collective Investment in Transferable Securities Regulations 2011/1613

Sch.1 para.1(2) (July 1, 2011)

21 Definition substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order

2006/1969 art.2(2)(a) (October 1, 2006 for purposes specified in SI 2006/1969 art.1(2)(a); April 6, 2007 otherwise)

22 The definition of “occupational pension scheme” was inserted into section 1 of the Pensions Act 1993 (c. 48) by

the Pensions Act 2004 (c. 35)section 239(1) and (2).

23 Word substituted by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(2)(a) (July

22, 2013: substitution has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

24 Words substituted by Companies Act 2006 (Consequential Amendments and Transitional Provisions) Order

2011/1265 art.13(2) (May 12, 2011)

25 Definition inserted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order

2006/1969 art.2(2)(b) (October 1, 2006 for purposes specified in SI 2006/1969 art.1(2)(a); April 6, 2007 otherwise)

26 Definition inserted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order

2006/2383 Pt 2 art.3(1)(c) (November 6, 2006 for the purposes of enabling applications as specified in SI 2006/2383

art.1(2)(a); April 6, 2007 otherwise)

27 Revoked by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2007/1339 art.3

(June 6, 2007)

28 Definition(s) inserted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order

2012/1906 Pt 2 art.2(2)(b) (July 20, 2012)

29 Definitions inserted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2)

Order 2006/2383 Pt 2 art.3(1)(d) (November 6, 2006 for the purposes of enabling applications as specified in SI

2006/2383 art.1(2)(a); April 6, 2007 otherwise)

30 Definition inserted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order

2009/1342 Pt 2 art.3(1)(b) (July 1, 2009: insertion has effect subject to transitional provisions specified in SI

2009/1342 art.32)

31 Definition inserted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2)

Order 2003/1476 Pt 2 art.3(1)(b) (October 31, 2004 in relation to contracts of long-term care insurance; January

14, 2005 otherwise)

32 Definition inserted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order

2006/2383 Pt 2 art.3(1)(e) (November 6, 2006 for the purposes of enabling applications as specified in SI 2006/2383

art.1(2)(a); April 6, 2007 otherwise)

33 Words inserted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2005/593

art.2(2)(b) (April 6, 2005)

34 S.I. 1999/3147 (N.I. 11); a relevant amending instrument is S.I. 2005/255 (N.I. 1).

SI 2001/544 Page 9
35 Definition inserted by Financial Services and Markets Act 2000 (Over the Counter Derivatives, Central

Counterparties and Trade Repositories) Regulations 2013/504 Pt 8 reg.33(2) (April 1, 2013: insertion has effect

subject to transitional and savings provisions specified in SI 2013/504 Pt 9)

36 Definitions inserted by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(2)(b) (July

22, 2013: insertion has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

37 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order

2009/1342 Pt 2 art.3(2) (July 1, 2009: substitution has effect subject to transitional provisions specified in SI

2009/1342 art.32)

Commencement

Pt I art. 3(1)-(3): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt I art. 3(1)-(3): United Kingdom 

PART II

SPECIFIED ACTIVITIES

CHAPTER I

GENERAL

P Partially In Force

4.— Specified activities: general

(1) The following provisions of this Part specify kinds of activity for the purposes of [section

22(1) ]

1

 of the Act (and accordingly any activity of one of those kinds, which is carried on by way

of business2, and relates to an investment of a kind specified by any provision of Part III and

applicable to that activity, is a regulated activity for the purposes of the Act).

(2) The kinds of activity specified by [[ articles 51ZA, 51ZB, 51ZC, 51ZD, 51ZE, 52 ]

4

 and 63N ]

3

are also specified for the purposes of section 22(1)(b) of the Act (and accordingly any activity of

one of those kinds, when carried on by way of business, is a regulated activity when carried on in

relation to property of any kind).

[ (2A) The kinds of activity specified by Part 3A are specified for the purposes of section 22(1A)(a)

of the Act6 (and accordingly any activity of one of those kinds, when carried on by way of business,

is a regulated activity). ]

5

(3) Subject to paragraph (4), each provision specifying a kind of activity is subject to the exclusions

applicable to that provision (and accordingly any reference in this Order to an activity of the kind

specified by a particular provision is to be read subject to any such exclusions).

[ (4) Where an investment firm or credit institution—

(a) provides or performs investment services and activities on a professional basis, and

SI 2001/544 Page 10
(b) in doing so would be treated as carrying on an activity of a kind specified by a provision

of this Part but for an exclusion in any of articles 15, 16, 19, 22, 23, 29, 38, 67, 68, 69, 70

and 72E,

that exclusion is to be disregarded and, accordingly, the investment firm or credit institution is to

be treated as carrying on an activity of the kind specified by the provision in question.

]

7

[ (4A) Where a person, other than a person specified by Article 1.2 of the insurance mediation

directive (the text of which is set out in Part 1 of Schedule 4)–

(a) for remuneration, takes up or pursues insurance mediation or reinsurance mediation in

relation to a risk or commitment located in an EEA State, and

(b) in doing so would be treated as carrying on an activity of a kind specified by a provision

of this Part but for an exclusion in any of articles 30, 66 and 67,

that exclusion is to be disregarded (and accordingly that person is to be treated as carrying on an

activity of the kind specified by the provision in question).

]

8

(5) In this article—

[...]9

[ “insurance mediation”has the meaning given by Article 2.3 of the insurance mediation

directive, the text of which is set out in Part II of Schedule 4; ]

10

(a)-(b) [...]9

[ “reinsurance mediation”has the meaning given by Article 2.4 of the insurance mediation

directive, the text of which is set out in Part III of Schedule 4. ]

11

Notes

1 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order

2013/1881 Pt 2 art.3(3)(a) (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

2 The Financial Services and Markets Act 2000 (Carrying on Regulated Activities by Way of Business) Order 2001

(S.I. 2000/), made under section 419 of the Act, makes provision as to the circumstances in which persons are, or

are not, to be regarded as carrying on activities by way of business.

3 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order

2009/1389 art.3 (July 13, 2009)

4 Word substituted by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(3) (July 22,

2013: substitution has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

5 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.3(3)(b) (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

6

Inserted by the Financial Services Act 2012, section 7.

7

Substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment No. 3) Order 2006/3384

Pt 2 art.4(a) (April 1, 2007: substitution has effect on April 1, 2007 for the purposes specified in SI 2006/3384

art.1(2)(a); November 1, 2007 otherwise)

8 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2003/1476

Pt 2 art.3(2)(a) (October 31, 2004 in relation to contracts of long-term care insurance; January 14, 2005 otherwise)

9 Definition repealed by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment No. 3) Order

2006/3384 Pt 2 art.4(b) (April 1, 2007: repeal has effect on April 1, 2007 for the purposes specified in SI 2006/3384

art.1(2)(a); November 1, 2007 otherwise)

10 Definition inserted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2)

Order 2003/1476 Pt 2 art.3(2)(b)(i) (October 31, 2004 in relation to contracts of long-term care insurance; January

14, 2005 otherwise)

SI 2001/544 Page 11
11 Definition inserted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2)

Order 2003/1476 Pt 2 art.3(2)(b)(iii) (October 31, 2004 in relation to contracts of long-term care insurance; January

14, 2005 otherwise)

Commencement

Pt II(I) art. 4(1)-(5) definition of "investment firm" (b): December 1, 2001 which is the date 2000 c.8 s.19 is brought

into force (2000 c. 8 Pt II s. 19; SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(I) art. 4(1)-(5) definition of "reinsurance mediation": United Kingdom 

CHAPTER II

ACCEPTING DEPOSITS

The activity

Law In Force

5.— Accepting deposits

(1) Accepting deposits is a specified kind of activity if—

(a) money received by way of deposit is lent to others; or

(b) any other activity of the person accepting the deposit is financed wholly, or to a material

extent, out of the capital of or interest on money received by way of deposit.

(2) In paragraph (1), “deposit” means a sum of money, other than one excluded by any of [ articles

6 to 9A ]

1

, paid on terms—

(a) under which it will be repaid, with or without interest or premium, and either on demand

or at a time or in circumstances agreed by or on behalf of the person making the payment

and the person receiving it; and

(b) which are not referable to the provision of property (other than currency) or services

or the giving of security.

(3) For the purposes of paragraph (2), money is paid on terms which are referable to the provision

of property or services or the giving of security if, and only if—

(a) it is paid by way of advance or part payment under a contract for the sale, hire or other

provision of property or services, and is repayable only in the event that the property or

services is or are not in fact sold, hired or otherwise provided;

(b) it is paid by way of security for the performance of a contract or by way of security in

respect of loss which may result from the non-performance of a contract; or

(c) without prejudice to sub-paragraph (b), it is paid by way of security for the delivery up

or return of any property, whether in a particular state of repair or otherwise.

Notes

1 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2002/682

Pt II art.3(1) (April 27, 2002)

SI 2001/544 Page 12
Commencement

Pt II(II) art. 5(1)-(3)(c): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19;

SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(II) art. 5(1)-(3)(c): United Kingdom 

Exclusions

Law In Force

6.— Sums paid by certain persons

(1) A sum is not a deposit for the purposes of article 5 if it is—

(a) paid by any of the following persons—

(i) the Bank of England, the central bank of an EEA State other than the United

Kingdom, or the European Central Bank;

(ii) an authorised person who has permission to accept deposits, or to effect or carry

out contracts of insurance;

(iii) an EEA firm falling within paragraph 5(b), (c) or (d) of Schedule 3 to the Act

(other than one falling within paragraph (ii) above);

(iv) the National Savings Bank;

(v) a municipal bank, that is to say a company which was, immediately before the

coming into force of this article, exempt from the prohibition in section 3 of the

Banking Act 19871 by virtue of section 4(1) of, and paragraph 4 of Schedule 2 to,

that Act;

(vi) Keesler Federal Credit Union;

(vii) a body of persons certified as a school bank by the National Savings Bank or

by an authorised person who has permission to accept deposits;

(viii) a local authority;

(ix) any body which by virtue of any enactment has power to issue a precept to a

local authority in England and Wales or a requisition to a local authority in Scotland,

or to the expenses of which, by virtue of any enactment, a local authority in the

United Kingdom is or can be required to contribute (and in this paragraph,

“enactment”includes an enactment comprised in, or in an instrument made under,

an Act of the Scottish Parliament);

(x) the [ European Union ]

2

 , the European Atomic Energy Community [...]2 ;

(xi) the European Investment Bank;

(xii) the International Bank for Reconstruction and Development;

(xiii) the International Finance Corporation;

(xiv) the International Monetary Fund;

(xv) the African Development Bank;

(xvi) the Asian Development Bank;

(xvii) the Caribbean Development Bank;

(xviii) the Inter-American Development Bank;

(xix) the European Bank for Reconstruction and Development;

SI 2001/544 Page 13
[ (xx) the Council of Europe Development Bank; ]

3

(b) paid by a person other than one mentioned in sub-paragraph (a) in the course of carrying

on a business consisting wholly or to a significant extent of lending money;

(c) paid by one company to another at a time when both are members of the same group

or when the same individual is a majority shareholder controller of both of them; or

(d) paid by a person who, at the time when it is paid, is a close relative of the person

receiving it or who is, or is a close relative of, a director or manager of that person or who

is, or is a close relative of, a controller of that person.

(2) For the purposes of paragraph (1)(c), an individual is a majority shareholder controller of a

company if he is a controller of the company by virtue of paragraph (a), (c), (e) or (g) of section

422(2) of the Act, and if in his case the greatest percentage of those referred to in those paragraphs

is 50 or more.

(3) In the application of sub-paragraph (d) of paragraph (1) to a sum paid by a partnership, that

sub-paragraph is to have effect as if, for the reference to the person paying the sum, there were

substituted a reference to each of the partners.

Notes

1

Section 3 was amended by the Bank of England Act 1998 (c. 11), Sch. 5, paras 1 and 3. “Municipal bank”is defined

in section 103 of the Banking Act 1987, which was amended by the Local Government Act 1992 (c. 19), Sch. 3,

para. 22, and by the Local Government and Rating Act 1997 (c. 29), Sch. 3, para. 21.

2 Words substituted by Treaty of Lisbon (Changes in Terminology) Order 2011/1043 Pt 2 art.4(1) (April 22, 2011)

3

Substituted by Financial Services and Markets Act 2000 (Financial Promotion and Miscellaneous Amendments)

Order 2002/1310 art.4(1) (June 5, 2002)

Commencement

Pt II(II) art. 6(1)-(3): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(II) art. 6(1)-(3): United Kingdom 

Law In Force

7.— Sums received by solicitors etc.

(1) A sum is not a deposit for the purposes of article 5 if it is received by a practising solicitor acting

in the course of his profession.

(2) In paragraph (1), “practising solicitor” means—

(a) a solicitor who is qualified to act as such under section 1 of the Solicitors Act 1974,

article 4 of the Solicitors (Northern Ireland) Order 19761 or section 4 of the Solicitors

(Scotland) Act 1980;

(b) a recognised body;

(c) a registered foreign lawyer in the course of providing professional services as a member

of a multi-national partnership;

(d) a registered European lawyer; or

SI 2001/544 Page 14
(e) a partner of a registered European lawyer who is providing professional services in

accordance with—

(i) rules made under section 312 of the Solicitors Act 1974;

(ii) regulations made under article 26 of the Solicitors (Northern Ireland) Order

1976; or

(iii) rules made under section 34 of the Solicitors (Scotland) Act 19803.

(3) In this article—

(a) “a recognised body” means a body [...]4 recognised by—

(i) the Council of the Law Society under section 9 of the Administration of Justice

Act 19855;

(ii) the Incorporated Law Society of Northern Ireland under article 26A of the

Solicitors (Northern Ireland) Order 19766; or

(iii) the Council of the Law Society of Scotland under section 34 of the Solicitors

(Scotland) Act 1980;

(b) “registered foreign lawyer”has the meaning given by section 89 of the Courts and Legal

Services Act 19907 or, in Scotland, section 65 of the Solicitors (Scotland) Act 19808;

(c) “multi-national partnership”has the meaning given by section 89 of the Courts and

Legal Services Act 1990 but, in Scotland, is a reference to a “multi-national practice” within

the meaning of section 60A of the Solicitors (Scotland) Act 19809; and

(d) “registered European lawyer”has the meaning given by regulation 2(1) of the European

Communities (Lawyer's Practice) Regulations 2000 or regulation 2(1) of the European

Communities (Lawyer's Practice) (Scotland) Regulation 2000.

Notes

1

S.I. 1976/582 (N.I. 12); relevant amending instrument is S.I. 1989/1343 (N.I. 14).

2

Section 31 was amended by para. 10 of Sch. 17 to the Courts and Legal Services Act 1990 (c. 41), and by para. 3

of Sch. 6 to, and para. 1 of Sch. 7 to, the Access to Justice Act 1999 (c. 22).

3 Amended by section 31 of the Law Reform (Miscellaneous Provisions) (Scotland) Act 1990 (c. 40).

4 Word repealed by Solicitors' Recognised Bodies (Amendment) Order 2009/500 art.3(b) (March 31, 2009 immediately

after 1985 c.61 ss 9 and 9A)

5

Section 9 was amended by para. 54 of Sch. 18 to the Courts and Legal Services Act 1990, and by para. 1 of Sch.

4 to the European Communities (Lawyer's Practice) Regulations 2000 (S.I. 2000/1119), and was repealed in part

by Part II of Sch. 15 to the Access to Justice Act 1999.

6

Inserted by article 10 of the Solicitors (Amendment) (Northern Ireland) Order 1989 (S.I. 1989/1343) (N.I. 14).

7

Section 89 was amended by para. 14 of Sch. 4 to the European Communities (Lawyer's Practice) Regulations 2000

(S.I. 2000/1119).

8 Amended by para. 29(15) of Sch. 8 to the Law Reform (Miscellaneous Provisions) (Scotland) Act 1990 (c. 40).

9

Inserted by section 32 of the Law Reform (Miscellaneous Provisions) (Scotland) Act 1990 (c. 40).

Commencement

Pt II(II) art. 7(1)-(3)(d): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19;

SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(II) art. 7(1)-(3)(d): United Kingdom 

SI 2001/544 Page 15
Law In Force

8. Sums received by persons authorised to deal etc.

A sum is not a deposit for the purposes of article 5 if it is received by a person who is—

(a) an authorised person with permission to carry on an activity of the kind specified by

any of [ articles 14, 21, 25, 37, 51ZA, 51ZB, 51ZC, 51ZD, 51ZE and 52 ]

1

, or

(b) an exempt person in relation to any such activity,

in the course of, or for the purpose of, [ carrying on any such activity (or any activity which would

be such an activity but for any exclusion made by this Part) ]

2

 with or on behalf of the person by

or on behalf of whom the sum is paid.

Notes

1 Word substituted by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(3) (July 22,

2013: substitution has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

2 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order

2001/3544 art.3 (December 1, 2001)

Commencement

Pt II(II) art. 8(a)-(b): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(II) art. 8(a)-(b): United Kingdom 

Law In Force

9.— Sums received in consideration for the issue of debt securities

(1) Subject to paragraph (2), a sum is not a deposit for the purposes of article 5 if it is received by

a person as consideration for the issue by him of any investment of the kind specified by article 77

or 78.

(2) The exclusion in paragraph (1) does not apply to the receipt by a person of a sum as consideration

for the issue by him of commercial paper unless—

(a) the commercial paper is issued to persons—

(i) whose ordinary activities involve them in acquiring, holding, managing or

disposing of investments (as principal or agent) for the purposes of their businesses;

or

(ii) who it is reasonable to expect will acquire, hold, manage or dispose of

investments (as principal or agent) for the purposes of their businesses; and

(b) the redemption value of the commercial paper is not less than £100,000 (or an amount

of equivalent value denominated wholly or partly in a currency other than sterling), and no

part of the commercial paper may be transferred unless the redemption value of that part is

not less than £100,000 (or such an equivalent amount).

[ (3) In paragraph (2), “commercial paper” means an investment of the kind specified by article 77

or 78 having a maturity of less than one year from the date of issue. ]

1

SI 2001/544 Page 16
Notes

1

Substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2002/682 Pt

III art.12 (April 27, 2002)

Commencement

Pt II(II) art. 9(1)-(3): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(II) art. 9(1)-(3): United Kingdom 

Law In Force

[ 9A. Sums received in exchange for electronic money

A sum is not a deposit for the purposes of article 5 if it is immediately exchanged for electronic

money. ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2002/682 Pt II

art.3(2) (April 27, 2002)

Extent

Pt II(II) art. 9A: United Kingdom 

Law In Force

[ 9AA. Information society services[ and managers of UCITS and AIFs]

2

Article 5 is subject to the [ exclusions]

3

 in article 72A (information society services) [ and article

72AA (managers of UCITS and AIFs) ]

4

 . ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2002/1776

art.3(2) (August 21, 2002)

2 Words inserted by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(4)(a) (July 22,

2013: insertion has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

3 Word substituted by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(4)(b) (July

22, 2013: substitution has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

4 Words inserted by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(4)(c) (July 22,

2013: insertion has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

Extent

Pt II(II) art. 9AA: United Kingdom 

SI 2001/544 Page 17
Law In Force

[ 9AB.— Funds received for payment services

(1) A sum is not a deposit for the purposes of article 5 if it is received by an authorised payment

institution, an EEA authorised payment institution [ , a small payment institution, an electronic

money institution or an EEA authorised electronic money institution ]

2

 from a payment service

user with a view to the provision of payment services.

(2) For the purposes of paragraph (1), “authorised payment institution”, “EEA authorised payment

institution”, “small payment institution”, “payment services” and “payment service user”have the

meanings given in the Payment Services Regulations 2009 [ and “electronic money institution”

and “EEA authorised electronic money institution”have the meanings given in the Electronic Money

Regulations 2011 ]

3

.

]

1

Notes

1 Added by Payment Services Regulations 2009/209 Sch.6(2) para.4(a) (November 1, 2009)

2 Words substituted by Electronic Money Regulations 2011/99 Sch.4(2) para.12(b)(i) (April 30, 2011)

3 Words inserted by Electronic Money Regulations 2011/99 Sch.4(2) para.12(b)(ii) (April 30, 2011)

Extent

Pt II(II) art. 9AB(1)-(2): United Kingdom 

[ CHAPTER IIA

ELECTRONIC MONEY ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2002/682 Pt II

art.4 (April 11, 2002 as specified in SI 2002/682 art.1(2)(a); April 27, 2002 otherwise)

[The activity ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2002/682 Pt II

art.4 (April 27, 2002: April 11, 2002 as specified in SI 2002/682 art.1(2)(a); April 27, 2002 otherwise)

Law In Force

[ 9B. Issuing electronic money

Issuing electronic money [ by—]

2

[ (a) a credit institution, a credit union or a municipal bank; or

(b) a person who is deemed to have been granted authorisation under regulation 74 of the

Electronic Money Regulations 2011 or who falls within regulation 76(1) of those Regulations,

is a specified kind of activity. ]

2

]

1

SI 2001/544 Page 18
Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2002/682 Pt II

art.4 (April 27, 2002: April 11, 2002 as specified in SI 2002/682 art.1(2)(a); April 27, 2002 otherwise)

2 Words inserted by Electronic Money Regulations 2011/99 Sch.4(2) para.12(c) (April 30, 2011)

Extent

Pt II(IIA) art. 9B(a)-(b): United Kingdom 

Law In Force

[ 9BA. 

Articles 9C to 9I and 9K apply only in the case of a person falling within regulation 76(1) of the

Electronic Money Regulations 2011. ]

1

Notes

1 Added by Electronic Money Regulations 2011/99 Sch.4(2) para.12(d) (April 30, 2011)

Extent

Pt II(IIA) art. 9BA: United Kingdom 

[Exclusions]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2002/682 Pt II

art.4 (April 11, 2002 as specified in SI 2002/682 art.1(2)(a); April 27, 2002 otherwise)

Law In Force

[ 9C.— Persons certified as small issuers etc.

(1) There is excluded from article 9B the issuing of electronic money by a person to whom [ the

FCA ]

2

 has given a certificate under this article (provided the certificate has not been revoked).

(2) An application for a certificate may be made by—

(a) a body corporate, or

(b) a partnership,

(other than a credit institution as defined in [ Article 4(1)(a)]

3

 of the banking consolidation directive)

which has its head office in the United Kingdom.

(3) [ The FCA ]

4

 must, on the application of such a person (“A”), give A a certificate if it appears

to [ the FCA ]

2

 that paragraph (4), (5) or (6) applies.

(4) This paragraph applies if—

(a) A does not issue electronic money except on terms that the electronic device on which

the monetary value is stored is subject to a maximum storage amount of not more than 150

euro; and

SI 2001/544 Page 19
(b) A's total liabilities with respect to the issuing of electronic money do not (or will not)

usually exceed 5 million euro and do not (or will not) ever exceed 6 million euro.

(5) This paragraph applies if—

(a) the condition in paragraph (4)(a) is met;

(b) A's total liabilities with respect to the issuing of electronic money do not (or will not)

exceed 10 million euro; and

(c) electronic money issued by A is accepted as a means of payment only by—

(i) subsidiaries of A which perform operational or other ancillary functions related

to electronic money issued or distributed by A; or

(ii) other members of the same group as A (other than subsidiaries of A).

(6) This paragraph applies if—

(a) the conditions in paragraphs (4)(a) and (5)(b) are met; and

(b) electronic money issued by A is accepted as a means of payment, in the course of

business, by not more than one hundred persons where—

(i) those persons accept such electronic money only at locations within the same

premises or limited local area; or

(ii) those persons have a close financial or business relationship with A, such as a

common marketing or distribution scheme.

(7) For the purposes of paragraph (6)(b)(i), locations are to be treated as situated within the same

premises or limited local area if they are situated within—

(a) a shopping centre, airport, railway station, bus station, or campus of a university,

polytechnic, college, school or similar educational establishment; or

(b) an area which does not exceed four square kilometres;

but sub-paragraphs (a) and (b) are illustrative only and are not to be treated as limiting the scope

of paragraph (6)(b)(i).

(8) For the purposes of paragraph (6)(b)(ii), persons are not to be treated as having a close financial

or business relationship with A merely because they participate in arrangements for the acceptance

of electronic money issued by A.

(9) In this article, references to amounts in euro include references to equivalent amounts in sterling.

(10) A person to whom a certificate has been given under this article (and whose certificate has

not been revoked) is referred to in this Chapter as a “certified person”.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2002/682 Pt II

art.4 (April 27, 2002: April 11, 2002 as specified in SI 2002/682 art.1(2)(a); April 27, 2002 otherwise)

2 Words substituted by Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order

2013/472 Sch.2 para.35(a) (April 1, 2013)

3 Words substituted by Capital Requirements Regulations 2006/3221 Sch.6 para.6(2) (January 1, 2007)

4 Words substituted by Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order

2013/472 Sch.2 para.35(b) (April 1, 2013)

Extent

Pt II(IIA) art. 9C(1)-(10): United Kingdom 

SI 2001/544 Page 20
Law In Force

[ 9D. Applications for certificates

The following provisions of the Act apply to applications to [ the FCA ]

2

 for certificates under 9C

(and the determination of such applications) as they apply to applications for [ Part 4A ]

3

 permissions

(and the determination of such applications)—

[ (a) section 55U(1)(b) and (4) to (8);

(b) section 55V;

(c) section 55X(2) and (4)(f); and

(d) section 55Z3(1). ]

4

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2002/682 Pt II

art.4 (April 27, 2002: April 11, 2002 as specified in SI 2002/682 art.1(2)(a); April 27, 2002 otherwise)

2 Words substituted by Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order

2013/472 Sch.2 para.35(a) (April 1, 2013)

3 Words substituted by Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order

2013/472 art.4 (April 1, 2013)

4 Art.9D(a)-(d) substituted for art.9D(a)-(c) by Financial Services Act 2012 (Consequential Amendments and

Transitional Provisions) Order 2013/472 Sch.2 para.35(c) (April 1, 2013)

Extent

Pt II(IIA) art. 9D(a)-(d): United Kingdom 

Law In Force

[ 9E.— Revocation of certificate on [ FCA's]

2

 own initiative

(1) [ The FCA ]

3

 may revoke a certificate given to a person (“A”) under article 9C if—

(a) it appears to it that A does not meet the relevant conditions, or has failed to meet the

relevant conditions at any time since the certificate was given; or

(b) the person to whom the certificate was given has contravened any rule or requirement

to which he is subject as a result of article 9G.

(2) For the purposes of paragraph (1), A meets the relevant conditions at any time if, at that time,

paragraph (4), (5) or (6) of article 9C applies.

(3) [ Sections 55Z and 55Z3(2)]

4

 of the Act apply to the revocation of a certificate under paragraph

(1) as they apply to the cancellation of a [ Part 4A ]

5

 permission on [ the FCA's]

6

 own initiative,

as if references in those sections to an authorised person were references to a certified person.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2002/682 Pt II

art.4 (April 27, 2002: April 11, 2002 as specified in SI 2002/682 art.1(2)(a); April 27, 2002 otherwise)

2 Word substituted by Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order

2013/472 Sch.2 para.35(d)(i) (April 1, 2013)

3 Words substituted by Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order

2013/472 Sch.2 para.35(a) (April 1, 2013)

SI 2001/544 Page 21
4 Words substituted by Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order

2013/472 Sch.2 para.35(d)(ii)(aa) (April 1, 2013)

5 Words substituted by Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order

2013/472 art.4 (April 1, 2013)

6 Words substituted by Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order

2013/472 Sch.2 para.35(d)(ii)(bb) (April 1, 2013)

Extent

Pt II(IIA) art. 9E(1)-(3): United Kingdom 

Law In Force

[ 9F.— Revocation of certificate on request

(1) A certified person (“B”) may apply to [ the FCA ]

2

 for his certificate to be revoked, and the

Authority must then revoke the certificate and give B written notice that it has done so.

(2) An application under paragraph (1) must be made in such manner as [ the FCA ]

2

 may direct.

(3) If—

(a) B has made an application under [ Part 4A ]

3

 of the Act for permission to carry on a

regulated activity of the kind specified by article 9B (or for variation of an existing

permission so as to add a regulated activity of that kind), and

(b) on making an application for revocation of his certificate under paragraph (1), he

requests that the revocation be conditional on the granting of his application under [ Part

4A ]

3

 of the Act,

the revocation of B's certificate is to be conditional on the granting of his application under [ Part

4A ]

3

 of the Act.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2002/682 Pt II

art.4 (April 27, 2002: April 11, 2002 as specified in SI 2002/682 art.1(2)(a); April 27, 2002 otherwise)

2 Words substituted by Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order

2013/472 Sch.2 para.35(a) (April 1, 2013)

3 Words substituted by Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order

2013/472 art.4 (April 1, 2013)

Extent

Pt II(IIA) art. 9F(1)-(3)(b): United Kingdom 

Law In Force

[ 9G.— Obtaining information from certified persons etc.

(1) [ The FCA ]

2

 may make rules requiring certified persons to provide information to [ the FCA ]

2

about their activities so far as relating to the issuing of electronic money, including the amount of

their liabilities with respect to the issuing of electronic money.

SI 2001/544 Page 22
(2) [ Section 138A ]

3

 of the Act (modification or waiver of rules) applies in relation to rules made

under paragraph (1) as if references in that section to an authorised person were references to a

certified person.

(3) [ Section 138D ]

4

 of the Act (actions for damages) applies in relation to a rule made under

paragraph (1) as if the reference in subsection (1) of that section to an authorised person were a

reference to a certified person.

(4) [ The FCA ]

2

 may, by notice in writing given to a certified person, require him—

(a) to provide specified information or information of a specified description; or

(b) to produce specified documents or documents of a specified description.

(5) Paragraph (4) applies only to information or documents reasonably required for the purposes

of determining whether the certified person meets, or has met, the relevant conditions.

(6) Subsections (2), (5) and (6) of section 165 of the Act ( [Regulator's]

5

 power to require

information) apply to a requirement imposed under paragraph (4) as they apply to a requirement

imposed under that section.

(7) Section 166 of the Act (reports by skilled persons) has effect as if—

(a) [...]6

(b) the reference in section 166(2)(a) of the Act to an authorised person included a reference

to a certified person.

(8) Subsection (4) of section 168 of the Act (appointment of persons to carry out investigations in

particular cases) has effect as if it provided for subsection (5) of that section to apply if it appears

to [ the FCA ]

2

 that there are circumstances suggesting that a certified person may not meet, or

may not have met, the relevant conditions.

(9) Sections 175 (information and documents: supplemental provisions), 176 (entry of premises

under warrant) and 177 (offences) of the Act apply to a requirement imposed under paragraph (4)

as they apply to a requirement imposed under section 165 of the Act (the reference in section

176(3)(a) to an authorised person being read as a reference to a certified person).

(10) In this article—

(a) “specified”, in paragraph (4), means specified in the notice mentioned in that paragraph;

(b) a certified person (“A”) meets the relevant conditions at any time if, at that time,

paragraph (4), (5) or (6) of article 9C applies.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2002/682 Pt II

art.4 (April 11, 2002 as specified in SI 2002/682 art.1(2)(a); April 27, 2002 otherwise)

2 Words substituted by Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order

2013/472 Sch.2 para.35(a) (April 1, 2013)

3 Words substituted by Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order

2013/472 Sch.2 para.35(e)(i) (April 1, 2013)

4 Words substituted by Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order

2013/472 Sch.2 para.35(e)(ii) (April 1, 2013)

5 Word substituted by Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order

2013/472 Sch.2 para.35(e)(iii) (April 1, 2013)

6 Revoked by Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013/472

Sch.2 para.35(e)(iv) (April 1, 2013)

SI 2001/544 Page 23
Extent

Pt II(IIA) art. 9G(1)-(10)(b): United Kingdom 

[ Supplemental ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2002/682 Pt II

art.4 (April 11, 2002 as specified in SI 2002/682 art.1(2)(a); April 27, 2002 otherwise)

Law In Force

[ 9H.— Rules prohibiting the issue of electronic money at a discount

(1) [ The FCA ]

2

 may make rules applying to authorised persons with permission to carry on an

activity of the kind specified by article 9B, prohibiting the issue of electronic money having a

monetary value greater than the funds received.

(2) [ Section 138A ]

3

 of the Act (modification or waiver of rules) applies in relation to rules made

under paragraph (1).

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2002/682 Pt II

art.4 (April 11, 2002 as specified in SI 2002/682 art.1(2)(a); April 27, 2002 otherwise)

2 Words substituted by Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order

2013/472 Sch.2 para.35(a) (April 1, 2013)

3 Words substituted by Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order

2013/472 Sch.2 para.35(f) (April 1, 2013)

Extent

Pt II(IIA) art. 9H(1)-(2): United Kingdom 

Law In Force

[ 9I. False claims to be a certified person

A person who is not a certified person is to be treated as guilty of an offence under section 24 of

the Act (false claims to be authorised or exempt) if he—

(a) describes himself (in whatever terms) as a certified person;

(b) behaves, or otherwise holds himself out, in a manner which indicates (or which is

reasonably likely to be understood as indicating) that he is a certified person.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2002/682 Pt II

art.4 (April 27, 2002: April 11, 2002 as specified in SI 2002/682 art.1(2)(a); April 27, 2002 otherwise)

SI 2001/544 Page 24
Extent

Pt II(IIA) art. 9I(a)-(b): United Kingdom 

Law In Force

[ 9J. Exclusion of electronic money from the compensation scheme

The compensation scheme established under Part XV of the Act is not to provide for the

compensation of persons in respect of claims made in connection with any activity of the kind

specified by article 9B. ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2002/682 Pt II

art.4 (April 27, 2002: April 11, 2002 as specified in SI 2002/682 art.1(2)(a); April 27, 2002 otherwise)

Extent

Pt II(IIA) art. 9J: United Kingdom 

Law In Force

[ 9K. Record of certified persons

The record maintained by [ the FCA ]

2

 under section 347 of the Act (public record of authorised

persons etc.) must include every certified person. ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2002/682 Pt II

art.4 (April 27, 2002: April 11, 2002 as specified in SI 2002/682 art.1(2)(a); April 27, 2002 otherwise)

2 Words substituted by Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order

2013/472 Sch.2 para.35(a) (April 1, 2013)

Extent

Pt II(IIA) art. 9K: United Kingdom 

R Repealed

9L.— [...]1

Notes

1 Revoked by Electronic Money Regulations 2011/99 Sch.4(2) para.12(e) (April 30, 2011)

SI 2001/544 Page 25
CHAPTER III

INSURANCE

The activities

Law In Force

10.— Effecting and carrying out contracts of insurance

(1) Effecting a contract of insurance as principal is a specified kind of activity.

(2) Carrying out a contract of insurance as principal is a specified kind of activity.

Commencement

Pt II(III) art. 10(1)-(2): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19;

SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(III) art. 10(1)-(2): United Kingdom 

Exclusions

Law In Force

11.— Community co-insurers

(1) There is excluded from article 10(1) or (2) the effecting or carrying out of a contract of insurance

by an EEA firm falling within paragraph 5(d) of Schedule 3 to the Act—

(a) other than through a branch in the United Kingdom; and

(b) pursuant to a Community co-insurance operation in which the firm is participating

otherwise than as the leading insurer.

(2) In paragraph (1), “Community co-insurance operation” and “leading insurer”have the same

meaning as in the Council Directive of 30 May 1978 on the co-ordination of laws, regulations and

administrative provisions relating to Community co-insurance (No. 78/473/EEC)1.

Notes

1

Scottish Statutory Instruments 2000 No. 121.

Commencement

Pt II(III) art. 11(1)-(2): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19;

SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(III) art. 11(1)-(2): United Kingdom 

SI 2001/544 Page 26
Law In Force

12.— Breakdown insurance

(1) There is excluded from article 10(1) or (2) the effecting or carrying out, by a person who does

not otherwise carry on an activity of the kind specified by that article, of a contract of insurance

which—

(a) is a contract under which the benefits provided by that person (“the provider”) are

exclusively or primarily benefits in kind in the event of accident to or breakdown of a

vehicle; and

(b) contains the terms mentioned in paragraph (2).

(2) Those terms are that—

(a) the assistance takes either or both of the forms mentioned in paragraph (3)(a) and (b);

(b) the assistance is not available outside the United Kingdom and the Republic of Ireland

except where it is provided without the payment of additional premium by a person in the

country concerned with whom the provider has entered into a reciprocal agreement; and

(c) assistance provided in the case of an accident or breakdown occurring in the United

Kingdom or the Republic of Ireland is, in most circumstances, provided by the provider's

servants.

(3) The forms of assistance are—

(a) repairs to the relevant vehicle at the place where the accident or breakdown has occurred;

this assistance may also include the delivery of parts, fuel, oil, water or keys to the relevant

vehicle;

(b) removal of the relevant vehicle to the nearest or most appropriate place at which repairs

may be carried out, or to—

(i) the home, point of departure or original destination within the United Kingdom

of the driver and passengers, provided the accident or breakdown occurred within

the United Kingdom;

(ii) the home, point of departure or original destination within the Republic of

Ireland of the driver and passengers, provided the accident or breakdown occurred

within the Republic of Ireland or within Northern Ireland;

(iii) the home, point of departure or original destination within Northern Ireland of

the driver and passengers, provided the accident or breakdown occurred within the

Republic of Ireland;

and this form of assistance may include the conveyance of the driver or passengers of the

relevant vehicle, with the vehicle, or (where the vehicle is to be conveyed only to the nearest

or most appropriate place at which repairs may be carried out) separately, to the nearest

location from which they may continue their journey by other means.

(4) A contract does not fail to meet the condition in paragraph (1)(a) solely because the provider

may reimburse the person entitled to the assistance for all or part of any sums paid by him in respect

of assistance either because he failed to identify himself as a person entitled to the assistance or

because he was unable to get in touch with the provider in order to claim the assistance.

(5) In this article—

“the assistance” means the benefits to be provided under a contract of the kind mentioned

in paragraph (1);

“breakdown” means an event—

SI 2001/544 Page 27
(a) which causes the driver of the relevant vehicle to be unable to start a journey in

the vehicle or involuntarily to bring the vehicle to a halt on a journey because of

some malfunction of the vehicle or failure of it to function, and

(b) after which the journey cannot reasonably be commenced or continued in the

relevant vehicle;

“the relevant vehicle” means the vehicle (including a trailer or caravan) in respect of which

the assistance is required.

Commencement

Pt II(III) art. 12(1)-(5) definition of "the relevant vehicle": December 1, 2001 which is the date 2000 c.8 s.19 is brought

into force (2000 c. 8 Pt II s. 19; SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(III) art. 12(1)-(5) definition of "the relevant vehicle": United Kingdom 

Law In Force

[ 12A. Information society services[ and managers of UCITS and AIFs]

2

Article 10 is subject to the [ exclusions]

3

 in article 72A (information society services), as qualified

by paragraph (2) of that article [ , and article 72AA (managers of UCITS and AIFs). ]

4

 . ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2002/1776

art.3(3) (August 21, 2002)

2 Words inserted by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(5)(a) (July 22,

2013: insertion has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

3 Word substituted by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(5)(b) (July

22, 2013: substitution has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

4 Words inserted by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(5)(c) (July 22,

2013: insertion has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

Extent

Pt II(III) art. 12A: United Kingdom 

Supplemental

Law In Force

13.— Application of sections 327 and 332 of the Act to insurance market activities

(1) In sections 327(5) and (7) and 332(3)(b) of the Act (exemption from the general prohibition for

members of the professions, and rules in relation to such persons), the references to “a regulated

activity” and “regulated activities”do not include—

(a) any activity of the kind specified by article 10(1) or (2), where—

(i) P is a member of the Society; and

SI 2001/544 Page 28
(ii) by virtue of section 316 of the Act (application of the Act to Lloyd's

underwriting), the general prohibition does not apply to the carrying on by P of that

activity; or

(b) any activity of the kind specified by article 10(2), where—

(i) P is a former underwriting member; and

(ii) the contract of insurance in question is one underwritten by P at Lloyd's.

(2) In paragraph (1)—

“member of the Society”has the same meaning as in Lloyd's Act 1982; and

“former underwriting member”has the meaning given by section 324(1) of the Act.

Commencement

Pt II(III) art. 13(1)-(2) definition of "former underwriting member": December 1, 2001 which is the date 2000 c.8 s.19

is brought into force (2000 c. 8 Pt II s. 19; SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(III) art. 13(1)-(2) definition of "former underwriting member": United Kingdom 

CHAPTER IV

DEALING IN INVESTMENTS AS PRINCIPAL

The activity

Law In Force

[ 14. Dealing in investments as principal

(1) Buying, selling, subscribing for or underwriting securities or contractually based investments

(other than investments of the kind specified by article 87, or article 89 so far as relevant to that

article) as principal is a specified kind of activity.

[ (2) Paragraph (1) does not apply to a kind of activity to which article 25D applies. ]

2

]

1

Notes

1 Existing art.14 renumbered as art.14(1) by Financial Services and Markets Act 2000 (Regulated Activities)

(Amendment No. 3) Order 2006/3384 Pt 2 art.5(a) (April 1, 2007: substitution has effect on April 1, 2007 for the

purposes specified in SI 2006/3384 art.1(2)(a); November 1, 2007 otherwise)

2 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment No. 3) Order 2006/3384

Pt 2 art.5(b) (April 1, 2007: insertion has effect on April 1, 2007 for the purposes specified in SI 2006/3384

art.1(2)(a); November 1, 2007 otherwise)

Commencement

Pt II(IV) art. 14: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

SI 2001/544 Page 29
Extent

Pt II(IV) art. 14(1)-(2): United Kingdom 

Exclusions

Law In Force

15.— Absence of holding out etc.

(1) Subject to paragraph (3), a person (“A”) does not carry on an activity of the kind specified by

article 14 by entering into a transaction which relates to a security or is the assignment (or, in

Scotland, the assignation) of a qualifying contract of insurance (or an investment of the kind specified

by article 89, so far as relevant to such a contract), unless—

(a) A holds himself out as willing, as principal, to buy, sell or subscribe for investments of

the kind to which the transaction relates at prices determined by him generally and

continuously rather than in respect of each particular transaction;

(b) A holds himself out as engaging in the business of buying investments of the kind to

which the transaction relates, with a view to selling them;

(c) A holds himself out as engaging in the business of underwriting investments of the kind

to which the transaction relates; or

(d) A regularly solicits members of the public with the purpose of inducing them, as

principals or agents, to enter into transactions constituting activities of the kind specified

by article 14, and the transaction is entered into as a result of his having solicited members

of the public in that manner.

(2) In paragraph (1)(d), “members of the public” means any persons other than—

(a) authorised persons or persons who are exempt persons in relation to activities of the

kind specified by article 14;

(b) members of the same group as A;

(c) persons who are or who propose to become participators with A in a joint enterprise;

(d) any person who is solicited by A with a view to the acquisition by A of 20 per cent or

more of the voting shares in a body corporate;

(e) if A (either alone or with members of the same group as himself) holds more than 20

per cent of the voting shares in a body corporate, any person who is solicited by A with a

view to—

(i) the acquisition by A of further shares in the body corporate; or

(ii) the disposal by A of shares in the body corporate to the person solicited or to a

member of the same group as the person solicited;

(f) any person who—

(i) is solicited by A with a view to the disposal by A of shares in a body corporate

to the person solicited or to a member of the same group as that person; and

(ii) either alone or with members of the same group holds 20 per cent or more of

the voting shares in the body corporate;

(g) any person whose head office is outside the United Kingdom, who is solicited by an

approach made or directed to him at a place outside the United Kingdom and whose ordinary

business involves him in carrying on activities of the kind specified by any of [ articles 14,

21, 25, 37, 40, 45, 51ZA, 51ZB, 51ZC, 51ZD, 51ZE, 52 and 53 ]

1

 or (so far as relevant to

SI 2001/544 Page 30
any of those articles) article 64, or would do so apart from any exclusion from any of those

articles made by this Order.

(3) This article does not apply where A enters into the transaction as bare trustee or, in Scotland,

as nominee for another person and is acting on that other person's instructions (but the exclusion

in article 66(1) applies if the conditions set out there are met).

[ (4) This article is subject to article 4(4). ]

2

Notes

1 Word substituted by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(3) (July 22,

2013: substitution has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

2 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment No. 3) Order 2006/3384

Pt 2 art.6 (April 1, 2007: insertion has effect on April 1, 2007 for the purposes specified in SI 2006/3384 art.1(2)(a);

November 1, 2007 otherwise)

Commencement

Pt II(IV) art. 15(1)-(3): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19;

SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(IV) art. 15(1)-(4): United Kingdom 

Law In Force

[ 16. Dealing in contractually based investments

(1) A person who is not an authorised person does not carry on an activity of the kind specified by

article 14 by entering into a transaction relating to a contractually based investment—

(a) with or through an authorised person, or an exempt person acting in the course of a

business comprising a regulated activity in relation to which he is exempt; or

(b) through an office outside the United Kingdom maintained by a party to the transaction,

and with or through a person whose head office is situated outside the United Kingdom and

whose ordinary business involves him in carrying on activities of the kind specified by any

of [ articles 14, 21, 25, 37, 40, 45, 51ZA, 51ZB, 51ZC, 51ZD, 51ZE, 52 and 53 ]

2

 or, so

far as relevant to any of those articles, article 64 (or would do so apart from any exclusion

from any of those articles made by this Order).

[ (2) This article is subject to article 4(4). ]

3

]

1

Notes

1 Existing art.16 renumbered as art.16(1) by Financial Services and Markets Act 2000 (Regulated Activities)

(Amendment No. 3) Order 2006/3384 Pt 2 art.7(a) (April 1, 2007: substitution has effect on April 1, 2007 for the

purposes specified in SI 2006/3384 art.1(2)(a); November 1, 2007 otherwise)

2 Word substituted by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(3) (July 22,

2013: substitution has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

3 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment No. 3) Order 2006/3384

Pt 2 art.7(b) (April 1, 2007: insertion has effect on April 1, 2007 for the purposes specified in SI 2006/3384

art.1(2)(a); November 1, 2007 otherwise)

SI 2001/544 Page 31
Commencement

Pt II(IV) art. 16(a)-(b): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19;

SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(IV) art. 16(a)-(2): United Kingdom 

Law In Force

17.— Acceptance of instruments creating or acknowledging indebtedness

(1) A person does not carry on an activity of the kind specified by article 14 by accepting an

instrument creating or acknowledging indebtedness in respect of any loan, credit, guarantee or

other similar financial accommodation or assurance which he has made, granted or provided.

(2) The reference in paragraph (1) to a person accepting an instrument includes a reference to a

person becoming a party to an instrument otherwise than as a debtor or a surety.

Commencement

Pt II(IV) art. 17(1)-(2): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19;

SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(IV) art. 17(1)-(2): United Kingdom 

Law In Force

18.— Issue by a company of its own shares etc.

(1) There is excluded from article 14 the issue by a company of its own shares or share warrants,

and the issue by any person of his own debentures or debenture warrants.

(2) In this article—

(a) “company” means any body corporate other than an open-ended investment company;

(b) “shares” and “debentures”include any investment of the kind specified by [ article 76,

77 or 77A ]

1

;

(c) “share warrants” and “debenture warrants”mean any investment of the kind specified

by article 79 which relates to shares in the company concerned or, as the case may be,

debentures issued by [ the person concerned ]

2

.

Notes

1 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2010/86

Sch.1 para.5(a) (February 24, 2010)

2 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order

2001/3544 art.4 (December 1, 2001)

Commencement

Pt II(IV) art. 18(1)-(2)(c): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s.

19; SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

SI 2001/544 Page 32
Extent

Pt II(IV) art. 18(1)-(2)(c): United Kingdom 

Law In Force

[ 18A.— Dealing by a company in its own shares

(1) A company does not carry on an activity of the kind specified by article 14 by purchasing its

own shares where [section 724 of the Companies Act 2006 ]

2

 (Treasury shares) applies to the

shares purchased.

(2) A company does not carry on an activity of the kind specified by article 14 by dealing in its

own shares held as treasury shares, in accordance with [section 727 (Treasury shares: disposal)

or 729 (Treasury shares: cancellation) of that Act ]

3

 .

(3) In this article “shares held as treasury shares”has the same meaning as in that Act.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 3) Order 2003/2822

art.3 (December 1, 2003)

2 Words substituted by Companies Act 2006 (Consequential Amendments and Transitional Provisions) Order

2011/1265 art.13(3)(a) (May 12, 2011)

3 Words substituted by Companies Act 2006 (Consequential Amendments and Transitional Provisions) Order

2011/1265 art.13(3)(b) (May 12, 2011)

Extent

Pt II(IV) art. 18A(1)-(3): United Kingdom 

Law In Force

19.— Risk management

(1) A person (“B”) does not carry on an activity of the kind specified by article 14 by entering as

principal into a transaction with another person (“C”) if—

(a) the transaction relates to investments of the kind specified by any of articles 83 to 85

(or article 89 so far as relevant to any of those articles);

(b) neither B nor C is an individual;

(c) the sole or main purpose for which B enters into the transaction (either by itself or in

combination with other such transactions) is that of limiting the extent to which a relevant

business will be affected by any identifiable risk arising otherwise than as a result of the

carrying on of a regulated activity; and

(d) the relevant business consists mainly of activities other than—

(i) regulated activities; or

(ii) activities which would be regulated activities but for any exclusion made by

this Part.

(2) In paragraph (1), “relevant business” means a business carried on by—

(a) B;

SI 2001/544 Page 33
(b) a member of the same group as B; or

(c) where B and another person are, or propose to become, participators in a joint enterprise,

that other person.

[ (3) This article is subject to article 4(4). ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment No. 3) Order 2006/3384

Pt 2 art.8 (April 1, 2007: insertion has effect on April 1, 2007 for the purposes specified in SI 2006/3384 art.1(2)(a);

November 1, 2007 otherwise)

Commencement

Pt II(IV) art. 19(1)-(2)(c): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s.

19; SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(IV) art. 19(1)-(3): United Kingdom 

Law In Force

20. Other exclusions

Article 14 is also subject to the exclusions in articles 66 (trustees etc.), 68 (sale of goods and supply

of services), 69 (groups and joint enterprises), 70 (sale of body corporate), 71 (employee share

schemes) [ , 72 (overseas persons) [ , 72A (information society services) and 72AA (managers of

UCITS and AIFs) ]

2

]

1

 .

Notes

1 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order

2002/1776 art.3(4) (August 21, 2002)

2 Words substituted by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(6) (July 22,

2013: substitution has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

Commencement

Pt II(IV) art. 20: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(IV) art. 20: United Kingdom 

SI 2001/544 Page 34
CHAPTER V

DEALING IN INVESTMENTS AS AGENT

The activity

Law In Force

[ 21. Dealing in investments as agent

(1) Buying, selling, subscribing for or underwriting securities or relevant investments (other than

investments of the kind specified by article 87, or article 89 so far as relevant to that article) as

agent is a specified kind of activity.

[ (2) Paragraph (1) does not apply to a kind of activity to which article 25D applies. ]

2

]

1

Notes

1 Existing art.21 renumbered as art.21(1) by Financial Services and Markets Act 2000 (Regulated Activities)

(Amendment No. 3) Order 2006/3384 Pt 2 art.9(a) (April 1, 2007: substitution has effect on April 1, 2007 for the

purposes specified in SI 2006/3384 art.1(2)(a); November 1, 2007 otherwise)

2 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment No. 3) Order 2006/3384

Pt 2 art.9(b) (April 1, 2007: insertion has effect on April 1, 2007 for the purposes specified in SI 2006/3384

art.1(2)(a); November 1, 2007 otherwise)

Commencement

Pt II(V) art. 21: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(V) art. 21(1)-(2): United Kingdom 

Exclusions

Law In Force

22.— Deals with or through authorised persons

(1) A person who is not an authorised person does not carry on an activity of the kind specified by

article 21 by entering into a transaction as agent for another person (“the client”) with or through

an authorised person if—

(a) the transaction is entered into on advice given to the client by an authorised person; or

(b) it is clear, in all the circumstances, that the client, in his capacity as an investor, is not

seeking and has not sought advice from the agent as to the merits of the client's entering

into the transaction (or, if the client has sought such advice, the agent has declined to give

it but has recommended that the client seek such advice from an authorised person).

[ (2) But the exclusion in paragraph (1) does not apply if–

(a) the transaction relates to a contract of insurance; or

SI 2001/544 Page 35
(b) the agent receives from any person other than the client any pecuniary reward or other

advantage, for which he does not account to the client, arising out of his entering into the

transaction.

]

1

[ (3) This article is subject to article 4(4). ]

2

Notes

1

Substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order

2003/1476 Pt 2 art.4(2) (October 31, 2004 in relation to contracts of long-term care insurance; January 14, 2005

otherwise)

2 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment No. 3) Order 2006/3384

Pt 2 art.10 (April 1, 2007: insertion has effect on April 1, 2007 for the purposes specified in SI 2006/3384 art.1(2)(a);

November 1, 2007 otherwise)

Commencement

Pt II(V) art. 22(1)-(2): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19;

SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(V) art. 22(1)-(3): United Kingdom 

Law In Force

23.— Risk management

(1) A person (“B”) does not carry on an activity of the kind specified by article 21 by entering as

agent for a relevant person into a transaction with another person (“C”) if—

(a) the transaction relates to investments of the kind specified by any of articles 83 to 85

(or article 89 so far as relevant to any of those articles);

(b) neither B nor C is an individual;

(c) the sole or main purpose for which B enters into the transaction (either by itself or in

combination with other such transactions) is that of limiting the extent to which a relevant

business will be affected by any identifiable risk arising otherwise than as a result of the

carrying on of a regulated activity; and

(d) the relevant business consists mainly of activities other than—

(i) regulated activities; or

(ii) activities which would be regulated activities but for any exclusion made by

this Part.

(2) In paragraph (1), “relevant person” means—

(a) a member of the same group as B; or

(b) where B and another person are, or propose to become, participators in a joint enterprise,

that other person;

and “relevant business” means a business carried on by a relevant person.

[ (3) This article is subject to article 4(4). ]

1

SI 2001/544 Page 36
Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment No. 3) Order 2006/3384

Pt 2 art.11 (April 1, 2007: insertion has effect on April 1, 2007 for the purposes specified in SI 2006/3384 art.1(2)(a);

November 1, 2007 otherwise)

Commencement

Pt II(V) art. 23(1)-(2)(b): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19;

SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(V) art. 23(1)-(3): United Kingdom 

Law In Force

24. Other exclusions

Article 21 is also subject to the exclusions in articles 67 (profession or non-investment business),

68 (sale of goods and supply of services), 69 (groups and joint enterprises), 70 (sale of body

corporate), 71 (employee share schemes) [ , 72 (overseas persons) [ , 72A (information society

services), 72B (activities carried on by a provider of relevant goods or services) [ , article 72AA

(managers of UCITS and AIFs) and article 72D (large risks contracts where risk situated outside

the EEA) ]

3

]

2

]

1

 .

Notes

1 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order

2002/1776 art.3(5) (August 21, 2002)

2 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order

2003/1476 Pt 2 art.4(3) (October 31, 2004 in relation to contracts of long-term care insurance; January 14, 2005

otherwise)

3 Words substituted by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(7) (July 22,

2013: substitution has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

Commencement

Pt II(V) art. 24: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(V) art. 24: United Kingdom 

[ CHAPTER 5A

BIDDING IN EMISSIONS AUCTIONS ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2012/1906 Pt 2

art.2(3) (July 20, 2012)

SI 2001/544 Page 37
[The activity ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2012/1906 Pt 2

art.2(3) (July 20, 2012)

Law In Force

[ 24A.— Bidding in emissions auctions

(1) The reception, transmission or submission of a bid at an auction of an investment of the kind

specified by article 82A conducted—

(a) on a recognised auction platform, or

(b) on any other auction platform which has been appointed under the emission allowance

auctioning regulation,

is a specified kind of activity.

(2) An activity which falls within paragraph (1) (or would do so but for the exclusions in article

24B) does not form part of any other activity specified under any other article of this Order.

(3) In this article, “recognised auction platform”has the meaning given in regulation 1(3) of the

Recognised Auction Platform Regulations 2011.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2012/1906 Pt 2

art.2(3) (July 20, 2012)

Extent

Pt II(VA) art. 24A(1)-(3): United Kingdom 

[Exclusions]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2012/1906 Pt 2

art.2(3) (July 20, 2012)

Law In Force

[ 24B.— Miscellaneous exclusions

(1) There is excluded from article 24A any activity carried on by—

(a) an operator or an aircraft operator having an operator holding account, in either case

bidding on its own account, including any parent undertaking, subsidiary undertaking or

affiliate undertaking forming part of the same group of undertakings as the operator or the

aircraft operator;

SI 2001/544 Page 38
(b) business groupings of persons listed in sub-paragraph (a) bidding on their own account

or acting as an agent on behalf of their members; or

(c) public bodies or state-owned entities of the Member States that control any of the persons

listed in sub-paragraph (a).

(2) There is excluded from article 24A the reception, transmission or submission of a bid by an

investment firm or a credit institution on any auction platform on their own account for investments

of the kind specified by article 82A which are not financial instruments.

(3) In this article, the expressions “parent undertaking”, “subsidiary undertaking”, “affiliate

undertaking”, “business grouping”, “public bodies” and “state-owned entities”have the same

meaning as in the emission allowance auctioning regulation.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2012/1906 Pt 2

art.2(3) (July 20, 2012)

Extent

Pt II(VA) art. 24B(1)-(3): United Kingdom 

CHAPTER VI

ARRANGING DEALS IN INVESTMENTS

The activities

Law In Force

25.— Arranging deals in investments

(1) Making arrangements for another person (whether as principal or agent) to buy, sell, subscribe

for or underwrite a particular investment which is—

(a) a security,

(b) a [ relevant investment ]

1

 , or

(c) an investment of the kind specified by article 86, or article 89 so far as relevant to that

article,

is a specified kind of activity.

(2) Making arrangements with a view to a person who participates in the arrangements buying,

selling, subscribing for or underwriting investments falling within paragraph (1)(a),(b) or (c)

(whether as principal or agent) is also a specified kind of activity.

[ (3) Paragraphs (1) and (2) do not apply to a kind of activity to which article 25D applies. ]

2

Notes

1 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order

2003/1476 Pt 2 art.5(1) (October 31, 2004 in relation to contracts of long-term care insurance; January 14, 2005

otherwise)

SI 2001/544 Page 39
2 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment No. 3) Order 2006/3384

Pt 2 art.12 (April 1, 2007: insertion has effect on April 1, 2007 for the purposes specified in SI 2006/3384 art.1(2)(a);

November 1, 2007 otherwise)

Commencement

Pt II(VI) art. 25(1)-(2): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19;

SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(VI) art. 25(1)-(3): United Kingdom 

Law In Force

[ 25A.— Arranging regulated mortgage contracts

(1) Making arrangements–

(a) for another person to enter into a regulated mortgage contract as borrower; or

(b) for another person to vary the terms of a regulated mortgage contract entered into by

him as borrower after the coming into force of article 61, in such a way as to vary his

obligations under that contract,

is a specified kind of activity.

(2) Making arrangements with a view to a person who participates in the arrangements entering

into a regulated mortgage contract as borrower is also a specified kind of activity.

(3) In this article “borrower”has the meaning given by article 61(3)(a)(i).

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 1) Order 2003/1475

Pt 2 art.4 (October 31, 2004)

Extent

Pt II(VI) art. 25A(1)-(3): United Kingdom 

Law In Force

[ 25B.— Arranging regulated home reversion plans

(1) Making arrangements—

(a) for another person to enter into a regulated home reversion plan as reversion seller or

as plan provider; or

(b) for another person to vary the terms of a regulated home reversion plan, entered into

on or after 6th April 2007 by him as reversion seller or as plan provider, in such a way as

to vary his obligations under that plan,

is a specified kind of activity.

(2) Making arrangements with a view to a person who participates in the arrangements entering

into a regulated home reversion plan as reversion seller or as plan provider is also a specified kind

of activity.

SI 2001/544 Page 40
]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2006/2383

Pt 2 art.4 (November 6, 2006 for the purposes of enabling applications as specified in SI 2006/2383 art.1(2)(a);

April 6, 2007 otherwise)

Extent

Pt II(VI) art. 25B(1)-(2): United Kingdom 

Law In Force

[ 25C.— Arranging regulated home purchase plans

(1) Making arrangements—

(a) for another person to enter into a regulated home purchase plan as home purchaser; or

(b) for another person to vary the terms of a regulated home purchase plan, entered into

on or after 6th April 2007 by him as home purchaser, in such a way as to vary his obligations

under that plan,

is a specified kind of activity.

(2) Making arrangements with a view to a person who participates in the arrangements entering

into a regulated home purchase plan as home purchaser is also a specified kind of activity.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2006/2383

Pt 2 art.4 (November 6, 2006 for the purposes of enabling applications as specified in SI 2006/2383 art.1(2)(a);

April 6, 2007 otherwise)

Extent

Pt II(VI) art. 25C(1)-(2): United Kingdom 

Law In Force

[ 25D.— Operating a multilateral trading facility

(1) The operation of a multilateral trading facility on which MiFID instruments are traded is a

specified kind of activity.

(2) In paragraph (1), “MiFID instrument” means any investment—

(a) of the kind specified by [ article 76, 77, 77A, 78, 79, 80, 81, 83, 84 or 85 ]

2

; or

(b) of the kind specified by article 89 so far as relevant to an investment falling within

sub-paragraph (a),

that is a financial instrument.

]

1

SI 2001/544 Page 41
Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment No. 3) Order 2006/3384

Pt 2 art.13 (April 1, 2007: insertion has effect on April 1, 2007 for the purposes specified in SI 2006/3384 art.1(2)(a);

November 1, 2007 otherwise)

2 Word inserted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2010/86

Sch.1 para.5(b) (February 24, 2010)

Extent

Pt II(VI) art. 25D(1)-(2)(b): United Kingdom 

Law In Force

[ 25E.— Arranging regulated sale and rent back agreements

(1) Making arrangements—

(a) for another person to enter into a regulated sale and rent back agreement as an agreement

seller or as an agreement provider; or

(b) for another person (“A”) to vary the terms of a regulated sale and rent back agreement,

entered into on or after 1st July 2009 by A as agreement seller or agreement provider, in

such a way as to vary A's obligations under that agreement,

is a specified kind of activity.

(2) Making arrangements with a view to a person who participates in the arrangements entering

into a regulated sale and rent back agreement as agreement seller or agreement provider is also a

specified kind of activity.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2009/1342 Pt 2

art.4 (July 1, 2009: insertion has effect subject to transitional provisions specified in SI 2009/1342 art.32)

Extent

Pt II(VI) art. 25E(1)-(2): United Kingdom 

Exclusions

Law In Force

26. Arrangements not causing a deal

There are excluded from [ articles 25(1), 25A(1), 25B(1), 25C(1) and 25E(1) ]

1

 arrangements

which do not or would not bring about the transaction to which the arrangements relate.

Notes

1 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order

2009/1342 Pt 2 art.5 (July 1, 2009: substitution has effect subject to transitional provisions specified in SI 2009/1342

art.32)

SI 2001/544 Page 42
Commencement

Pt II(VI) art. 26: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(VI) art. 26: United Kingdom 

Law In Force

27. Enabling parties to communicate

A person does not carry on an activity of the kind specified by [ article 25(2), 25A(2), 25B(2),

25C(2) or 25E(2) ]

1

 merely by providing means by which one party to a transaction (or potential

transaction) is able to communicate with other such parties.

Notes

1 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order

2009/1342 Pt 2 art.6 (July 1, 2009: substitution has effect subject to transitional provisions specified in SI 2009/1342

art.32)

Commencement

Pt II(VI) art. 27: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(VI) art. 27: United Kingdom 

Law In Force

28.— Arranging transactions to which the arranger is a party

(1) There are excluded from article 25(1) any arrangements for a transaction into which the person

making the arrangements enters or is to enter as principal or as agent for some other person.

(2) There are excluded from article 25(2) any arrangements which a person makes with a view to

transactions into which he enters or is to enter as principal or as agent for some other person.

[ (3) But the exclusions in paragraphs (1) and (2) do not apply to arrangements made for or with a

view to a transaction which relates to a contract of insurance, unless the person making the

arrangements either–

(a) is the only policyholder; or

(b) as a result of the transaction, would become the only policyholder.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2003/1476

Pt 2 art.5(2) (October 31, 2004 in relation to contracts of long-term care insurance; January 14, 2005 otherwise)

SI 2001/544 Page 43
Commencement

Pt II(VI) art. 28(1)-(2): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19;

SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(VI) art. 28(1)-(3)(b): United Kingdom 

Law In Force

[ 28A.— Arranging contracts [ , plans or agreements]

2

 to which the arranger is a party

(1) There are excluded from [ articles 25A(1), 25B(1), 25C(1) and 25E(1) ]

3

 any arrangements–

(a) for a [ contract [ , plan or agreement ]

5

]

4

 into which the person making the

arrangements enters or is to enter; or

(b) for a variation of a [ contract [ , plan or agreement ]

5

]

4

 to which that person is (or is

to become) a party.

(2) There are excluded from [ articles 25A(2), 25B(2), 25C(2) and 25E(2) ]

6

 any arrangements

which a person makes with a view to contracts [ , plans or agreements]

7

 into which he enters or

is to enter.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 1) Order 2003/1475

Pt 2 art.7 (October 31, 2004)

2 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order

2009/1342 Pt 2 art.7(1) (July 1, 2009: substitution has effect subject to transitional provisions specified in SI

2009/1342 art.32)

3 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order

2009/1342 Pt 2 art.7(2)(a)(i) (July 1, 2009: substitution has effect subject to transitional provisions specified in SI

2009/1342 art.32)

4 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order

2006/2383 Pt 2 art.7(2)(a)(ii) (November 6, 2006 for the purposes of enabling applications as specified in SI

2006/2383 art.1(2)(a); April 6, 2007 otherwise)

5 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order

2009/1342 Pt 2 art.7(2)(a)(ii) (July 1, 2009: substitution has effect subject to transitional provisions specified in

SI 2009/1342 art.32)

6 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order

2009/1342 Pt 2 art.7(2)(b)(i) (July 1, 2009: substitution has effect subject to transitional provisions specified in

SI 2009/1342 art.32)

7 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order

2009/1342 Pt 2 art.7(2)(b)(ii) (July 1, 2009: substitution has effect subject to transitional provisions specified in

SI 2009/1342 art.32)

Extent

Pt II(VI) art. 28A(1)-(2): United Kingdom 

SI 2001/544 Page 44
Law In Force

29.— Arranging deals with or through authorised persons

(1) There are excluded from [ articles 25(1) and (2), 25A(1) and (2), 25B(1) and (2), 25C(1) and

(2) and 25E(1) and (2) ]

1

 arrangements made by a person (“A”) who is not an authorised person

for or with a view to a transaction which is or is to be entered into by a person (“the client”) with

or though an authorised person if—

(a) the transaction is or is to be entered into on advice to the client by an authorised person;

or

(b) it is clear, in all the circumstances, that the client, in his capacity as an [ investor,

borrower, reversion seller, plan provider, home purchaser, agreement provider or (as the

case may be) agreement seller ]

2

 , is not seeking and has not sought advice from A as to

the merits of the client's entering into the transaction (or, if the client has sought such advice,

A has declined to give it but has recommended that the client seek such advice from an

authorised person).

[ (2) But the exclusion in paragraph (1) does not apply if–

(a) the transaction relates, or would relate, to a contract of insurance; or

(b) A receives from any person other than the client any pecuniary reward or other

advantage, for which he does not account to the client, arising out of his making the

arrangements.

]

3

[ (3) This article is subject to article 4(4). ]

4

Notes

1 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order

2009/1342 Pt 2 art.8(a) (July 1, 2009: substitution has effect subject to transitional provisions specified in SI

2009/1342 art.32)

2 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order

2009/1342 Pt 2 art.8(b) (July 1, 2009: substitution has effect subject to transitional provisions specified in SI

2009/1342 art.32)

3

Substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order

2003/1476 Pt 2 art.5(3) (October 31, 2004 in relation to contracts of long-term care insurance; January 14, 2005

otherwise)

4 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment No. 3) Order 2006/3384

Pt 2 art.14 (April 1, 2007: insertion has effect on April 1, 2007 for the purposes specified in SI 2006/3384 art.1(2)(a);

November 1, 2007 otherwise)

Commencement

Pt II(VI) art. 29(1)-(2): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19;

SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(VI) art. 29(1)-(3): United Kingdom 

SI 2001/544 Page 45
Law In Force

[ 29A. Arrangements made in the course of administration by authorised person

(1) A person who is not an authorised person (“A”) does not carry on an activity of the kind specified

by article 25A(1)(b) as a result of–

(a) anything done by an authorised person (“B”) in relation to a regulated mortgage contract

which B is administering pursuant to an arrangement of the kind mentioned in article 62(a);

or

(b) anything A does in connection with the administration of a regulated mortgage contract

in circumstances falling within article 62(b).

(2) A person who is not an authorised person (“A”) does not carry on an activity of the kind specified

by article 25B(1)(b) as a result of—

(a) anything done by an authorised person (“B”) in relation to a regulated home reversion

plan which B is administering pursuant to an arrangement of the kind mentioned in article

63C(a); or

(b) anything A does in connection with the administration of a regulated home reversion

plan in circumstances falling within article 63C(b).

(3) A person who is not an authorised person (“A”) does not carry on an activity of the kind specified

by article 25C(1)(b) as a result of—

(a) anything done by an authorised person (“B”) in relation to a regulated home purchase

plan which B is administering pursuant to an arrangement of the kind mentioned in article

63G(a); or

(b) anything A does in connection with the administration of a regulated home purchase

plan in circumstances falling within article 63G(b).

[ (4) A person who is not an authorised person (“A”) does not carry on an activity of the kind

specified by article 25E(1)(b) as a result of—

(a) anything done by an authorised person (“B”) in relation to a regulated sale and rent

back agreement which B is administering pursuant to an arrangement of the kind mentioned

in article 63K(a); or

(b) anything A does in connection with the administration of a regulated sale and rent back

agreement in circumstances falling within article 63K(b).

]

2

]

1

Notes

1 Existing art.29A renumbered as art.29A(1) and art.29A(2) and (3) inserted by Financial Services and Markets Act

2000 (Regulated Activities) (Amendment) (No.2) Order 2006/2383 Pt 2 art.9 (November 6, 2006 for the purposes

of enabling applications as specified in SI 2006/2383 art.1(2)(a); April 6, 2007 otherwise)

2 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2009/1342 Pt 2

art.9 (July 1, 2009: insertion has effect subject to transitional provisions specified in SI 2009/1342 art.32)

Extent

Pt II(VI) art. 29A(1)-(b): United Kingdom 

SI 2001/544 Page 46
Law In Force

30.— Arranging transactions in connection with lending on the security of insurance policies

(1) There are excluded from article 25(1) and (2) arrangements made by a money-lender under

which either—

[ (a) a relevant authorised person or a person acting on his behalf will introduce to the

money-lender persons with whom the relevant authorised person has entered, or proposes

to enter, into a relevant transaction, or will advise such persons to approach the money-lender,

with a view to the money-lender lending money on the security of any contract effected

pursuant to a relevant transaction; ]

1

(b) a relevant authorised person gives an assurance to the money-lender as to the amount

which, on the security of any contract effected pursuant to a relevant transaction, will or

may be received by the money-lender should the money-lender lend money to a person

introduced to him pursuant to the arrangements.

(2) In paragraph (1)—

“money-lender” means a person who is—

(a) a money-lending company within the meaning of [section 209 of the Companies

Act 2006; ]

2

(b) a body corporate incorporated under the law of, or of any part of, the United

Kingdom relating to building societies; or

(c) a person whose ordinary business includes the making of loans or the giving of

guarantees in connection with loans;

“relevant authorised person” means an authorised person who has permission to effect

[ contracts of insurance ]

3

 or to sell investments of the kind specified by article 89, so far

as relevant to such contracts;

“relevant transaction” means the effecting of a [ contract of insurance ]

4

 or the sale of an

investment of the kind specified by article 89, so far as relevant to such contracts.

[ (3) This article is subject to article 4(4A)6. ]

5

Notes

1

Substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2001/3544

art.5 (December 1, 2001)

2 Words substituted by Companies Act 2006 (Consequential Amendments and Transitional Provisions) Order

2011/1265 art.13(4) (May 12, 2011)

3 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order

2003/1476 Pt 2 art.5(4)(a) (October 31, 2004 in relation to contracts of long-term care insurance; January 14, 2005

otherwise)

4 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order

2003/1476 Pt 2 art.5(4)(b) (October 31, 2004 in relation to contracts of long-term care insurance; January 14, 2005

otherwise)

5 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment No. 3) Order 2006/3384

Pt 2 art.15 (April 1, 2007: insertion has effect on April 1, 2007 for the purposes specified in SI 2006/3384 art.1(2)(a);

November 1, 2007 otherwise)

6 Article 4(4A) was inserted by S.I. 2003/1476.

Commencement

Pt II(VI) art. 30(1)-(2) definition of "relevant transaction": December 1, 2001 which is the date 2000 c.8 s.19 is brought

into force (2000 c. 8 Pt II s. 19; SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

SI 2001/544 Page 47
Extent

Pt II(VI) art. 30(1)-(3): United Kingdom 

Law In Force

31.— Arranging the acceptance of debentures in connection with loans

(1) There are excluded from article 25(1) and (2) arrangements under which a person accepts or is

to accept, whether as principal or agent, an instrument creating or acknowledging indebtedness in

respect of any loan, credit, guarantee or other similar financial accommodation or assurance which

is, or is to be, made, granted or provided by that person or his principal.

(2) The reference in paragraph (1) to a person accepting an instrument includes a reference to a

person becoming a party to an instrument otherwise than as a debtor or a surety.

Commencement

Pt II(VI) art. 31(1)-(2): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19;

SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(VI) art. 31(1)-(2): United Kingdom 

Law In Force

32. Provision of finance

There are excluded from article 25(2) arrangements having as their sole purpose the provision of

finance to enable a person to buy, sell, subscribe for or underwrite investments.

Commencement

Pt II(VI) art. 32: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(VI) art. 32: United Kingdom 

Law In Force

33. Introducing

There are excluded from [ articles 25(2), 25A(2), 25B(2), 25C(2) and 25E(2) ]

1

 arrangements

where—

(a) they are arrangements under which persons (“clients”) will be introduced to another

person;

(b) the person to whom introductions are to be made is—

(i) an authorised person;

(ii) an exempt person acting in the course of a business comprising a regulated

activity in relation to which he is exempt; or

SI 2001/544 Page 48
(iii) a person who is not unlawfully carrying on regulated activities in the United

Kingdom and whose ordinary business involves him in engaging in an activity of

the kind specified by any of [ articles 14, 21, 25, 25A, 25B, 25C,25E, 37, 39A, 40,

45, 51ZA, 51ZB, 51ZC, 51ZD, 51ZE, 52, 53 53A, 53B, 53C and 53D ]

2

 (or, so far

as relevant to any of those articles, article 64 ), or would do so apart from any

exclusion from any of those articles made by this Order; [...]3

(c) the introduction is made with a view to the provision of independent advice or the

independent exercise of discretion in relation to investments generally or in relation to any

class of investments to which the arrangements relate [ ; and ]

4

[ (d) the arrangements are made with a view to a person entering into a transaction which

does not relate to a contract of insurance. ]

4

Notes

1 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order

2009/1342 Pt 2 art.10(a) (July 1, 2009: substitution has effect subject to transitional provisions specified in SI

2009/1342 art.32)

2 Word substituted by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(3) (July 22,

2013: substitution has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

3 Word repealed by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order

2003/1476 Pt 2 art.5(5)(b) (October 31, 2004 in relation to contracts of long-term care insurance; January 14, 2005

otherwise)

4 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2003/1476

Pt 2 art.5(5)(c) (October 31, 2004 in relation to contracts of long-term care insurance; January 14, 2005 otherwise)

Commencement

Pt II(VI) art. 33(a)-(c): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19;

SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(VI) art. 33(a)-(d): United Kingdom 

Law In Force

[ 33A— Introducing to authorised persons etc.

(1) There are excluded from article 25A(2) arrangements where–

(a) they are arrangements under which a client is introduced to a person (“N”) who is–

(i) an authorised person who has permission to carry on a regulated activity of the

kind specified by any of articles 25A, 53A, and 61(1),

(ii) an appointed representative who may carry on a regulated activity of the kind

specified by either of articles 25A and 53A without contravening the general

prohibition, or

(iii) an overseas person who carries on activities specified by any of articles 25A,

53A and 61(1); and

(b) the conditions mentioned in paragraph (2) are satisfied.

[ (1A) There are excluded from article 25B(2) arrangements where—

(a) they are arrangements under which a client is introduced to a person (“N”) who is—

SI 2001/544 Page 49
(i) an authorised person who has permission to carry on a regulated activity of the

kind specified by any of articles 25B, 53B and 63B(1),

(ii) an appointed representative who may carry on a regulated activity of the kind

specified by either of articles 25B and 53B without contravening the general

prohibition, or

(iii) an overseas person who carries on activities specified by any of articles 25B,

53B and 63B(1); and

(b) the conditions mentioned in paragraph (2) are satisfied.

(1B) There are excluded from article 25C(2) arrangements where—

(a) they are arrangements under which a client is introduced to a person (“N”) who is—

(i) an authorised person who has permission to carry on a regulated activity of the

kind specified by any of articles 25C, 53C and 63F(1),

(ii) an appointed representative who may carry on a regulated activity of the kind

specified by either of articles 25C and 53C without contravening the general

prohibition, or

(iii) an overseas person who carries on activities specified by any of articles 25C,

53C and 63F(1); and

(b) the conditions mentioned in paragraph (2) are satisfied.

]

2

[ (1C) There are excluded from article 25E(2) arrangements where—

(a) they are arrangements under which a client is introduced to a person (“N”) who is—

(i) an authorised person who has permission to carry on a regulated activity of the

kind specified by any of articles 25E, 53D and 63J(1),

(ii) an appointed representative who may carry on a regulated activity of the kind

specified by either of articles 25E or 53D without contravening the general

prohibition, or

(iii) an overseas person who carries on activities specified by any of articles 25E,

53D and 63J(1); and

(b) the conditions mentioned in paragraph (2) are satisfied.

]

3

(2) Those conditions are–

(a) that the person making the introduction (“P”) does not receive any money, other than

money payable to P on his own account, paid by the client for or in connection with any

transaction which the client enters into with or through N as a result of the introduction;

and

(b) that before making the introduction P discloses to the client such of the information

mentioned in paragraph (3) as applies to P.

(3) That information is–

(a) that P is a member of the same group as N;

(b) details of any payment which P will receive from N, by way of fee or commission, for

introducing the client to N;

(c) an indication of any other reward or advantage received or to be received by P that

arises out of his introducing clients to N.

[ (4) In this article, “client” means—

SI 2001/544 Page 50
(a) for the purposes of paragraph (1), a borrower within the meaning given by article

61(3)(a)(i), or a person who is or may be contemplating entering into a regulated mortgage

contract as such a borrower;

(b) for the purposes of paragraph (1A), a reversion seller, a plan provider or a person who

is or may be contemplating entering into a regulated home reversion plan as a reversion

seller or as a plan provider;

(c) for the purposes of paragraph (1B), a home purchaser or a person who is or may be

contemplating entering into a regulated home purchase plan as a home purchaser [ ; ]

5

[ (d) for the purposes of paragraph (1C), an agreement provider, an agreement seller or a

person who is or may be contemplating entering into a regulated sale and rent back agreement

as an agreement provider or agreement seller. ]

5

]

4

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 1) Order 2003/1475

Pt 2 art.11 (October 31, 2004)

2 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2006/2383

Pt 2 art.11(a) (November 6, 2006 for the purposes of enabling applications as specified in SI 2006/2383 art.1(2)(a);

April 6, 2007 otherwise)

3 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2009/1342 Pt 2

art.11(a) (July 1, 2009: insertion has effect subject to transitional provisions specified in SI 2009/1342 art.32)

4

Substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order

2006/2383 Pt 2 art.11(b) (November 6, 2006 for the purposes of enabling applications as specified in SI 2006/2383

art.1(2)(a); April 6, 2007 otherwise)

5 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2009/1342 Pt 2

art.11(b) (July 1, 2009: insertion has effect subject to transitional provisions specified in SI 2009/1342 art.32)

Extent

Pt II(VI) art. 33A(1)-(4)(d): United Kingdom 

Law In Force

34.— Arrangements for the issue of shares etc.

(1) There are excluded from article 25(1) and (2)—

(a) arrangements made by a company for the purposes of issuing its own shares or share

warrants; and

(b) arrangements made by any person for the purposes of issuing his own debentures or

debenture warrants;

and for the purposes of article 25(1) and (2), a company is not, by reason of issuing its own shares

or share warrants, and a person is not, by reason of issuing his own debentures or debenture warrants,

to be treated as selling them.

(2) In paragraph (1), “company”, “shares”, “debentures”, “share warrants” and “debenture

warrants”have the meanings given by article 18(2).

SI 2001/544 Page 51
Commencement

Pt II(VI) art. 34(1)-(2): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19;

SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(VI) art. 34(1)-(2): United Kingdom 

Law In Force

35.— International securities self-regulating organisations

(1) There are excluded from article 25(1) and (2) any arrangements made for the purposes of

carrying out the functions of a body or association which is approved under this article as an

international securities self-regulating organisation, whether the arrangements are made by the

organisation itself or by a person acting on its behalf.

(2) The Treasury may approve as an international securities self-regulating organisation any body

corporate or unincorporated association with respect to which the conditions mentioned in paragraph

(3) appear to them to be met if, having regard to such matters affecting international trade, overseas

earnings and the balance of payments or otherwise as they consider relevant, it appears to them

that to do so would be desirable and not result in any undue risk to investors.

(3) The conditions are that—

(a) the body or association does not have its head office in the United Kingdom;

(b) the body or association is not eligible for recognition under section 287 or 288 of the

Act (applications by investment exchanges and clearing houses) on the ground that (whether

or not it has applied, and whether or not it would be eligible on other grounds) it is unable

to satisfy the requirements of one or both of paragraphs (a) and (b) of section 292(3) of the

Act (requirements for overseas investment exchanges and overseas clearing houses);

[ (ba) the body or association is also not eligible to become an EEA central counterparty

(as defined in section 285(1)(c) of the Act) or a third country central counterparty (as defined

in section 285(1)(d) of the Act); ]

1

(c) the body or association is able and willing to co-operate with [ the FCA and the PRA ]

2

by the sharing of information and in other ways;

(d) adequate arrangements exist for co-operation between [ the FCA and the PRA ]

2

 and

those responsible for the supervision of the body or association in the country or territory

in which its head office is situated;

(e) the body or association has a membership composed of persons falling within any of

the following categories, that is to say, authorised persons, exempt persons, and persons

whose head offices are outside the United Kingdom and whose ordinary business involves

them in engaging in activities which are activities of a kind specified by this Order (or would

be apart from any exclusion made by this Part); and

(f) the body or association facilitates and regulates the activity of its members in the conduct

of international securities business.

(4) In paragraph (3)(f), “international securities business” means the business of buying, selling,

subscribing for or underwriting investments (or agreeing to do so), either as principal or agent,

where—

SI 2001/544 Page 52
(a) the investments are securities or [ relevant investments]

3

 and are of a kind which, by

their nature, and the manner in which the business is conducted, may be expected normally

to be bought or dealt in by persons sufficiently expert to understand the risks involved; and

(b) either the transaction is international or each of the parties may be expected to be

indifferent to the location of the other;

and, for the purposes of this definition, it is irrelevant that the investments may ultimately be bought

otherwise than in the course of such business by persons not so expert.

(5) Any approval under this article is to be given by notice in writing; and the Treasury may by a

further notice in writing withdraw any such approval if for any reason it appears to them that it is

not appropriate to it to continue in force.

Notes

1 Added by Financial Services and Markets Act 2000 (Over the Counter Derivatives, Central Counterparties and

Trade Repositories) Regulations 2013/504 Pt 8 reg.33(3) (April 1, 2013: insertion has effect subject to transitional

and savings provisions specified in SI 2013/504 Pt 9)

2 Words substituted by Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order

2013/472 Sch.2 para.35(g) (April 1, 2013)

3 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order

2003/1476 Pt 2 art.5(6) (October 31, 2004 in relation to contracts of long-term care insurance; January 14, 2005

otherwise)

Commencement

Pt II(VI) art. 35(1)-(5): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19;

SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(VI) art. 35(1)-(5): United Kingdom 

Law In Force

[ 35A. Trade repositories

A trade repository does not carry on an activity of the kind specified by article 25(2) by carrying

on its functions of centrally collecting and maintaining records of derivatives under Regulation

(EU) 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives,

central counterparties and trade repositories. ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Over the Counter Derivatives, Central Counterparties and

Trade Repositories) Regulations 2013/504 Pt 8 reg.33(4) (April 1, 2013: insertion has effect subject to transitional

and savings provisions specified in SI 2013/504 Pt 9)

Extent

Pt II(VI) art. 35A: United Kingdom 

SI 2001/544 Page 53
Law In Force

[ 36. Other exclusions

(1) Article 25 is also subject to the exclusions in articles 66 (trustees etc.), 67 (profession or

non-investment business), 68 (sale of goods and supply of services), 69 (groups and joint enterprises),

70 (sale of body corporate), 71 (employee share schemes), 72 (overseas persons) [ , [ 72A

(information society services) and 72AA (managers of UCITS and AIFs)]

3

 , 72B (activities carried

on by a provider of relevant goods or services), 72C (provision of information about contracts of

insurance on an incidental basis) ]

2

[ , 72AA (managers of UCITS and AIFs) and article 72D (large

risks contracts where risk situated outside the EEA) ]

4

(2) [[ Articles 25A, 25B, 25C and 25E ]

6

 are ]

5

 also subject to the exclusions in articles 66 (trustees

etc.), 67 (profession or non-investment business), 72 (overseas persons) and 72A (information

society services).

[ (3) Article 25D is also subject to [ the exclusions in articles 72 (overseas persons) and 72AA

(managers of UCITS and AIFs) ]

8

 . ]

7

]

1

Notes

1 Existing art.36 renumbered as art.36(1) and art.36(2) is added by Financial Services and Markets Act 2000

(Regulated Activities) (Amendment) (No. 1) Order 2003/1475 Pt 2 art.12 (October 31, 2004)

2 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order

2003/1476 Pt 2 art.5(7) (October 31, 2004 in relation to contracts of long-term care insurance; January 14, 2005

otherwise)

3 Words substituted by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(6) (July 22,

2013: substitution has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

4 Words substituted by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(7) (July 22,

2013: substitution has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

5 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order

2006/2383 Pt 2 art.12 (November 6, 2006 for the purposes of enabling applications as specified in SI 2006/2383

art.1(2)(a); April 6, 2007 otherwise)

6 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order

2009/1342 Pt 2 art.12 (July 1, 2009: substitution has effect subject to transitional provisions specified in SI

2009/1342 art.32)

7 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment No. 3) Order 2006/3384

Pt 2 art.16 (April 1, 2007: insertion has effect on April 1, 2007 for the purposes specified in SI 2006/3384 art.1(2)(a);

November 1, 2007 otherwise)

8 Words substituted by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(8) (July 22,

2013: substitution has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

Commencement

Pt II(VI) art. 36: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(VI) art. 36(1)-(3): United Kingdom 

SI 2001/544 Page 54
[ CHAPTER 6A

CREDIT BROKING ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.4 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

[The activity ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.4 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

P Partially In Force

[ 36A.— Credit broking

(1) Each of the following is a specified kind of activity—

(a) effecting an introduction of an individual or relevant recipient of credit who wishes to

enter into a credit agreement to a person (“P”) with a view to P entering into by way of

business as lender a regulated credit agreement (or an agreement which would be a regulated

credit agreement but for any of the relevant provisions);

(b) effecting an introduction of an individual or relevant recipient of credit who wishes to

enter into a consumer hire agreement to a person (“P”) with a view to P entering into by

way of business as owner a regulated consumer hire agreement or an agreement which

would be a regulated consumer hire agreement but for article 60O (exempt agreements:

exemptions relating to the nature of the agreement) or 60Q (exempt agreements: exemptions

relating to the nature of the hirer);

(c) effecting an introduction of an individual or relevant recipient of credit who wishes to

enter into a credit agreement or consumer hire agreement (as the case may be) to a person

who carries on an activity of the kind specified in sub-paragraph (a) or (b) by way of

business;

(d) presenting or offering an agreement which would (if entered into) be a regulated credit

agreement (or an agreement which would be a regulated credit agreement but for any of

the relevant provisions);

(e) assisting an individual or relevant recipient of credit by undertaking preparatory work

with a view to that person entering into a regulated credit agreement (or an agreement which

would be a regulated credit agreement but for any of the relevant provisions);

(f) entering into a regulated credit agreement (or an agreement which would be a regulated

credit agreement but for any of the relevant provisions) on behalf of a lender.

(2) Paragraph (1) does not apply in so far as the activity is an activity of the kind specified by article

36H (operating an electronic system in relation to lending).

(3) For the purposes of paragraph (1) it is immaterial whether the credit agreement or consumer

hire agreement is subject to the law of a country outside the United Kingdom.

SI 2001/544 Page 55
(4) For the purposes of this article, the “relevant provisions” are the following provisions—

(a) article 60C (exempt agreements: exemptions relating to the nature of the agreement);

(b) article 60D (exempt agreements: exemptions relating to the purchase of land for

non-residential purposes);

(c) article 60E (exempt agreements: exemptions relating to the nature of the lender);

(d) article 60G (exempt agreements: exemptions relating to the total charge for credit);

(e) article 60H (exempt agreements: exemptions relating to the nature of the borrower).

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.4 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

Extent

Pt II(VIA) art. 36A(1)-(4)(e): United Kingdom 

[Exclusions]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.4 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

P Partially In Force

[ 36B.— Introducing by individuals in the course of canvassing off trade premises

(1) There are excluded from article 36A activities carried on by an individual by canvassing off

trade premises—

(a) a restricted-use credit agreement used to finance a transaction between the lender or a

member of the lender's group and the borrower whether forming part of that agreement or

not, or

(b) a regulated consumer hire agreement.

(2) But paragraph (1) does not apply if A carries on any other activity of a kind specified by article

36A(1)(a) to (c).

(3) A canvasses a restricted-use credit agreement or a regulated consumer hire agreement off trade

premises for the purposes of this article if—

(a) A solicits the entry of an individual or relevant recipient of credit (“B”) into such an

agreement by making oral representations to B during a visit by A to any place (not excluded

by paragraph (4)) where B is, and

(b) that visit is made by A for the purpose of making such oral representations.

(4) A place is excluded from paragraph (3) if it is a place where a business is carried on (whether

on a permanent or temporary basis) by—

(a) the lender or owner,

(b) the supplier under the restricted-use credit agreement,

(c) A,

SI 2001/544 Page 56
(d) a person who employs A or has appointed A as an agent, or

(e) B.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.4 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

Extent

Pt II(VIA) art. 36B(1)-(4)(e): United Kingdom 

P Partially In Force

[ 36C.— Activities for which no fee is paid

(1) There are excluded from sub-paragraphs (d), (e) and (f) of article 36A(1) activities carried on

by a person for which that person does not receive a fee.

(2) For the purposes of this article, “fee”includes pecuniary consideration or any other form of

financial consideration.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.4 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

Extent

Pt II(VIA) art. 36C(1)-(2): United Kingdom 

P Partially In Force

[ 36D. Transaction to which the broker is a party

There are excluded from article 36A activities in relation to a regulated credit agreement (or an

agreement which would be a regulated credit agreement but for the exclusions in articles 60C to

60H) or a regulated consumer hire agreement (or an agreement which would be a regulated consumer

hire agreement but for the exclusions in articles 60O to 60Q) into which the person carrying on the

activity enters or is to enter as lender or owner. ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.4 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

Extent

Pt II(VIA) art. 36D: United Kingdom 

SI 2001/544 Page 57
P Partially In Force

[ 36E.— Activities in relation to certain agreements relating to land

(1) There are excluded from article 36A activities carried on with a view to an individual or relevant

recipient of credit entering into a regulated mortgage contract if the person carrying on the activity

is an authorised person who has permission to—

(a) enter into such a contract as lender, or

(b) make an introduction to an authorised person who has permission to enter into such a

contract as lender.

(2) There are excluded from article 36A activities carried on with a view to an individual or relevant

recipient of credit entering into a regulated home purchase plan if the person carrying on the activity

is an authorised person who has permission to—

(a) enter into such a plan as home purchase provider, or

(b) make arrangements for another person (“the client”) to enter into such a plan by

introducing the client to an authorised person who has permission to enter into such a plan

as home purchase provider.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.4 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

Extent

Pt II(VIA) art. 36E(1)-(2)(b): United Kingdom 

P Partially In Force

[ 36F.— Activities carried on by members of the legal profession etc.

(1) There are excluded from article 36A activities carried on by—

(a) a barrister or advocate acting in that capacity;

(b) a solicitor (within the meaning of the Solicitors Act 1974) acting in the course of

contentious business (as defined in section 87(1) of that Act2);

(c) a solicitor within the meaning of the Solicitors (Scotland) Act 1980 engaging in business

done in or for the purposes of proceedings before a court or before an arbitrator;

(d) a solicitor in Northern Ireland engaging in contentious business as defined in Article

3(2) of the Solicitors (Northern Ireland) Order 19763;

(e) a relevant person (other than a person falling within sub-paragraph (a) to (d)) acting in

the course of contentious business.

(2) In sub-paragraph (e) of paragraph (1)—

“contentious business” means business done in or for the purposes of proceedings begun

before a court or before an arbitrator, not being non-contentious or common form probate

business (within the meaning of section 128 of the Senior Courts Act 1981);

“relevant person” means a person who, for the purposes of the Legal Services Act 2007, is

an authorised person in relation to an activity which constitutes the exercise of a right of

audience or the conduct of litigation (within the meaning of that Act).

]

1

SI 2001/544 Page 58
Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.4 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

2 Amended by the Administration of Justice Act 1985 (c.61), Schedule 1, paragraph 12, and the Arbitration Act

1996 (c.23), Schedule 4.

3

S.I. 1976/582 (N.I. 12).

Extent

Pt II(VIA) art. 36F(1)-(2) definition of "relevant person": United Kingdom 

P Partially In Force

[ 36G. Information society services

Article 36 is also subject to the exclusion in article 72A (information society services)2. ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.4 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

2

Inserted by S.I. 2002/1776 and amended by S.I. 2004/3379.

Extent

Pt II(VIA) art. 36G: United Kingdom 

[ CHAPTER 6B

OPERATING AN ELECTRONIC SYSTEM IN RELATION TO LENDING ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.4 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

[The activity ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.4 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

P Partially In Force

[ 36H.— Operating an electronic system in relation to lending

(1) Where the condition in paragraph (2) is satisfied, operating an electronic system which enables

the operator (“A”) to facilitate persons (“B” and “C”) becoming the lender and borrower under an

article 36H agreement is a specified kind of activity.

SI 2001/544 Page 59
(2) The condition is that the system operated by A is capable of determining which agreements

should be made available to each of B and C (whether in accordance with general instructions

provided to A by B or C or otherwise).

(3) The following are specified kinds of activities if carried on by A in the course of, or in connection

with, the carrying on by A of the activity specified by paragraph (1)—

(a) presenting or offering article 36H agreements to B and C with a view to B becoming

the lender under the article 36H agreement and C becoming the borrower under the article

36H agreement,

(b) furnishing information relevant to the financial standing of a person (“Y”) with a view

to assisting in the determination as to whether another person should—

(i) enter into, as the lender, an article 36H agreement with Y, or

(ii) assume the rights of the lender under an article 36H agreement under which Y

is the borrower,

(c) taking steps to procure the payment of a debt due under an article 36H agreement,

(d) performing duties, or exercising or enforcing rights under an article 36H agreement on

behalf of the lender,

(e) ascertaining whether a credit information agency (within the meaning given by article

89A(6)) holds information relevant to the financial standing of an individual or relevant

person,

(f) ascertaining the contents of such information,

(g) securing the correction of, the omission of anything from, or the making of any other

kind of modification of, such information, or

(h) securing that a credit information agency which holds such information—

(i) stops holding the information, or

(ii) does not provide it to any other person.

(4) An “article 36H agreement”is an agreement between one person (“the borrower”) and another

person (“the lender”) by which the lender provides the borrower with credit (within the meaning

given by article 60L) and in relation to which the condition in either paragraph (5) or (6) is satisfied.

(5) The condition in this paragraph is that the lender is an individual or relevant person.

(6) The condition in this paragraph is that the borrower is an individual or relevant person and—

(a) the lender provides the borrower with credit less than or equal to £25,000, or

(b) the agreement is not entered into by the borrower wholly or predominantly for the

purposes of a business carried on, or intended to be carried on, by the borrower.

(7) Paragraphs (5) and (6) of article 60C (exempt agreements: exemptions relating to the nature of

the agreement) apply for the purposes of paragraph (6)(b).

(8) It is immaterial for the purposes of this article whether the lender is carrying on a regulated

activity.

(9) In this article, “relevant person” means—

(a) a partnership consisting of two or three persons not all of whom are bodies corporate,

or

(b) an unincorporated body of persons which does not consist entirely of bodies corporate

and is not a partnership.

]

1

SI 2001/544 Page 60
Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.4 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

Extent

Pt II(VIB) art. 36H(1)-(9)(b): United Kingdom 

[Exclusion ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.4 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

P Partially In Force

[ 36I. Information society services

Article 36H is subject to the exclusion in article 72A (information society services). ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.4 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

Extent

Pt II(VIB) art. 36I: United Kingdom 

[ Supplemental ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.4 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

P Partially In Force

[ 36J.— Meaning of “consumer”

(1) For the purposes of sections 1G, 404E and 425A of the Act (meaning of “consumer”)

2

, a person

(“C”) is only to be regarded as a person who uses, may use, has, may have used or has or may have

contemplated using, services provided by authorised persons in carrying on a regulated activity of

the kind specified by article 36H or article 64 in so far as relevant to that activity if—

(a) C is, may be, has been or may have been the lender under a relevant agreement and is

an individual or relevant person, or

SI 2001/544 Page 61
(b) C is, may be, has been or may have been the borrower under a relevant agreement, C

is an individual or relevant person and one of the conditions in paragraph (2) is satisfied,

or

(c) C meets the following conditions—

(i) C is, was or would be the lender under a relevant agreement, and

(ii) C is not, was not or would not be, as a result, carrying on a regulated activity.

(2) The conditions in this paragraph are that—

(a) the lender provides, provided or would provide the borrower with credit (within the

meaning given by article 60L) less than or equal to £25,000, or

(b) the agreement is not, was not or would not be entered into by the borrower wholly or

predominantly for the purposes of a business carried on, or intended to be carried on, by

the borrower.

(3) Paragraphs (5) and (6) of article 60C (exempt agreements: exemptions relating to the nature of

the agreement) apply for the purposes of paragraph (2)(b).

(4) In paragraph (1)—

“relevant agreement” means an agreement between one person (“the borrower”) and another

person (“the lender”) by which the lender provides the borrower with credit (within the

meaning given by article 60L);

“relevant person”has the meaning given in article 36H.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.4 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

2

Section 1G was inserted by the Financial Services Act 2012, section 6. Section 404E was inserted by the Financial

Services Act 2010, section 14, and amended by S.I. 2011/99. Section 425A was inserted by the Financial Services

Act 2010, Schedule 2, paragraphs 1 and 32, and amended by S.I. 2013/655.

Extent

Pt II(VIB) art. 36J(1)-(4) definition of "relevant person": United Kingdom 

CHAPTER VII

MANAGING INVESTMENTS

The activity

Law In Force

37. Managing investments

Managing assets belonging to another person, in circumstances involving the exercise of discretion,

is a specified kind of activity if—

(a) the assets consist of or include any investment which is a security or a contractually

based investment; or

SI 2001/544 Page 62
(b) the arrangements for their management are such that the assets may consist of or include

such investments, and either the assets have at any time since 29th April 1988 done so, or

the arrangements have at any time (whether before or after that date) been held out as

arrangements under which the assets would do so.

Commencement

Pt II(VII) art. 37(a)-(b): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19;

SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(VII) art. 37(a)-(b): United Kingdom 

Exclusions

Law In Force

[ 38. Attorneys

(1) A person does not carry on an activity of the kind specified by article 37 if—

(a) he is a person appointed to manage the assets in question under a power of attorney;

and

(b) all routine or day-to-day decisions, so far as relating to investments of a kind mentioned

in article 37(a), are taken on behalf of that person by—

(i) an authorised person with permission to carry on activities of the kind specified

by article 37;

(ii) a person who is an exempt person in relation to activities of that kind; or

(iii) an overseas person.

[ (2) This article is subject to article 4(4). ]

2

]

1

Notes

1 Existing art.38 renumbered as art.38(1) by Financial Services and Markets Act 2000 (Regulated Activities)

(Amendment No. 3) Order 2006/3384 Pt 2 art.17(a) (April 1, 2007: substitution has effect on April 1, 2007 for

the purposes specified in SI 2006/3384 art.1(2)(a); November 1, 2007 otherwise)

2

Possible drafting error - words purportedly inserted after art.38(1) but instead have been inserted as art.38(2) by

Financial Services and Markets Act 2000 (Regulated Activities) (Amendment No. 3) Order 2006/3384 Pt 2 art.17(b)

(April 1, 2007: insertion has effect on April 1, 2007 for the purposes specified in SI 2006/3384 art.1(2)(a); November

1, 2007 otherwise)

Commencement

Pt II(VII) art. 38(a)-(b)(ii): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s.

19; SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(VII) art. 38(a)-(2): United Kingdom 

SI 2001/544 Page 63
Law In Force

39. Other exclusions

Article 37 is also subject to the exclusions in articles 66 (trustees etc.), 68 (sale of goods and supply

of services) [, 69 (groups and joint enterprises) [,]

2

72A (information society services) ]

1

[, 72AA

(managers of UCITS and AIFs) and 72C (provisions of information about contracts of insurance

on an incidental basis) ]

3

 .

Notes

1 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order

2002/1776 art.3(7) (August 21, 2002)

2 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order

2003/1476 Pt 2 art.6 (October 31, 2004 in relation to contracts of long-term care insurance; January 14, 2005

otherwise)

3 Words substituted by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(9) (July 22,

2013: substitution has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

Commencement

Pt II(VII) art. 39: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(VII) art. 39: United Kingdom 

[ CHAPTER VIIA

ASSISTING IN THE ADMINISTRATION AND PERFORMANCE OF A CONTRACT OF

INSURANCE ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2003/1476

Pt 2 art.7 (October 31, 2004 in relation to contracts of long-term care insurance; January 14, 2005 otherwise)

[The activity ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2003/1476

Pt 2 art.7 (October 31, 2004 in relation to contracts of long-term care insurance; January 14, 2005 otherwise)

Law In Force

[ 39A. Assisting in the administration and performance of a contract of insurance

Assisting in the administration and performance of a contract of insurance is a specified kind of

activity. ]

1

SI 2001/544 Page 64
Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2003/1476

Pt 2 art.7 (October 31, 2004 in relation to contracts of long-term care insurance; January 14, 2005 otherwise)

Extent

Pt II(VIIA) art. 39A: United Kingdom 

[Exclusions]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2003/1476

Pt 2 art.7 (October 31, 2004 in relation to contracts of long-term care insurance; January 14, 2005 otherwise)

Law In Force

[ 39B.— Claims management on behalf of an insurer etc.

(1) A person does not carry on an activity of the kind specified by article 39A if he acts in the

course of carrying on the activity of–

(a) expert appraisal;

(b) loss adjusting on behalf of a relevant insurer; or

(c) managing claims on behalf of a relevant insurer,

and that activity is carried on in the course of carrying on any profession or business.

(2) In this article–

(a) “relevant insurer” means–

(i) a person who has Part IV permission to carry on an activity of the kind specified

by article 10;

(ii) a person to whom the general prohibition does not apply by virtue of section

316(1)(a) of the Act (members of the Society of Lloyd's);

(iii) an EEA firm falling within paragraph 5(d) of Schedule 3 to the Act (insurance

undertaking); or

(iv) a relevant reinsurer;

(b) “relevant reinsurer” means a person whose main business consists of accepting risks

ceded by–

(i) a person falling within sub-paragraph (i), (ii) or (iii) of the definition of “relevant

insurer”; [...]2

[ (ii) an EEA firm falling within paragraph 5(da) of Schedule 3 to the Act

(reinsurance undertaking); or

(iii) a person established outside the United Kingdom and not falling within

paragraph (ii) who carries on an activity of the kind specified by article 10 by way

of business. ]

3

]

1

SI 2001/544 Page 65
Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2003/1476

Pt 2 art.7 (October 31, 2004 in relation to contracts of long-term care insurance; January 14, 2005 otherwise)

2 Word repealed by Financial Services and Markets Act 2000 (Reinsurance Directive) Order 2007/3254 art.2(2)(a)

(December 10, 2007)

3 Art.39B(2)(b)(ii)-(iii) substituted for art.39B(2)(b)(ii) by Financial Services and Markets Act 2000 (Reinsurance

Directive) Order 2007/3254 art.2(2)(b) (December 10, 2007)

Extent

Pt II(VIIA) art. 39B(1)-(2)(b)(iii): United Kingdom 

Law In Force

[ 39C. Other exclusions

Article 39A is also subject to the exclusions in articles 66 (trustees etc.), 67 (profession or

non-investment business), 72A (information society services), 72B (activities carried on by a

provider of relevant goods or services), 72C (provision of information about contracts of insurance

on an incidental basis) [ , article 72AA (managers of UCITS and AIFs) and article 72D (large risks

contracts where risk situated outside the EEA) ]

2

 . ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2003/1476

Pt 2 art.7 (October 31, 2004 in relation to contracts of long-term care insurance; January 14, 2005 otherwise)

2 Words substituted by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(7) (July 22,

2013: substitution has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

Extent

Pt II(VIIA) art. 39C: United Kingdom 

[ CHAPTER 7B

ACTIVITIES IN RELATION TO DEBT ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.5 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

[The activities]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.5 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

SI 2001/544 Page 66
P Partially In Force

[ 39D.— Debt adjusting

(1) When carried on in relation to debts due under a credit agreement—

(a) negotiating with the lender, on behalf of the borrower, terms for the discharge of a debt,

(b) taking over, in return for payments by the borrower, that person's obligation to discharge

a debt, or

(c) any similar activity concerned with the liquidation of a debt,

is a specified kind of activity.

(2) When carried on in relation to debts due under a consumer hire agreement—

(a) negotiating with the owner, on behalf of the hirer, terms for the discharge of a debt,

(b) taking over, in return for payments by the hirer, that person's obligation to discharge a

debt, or

(c) any similar activity concerned with the liquidation of a debt,

is a specified kind of activity.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.5 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

Extent

Pt II(VIIB) art. 39D(1)-(2)(c): United Kingdom 

P Partially In Force

[ 39E.— Debt-counselling

(1) Giving advice to a borrower about the liquidation of a debt due under a credit agreement is a

specified kind of activity.

(2) Giving advice to a hirer about the liquidation of a debt due under a consumer hire agreement

is a specified kind of activity.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.5 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

Extent

Pt II(VIIB) art. 39E(1)-(2): United Kingdom 

P Partially In Force

[ 39F.— Debt-collecting

(1) Taking steps to procure the payment of a debt due under a credit agreement or a relevant article

36H agreement is a specified kind of activity.

SI 2001/544 Page 67
(2) Taking steps to procure the payment of a debt due under a consumer hire agreement is a specified

kind of activity.

(3) Paragraph (1) does not apply in so far as the activity is an activity of the kind specified by article

36H (operating an electronic system in relation to lending).

(4) In this article, “relevant article 36H agreement” means an article 36H agreement (within the

meaning of article 36H) which has been entered into with the facilitation of an authorised person

with permission to carry on a regulated activity of the kind specified by that article.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.5 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

Extent

Pt II(VIIB) art. 39F(1)-(4): United Kingdom 

P Partially In Force

[ 39G.— Debt administration

(1) Subject to paragraph (3), taking steps—

(a) to perform duties under a credit agreement or relevant article 36H agreement on behalf

of the lender, or

(b) to exercise or enforce rights under such an agreement on behalf of the lender,

is a specified kind of activity

(2) Subject to paragraph (3), taking steps—

(a) to perform duties under a consumer hire agreement on behalf of the owner, or

(b) to exercise or enforce rights under such an agreement on behalf of the owner,

is a specified kind of activity.

(3) Paragraphs (1) and (2) do not apply in so far as the activity is an activity of the kind specified

by article 36H (operating an electronic system in relation to lending) or article 39F (debt-collecting).

(4) In this article, “relevant article 36H agreement” means an article 36H agreement (within the

meaning of article 36H) which has been entered into with the facilitation of an authorised person

with permission to carry on a regulated activity of the kind specified by that article.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.5 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

Extent

Pt II(VIIB) art. 39G(1)-(4): United Kingdom 

SI 2001/544 Page 68
[Exclusions]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.5 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

P Partially In Force

[ 39H.— Activities where person has a connection to the agreement

(1) There are excluded from articles 39D(1), 39E(1) and 39F(1) activities carried on by a person

who is—

(a) the lender under the agreement,

(b) the supplier in relation to that agreement,

(c) a person carrying on an activity of the kind specified by article 36A by way of business

and who has acquired the business of the person who was the supplier in relation to the

agreement, or

(d) a person who would be carrying on an activity of the kind specified by article 36A by

way of business but for the exclusion in article 36B where the agreement was made in

consequence of an introduction (by that person or another person) to which article 36B

applies.

(2) There are excluded from articles 39D(2), 39E(2) and 39F(2) activities carried on by a person

who is—

(a) the owner under the consumer hire agreement, or

(b) a person who would be carrying on an activity of the kind specified by article 36A by

way of business but for the exclusion in article 36B where the agreement was made in

consequence of an introduction (by that person or another person) to which article 36B

applies.

(3) There is excluded from article 39G(1) steps taken under or in relation to an agreement on behalf

of a person who is, in relation to that agreement, a person falling within paragraph (1)(a) to (d).

(4) There is excluded from article 39G(2) steps taken under or in relation to a consumer hire

agreement on behalf of a person who is, in relation to that agreement, a person falling within

paragraph (2)(a) or (b).

(5) In paragraph (1), “supplier”, in relation to an agreement, means—

(a) a person, other than the lender, whose transaction with the borrower is, or is to be,

financed by the agreement, or

(b) a person to whom the rights and duties of a person falling within sub-paragraph (a)

have been passed by assignment or operation of law.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.5 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

SI 2001/544 Page 69
Extent

Pt II(VIIB) art. 39H(1)-(5)(b): United Kingdom 

P Partially In Force

[ 39I.— Activities carried on by certain energy suppliers

(1) There are excluded from articles 39D, 39E, 39F and 39G activities carried on by a relevant

energy supplier acting in that capacity in relation to debts due under a green deal plan associated

with the supplier.

(2) A green deal plan is associated with a supplier if the payments under the plan are to be made

to the supplier.

(3) In this article—

(a) “green deal plan”has the meaning given by section 1 of the Energy Act 2011;

(b) “relevant energy supplier”has the meaning given in regulations made for the purpose

of section 2(9) of that Act.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.5 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

Extent

Pt II(VIIB) art. 39I(1)-(3)(b): United Kingdom 

P Partially In Force

[ 39J. Activities carried on in relation to a relevant agreement in relation to land

There are excluded from articles 39D, 39E, 39F and 39G activities that relate to a regulated mortgage

contract or a regulated home purchase plan. ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.5 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

Extent

Pt II(VIIB) art. 39J: United Kingdom 

P Partially In Force

[ 39K.— Activities carried on by members of the legal profession etc.

(1) There are excluded from articles 39D, 39E, 39F and 39G activities carried on by—

(a) a barrister or advocate acting in that capacity;

(b) a solicitor (within the meaning of the Solicitors Act 1974) acting in the course of

contentious business (as defined in section 87(1) of that Act);

SI 2001/544 Page 70
(c) a solicitor within the meaning of the Solicitors (Scotland) Act 1980 engaging in business

done in or for the purposes of proceedings before a court or before an arbitrator;

(d) a solicitor in Northern Ireland engaging in contentious business as defined in Article

3(2) of the Solicitors (Northern Ireland) Order 1976;

(e) a relevant person (other than a person falling within sub-paragraph (a) to (d)) acting in

the course of contentious business.

(2) In sub-paragraph (e) of paragraph (1)—

“contentious business” means business done in or for the purposes of proceedings begun

before a court or before an arbitrator, not being non-contentious or common form probate

business (within the meaning of section 128 of the Senior Courts Act 1981);

“relevant person” means a person who, for the purposes of the Legal Services Act 2007, is

an authorised person in relation to an activity which constitutes the exercise of a right of

audience or the conduct of litigation (within the meaning of that Act).

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.5 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

Extent

Pt II(VIIB) art. 39K(1)-(2) definition of "relevant person": United Kingdom 

P Partially In Force

[ 39L. Information society services

Articles 39D, 39E, 39F and 39G are also subject to the exclusion in article 72A (information society

services). ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.5 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

Extent

Pt II(VIIB) art. 39L: United Kingdom 

[ Supplemental ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.5 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

SI 2001/544 Page 71
P Partially In Force

[ 39M.— Meaning of “consumer” etc.

(1) For the purposes of sections 1G, 404E and 425A of the Act (meaning of “consumer”), in so far

as those provisions relate to a person (“A”) carrying on a regulated activity of the kind specified

by article 39F (debt-collecting) or 39G (debt administration), or article 64 (agreeing to carry on

specified kinds of activity) so far as relevant to that activity the following are to be treated as a

“consumer”—

(a) the borrower under the agreement or the hirer under the consumer hire agreement;

(b) someone who has been the borrower or hirer under that agreement;

(c) a person who is treated by A as a person falling within sub-paragraph (a) or (b).

(2) For the purposes of section 328(8) of the Act (meaning of “clients”) in so far as that provision

relates to a person (“A”) carrying on a regulated activity of the kind specified by article 39F or

39G, the following are to be treated as a “client”—

(a) the borrower under the agreement or the hirer under the consumer hire agreement;

(b) someone who has been the borrower or hirer under that agreement;

(c) a person who is treated by A as a person falling within sub-paragraph (a) or (b).

(3) In this article, “borrower”includes (in addition to those persons included in the definition in

article 60L)—

(a) any person providing a guarantee or indemnity under the agreement, and

(b) a person to whom the rights and duties of a person falling within sub-paragraph (a)

have passed by assignment or operation of law.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.5 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

Extent

Pt II(VIIB) art. 39M(1)-(3)(b): United Kingdom 

CHAPTER VIII

SAFEGUARDING AND ADMINISTRATING INVESTMENTS

The activity

Law In Force

40.— Safeguarding and administering investments

(1) The activity consisting of both—

(a) the safeguarding of assets belonging to another, and

(b) the administration of those assets,

or arranging for one or more other persons to carry on that activity, is a specified kind of activity

if the condition in sub-paragraph (a) or (b) of paragraph (2) is met.

SI 2001/544 Page 72
(2) The condition is that—

(a) the assets consist of or include any investment which is a security or a contractually

based investment; or

(b) the arrangements for their safeguarding and administration are such that the assets may

consist of or include such investments, and either the assets have at any time since 1st June

1997 done so, or the arrangements have at any time (whether before or after that date) been

held out as ones under which such investments would be safeguarded and administered.

(3) For the purposes of this article—

(a) it is immaterial that title to the assets safeguarded and administered is held in

uncertificated form;

(b) it is immaterial that the assets safeguarded and administered may be transferred to

another person, subject to a commitment by the person safeguarding and administering

them, or arranging for their safeguarding and administration, that they will be replaced by

equivalent assets at some future date or when so requested by the person to whom they

belong.

Commencement

Pt II(VIII) art. 40(1)-(3)(b): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s.

19; SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(VIII) art. 40(1)-(3)(b): United Kingdom 

Exclusions

Law In Force

41.— Acceptance of responsibility by third party

(1) There are excluded from article 40 any activities which a person carries on pursuant to

arrangements which—

(a) are ones under which a qualifying custodian undertakes to the person to whom the assets

belong a responsibility in respect of the assets which is no less onerous than the qualifying

custodian would have if the qualifying custodian were safeguarding and administering the

assets; and

(b) are operated by the qualifying custodian in the course of carrying on in the United

Kingdom an activity of the kind specified by article 40.

(2) In paragraph (1), “qualifying custodian” means a person who is—

(a) an authorised person who has permission to carry on an activity of the kind specified

by article 40, or

(b) an exempt person acting in the course of a business comprising a regulated activity in

relation to which he is exempt.

SI 2001/544 Page 73
Commencement

Pt II(VIII) art. 41(1)-(2)(b): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s.

19; SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(VIII) art. 41(1)-(2)(b): United Kingdom 

Law In Force

42.— Introduction to qualifying custodians

(1) There are excluded from article 40 any arrangements pursuant to which introductions are made

by a person (“P”) to a qualifying custodian with a view to the qualifying custodian providing in

the United Kingdom a service comprising an activity of the kind specified by article 40, where the

qualifying person (or other person who is to safeguard and administer the assets in question) is not

connected with P.

(2) For the purposes of paragraph (1)—

(a) “qualifying custodian”has the meaning given by article 41(2); and

(b) a person is connected with P if either he is a member of the same group as P, or P is

remunerated by him.

Commencement

Pt II(VIII) art. 42(1)-(2)(b): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s.

19; SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(VIII) art. 42(1)-(2)(b): United Kingdom 

Law In Force

[ 42A.— Depositaries of UCITS and AIFs

A person does not carry on an activity of the kind specified by article 40 if the person carries on

the activity in relation to—

(a) a UCITS, and the person has a Part 4A permission to carry on the activity specified in

article 51ZB in respect of that UCITS; or

(b) an AIF, and the person has a Part 4A permission to carry on the activity specified in

article 51ZD in respect of that AIF.

]

1

Notes

1 Added by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(10) (July 22, 2013:

insertion has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

Extent

Pt II(VIII) art. 42A(a)-(b): United Kingdom 

SI 2001/544 Page 74
Law In Force

43. Activities not constituting administration

The following activities do not constitute the administration of assets for the purposes of article

40—

(a) providing information as to the number of units or the value of any assets safeguarded;

(b) converting currency;

(c) receiving documents relating to an investment solely for the purpose of onward

transmission to, from or at the direction of the person to whom the investment belongs.

Commencement

Pt II(VIII) art. 43(a)-(c): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19;

SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(VIII) art. 43(a)-(c): United Kingdom 

Law In Force

44. Other exclusions

Article 40 is also subject to the exclusions in articles 66 (trustees etc.), 67 (profession or

non-investment business), 68 (sale of goods and supply of services), 69 (groups and joint enterprises)

[ , 71 (employee share schemes) [ , ]

2

72A (information society services) ]

1

[ , 72AA (managers of

UCITS and AIFs) and 72C (provisions of information about contracts of insurance on an incidental

basis) ]

3

 .

Notes

1 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order

2002/1776 art.3(8) (August 21, 2002)

2 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order

2003/1476 Pt 2 art.8 (October 31, 2004 in relation to contracts of long-term care insurance; January 14, 2005

otherwise)

3 Words substituted by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(9) (July 22,

2013: substitution has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

Commencement

Pt II(VIII) art. 44: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(VIII) art. 44: United Kingdom 

SI 2001/544 Page 75
CHAPTER IX

SENDING DEMATERIALISED INSTRUCTIONS

The activities

Law In Force

45.— Sending dematerialised instructions

(1) Sending, on behalf of another person, dematerialised instructions relating to a security [ or a

contractually based investment ]

1

 is a specified kind of activity, where those instructions are sent

by means of a relevant system in respect of which an Operator is approved under the [ 2001 ]

2

Regulations.

(2) Causing dematerialised instructions relating to a security [ or a contractually based investment

]

3

 to be sent [ on behalf of another person ]

4

 by means of such a system is also a specified kind

of activity where the person causing them to be sent is a system-participant.

(3) In this Chapter—

[ (a) “the 2001 Regulations” means the Uncertificated Securities Regulations 2001; and ]

5

(b) “dematerialised instruction”, “Operator”, “settlement bank” and “system-participant”have

the meaning given by [ regulation 3 of the 2001 ]

6

 Regulations .

Notes

1 Words inserted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2002/682

Pt III art.13(1)(a) (April 27, 2002)

2 Word substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2002/682

Pt III art.13(1)(b) (April 27, 2002)

3 Words inserted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2002/682

Pt III art.13(2) (April 27, 2002)

4 Words inserted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2001/3544

art.7 (December 1, 2001)

5

Substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2002/682 Pt

III art.13(3)(a) (April 27, 2002)

6 Word substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2002/682

Pt III art.13(3)(b) (April 27, 2002)

Commencement

Pt II(IX) art. 45(1)-(3)(b): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s.

19; SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(IX) art. 45(1)-(3)(b): United Kingdom 

SI 2001/544 Page 76
Exclusions

Law In Force

46. Instructions on behalf of participating issuers

There is excluded from article 45 the act of sending, or causing to be sent, a dematerialised instruction

where the person on whose behalf the instruction is sent or caused to be sent is a participating issuer

within the meaning of the [ 2001 ]

1

 Regulations.

Notes

1 Word substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2002/682

Pt III art.13(4) (April 27, 2002)

Commencement

Pt II(IX) art. 46: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(IX) art. 46: United Kingdom 

Law In Force

47. Instructions on behalf of settlement banks

There is excluded from article 45 the act of sending, or causing to be sent, a dematerialised instruction

where the person on whose behalf the instruction is sent or caused to be sent is a settlement bank

in its capacity as such.

Commencement

Pt II(IX) art. 47: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(IX) art. 47: United Kingdom 

Law In Force

48.— Instructions in connection with takeover offers

(1) There is excluded from article 45 of the act of sending, or causing to be sent, a dematerialised

instruction where the person on whose behalf the instruction is sent or caused to be sent is an offeror

making a takeover offer.

(2) In this article—

(a) “offeror” means, in the case of a takeover offer made by two or more persons jointly,

the joint offers or any of them;

(b) “takeover offer” means—

(i) an offer to acquire shares (which in this sub-paragraph has the same meaning

as in [section 974 of the Companies Act 2006 ]

1

) in a body corporate incorporated

SI 2001/544 Page 77
in the United Kingdom which is a takeover offer within the meaning of [Chapter

3 of Part 28 ]

2

 of that Act[...]2 (or would be such an offer if that Part of that Act

applied in relation to any body corporate);

(ii) an offer to acquire all or substantially all the shares, or all the shares of a

particular class, in a body corporate incorporated outside the United Kingdom; or

(iii) an offer made to all the holders of shares, or shares of a particular class, in a

body corporate to acquire a specified proportion of those shares;

but in determining whether an offer falls within paragraph (ii) there are to be disregarded

any shares which the offeror or any associate of his (within the meaning of [section 988

of the Companies Act 2006 ]

3

) holds or has contracted to acquire; and in determining

whether an offer falls within paragraph (iii) the offeror, any such associate and any person

whose shares the offeror or any such associate has contracted to acquire is not to be regarded

as a holder of shares.

Notes

1 Words substituted by Companies Act 2006 (Commencement No. 2, Consequential Amendments, Transitional

Provisions and Savings) Order 2007/1093 Sch.3 para.8(2) (April 6, 2007)

2 Words substituted by Companies Act 2006 (Commencement No. 2, Consequential Amendments, Transitional

Provisions and Savings) Order 2007/1093 Sch.3 para.8(3) (April 6, 2007)

3 Words substituted by Companies Act 2006 (Commencement No. 2, Consequential Amendments, Transitional

Provisions and Savings) Order 2007/1093 Sch.3 para.8(4) (April 6, 2007)

Commencement

Pt II(IX) art. 48(1)-(2)(b)(iii): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II

s. 19; SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(IX) art. 48(1)-(2)(b)(iii): United Kingdom 

Law In Force

49. Instructions in the course of providing a network

There is excluded from article 45 the act of sending, or causing to be sent, a dematerialised instruction

as a necessary part of providing a network, the purpose of which is to carry dematerialised

instructions which are at all time properly authenticated (within the meaning of the [ 2001 ]

1

Regulations).

Notes

1 Word substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2002/682

Pt III art.13(4) (April 27, 2002)

Commencement

Pt II(IX) art. 49: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(IX) art. 49: United Kingdom 

SI 2001/544 Page 78
Law In Force

50. Other exclusions

Article 45 is also subject to the exclusions in articles 66 (trustees etc.) [ , 69 (groups and joint

enterprises) [ , 72A (information society services) and 72AA (managers of UCITS and AIFs) ]

2

]

1

.

Notes

1 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order

2002/1776 art.3(9) (August 21, 2002)

2 Words substituted by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(6) (July 22,

2013: substitution has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

Commencement

Pt II(IX) art. 50: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(IX) art. 50: United Kingdom 

CHAPTER X

COLLECTIVE INVESTMENT [...]1

Notes

1 Word repealed by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(11) (July 22,

2013: repeal has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

The activities

R Repealed

51.— [...]1

Notes

1 Arts 51ZA-51ZG substituted for art.51 by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1)

para.1(12) (July 22, 2013: substitution has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

Law In Force

[ 51ZA.— Managing a UCITS

(1) Managing a UCITS is a specified kind of activity.

(2) A person manages a UCITS when the person carries on collective portfolio management of the

UCITS within the meaning of the UCITS directive, which includes the functions referred to in

Annex 2 to that directive (the text of which is set out in Schedule 6) in relation to a UCITS.

SI 2001/544 Page 79
(3) If a person manages a UCITS and also carries on other activities in connection with or for the

purposes of the management of that UCITS, such other activities are also included in the activity

specified in paragraph (1).

]

1

Notes

1 Arts 51ZA-51ZG substituted for art.51 by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1)

para.1(12) (July 22, 2013: substitution has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

Extent

Pt II(X) art. 51ZA(1)-(3): United Kingdom 

Law In Force

[ 51ZB.— Acting as trustee or depositary of a UCITS

(1) Acting as—

(a) the trustee of an authorised unit trust scheme, or

(b) the depositary of an open-ended investment company or authorised contractual scheme,

where the scheme or company is a UCITS, is a specified kind of activity.

(2) In paragraph (1), “authorised contractual scheme”, “authorised unit trust scheme”, “trustee”

and “depositary”have the meanings given by section 237 of the Act (other definitions).

]

1

Notes

1 Arts 51ZA-51ZG substituted for art.51 by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1)

para.1(12) (July 22, 2013: substitution has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

Extent

Pt II(X) art. 51ZB(1)-(2): United Kingdom 

Law In Force

[ 51ZC.— Managing an AIF

(1) Managing an AIF is a specified kind of activity.

(2) A person manages an AIF when the person performs at least risk management or portfolio

management for the AIF.

(3) A person does not manage an AIF if the functions they perform for the AIF have been delegated

to it by another person, provided that such other person is not an AIFM that has delegated such

functions to the extent that it is a letter-box entity.

(4) Paragraph (5) applies if a person manages an AIF, and also carries on—

(a) one or more of the additional activities listed in paragraph 2 of Annex 1 to the alternative

investment fund managers directive (the text of which is set out in Schedule 7) for that AIF;

or

SI 2001/544 Page 80
(b) one or more other activities in connection with or for the purposes of the management

of that AIF.

(5) The additional or other activities are included in the activity specified in paragraph (1).

(6) Any expression used in this article which is not defined in this Order and is used in the alternative

investment fund managers directive has the same meaning as in that directive.

]

1

Notes

1 Arts 51ZA-51ZG substituted for art.51 by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1)

para.1(12) (July 22, 2013: substitution has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

Extent

Pt II(X) art. 51ZC(1)-(6): United Kingdom 

Law In Force

[ 51ZD.— Acting as trustee or depositary of an AIF

(1) Acting as—

(a) the depositary of an AIF falling within paragraph (2),

(b) the trustee of an authorised unit trust scheme which is an AIF that does not fall within

paragraph (2), or

(c) the depositary of an open-ended investment company or authorised contractual scheme

which is an AIF that does not fall within paragraph (2),

is a specified kind of activity.

(2) An AIF falls within this paragraph if it is—

(a) an AIF managed by a full-scope UK AIFM; or

(b) a UK AIF managed by an EEA AIFM.

(3) In paragraph (1)(a) “depositary” means—

(a) a person appointed in compliance with the requirement for the AIFM to appoint a

depositary at Article 21.1 of the alternative investment fund managers directive; or

(b) an Article 36 custodianas defined in regulation 57(5)(a) of the Alternative Investment

Fund Managers Regulations 2013.

(4) In paragraph (1)(b) “authorised unit trust scheme” and “trustee”have the meanings given by

section 237 of the Act.

(5) In paragraph (1)(c) “authorised contractual scheme” and “depositary”have the meanings given

by section 237 of the Act.

(6) Until 22nd July 2017, an AIF also falls within paragraph (2) if the FCA or an authority in another

EEA State has permitted a person with its registered office or a branch in the United Kingdom to

be appointed as a depositary of the AIF in accordance with Article 61.5 of the alternative investment

fund managers directive.

]

1

SI 2001/544 Page 81
Notes

1 Arts 51ZA-51ZG substituted for art.51 by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1)

para.1(12) (July 22, 2013: substitution has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

Extent

Pt II(X) art. 51ZD(1)-(6): United Kingdom 

Law In Force

[ 51ZE. Establishing etc. a collective investment scheme

Establishing, operating or winding up a collective investment scheme is a specified kind of

activity. ]

1

Notes

1 Arts 51ZA-51ZG substituted for art.51 by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1)

para.1(12) (July 22, 2013: substitution has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

Extent

Pt II(X) art. 51ZE: United Kingdom 

[ [Exclusions]

2

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2002/1776

art.3(10) (August 21, 2002)

2 Arts 51ZA-51ZG substituted for art.51 by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1)

para.1(12) (July 22, 2013: substitution has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

Law In Force

[ 51ZF. Persons excluded from managing an AIF

There is excluded from article 51ZC the activity of managing an AIF if the person carrying on the

activity is listed or described in Schedule 8. ]

1

Notes

1 Arts 51ZA-51ZG substituted for art.51 by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1)

para.1(12) (July 22, 2013: substitution has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

Extent

Pt II(X) art. 51ZF: United Kingdom 

SI 2001/544 Page 82
Law In Force

[ 51ZG.— Operating a collective investment scheme in relation to a UCITS or an AIF

(1) A person does not carry on an activity of the kind specified by article 51ZE if the person carries

on the activity—

(a) in relation to a UCITS, and—

(i) at the time the person carries on the activity, the UCITS is managed by a person

with a Part 4A permission to carry on the activity specified by article 51ZA in respect

of that UCITS; or

(ii) no more than the permitted period has passed since the UCITS was managed

by a person with such a Part 4A permission; or

(b) in relation to an AIF, and—

(i) at the time the person carries on the activity, the AIF is managed by—

(aa) a person with a Part 4A permission to carry on the activity specified

by article 51ZC in respect of that AIF; or

(bb) a person registered as a small registered UK AIFM because the

conditions in regulation 10(4) of the Alternative Investment Fund Managers

Regulations 2013 are met in respect of that AIF; or

(ii) no more than the permitted period has passed since the AIF was managed by a

person with such a Part 4A permission or registration.

(2) In this article “the permitted period” means a period calculated as follows—

(a) subject to sub-paragraphs (b) and (c), the period is 30 days;

(b) if, before the end of the period, the FCA receives notice of the action being taken to

appoint a person with a Part 4A permission or registration to manage the UCITS or AIF,

the period is extended by a further 30 days, and may be so extended a second time;

(c) if, before the end of the period calculated in accordance with sub-paragraphs (a) and

(b), the FCA receives notice of a proposal in respect of the UCITS or AIF for a new manager

under section 251(3) of the Act, a new operator under section 261Q(5) of the Act or a new

director under regulation 21(1)(e) of the Open-Ended Investment Company Regulations

2001, the period is further extended until the earlier of—

(i) the date on which the FCA gives written notice of its approval to the proposal;

(ii) the date on which the FCA gives a decision notice refusing the proposal; or

(iii) one month after the date on which notice of the proposal was given.

]

1

Notes

1 Arts 51ZA-51ZG substituted for art.51 by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1)

para.1(12) (July 22, 2013: substitution has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

Extent

Pt II(X) art. 51ZG(1)-(2)(c)(iii): United Kingdom 

Law In Force

[ 51A. Information society services[ and managers of UCITS and AIFs]

2

[ Articles 51ZA, 51ZB, 51ZC, 51ZD, and 51ZE are also ]

3

 subject to the [ exclusions]

4

 in article

72A (information society services) [ and article 72AA (managers of UCITS and AIFs) ]

5

 . ]

1

SI 2001/544 Page 83
Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2002/1776

art.3(10) (August 21, 2002)

2 Words inserted by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(4)(a) (July 22,

2013: insertion has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

3 Words substituted by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(13) (July

22, 2013: substitution has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

4 Word substituted by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(4)(b) (July

22, 2013: substitution has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

5 Words inserted by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(4)(c) (July 22,

2013: insertion has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

Extent

Pt II(X) art. 51A: United Kingdom 

CHAPTER XI

[...]1 PENSION SCHEMES

Notes

1 Word repealed by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2006/1969

art.2(3) (October 1, 2006 for purposes specified in SI 2006/1969 art.1(2)(a); April 6, 2007 otherwise)

The activities

Law In Force

[ 52. Establishing etc. a pension scheme

The following are specified kinds of activity—

(a) establishing, operating or winding up a stakeholder pension scheme;

(b) establishing, operating or winding up a personal pension scheme.

]

1

Notes

1

Substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2006/1969

art.2(4) (October 1, 2006 for purposes specified in SI 2006/1969 art.1(2)(a); April 6, 2007 otherwise)

Commencement

Pt II(XI) art. 52: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(XI) art. 52(a)-(b): United Kingdom 

SI 2001/544 Page 84
[Exclusion ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2002/1776

art.3(11) (August 21, 2002)

Law In Force

[ 52A. Information society services[ and managers of UCITS and AIFs]

2

Article 52 is subject to the [ exclusions]

3

 in article 72A (information society services) [ and article

72AA (managers of UCITS and AIFs) ]

4

 . ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2002/1776

art.3(11) (August 21, 2002)

2 Words inserted by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(4)(a) (July 22,

2013: insertion has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

3 Word substituted by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(4)(b) (July

22, 2013: substitution has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

4 Words inserted by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(4)(c) (July 22,

2013: insertion has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

Extent

Pt II(XI) art. 52A: United Kingdom 

[ CHAPTER XIA

PROVIDING BASIC ADVICE ON STAKEHOLDER PRODUCTS ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities)(Amendment)(No.2) Order 2004/2737

art.3 (April 6, 2005)

[The activity ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities)(Amendment)(No.2) Order 2004/2737

art.3 (April 6, 2005)

Law In Force

[ 52B.— Providing basic advice on stakeholder products

(1) Providing basic advice to a retail consumer on a stakeholder product is a specified kind of

activity.

SI 2001/544 Page 85
(2) For the purposes of paragraph (1), a person (“P”) provides basic advice when–

(a) he asks a retail consumer questions to enable him to assess whether a stakeholder product

is appropriate for that consumer; and

(b) relying on the information provided by the retail consumer P assesses that a stakeholder

product is appropriate for the retail consumer and–

(i) describes that product to that consumer;

(ii) gives a recommendation of that product to that consumer; and

(c) the retail consumer has indicated to P that he has understood the description and the

recommendation in sub-paragraph (b).

(3) In this article–

“retail consumer” means any person who is advised by P on the merits of opening or buying

a stakeholder product in the course of a business carried on by P and who does not receive

the advice in the course of a business carried on by him;

“stakeholder product” means–

(a) an account which qualifies as a stakeholder child trust fund within the meaning

given by the Child Trust Funds Regulations 20042;

[ (b) rights under a stakeholder pension scheme; ]

3

(c) an investment of a kind specified in regulations made by the Treasury.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities)(Amendment)(No.2) Order 2004/2737

art.3 (April 6, 2005)

2

S.I 2004/1450 as amended by S.I. 2004/2676

3

Substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2005/593

art.2(3) (April 6, 2005)

Extent

Pt II(XIA) art. 52B(1)-(3) definition of "stakeholder product" (c): United Kingdom 

CHAPTER XII

ADVISING ON INVESTMENTS

The activity

Law In Force

53. Advising on investments

Advising a person is a specified kind of activity if the advice is—

(a) given to the person in his capacity as an investor or potential investor, or in his capacity

as agent for an investor or a potential investor; and

(b) advice on the merits of his doing any of the following (whether as principal or agent)—

(i) buying, selling, subscribing for or underwriting a particular investment which

is a security or a [ relevant investment ]

1

 , or

SI 2001/544 Page 86
(ii) exercising any right conferred by such an investment to buy, sell, subscribe for

or underwrite such an investment.

Notes

1 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order

2003/1476 Pt 2 art.9(1) (October 31, 2004 in relation to contracts of long-term care insurance; January 14, 2005

otherwise)

Commencement

Pt II(XII) art. 53(a)-(b)(ii): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s.

19; SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(XII) art. 53(a)-(b)(ii): United Kingdom 

Law In Force

[ 53A.— Advising on regulated mortgage contracts

(1) Advising a person is a specified kind of activity if the advice–

(a) is given to the person in his capacity as a borrower or potential borrower; and

(b) is advice on the merits of his doing any of the following–

(i) entering into a particular regulated mortgage contract, or

(ii) varying the terms of a regulated mortgage contract entered into by him after the

coming into force of article 61 in such a way as to vary his obligations under that

contract.

(2) In this article, “borrower”has the meaning given by article 61(3)(a)(i).

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 1) Order 2003/1475

Pt 2 art.13 (October 31, 2004)

Extent

Pt II(XII) art. 53A(1)-(2): United Kingdom 

Law In Force

[ 53B. Advising on regulated home reversion plans

Advising a person is a specified kind of activity if the advice—

(a) is given to the person in his capacity as—

(i) a reversion seller or potential reversion seller, or

(ii) a plan provider or potential plan provider; and

(b) is advice on the merits of his doing either of the following—

(i) entering into a particular regulated home reversion plan, or

(ii) varying the terms of a regulated home reversion plan, entered into on or after

6th April 2007 by him, in such a way as to vary his obligations under that plan.

SI 2001/544 Page 87
]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2006/2383

Pt 2 art.13 (November 6, 2006 for the purposes of enabling applications as specified in SI 2006/2383 art.1(2)(a);

April 6, 2007 otherwise)

Extent

Pt II(XII) art. 53B(a)-(b)(ii): United Kingdom 

Law In Force

[ 53C. Advising on regulated home purchase plans

Advising a person is a specified kind of activity if the advice—

(a) is given to the person in his capacity as a home purchaser or potential home purchaser;

and

(b) is advice on the merits of his doing either of the following—

(i) entering into a particular regulated home purchase plan, or

(ii) varying the terms of a regulated home purchase plan, entered into on or after

6th April 2007 by him, in such a way as to vary his obligations under that plan.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2006/2383

Pt 2 art.13 (November 6, 2006 for the purposes of enabling applications as specified in SI 2006/2383 art.1(2)(a);

April 6, 2007 otherwise)

Extent

Pt II(XII) art. 53C(a)-(b)(ii): United Kingdom 

Law In Force

[ 53D. Advising on regulated sale and rent back agreements

Advising a person is a specified kind of activity if the advice—

(a) is given to the person (“A”) in A's capacity as—

(i) an agreement seller or potential agreement seller, or

(ii) an agreement provider or potential agreement provider; and

(b) is advice on the merits of A doing either of the following—

(i) entering into a particular regulated sale and rent back agreement; or

(ii) varying the terms of a regulated sale and rent back agreement entered into on

or after 1st July 2009 by A as agreement seller or agreement provider, in such a way

so as to vary A's obligations under that agreement.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2009/1342 Pt 2

art.13 (July 1, 2009: insertion has effect subject to transitional provisions specified in SI 2009/1342 art.32)

SI 2001/544 Page 88
Extent

Pt II(XII) art. 53D(a)-(b)(ii): United Kingdom 

Exclusions

Law In Force

54.— Advice given in newspapers etc.

(1) There is excluded from [ articles 53, 53A, 53B, 53C and 53D ]

1

 the giving of advice in writing

or other legible form if the advice is contained in a newspaper, journal, magazine, or other periodical

publication, or is given by way of a service comprising regularly updated news or information, if

the principal purpose of the publication or service, taken as a whole and including any advertisements

or other promotional material contained in it, is neither—

(a) that of giving advice of a kind mentioned in article 53 [ , [ 53A, 53B, 53C or 53D ]

3

,

as the case may be ]

2

; nor

[ (b) that of leading or enabling persons–

(i) to buy, sell, subscribe for or underwrite securities or [ relevant investments]

5

, or (as the case may be),

(ii) to enter as borrower into regulated mortgage contracts, or vary the terms of

regulated mortgage contracts entered into by them as borrower [ , ]

6

[ (iii) to enter as reversion seller or plan provider into regulated home reversion

plans, or vary the terms of regulated home reversion plans entered into by them as

reversion seller or plan provider,

(iv) to enter as home purchaser into regulated home purchase plans, or vary the

terms of regulated home purchase plans entered into by them as home purchaser

[ , ]

7

]

6

[ (v) to enter as agreement seller or agreement provider into regulated sale and rent

back agreements, or vary the terms of regulated sale and rent back agreements

entered into by them as agreement seller or agreement provider. ]

7

]

4

(2) There is also excluded from [ articles 53, 53A, 53B, 53C and 53D ]

8

 the giving of advice in

any service consisting of the broadcast or transmission of television or radio programmes, if the

principal purpose of the service, taken as a whole and including any advertisements or other

promotional material contained in it, is neither of those mentioned in paragraph (1)(a) and (b).

(3) [ The FCA ]

9

 may, on the application of the proprietor of any such publication or service as is

mentioned in paragraph (1) or (2), certify that it is of the nature described in that paragraph, and

may revoke any such certificate if it considers that it is no longer justified.

(4) A certificate given under paragraph (3) and not revoked is conclusive evidence of the matters

certified.

Notes

1 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order

2009/1342 Pt 2 art.14(a) (July 1, 2009: substitution has effect subject to transitional provisions specified in SI

2009/1342 art.32)

SI 2001/544 Page 89
2 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order

2006/2383 Pt 2 art.14(a)(ii) (November 6, 2006 for the purposes of enabling applications as specified in SI

2006/2383 art.1(2)(a); April 6, 2007 otherwise)

3 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order

2009/1342 Pt 2 art.14(b) (July 1, 2009: substitution has effect subject to transitional provisions specified in SI

2009/1342 art.32)

4

Substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 1) Order

2003/1475 Pt 2 art.14(4) (October 31, 2004)

5 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order

2003/1476 Pt 2 art.9(2) (October 31, 2004 in relation to contracts of long-term care insurance; January 14, 2005

otherwise)

6 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2006/2383

Pt 2 art.14(a)(iii) (November 6, 2006 for the purposes of enabling applications as specified in SI 2006/2383

art.1(2)(a); April 6, 2007 otherwise)

7 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2009/1342 Pt 2

art.14(c) (July 1, 2009: insertion has effect subject to transitional provisions specified in SI 2009/1342 art.32)

8 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order

2009/1342 Pt 2 art.14(d) (July 1, 2009: substitution has effect subject to transitional provisions specified in SI

2009/1342 art.32)

9 Words substituted by Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order

2013/472 Sch.2 para.35(a) (April 1, 2013)

Commencement

Pt II(XII) art. 54(1)-(4): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19;

SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(XII) art. 54(1)-(4): United Kingdom 

Law In Force

[ 54A. Advice given in the course of administration by authorised person

(1) A person who is not an authorised person (“A”) does not carry on an activity of the kind specified

by article 53A by reason of–

(a) anything done by an authorised person (“B”) in relation to a regulated mortgage contract

which B is administering pursuant to arrangements of the kind mentioned in article 62(a);

or

(b) anything A does in connection with the administration of a regulated mortgage contract

in circumstances falling within article 62(b).

(2) A person who is not an authorised person (“A”) does not carry on an activity of the kind specified

by article 53B by reason of—

(a) anything done by an authorised person (“B”) in relation to a regulated home reversion

plan which B is administering pursuant to arrangements of the kind mentioned in article

63C(a); or

(b) anything A does in connection with the administration of a regulated home reversion

plan in circumstances falling within article 63C(b).

SI 2001/544 Page 90
(3) A person who is not an authorised person (“A”) does not carry on an activity of the kind specified

by article 53C by reason of—

(a) anything done by an authorised person (“B”) in relation to a regulated home purchase

plan which B is administering pursuant to arrangements of the kind mentioned in article

63G(a); or

(b) anything A does in connection with the administration of a regulated home purchase

plan in circumstances falling within article 63G(b).

[ (4) A person who is not an authorised person (“A”) does not carry on an activity of the kind

specified by article 53D by reason of

(a) anything done by an authorised person (“B”) in relation to a regulated sale and rent

back agreement which B is administering pursuant to arrangements of the kind mentioned

in article 63K(a); or

(b) anything A does in connection with the administration of a regulated sale and rent back

agreement in circumstances falling within article 63K(b).

]

2

]

1

Notes

1 Existing art.54A renumbered as art.54A(1) and art.54A(2) and (3) inserted by Financial Services and Markets Act

2000 (Regulated Activities) (Amendment) (No.2) Order 2006/2383 Pt 2 art.15 (November 6, 2006 for the purposes

of enabling applications as specified in SI 2006/2383 art.1(2)(a); April 6, 2007 otherwise)

2 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2009/1342 Pt 2

art.15 (July 1, 2009: insertion has effect subject to transitional provisions specified in SI 2009/1342 art.32)

Extent

Pt II(XII) art. 54A(1)-(b): United Kingdom 

Law In Force

55. Other exclusions

[ (1) Article 53 is also subject to the exclusions in articles 66 (trustees etc.), 67, (profession or

non-investment business), 68 (sale of goods and supply of services), 69 (groups and joint enterprises),

70 (sale of body corporate), 72 (overseas persons) [ , ]

2

72A (information society services) [ 72B

(activities carried on by a provider of relevant goods or services) [ , article 72AA (managers of

UCITS and AIFs) and article 72D (large risks contracts where risk situated outside the EEA) ]

3

]

2

.

(2) [[ Articles 53A, 53B, 53C and 53D ]

5

 are ]

4

 also subject to the exclusions in articles 66 (trustees

etc.), 67 (profession or non-investment business) [ , 72A (information society services) and 72AA

(managers of UCITS and AIFs) ]

6

 . ]

1

[...]1

Notes

1 Existing art.55 renumbered as art.55(1) and art.55(2) is added by Financial Services and Markets Act 2000

(Regulated Activities) (Amendment) (No. 1) Order 2003/1475 Pt 2 art.16 (October 31, 2004)

SI 2001/544 Page 91
2 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order

2003/1476 Pt 2 art.9(3) (October 31, 2004 in relation to contracts of long-term care insurance; January 14, 2005

otherwise)

3 Words substituted by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(7) (July 22,

2013: substitution has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

4 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order

2006/2383 Pt 2 art.16 (November 6, 2006 for the purposes of enabling applications as specified in SI 2006/2383

art.1(2)(a); April 6, 2007 otherwise)

5 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order

2009/1342 Pt 2 art.16 (July 1, 2009: substitution has effect subject to transitional provisions specified in SI

2009/1342 art.32)

6 Words substituted by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(6) (July 22,

2013: substitution has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

Commencement

Pt II(XII) art. 55: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(XII) art. 55(1)-(2): United Kingdom 

CHAPTER XIII

LLOYD'S

The activities

Law In Force

56. Advice on syndicate participation at Lloyd's

Advising a person to become, or continue or cease to be, a member of a particular Lloyd's syndicate

is a specified kind of activity.

Commencement

Pt II(XIII) art. 56: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(XIII) art. 56: United Kingdom 

Law In Force

57. Managing the underwriting capacity of a Lloyd's syndicate

Managing the underwriting capacity of a Lloyd's syndicate as a managing agent at Lloyd's is a

specified kind of activity.

SI 2001/544 Page 92
Commencement

Pt II(XIII) art. 57: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(XIII) art. 57: United Kingdom 

Law In Force

58. Arranging deals in contracts of insurance written at Lloyd's

The arranging, by the society incorporated by Lloyd's Act 1871 by the name of Lloyd's, of deals

in contracts of insurance written at Lloyd's, is a specified kind of activity.

Commencement

Pt II(XIII) art. 58: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(XIII) art. 58: United Kingdom 

[Exclusion ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2002/1776

art.3(13) (August 21, 2002)

Law In Force

[ 58A. Information society services[ and managers of UCITS and AIFs]

2

Articles 56 to 58 are subject to the [ exclusions]

3

 in article 72A (information society services) [

and article 72AA (managers of UCITS and AIFs) ]

4

 . ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2002/1776

art.3(13) (August 21, 2002)

2 Words inserted by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(4)(a) (July 22,

2013: insertion has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

3 Word substituted by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(4)(b) (July

22, 2013: substitution has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

4 Words inserted by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(4)(c) (July 22,

2013: insertion has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

SI 2001/544 Page 93
Extent

Pt II(XIII) art. 58A: United Kingdom 

CHAPTER XIV

FUNERAL PLAN CONTRACTS

The activity

Law In Force

59.— Funeral plan contracts

(1) Entering as provider into a funeral plan contract is a specified kind of activity.

(2) A “funeral plan contract” is a contract (other than one excluded by article 60) under which—

(a) a person (“the customer”) makes one or more payments to another person (“the

provider”); and

(b) the provider undertakes to provide, or secure that another person provides, a funeral in

the United Kingdom for the customer (or some other person who is living at the date when

the contract is entered into) on his death;

unless, at the time of entering into the contract, the customer and the provider intend or expect the

funeral to occur within one month.

Commencement

Pt II(XIV) art. 59(1)-(2)(b): January 1, 2002 (SI 2001/544 Pt I art. 2(2))

Extent

Pt II(XIV) art. 59(1)-(2)(b): United Kingdom 

[ Exclusions]

1

Notes

1 Heading substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2)

Order 2002/1776 art.3(14) (August 21, 2002)

Law In Force

60.— Plans covered by insurance or trust arrangements

(1) There is excluded from article 59 any contract under which—

(a) the provider undertakes to secure that sums paid by the customer under the contract

will be applied towards a contract of whole life insurance on the life of the customer (or

other person for whom the funeral is to be provided), effected and carried out by an

authorised person who has permission to effect and carry out such contracts of insurance,

for the purpose of providing the funeral; or

SI 2001/544 Page 94
(b) the provider undertakes to secure that sums paid by the customer under the contract

will be held on trust for the purpose of providing the funeral, and that the following

requirements are or will be met with respect to the trust—

(i) the trust must be established by a written instrument;

(ii) more than half of the trustees must be unconnected with the provider;

(iii) the trustees must appoint, or have appointed, an independent fund manager

who is an authorised person who has permission to carry on an activity of the kind

specified by article 37, and who is a person who is unconnected with the provider,

to manage the assets of the trust;

(iv) annual accounts must be prepared, and audited by a person who is eligible for

appointment as a [statutory auditor under Part 42 of the Companies Act 2006 ]

1

,

with respect to the assets and liabilities of the trust; and

(v) the assets and liabilities of the trust must, at least once every three years, be

determined, calculated and verified by an actuary who is a Fellow of the Institute

of Actuaries or of the Faculty of Actuaries.

(2) For the purposes of paragraph (1)(b)(ii) and (iii), a person is unconnected with the provider if

he is a person other than—

(a) the provider;

(b) a member of the same group as the provider;

(c) a director, other officer or employee of the provider, or of any member of the same

group as the provider;

(d) a partner of the provider;

(e) a close relative of a person falling within sub-paragraph (a), (c) or (d); or

(f) an agent of any person falling within sub-paragraphs (a) to (e).

Notes

1 Words substituted subject to savings specified in SI 2008/948 arts 11 and 12 by Companies Act 2006 (Consequential

Amendments etc) Order 2008/948 Sch.1(1) para.1 (April 6, 2008)

Commencement

Pt II(XIV) art. 60(1)-(2)(f): January 1, 2002 (SI 2001/544 Pt I art. 2(2))

Extent

Pt II(XIV) art. 60(1)-(2)(f): United Kingdom 

Law In Force

[ 60A. Information society services[ and managers of UCITS and AIFs]

2

Article 59 is subject to the [ exclusions]

3

 in article 72A (information society services) [ and article

72AA (managers of UCITS and AIFs) ]

4

 . ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2002/1776

art.3(15) (August 21, 2002)

2 Words inserted by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(4)(a) (July 22,

2013: insertion has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

SI 2001/544 Page 95
3 Word substituted by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(4)(b) (July

22, 2013: substitution has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

4 Words inserted by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(4)(c) (July 22,

2013: insertion has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

Extent

Pt II(XIV) art. 60A: United Kingdom 

[ CHAPTER 14A

REGULATED CREDIT AGREEMENTS ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.6 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

[The activities]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.6 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

P Partially In Force

[ 60B.— Regulated credit agreements

(1) Entering into a regulated credit agreement as lender is a specified kind of activity.

(2) It is a specified kind of activity for the lender or another person to exercise, or to have the right

to exercise, the lender's rights and duties under a regulated credit agreement.

(3) In this article—

“credit agreement” means an agreement between an individual or relevant recipient of credit

(“A”) and any other person (“B”) under which B provides A with credit of any amount;

“exempt agreement” means a credit agreement which is an exempt agreement under articles

60C to 60H;

“regulated credit agreement” means any credit agreement which is not an exempt agreement.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.6 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

Extent

Pt II(XIVA) art. 60B(1)-(3) definition of "regulated credit agreement": United Kingdom 

SI 2001/544 Page 96
P Partially In Force

[ 60C.— Exempt agreements: exemptions relating to the nature of the agreement

(1) A credit agreement is an exempt agreement for the purposes of this Chapter in the following

cases.

(2) A credit agreement is an exempt agreement if it is a regulated mortgage contract or a regulated

home purchase plan.

(3) A credit agreement is an exempt agreement if—

(a) the lender provides the borrower with credit exceeding £25,000, and

(b) the agreement is entered into by the borrower wholly or predominantly for the purposes

of a business carried on, or intended to be carried on, by the borrower.

(4) A credit agreement is an exempt agreement if—

(a) the lender provides the borrower with credit of £25,000 or less,

(b) the agreement is entered into by the borrower wholly for the purposes of a business

carried on, or intended to be carried on, by the borrower, and

(c) the agreement is a green deal plan (within the meaning of section 1 of the Energy Act

2011).

(5) For the purposes of paragraph (3), if an agreement includes a declaration which—

(a) is made by the borrower,

(b) provides that the agreement is entered into by the borrower wholly or predominantly

for the purposes of a business carried on, or intended to be carried on, by the borrower, and

(c) complies with rules made by the FCA for the purpose of this article,

the agreement is to be presumed to have been entered into by the borrower wholly or predominantly

for the purposes specified in sub-paragraph (b) unless paragraph (6) applies.

(6) This paragraph applies if, when the agreement is entered into—

(a) the lender (or, if there is more than one lender, any of the lenders), or

(b) any person who has acted on behalf of the lender (or, if there is more than one lender,

any of the lenders) in connection with the entering into of the agreement,

knows or has reasonable cause to suspect that the agreement is not entered into by the borrower

wholly or predominantly for the purposes of a business carried on, or intended to be carried on, by

the borrower.

(7) Paragraphs (5) and (6) also apply for the purposes of paragraph (4) but with the omission of

the words “or predominantly”.

(8) A credit agreement is an exempt agreement if it is made in connection with trade in goods or

services—

(a) between the United Kingdom and a country outside the United Kingdom,

(b) within a country, or

(c) between countries outside the United Kingdom, and

the credit is provided to the borrower in the course of a business carried on by the borrower.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.6 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

SI 2001/544 Page 97
Extent

Pt II(XIVA) art. 60C(1)-(8)(c): United Kingdom 

P Partially In Force

[ 60D.— Exempt agreements: exemption relating to the purchase of land for non-residential

purposes

(1) A credit agreement is an exempt agreement for the purposes of this Chapter if, at the time it is

entered into, any sums due under it are secured by a legal mortgage on land and the condition in

paragraph (2) is satisfied.

(2) The condition is that less than 40% of the land is used, or is intended to be used, as or in

connection with a dwelling—

(a) by the borrower or a related person of the borrower, or

(b) in the case of credit provided to trustees, by an individual who is a beneficiary of the

trust or a related person of a beneficiary.

(3) For the purposes of paragraph (2)—

(a) the area of any land which comprises a building or other structure containing two or

more storeys is to be taken to be the aggregate of the floor areas of each of those stories;

(b) “related person” in relation to a person (“B”) who is the borrower or (in the case of

credit provided to trustees) a beneficiary of the trust, means—

(i) B's spouse or civil partner,

(ii) a person (whether or not of the opposite sex) whose relationship with B has the

characteristics of the relationship between husband and wife, or

(iii) B's parent, brother, sister, child, grandparent or grandchild.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.6 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

Extent

Pt II(XIVA) art. 60D(1)-(3)(b)(iii): United Kingdom 

P Partially In Force

[ 60E.— Exempt agreements: exemptions relating to the nature of the lender

(1) A credit agreement is an exempt agreement for the purposes of this Chapter in the following

cases.

(2) A relevant credit agreement relating to the purchase of land is an exempt agreement if the lender

is—

(a) specified, or of a description specified, in rules made by the FCA under paragraph (3),

or

(b) a local authority.

(3) The FCA may make rules specifying any of the following for the purpose of paragraph (2)—

SI 2001/544 Page 98
(a) an authorised person with permission to effect or carry out contracts of insurance;

(b) a friendly society;

(c) an organisation of employers or organisation of workers;

(d) a charity;

(e) an improvement company (within the meaning given by section 7 of the Improvement

of Land Act 18992);

(f) a body corporate named or specifically referred to in any public general Act;

(g) a body corporate named or specifically referred to in, or in an order made under, a

relevant housing provision;

(h) a building society (within the meaning of the Building Societies Act 1986);

(i) an authorised person with permission to accept deposits.

(4) Rules under paragraph (3) may—

(a) specify a particular person or class of persons;

(b) be limited so as to apply only to agreements or classes of agreement specified in the

rules.

(5) A credit agreement is an exempt agreement if it is—

(a) secured by a legal mortgage on land,

(b) that land is used or is intended to be used as or in connection with a dwelling, and

(c) the lender is a housing authority.

(6) A credit agreement is an exempt agreement if—

(a) the lender is an investment firm or a credit institution, and

(b) the agreement is entered into for the purpose of allowing the borrower to carry out a

transaction relating to one or more financial instruments.

(7) In this article—

“housing authority” means—

(a) in England and Wales, the Homes and Communities Agency, the Welsh Ministers

or a private registered provider (within the meaning of Part 2 of the Housing and

Regeneration Act 2008);

(b) in Scotland, the Scottish Ministers or a registered social landlord (within the

meaning of the Housing (Scotland) Act 2010;

(c) in Northern Ireland, the Northern Ireland Housing Executive;

“relevant credit agreement relating to the purchase of land” means—

(a) a borrower-lender-supplier agreement financing—

(i) the purchase of land, or

(ii) provision of dwellings on land,

and secured by a legal mortgage on that land,

(b) a borrower-lender agreement secured by a legal mortgage on land, or

(c) a borrower-lender-supplier agreement financing a transaction which is a linked

transaction in relation to—

(i) an agreement falling within sub-paragraph (a), or

(ii) an agreement falling within sub-paragraph (b) financing—

(aa) the purchase of land,

(bb) the provision of dwellings on land,

and secured by a legal mortgage on the land referred to in sub-paragraph (a) or the

land referred to in paragraph (ii);

SI 2001/544 Page 99
“relevant housing provision” means any of the following—

(a) section 156(4) or 447(2)(a) of the Housing Act 19853,

(b) section 156(4) of that Act as it has effect by virtue of section 17 of the Housing

Act 19964 (the right to acquire), or

(c) article 154(1)(a) of the Housing (Northern Ireland) Order 19815.

(8) For the purposes of the definition of “relevant credit agreement relating to the purchase of land”,

a transaction is, unless paragraph (9) applies, a “linked transaction” in relation to a credit agreement

(“the principal agreement”) if—

(a) it is (or will be) entered into by the borrower under the principal agreement or by a

relative of the borrower,

(b) it does not relate to the provision of security,

(c) it does not form part of the principal agreement, and

(d) one of the following conditions is satisfied—

(i) the transaction is entered into in compliance with a term of the principal

agreement;

(ii) the principal agreement is a borrower-lender-supplier agreement and the

transaction is financed, or to be financed, by the principal agreement;

(iii) the following conditions are met—

(aa) the other party is a person to whom paragraph (10) applies,

(bb) the other party initiated the transaction by suggesting it to the borrower

or the relative of the borrower, and

(cc) the borrower or the relative of the borrower enters into the transaction

to induce the lender to enter into the principal agreement or for another

purpose related to the principal agreement or to a transaction financed or to

be financed by the principal agreement.

(9) This paragraph applies if the transaction is—

(a) a contract of insurance,

(b) a contract which contains a guarantee of goods, or

(c) a transaction which comprises, or is effected under—

(i) an agreement for the operation of an account (including any savings account)

for the deposit of money, or

(ii) an agreement for the operation of a current account, under which the customer

(“C”) may, by means of cheques or similar orders payable to C or to any other

person, obtain or have the use of money held or made available by the person with

whom the account is kept.

(10) The persons to whom this paragraph applies are—

(a) the lender;

(b) the lender's associate;

(c) a person who, in the negotiation of the transaction, is represented by a person who

carries on an activity of the kind specified by article 36A (credit broking) by way of business

who is or was also a negotiator in negotiations for the principal agreement;

(d) a person who, at the time the transaction is initiated, knows that the principal agreement

has been made or contemplates that it might be made.

]

1

SI 2001/544 Page 100
Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.6 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

2

1899 c. 46 Section 7 has been repealed in relation to Scotland by the Abolition of Feudal Tenure etc. (Scotland)

Act 2000 (asp 5), Schedule 13, Part 1.

3

Section 156(4) amended by the Government of Wales Act 1998 (c.38), Schedule 16, paragraph 5, the Housing

and Regeneration Act 2008 (c.17), section 307, and S.I. 2001/369 and 2010/866.

4

1996 c. 52 Amended by the Housing and Regeneration Act 2008, sections 62 and 63.

5

S.R. 1981/156 (N.I. 3).

Extent

Pt II(XIVA) art. 60E(1)-(10)(d): United Kingdom 

P Partially In Force

[ 60F.— Exempt agreements: exemptions relating to number of repayments to be made

(1) A credit agreement is an exempt agreement for the purposes of this Chapter in the following

cases.

(2) A credit agreement is an exempt agreement if—

(a) the agreement is a borrower-lender-supplier agreement for fixed-sum credit,

(b) the number of payments to be made by the borrower is not more than four,

(c) those payments are required to be made within a period of 12 months or less (beginning

on the date of the agreement),

(d) the credit is—

(i) secured on land, or

(ii) provided without interest or other significant charges, and

(e) paragraph (7) does not apply to the agreement.

(3) A credit agreement is an exempt agreement if—

(a) the agreement is a borrower-lender-supplier agreement for running-account credit,

(b) the borrower is to make payments in relation to specified periods which must be, unless

the agreement is secured on land, of 3 months or less,

(c) the number of payments to be made by the borrower in repayment of the whole amount

of credit provided in each such period is not more than one,

(d) the credit is—

(i) secured on land, or

(ii) provided without interest or other significant charges, and

(e) paragraph (7) does not apply to the agreement.

(4) A credit agreement is an exempt agreement if—

(a) the agreement is a borrower-lender-supplier agreement financing the purchase of land,

(b) the number of payments to be made by the borrower is not more than four, and

(c) the credit is—

(i) secured on land, or

(ii) provided without interest or other charges.

(5) A credit agreement is an exempt agreement if—

SI 2001/544 Page 101
(a) the agreement is a borrower-lender-supplier agreement for fixed-sum credit,

(b) the credit is to finance a premium under a contract of insurance relating to land or

anything on land,

(c) the lender is the lender under a credit agreement secured by a legal mortgage on that

land,

(d) the credit is to be repaid within the period (which must be 12 months or less) to which

the premium relates,

(e) in the case of an agreement secured on land, there is no charge forming part of the total

charge for credit under the agreement other than interest at a rate not exceeding the rate of

interest from time to time payable under the agreement mentioned at sub-paragraph (c),

(f) in the case of an agreement which is not secured on land, the credit is provided without

interest or other charges, and

(g) the number of payments to be made by the borrower is not more than twelve.

(6) A credit agreement is an exempt agreement if—

(a) the agreement is a borrower-lender-supplier agreement for fixed-sum credit,

(b) the lender is the lender under a credit agreement secured by a legal mortgage on land,

(c) the agreement is to finance a premium under a contract of whole life insurance which

provides, in the event of the death of the person on whose life the contract is effected before

the credit referred to in sub-paragraph (b) has been repaid, for payment of a sum not

exceeding the amount sufficient to meet the amount which, immediately after that credit

has been advanced, would be payable to the lender in respect of that credit (including interest

from time to time payable under that agreement),

(d) in the case of an agreement secured on land, there is no charge forming part of the total

charge for credit under the agreement other than interest at a rate not exceeding the rate of

interest from time to time payable under the agreement mentioned at sub-paragraph (b),

(e) in the case of an agreement which is not secured on land, the credit is provided without

interest or other charges, and

(f) the number of payments to be made by the borrower is not more than twelve.

(7) This paragraph applies to—

(a) agreements financing the purchase of land;

(b) agreements which are conditional sale agreements or hire-purchase agreements;

(c) agreements secured by a pledge (other than a pledge of documents of title or of bearer

bonds).

(8) In this article, “payment” means a payment comprising an amount in respect of credit with or

without any other amount.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.6 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

Extent

Pt II(XIVA) art. 60F(1)-(8): United Kingdom 

SI 2001/544 Page 102
P Partially In Force

[ 60G.— Exempt agreements: exemptions relating to the total charge for credit

(1) A credit agreement is an exempt agreement for the purposes of this Chapter in the following

cases.

(2) A credit agreement is an exempt agreement if—

(a) it is a borrower-lender agreement, and

(b) the lender is a credit union and the rate of the total charge for credit does not exceed

42.6 per cent.

(3) A credit agreement is an exempt agreement if—

(a) it is a borrower-lender agreement,

(b) it is an agreement of a kind offered to a particular class of individual or relevant recipient

of credit and not offered to the public generally,

(c) it provides that the only charge included in the total charge for credit is interest,

(d) interest under the agreement may not at any time be more than the sum of one per cent

and the highest of the base rates published by the banks specified in paragraph (7) on the

date 28 days before the date on which the interest is charged, and

(e) paragraph (5) does not apply to the agreement.

(4) A credit agreement is an exempt agreement if—

(a) it is a borrower-lender agreement,

(b) it is an agreement of a kind offered to a particular class of individual or relevant recipient

of credit and not offered to the public generally,

(c) it does not provide for or permit an increase in the rate or amount of any item which is

included in the total charge for credit,

(d) the total charge for credit under the agreement is not more than the sum of one per cent

and the highest of the base rates published by the banks specified in paragraph (7) on the

date 28 days before the date on which the charge is imposed, and

(e) paragraph (5) does not apply to the agreement.

(5) This paragraph applies to an agreement if—

(a) the total amount to be repaid by the borrower to discharge the borrower's indebtedness

may vary according to a formula which is specified in the agreement and which has effect

by reference to movements in the level of any index or other factor, or

(b) the agreement—

(i) is not secured on land,

(ii) is not offered by a lender who is an employer to a borrower as an incident of

employment with the lender, and

(iii) does not meet the general interest test.

(6) For the purposes of paragraph (5), an agreement meets the general interest test if—

(a) the agreement is offered under an enactment with a general interest purpose, and

(b) the terms on which the credit is provided are more favourable to the borrower than

those prevailing on the market, either because the rate of interest is lower than that prevailing

on the market, or because the rate of interest is no higher than that prevailing on the market

but the other terms on which credit is provided are more favourable to the borrower.

(7) The banks specified in this paragraph are—

(a) the Bank of England;

SI 2001/544 Page 103
(b) Bank of Scotland;

(c) Barclays Bank plc;

(d) Clydesdale Bank plc;

(e) Co-operative Bank Public Limited Company;

(f) Coutts & Co;

(g) National Westminster Bank Public Limited Company;

(h) the Royal Bank of Scotland plc.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.6 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

Extent

Pt II(XIVA) art. 60G(1)-(7)(h): United Kingdom 

P Partially In Force

[ 60H. Exempt agreements: exemptions relating to the nature of the borrower

A credit agreement is an exempt agreement for the purposes of this Chapter if—

(a) the borrower is an individual,

(b) the agreement is either—

(i) secured on land, or

(ii) for credit which exceeds £60,260,

(c) the agreement includes a declaration made by the borrower which provides that the

borrower agrees to forgo the protection and remedies that would be available to the borrower

if the agreement were a regulated credit agreement and which complies with rules made by

the FCA for the purposes of this paragraph,

(d) a statement has been made in relation to the income or assets of the borrower which

complies with rules made by the FCA for the purposes of this paragraph,

(e) the connection between the statement and the agreement complies with any rules made

by the FCA for the purposes of this paragraph (including as to the period of time between

the making of the statement and the agreement being entered into), and

(f) a copy of the statement was provided to the lender before the agreement was entered

into.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.6 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

Extent

Pt II(XIVA) art. 60H(a)-(f): United Kingdom 

SI 2001/544 Page 104
[Exclusions]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.6 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

P Partially In Force

[ 60I. Arranging administration by authorised person

A person (“A”) who is not an authorised person does not carry on an activity of the kind specified

by article 60B(2) in relation to a regulated credit agreement where A—

(a) arranges for another person, who is an authorised person with permission to carry on

an activity of that kind, to exercise or to have the right to exercise the lender's rights and

duties under the agreement, or

(b) exercises or has the right to exercise the lender's rights and duties under the agreement

during a period of not more than one month beginning with the day on which any such

arrangement comes to an end.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.6 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

Extent

Pt II(XIVA) art. 60I(a)-(b): United Kingdom 

P Partially In Force

[ 60J. Administration pursuant to agreement with authorised person

A person who is not an authorised person does not carry on an activity of the kind specified by

article 60B(2) in relation to regulated credit agreement if that person exercises or has the right to

exercise the lender's rights and duties under the agreement pursuant to an agreement with an

authorised person who has permission to carry on an activity of the kind specified by article

60B(2). ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.6 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

Extent

Pt II(XIVA) art. 60J: United Kingdom 

P Partially In Force

[ 60K. Information society services

Article 60B is also subject to the exclusion in article 72A (information society services). ]

1

SI 2001/544 Page 105
Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.6 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

Extent

Pt II(XIVA) art. 60K: United Kingdom 

[ Supplemental ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.6 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

P Partially In Force

[ 60L.— Interpretation of Chapter 14A etc.

(1) In this Chapter—

“assignment”, in relation to Scotland, means assignation;

“associate” means, in relation to a person (“P”)—

(a) where P is an individual, any person who is or who has been—

(i) P's spouse or P's civil partner;

(ii) a relative of P, of P's spouse or of P's civil partner;

(iii) the spouse or civil partner of a relative of P or P's spouse or civil partner;

(iv) if P is a member of a partnership, any of P's partners and the spouse or

civil partner of any such person;

(b) where P is a body corporate—

(i) any person who is a controller (“C”) of P, and

(ii) any other person for whom C is a controller;

“borrower” means a person who receives credit under a credit agreement or a person to

whom the rights and duties of a borrower under a credit agreement have passed by assignment

or operation of law;

“borrower-lender agreement” means—

(a) a credit agreement—

(i) to finance a transaction between the borrower and a person (“the

supplier”) other than the lender, and

(ii) which is not made by the lender under pre-existing arrangements, or in

contemplation of future arrangements, between the lender and the supplier,

(b) a credit agreement to refinance any existing indebtedness of the borrower,

whether to the lender or another person, or

(c) a credit agreement which is—

(i) an unrestricted-use credit agreement, and

(ii) not made by the lender—

(aa) under pre-existing arrangements between the lender and a person

other than the borrower (“the supplier”), and

SI 2001/544 Page 106
(bb) in the knowledge that the credit is to be used to finance a

transaction between the borrower and the supplier;

“borrower-lender-supplier agreement” means—

(a) a credit agreement to finance a transaction between the borrower and the lender,

whether forming part of that agreement or not;

(b) a credit agreement—

(i) to finance a transaction between the borrower and a person (“the

supplier”) other than the lender, and

(ii) which is made by the lender under pre-existing arrangements, or in

contemplation of future arrangements, between the lender and the supplier,

or

(c) a credit agreement which is—

(i) an unrestricted-use credit agreement, and

(ii) made by the lender under pre-existing arrangements between the lender

and a person (“the supplier”) other than the borrower in the knowledge that

the credit is to be used to finance a transaction between the borrower and

the supplier;

“conditional sale agreement” means an agreement for the sale of goods or land under which

the purchase price or part of it is payable by instalments, and the property in the goods or

land is to remain with the seller (notwithstanding that the buyer is to be in possession of

the goods or land) until such conditions as to the payment of instalments or otherwise as

may be specified in the agreement are fulfilled;

“credit”includes a cash loan and any other form of financial accommodation;

“credit agreement”has the meaning given by article 60B;

“credit union” means a credit union within the meaning of—

(a) the Credit Unions Act 1979;

(b) the Credit Unions (Northern Ireland) Order 19852;

“deposit” (except where specified otherwise) means any sum payable by a borrower by way

of deposit or down-payment, or credited or to be credited to the borrower on account of any

deposit or down-payment, whether the sum is to be or has been paid to the lender or any

other person, or is to be or has been discharged by a payment of money or a transfer or

delivery of goods or other means;

“exempt agreement”has the meaning given by article 60B;

“finance”includes financing in whole or in part, and “refinance” is to be read accordingly;

“fixed-sum credit” means a facility under a credit agreement whereby the borrower is

enabled to receive credit (whether in one amount or by instalments) but which is not

running-account credit;

“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—

(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 specified in the

agreement;

(iii) the happening of any event specified in the agreement;

SI 2001/544 Page 107
“legal mortgage”includes charge and, in Scotland, a heritable security;

“lender” means—

(a) the person providing credit under a credit agreement, or

(b) a person who exercises or has the right to exercise the rights and duties of a

person who provided credit under such an agreement;

“payment” (except in article 60F) means a payment comprising or including an amount in

respect of credit;

“regulated credit agreement”has the meaning given by article 60B;

“relative” means brother, sister, uncle, aunt, nephew, niece, lineal ancestor or lineal

descendent;

“relevant recipient of credit” means—

(a) a partnership consisting of two or three persons not all of whom are bodies

corporate, or

(b) an unincorporated body of persons which does not consist entirely of bodies

corporate and is not a partnership;

“restricted-use credit agreement” means a credit agreement—

(a) to finance a transaction between the borrower and the lender, whether forming

part of that agreement or not,

(b) to finance a transaction between the borrower and a person (“the supplier”)

other than the lender, or

(c) to refinance any existing indebtedness of the borrower's, whether to the lender

or another person;

“running-account credit” means a facility under a credit agreement under which the borrower

or another person is enabled to receive from time to time from the lender or a third party

cash, goods or services to an amount or value such that, taking into account payments made

by or to the credit of the borrower, the credit limit (if any) is not at any time exceeded;

“security” in relation to a credit agreement, means a mortgage, charge, pledge, bond,

debenture, indemnity, guarantee, bill, note or other right provided by the borrower or at the

implied or express request of the borrower to secure the carrying out of the obligations of

the borrower under the agreement;

“total charge for credit”has the meaning given in rules made by the FCA under article 60M;

“total price” means the total sum payable by the debtor under a hire-purchase agreement,

including any sum payable on the exercise of an option to purchase but excluding any sum

payable as a penalty or as compensation or damages for a breach of the agreement;

“unrestricted-use credit agreement” means a credit agreement which is not a restricted-use

credit agreement.

(2) For the purposes of the definition of “restricted-use credit agreement”—

(a) a credit agreement does not fall within the definition if the credit is in fact provided in

such a way as to leave the borrower free to use it as the borrower chooses, even though

certain uses would contravene that or any other agreement; and

(b) an agreement may fall within paragraph (b) of the definition even though the identity

of the supplier is unknown at the time the agreement is made.

(3) For the purposes of the definition of “borrower-lender agreement”, a credit agreement is, subject

to paragraph (6), 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

SI 2001/544 Page 108
the lender (or the lender's associate) and the supplier (or the supplier's associate) unless the

arrangements fall within paragraph (5).

(4) For the purposes of the definition of “borrower-lender agreement”, a credit agreement is entered

into in contemplation of future arrangements between a lender and a supplier if it is entered into

in the expectation that arrangements will subsequently be made between the lender (or the lender's

associate) and the supplier (or the supplier's associate) for the supply of cash, goods or services to

be financed by the credit agreement unless the arrangements fall within paragraph (5).

(5) Arrangements fall within this paragraph if they are—

(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

(b) for the electronic transfer of funds from a current account held with an authorised person

with permission to accept deposits (within the meaning given by article 3).

(6) 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.

(7) For the purposes of the definition of “running-account credit”, “credit limit” means, as respects

any period, the maximum debit balance which, under a credit agreement, is allowed to stand on

the account during that period, disregarding any term of the agreement allowing that maximum to

be exceeded on a temporary basis.

(8) For the purposes of this Chapter, a person by whom goods are bailed or (in Scotland) hired to

an individual or relevant recipient of credit under a hire-purchase agreement is to be taken to be

providing that individual or person with fixed-sum credit to finance the transaction of an amount

equal to the total price of the goods less the aggregate of the deposit (if any) and the total charge

for credit.

(9) For the purposes of this Chapter, where credit is provided otherwise than in sterling, it is to be

treated as provided in sterling of an equivalent amount.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.6 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

2

S.I. 1985/1205 (N.I. 12).

Extent

Pt II(XIVA) art. 60L(1)-(9): United Kingdom 

P Partially In Force

[ 60M.— Total charge for credit

(1) The FCA may make rules specifying how the total charge for credit to the borrower under a

credit agreement is to be determined for the purposes of this Chapter.

(2) Rules made under paragraph (1) may in particular—

SI 2001/544 Page 109
(a) specify how the total charge for credit to a person who is, or is to become, the borrower

under a credit agreement is to be determined;

(b) specify what items are to be included in determining the total charge for credit and how

the value of those items is to be determined;

(c) specify the method of calculating the rate of the total charge for credit;

(d) provide for the whole or part of the amount payable by the borrower or a relative of the

borrower under a linked transaction (within the meaning given by article 60E(8)) to be

included in the total charge for credit, whether or not the lender is a party to the transaction

or derives a benefit from it.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.6 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

Extent

Pt II(XIVA) art. 60M(1)-(2)(d): United Kingdom 

[ CHAPTER 14B

REGULATED CONSUMER HIRE AGREEMENTS ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.6 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

[The activities]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.6 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

P Partially In Force

[ 60N.— Regulated consumer hire agreements

(1) Entering into a regulated consumer hire agreement as owner is a specified kind of activity.

(2) It is a specified kind of activity for the owner or another person to exercise, or to have the right

to exercise, the owner's rights and duties under a regulated consumer hire agreement.

(3) In this Chapter—

“consumer hire agreement” means an agreement between a person (“the owner”) and an

individual or relevant recipient of credit (“the hirer”) for the bailment or, in Scotland, the

hiring, of goods to the hirer which—

(a) is not a hire-purchase agreement, and

(b) is capable of subsisting for more than three months;

SI 2001/544 Page 110
“exempt agreement” means a consumer hire agreement which is an exempt agreement under

articles 60O to 60Q;

“owner” means—

(a) the person who bails or, in Scotland, hires, goods under a regulated consumer

hire agreement, or

(b) a person who exercises or has the right to exercise the rights and duties of a

person who bailed or, in Scotland, hired, goods under such an agreement;

“regulated consumer hire agreement” means a consumer hire agreement which is not an

exempt agreement.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.6 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

Extent

Pt II(XIVB) art. 60N(1)-(3) definition of "regulated consumer hire agreement": United Kingdom 

P Partially In Force

[ 60O. Exempt agreements: exemptions relating to nature of agreement

(1) An agreement is an exempt agreement for the purposes of this Chapter if—

(a) the hirer is required by the agreement to make payments exceeding £25,000, and

(b) the agreement is entered into by the hirer wholly or predominantly for the purposes of

a business carried on, or intended to be carried on, by the hirer.

(2) For the purposes of paragraph (1), if an agreement includes a declaration which—

(a) is made by the hirer,

(b) provides that the agreement is entered into by the hirer wholly or predominantly for

the purposes of a business carried on, or intended to be carried on, by the hirer, and

(c) complies with rules made by the FCA for the purposes of this article,

the agreement is to be presumed to have been entered into by the hirer wholly or predominantly

for the purpose in sub-paragraph (b) unless paragraph (3) applies.

(3) This paragraph applies if, when the agreement is entered into—

(a) the owner (or, if there is more than one owner, any of the owners), or

(b) any person who has acted on behalf of the owner (or, if there is more than one owner,

any of the owners), in connection with the entering into of the agreement,

knows or has reasonable cause to suspect that the agreement is not entered into by the hirer wholly

or predominantly for the purposes of a business carried on, or intended to be carried on, by the

hirer.

(4) For the purposes of this article, where credit is provided otherwise than in sterling, it is to be

treated as provided in sterling of an equivalent amount.

]

1

SI 2001/544 Page 111
Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.6 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

Extent

Pt II(XIVB) art. 60O(1)-(4): United Kingdom 

P Partially In Force

[ 60P. Exempt agreements: exemptions relating to supply of essential services

An agreement is an exempt agreement for the purposes of this Chapter if—

(a) the owner is a body corporate which is authorised by or under an enactment to supply

gas, electricity or water, and

(b) the subject of the agreement is a meter or metering equipment which is used (or is to

be used) in connection with the supply of gas, electricity or water.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.6 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

Extent

Pt II(XIVB) art. 60P(a)-(b): United Kingdom 

P Partially In Force

[ 60Q. Exempt agreements: exemptions relating to the nature of the hirer

An agreement is an exempt agreement for the purposes of this Chapter if—

(a) the hirer is an individual,

(b) the agreement includes a declaration made by the hirer which provides that the hirer

agrees to forgo the protection and remedies that would be available to the hirer if the

agreement were a regulated consumer hire agreement and which complies with rules made

by the FCA for the purposes of this paragraph,

(c) a statement has been made in relation to the income or assets of the hirer which complies

with rules made by the FCA for the purposes of this paragraph,

(d) the connection between the statement and the agreement complies with any rules made

by the FCA for the purposes of this paragraph (including as to the period of time between

the making of the statement and the agreement being entered into), and

(e) a copy of the statement was provided to the owner before the agreement was entered

into.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.6 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

SI 2001/544 Page 112
Extent

Pt II(XIVB) art. 60Q(a)-(e): United Kingdom 

[Exclusion ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.6 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

P Partially In Force

[ 60R. Information society services

Article 60N is subject to the exclusion in article 72A (information society services). ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.6 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

Extent

Pt II(XIVB) art. 60R: United Kingdom 

CHAPTER XV

REGULATED MORTGAGE CONTRACTS

The activities

Law In Force

61.— Regulated mortgage contracts

(1) Entering into a regulated mortgage contract as lender is a specified kind of activity.

(2) Administering a regulated mortgage contract is also a specified kind of activity, where the

contract was entered into [ by way of business]

1

 after the coming into force of this article.

(3) In this Chapter—

[ (a) a contract is a “regulated mortgage contract” if, at the time it is entered into, the

following conditions are met—

(i) the contract is one under which a person (“the lender”) provides credit to an

individual or to trustees (“the borrower”);

(ii) the contract provides for the obligation of the borrower to repay to be secured

by a first legal mortgage on land (other than timeshare accommodation) in the United

Kingdom;

SI 2001/544 Page 113
(iii) at least 40% of that land is used, or is intended to be used, as or in connection

with a dwelling by the borrower or (in the case of credit provided to trustees) by an

individual who is a beneficiary of the trust, or by a related person;

[ but such a contract is not a regulated mortgage contract if it is a regulated home purchase

plan; ]

3

]

2

(b) “administering” a regulated mortgage contract means either or both of—

(i) notifying the borrower of changes in interest rates or payments due under the

contract, or of other matters of which the contract requires him to be notified; and

(ii) taking any necessary steps for the purposes of collecting or recovering payments

due under the contract from the borrower;

but a person is not to be treated as administering a regulated mortgage contract merely

because he has, or exercises, a right to take action for the purposes of enforcing the contract

(or to require that such action is or is not taken);

(c) “credit”includes a cash loan, and any other form of financial accommodation.

(4) For the purposes of [ paragraph 3(a) ]

4

 —

(a) a “first legal mortgage” means a legal mortgage ranking in priority ahead of all other

mortgages (if any) affecting the land in question, where “mortgage”includes charge and (in

Scotland) a heritable security;

(b) the area of any land which comprises a building or other structure containing two or

more storeys is to be taken to be the aggregate of the floor areas of each of those storeys;

(c) “related person”, in relation to the borrower or (in the case of credit provided to trustees)

a beneficiary of the trust, means—

(i) that person's spouse [ or civil partner ]

5

 ;

(ii) a person (whether or not of the opposite sex) whose relationship with that person

has the characteristics of the relationship between husband and wife; or

(iii) that person's parent, brother, sister, child, grandparent or grandchild; and

[ (d) “timeshare accommodation” means overnight accommodation which is the subject of

a timeshare contract within the meaning of the Timeshare, Holiday Products, Resale and

Exchange Contracts Regulations 2010. ]

6

Notes

1 Words inserted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2001/3544

art.8(a) (October 31, 2004 as specified in the London Gazette dated July 14, 2003)

2

Substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2001/3544

art.8(b) (October 31, 2004 as specified in the London Gazette dated July 14, 2003)

3 Words inserted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order

2006/2383 Pt 2 art.17 (November 6, 2006 for the purposes of enabling applications as specified in SI 2006/2383

art.1(2)(a); April 6, 2007 otherwise)

4 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order

2001/3544 art.8(c) (October 31, 2004 as specified in the London Gazette dated July 14, 2003)

5 Words inserted by Civil Partnership Act 2004 (Amendments to Subordinate Legislation) Order 2005/2114 Sch.16(1)

para.1(3) (December 5, 2005)

6

Substituted by Timeshare, Holiday Products, Resale and Exchange Contracts Regulations 2010/2960 Sch.6 para.7(2)

(February 23, 2011: substitution has effect subject to savings provisions specified in SI 2010/2960 reg.37)

Commencement

Pt II(XV) art. 61(1)-(4)(d): October 31, 2004 as specified in the London Gazette dated July 14, 2003 (SI 2001/544 Pt

I art. 2(2)(b))

SI 2001/544 Page 114
Extent

Pt II(XV) art. 61(1)-(4)(d): United Kingdom 

Exclusions

Law In Force

62. Arranging administration by authorised person

A person who is not an authorised person does not carry on an activity of the kind specified by

article 61(2) in relation to a regulated mortgage contract where he—

(a) arranges for another person, being an authorised person with permission to carry on an

activity of that kind, to administer the contract; or

(b) administers the contract himself during a period of not more than one month beginning

with the day on which any such arrangement comes to an end.

Commencement

Pt II(XV) art. 62(a)-(b): October 31, 2004 as specified in the London Gazette dated July 14, 2003 (SI 2001/544 Pt I

art. 2(2)(b))

Extent

Pt II(XV) art. 62(a)-(b): United Kingdom 

Law In Force

63. Administration pursuant to agreement with authorised person

A person who is not an authorised person does not carry on an activity of the kind specified by

article 61(2) in relation to a regulated mortgage contract where he administers the contract pursuant

to an agreement with an authorised person who has permission to carry on an activity of that kind.

Commencement

Pt II(XV) art. 63: October 31, 2004 as specified in the London Gazette dated July 14, 2003 (SI 2001/544 Pt I art.

2(2)(b))

Extent

Pt II(XV) art. 63: United Kingdom 

Law In Force

[ 63A. Other exclusions

Article 61 is also subject to the exclusions in articles 66 (trustees etc.), 72 (overseas persons) [ ,

72A (information society services) and 72AA (managers of UCITS and AIFs) ]

2

 . ]

1

Notes

1

Substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 1) Order

2003/1475 Pt 2 art.17 (October 31, 2004)

SI 2001/544 Page 115
2 Words substituted by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(6) (July 22,

2013: substitution has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

Extent

Pt II(XV) art. 63A: United Kingdom 

[ CHAPTER 15A

REGULATED HOME REVERSION PLANS ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2006/2383

Pt 2 art.18 (November 6, 2006 for the purposes of enabling applications as specified in SI 2006/2383 art.1(2)(a);

April 6, 2007 otherwise)

[The activities]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2006/2383

Pt 2 art.18 (November 6, 2006 for the purposes of enabling applications as specified in SI 2006/2383 art.1(2)(a);

April 6, 2007 otherwise)

Law In Force

[ 63B.— Entering into and administering regulated home reversion plans

(1) Entering into a regulated home reversion plan as plan provider is a specified kind of activity.

(2) Administering a regulated home reversion plan is also a specified kind of activity where the

plan was entered into on or after 6th April 2007.

(3) In this Chapter—

(a) a “regulated home reversion plan” is an arrangement comprised in one or more

instruments or agreements, in relation to which the following conditions are met at the time

it is entered into—

(i) the arrangement is one under which a person (the “plan provider”) buys all or

part of a qualifying interest in land (other than timeshare accommodation) in the

United Kingdom from an individual or trustees (the “reversion seller”);

(ii) the reversion seller (if he is an individual) or an individual who is a beneficiary

of the trust (if the reversion seller is a trustee), or a related person, is entitled under

the arrangement to occupy at least 40% of the land in question as or in connection

with a dwelling, and intends to do so; and

(iii) the arrangement specifies one or more qualifying termination events, on the

occurrence of which that entitlement will end;

(b) “administering” a regulated home reversion plan means any of—

(i) notifying the reversion seller of changes in payments due under the plan, or of

other matters of which the plan requires him to be notified;

SI 2001/544 Page 116
(ii) taking any necessary steps for the purposes of making payments to the reversion

seller under the plan; and

(iii) taking any necessary steps for the purposes of collecting or recovering payments

due under the plan from the reversion seller,

but a person is not to be treated as administering a regulated home reversion plan merely

because he has, or exercises, a right to take action for the purposes of enforcing the plan

(or to require that such action is or is not taken).

(4) For the purposes of paragraph (3)—

(a) the reference to a “qualifying interest” in land—

(i) in relation to land in England or Wales, is to an estate in fee simple absolute or

a term of years absolute, whether subsisting at law or in equity;

(ii) in relation to land in Scotland, is to the interest of an owner in land or the tenant's

right over or interest in a property subject to a lease;

(iii) in relation to land in Northern Ireland, is to any freehold estate or any leasehold

estate, whether subsisting at law or in equity;

(b) “timeshare accommodation”has the meaning given by section 1 of the Timeshare Act

1992;

(c) “related person” in relation to the reversion seller or, where the reversion seller is a

trustee, a beneficiary of the trust, means—

(i) that person's spouse or civil partner;

(ii) a person (whether or not of the opposite sex) whose relationship with that person

has the characteristics of the relationship between husband and wife; or

(iii) that person's parent, brother, sister, child, grandparent or grandchild; and

(d) “qualifying termination event”, in relation to a person's entitlement to occupy land,

means—

(i) the person becomes a resident of a care home;

(ii) the person dies;

(iii) the end of a specified period of at least twenty years beginning with the day

on which the reversion seller entered into the arrangement.

(5) For the purposes of paragraph (3)(a)(ii), the area of any land which comprises a building or

other structure containing two or more storeys is to be taken to be the aggregate of the floor areas

of each of those storeys.

(6) For the purposes of the definition of “qualifying termination event” in paragraph (4), “care

home”—

(a) in relation to England and Wales, has the meaning given by section 3 of the Care

Standards Act 2000;

(b) in relation to Scotland, means accommodation provided by a [ “care home service”

within the meaning of paragraph 2 of schedule 12 to the Public Services Reform (Scotland)

Act 2010 ]

2

;

(c) in relation to Northern Ireland, means—

(i) a residential care home within the meaning of article 10 of the Health and Personal

Social Services (Quality, Improvement and Regulation) (Northern Ireland) Order

2003; or

(ii) a nursing home within the meaning of article 11 of that Order.

(7) In this Order—

SI 2001/544 Page 117
(a) references to entering into a regulated home reversion plan as plan provider include

acquiring any obligations or rights (including his interest in land) of the plan provider, under

such a plan; but

(b) in relation to a person who acquires any such obligations or rights, an activity is a

specified kind of activity for the purposes of articles 25B(1)(b) and 53B(b)(ii) and paragraph

(2) only if the plan was entered into by the plan provider (rather than the obligations or

rights acquired) on or after 6th April 2007.

(8) Accordingly, references in this Order to a plan provider, other than in paragraph (7), include a

person who acquires any such obligations or rights.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2006/2383

Pt 2 art.18 (November 6, 2006 for the purposes of enabling applications as specified in SI 2006/2383 art.1(2)(a);

April 6, 2007 otherwise)

2 Words substituted by Public Services Reform (Scotland) Act 2010 (Consequential Modifications of Enactments)

Order 2011/2581 Sch.2(2) para.32 (October 28, 2011)

Extent

Pt II(XVA) art. 63B(1)-(8): United Kingdom 

[Exclusions]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2006/2383

Pt 2 art.18 (November 6, 2006 for the purposes of enabling applications as specified in SI 2006/2383 art.1(2)(a);

April 6, 2007 otherwise)

Law In Force

[ 63C. Arranging administration by authorised person

A person who is not an authorised person does not carry on an activity of the kind specified by

article 63B(2) in relation to a regulated home reversion plan where he—

(a) arranges for another person, being an authorised person with permission to carry on an

activity of that kind, to administer the plan; or

(b) administers the plan himself during a period of not more than one month beginning

with the day on which any such arrangement comes to an end.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2006/2383

Pt 2 art.18 (November 6, 2006 for the purposes of enabling applications as specified in SI 2006/2383 art.1(2)(a);

April 6, 2007 otherwise)

SI 2001/544 Page 118
Extent

Pt II(XVA) art. 63C(a)-(b): United Kingdom 

Law In Force

[ 63D. Administration pursuant to agreement with authorised person

A person who is not an authorised person does not carry on an activity of the kind specified by

article 63B(2) in relation to a regulated home reversion plan where he administers the plan pursuant

to an agreement with an authorised person who has permission to carry on an activity of that kind.]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2006/2383

Pt 2 art.18 (November 6, 2006 for the purposes of enabling applications as specified in SI 2006/2383 art.1(2)(a);

April 6, 2007 otherwise)

Extent

Pt II(XVA) art. 63D: United Kingdom 

Law In Force

[ 63E. Other exclusions

Article 63B is also subject to the exclusions in articles 66 (trustees etc.), 72 (overseas persons) [ ,

72A (information society services) and 72AA (managers of UCITS and AIFs) ]

2

 . ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2006/2383

Pt 2 art.18 (November 6, 2006 for the purposes of enabling applications as specified in SI 2006/2383 art.1(2)(a);

April 6, 2007 otherwise)

2 Words substituted by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(6) (July 22,

2013: substitution has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

Extent

Pt II(XVA) art. 63E: United Kingdom 

[ CHAPTER 15B

REGULATED HOME PURCHASE PLANS ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2006/2383

Pt 2 art.18 (November 6, 2006 for the purposes of enabling applications as specified in SI 2006/2383 art.1(2)(a);

April 6, 2007 otherwise)

SI 2001/544 Page 119
[The activities]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2006/2383

Pt 2 art.18 (November 6, 2006 for the purposes of enabling applications as specified in SI 2006/2383 art.1(2)(a);

April 6, 2007 otherwise)

Law In Force

[ 63F.— Entering into and administering regulated home purchase plans

(1) Entering into a regulated home purchase plan as home purchase provider is a specified kind of

activity.

(2) Administering a regulated home purchase plan is also a specified kind of activity where the

plan was entered into by way of business on or after 6th April 2007.

(3) In this Chapter—

(a) a “regulated home purchase plan” is an arrangement comprised in one or more

instruments or agreements, in relation to which the following conditions are met at the time

it is entered into—

(i) the arrangement is one under which a person (the “home purchase provider”)

buys a qualifying interest or an undivided share of a qualifying interest in land (other

than timeshare accommodation) in the United Kingdom;

(ii) where an undivided share of a qualifying interest in land is bought, the interest

is held on trust for the home purchase provider and the individual or trustees

mentioned in paragraph (iii) as beneficial tenants in common;

(iii) the arrangement provides for the obligation of an individual or trustees (the

“home purchaser”) to buy the interest bought by the home purchase provider over

the course of or at the end of a specified period; and

(iv) the home purchaser (if he is an individual) or an individual who is a beneficiary

of the trust (if the home purchaser is a trustee), or a related person, is entitled under

the arrangement to occupy at least 40% of the land in question as or in connection

with a dwelling during that period, and intends to do so;

(b) “administering” a regulated home purchase plan means either or both of—

(i) notifying the home purchaser of changes in payments due under the plan, or of

other matters of which the plan requires him to be notified; and

(ii) taking any necessary steps for the purposes of collecting or recovering payments

due under the plan from the home purchaser;

but a person is not to be treated as administering a regulated home purchase plan merely

because he has, or exercises, a right to take action for the purposes of enforcing the plan or

to require that such action is or is not taken.

(4) Article 63B(4)(a) to (c) applies for the purposes of paragraph (3)(a) with references to the

“reversion seller” being read as references to the “home purchaser”.

(5) Article 63B(5) applies for the purposes of paragraph (3)(a)(iv) with the reference to “paragraph

(3)(a)(ii)” being read as a reference to “paragraph (3)(a)(iv)”.

]

1

SI 2001/544 Page 120
Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2006/2383

Pt 2 art.18 (November 6, 2006 for the purposes of enabling applications as specified in SI 2006/2383 art.1(2)(a);

April 6, 2007 otherwise)

Extent

Pt II(XVB) art. 63F(1)-(5): United Kingdom 

[Exclusions]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2006/2383

Pt 2 art.18 (November 6, 2006 for the purposes of enabling applications as specified in SI 2006/2383 art.1(2)(a);

April 6, 2007 otherwise)

Law In Force

[ 63G. Arranging administration by authorised person

A person who is not an authorised person does not carry on an activity of the kind specified by

article 63F(2) in relation to a regulated home purchase plan where he—

(a) arranges for another person, being an authorised person with permission to carry on an

activity of that kind, to administer the plan; or

(b) administers the plan himself during a period of not more than one month beginning

with the day on which any such arrangement comes to an end.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2006/2383

Pt 2 art.18 (November 6, 2006 for the purposes of enabling applications as specified in SI 2006/2383 art.1(2)(a);

April 6, 2007 otherwise)

Extent

Pt II(XVB) art. 63G(a)-(b): United Kingdom 

Law In Force

[ 63H. Administration pursuant to agreement with authorised person

A person who is not an authorised person does not carry on an activity of the kind specified by

article 63F(2) in relation to a regulated home purchase plan where he administers the plan pursuant

to an agreement with an authorised person who has permission to carry on an activity of that kind.]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2006/2383

Pt 2 art.18 (November 6, 2006 for the purposes of enabling applications as specified in SI 2006/2383 art.1(2)(a);

April 6, 2007 otherwise)

SI 2001/544 Page 121
Extent

Pt II(XVB) art. 63H: United Kingdom 

Law In Force

[ 63I. Other exclusions

Article 63F is also subject to the exclusions in articles 66 (trustees etc.), 72 (overseas persons) [ ,

72A (information society services) and 72AA (managers of UCITS and AIFs) ]

2

 . ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2006/2383

Pt 2 art.18 (November 6, 2006 for the purposes of enabling applications as specified in SI 2006/2383 art.1(2)(a);

April 6, 2007 otherwise)

2 Words substituted by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(6) (July 22,

2013: substitution has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

Extent

Pt II(XVB) art. 63I: United Kingdom 

[ CHAPTER 15C

REGULATED SALE AND RENT BACK AGREEMENTS ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2009/1342 Pt 2

art.17 (July 1, 2009: insertion has effect subject to transitional provisions specified in SI 2009/1342 art.32)

[The activities]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2009/1342 Pt 2

art.17 (July 1, 2009: insertion has effect subject to transitional provisions specified in SI 2009/1342 art.32)

Law In Force

[ 63J.— Entering into and administering regulated sale and rent back agreements

(1) Entering into a regulated sale and rent back agreement as an agreement provider is a specified

kind of activity.

(2) Administering a regulated sale and rent back agreement is also a specified kind of activity when

the agreement was entered into on or after 1st July 2009.

(3) In this Chapter—

(a) a “regulated sale and rent back agreement” is an arrangement comprised in one or more

instruments or agreements, in relation to which the following conditions are met at the time

it is entered into—

SI 2001/544 Page 122
(i) the arrangement is one under which a person (the “agreement provider”) buys

all or part of the qualifying interest in land (other than timeshare accommodation)

in the United Kingdom from an individual or trustees (the “agreement seller ”); and

(ii) the agreement seller (if the agreement seller is an individual) or an individual

who is the beneficiary of the trust (if the agreement seller is a trustee), or a related

person, is entitled under the arrangement to occupy at least 40% of the land in

question as or in connection with a dwelling, and intends to do so;

but such an arrangement is not a regulated sale and rent back agreement if it is a regulated

home reversion plan;

(b) “administering” a regulated sale and rent back agreement means any of—

(i) notifying the agreement seller of changes in payments due under the agreement,

or of other matters of which the agreement requires the agreement seller to be

notified;

(ii) taking any necessary steps for the purpose of making payments to the agreement

seller under the agreement; and

(iii) taking any necessary steps for the purposes of collecting or recovering payments

due under the agreement from the agreement seller,

but a person is not to be treated as administering a regulated sale and rent back agreement

because that person has, or exercises, a right to take action for the purposes of enforcing

the agreement (or to require that such action is or is not taken).

(4) For the purposes of paragraph (3)—

(a) the reference to a “qualifying interest” in land—

(i) in relation to land in England and Wales, is to an estate in fee simple absolute

or a term of years absolute, whether subsisting at law or in equity;

(ii) in relation to land in Scotland, is to the interest of an owner in land or the tenant's

right over or interest in a property subject to a lease;

(iii) in relation to land in Northern Ireland, is to any freehold estate or any leasehold

estate, whether subsisting at law or in equity;

[ (b) “timeshare accommodation” means overnight accommodation which is the subject of

a timeshare contract within the meaning of the Timeshare, Holiday Products, Resale and

Exchange Contracts Regulations 2010; and ]

2

(c) “related person” in relation to the agreement seller or, where the agreement seller is a

trustee, a beneficiary of the trust, means—

(i) that person's spouse or civil partner;

(ii) a person (whether or not of the opposite sex) whose relationship with that person

has the characteristic of the relationship between husband and wife;

(iii) that person's parent, brother, sister, child, grandparent or grandchild.

(5) For the purposes of paragraph (3)(a)(ii), the area of any land which compromises a building or

other structure containing two or more storeys is to be taken to be the aggregate of the floor areas

of each of those storeys.

(6) In this Order—

(a) references to entering into a regulated sale and rent back agreement as agreement

provider include acquiring any obligations or rights of the agreement provider, including

the agreement provider's interest in land or interests under one or more of the instruments

or agreements referred to in paragraph (3)(a); but

SI 2001/544 Page 123
(b) in relation to a person who acquires any such obligations or rights, an activity is a

specified kind of activity for the purposes of articles 25E(1)(b) and 53D(b)(ii) and paragraph

(2) only if the agreement was entered into by the agreement provider (rather than the

obligations or rights acquired) on or after 1st July 2009.

(7) Accordingly, references in this Order to an agreement provider, other than in paragraph (6),

include a person who acquires any such obligations or rights.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2009/1342 Pt 2

art.17 (July 1, 2009: insertion has effect subject to transitional provisions specified in SI 2009/1342 art.32)

2

Substituted by Timeshare, Holiday Products, Resale and Exchange Contracts Regulations 2010/2960 Sch.6 para.7(3)

(February 23, 2011: substitution has effect subject to savings provisions specified in SI 2010/2960 reg.37)

Extent

Pt II(XVC) art. 63J(1)-(7): United Kingdom 

[Exclusions]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2009/1342 Pt 2

art.17 (July 1, 2009: insertion has effect subject to transitional provisions specified in SI 2009/1342 art.32)

Law In Force

[ 63K. Arranging administration by authorised person

A person who is not an authorised person does not carry on an activity of the kind specified by

article 63J(2) in relation to a regulated sale and rent back agreement where that person—

(a) arranges for another person, being an authorised person with permission to carry on an

activity of that kind, to administer the agreement; or

(b) administers the agreement during a period of not more than one month beginning with

the day on which any such arrangement comes to an end.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2009/1342 Pt 2

art.17 (July 1, 2009: insertion has effect subject to transitional provisions specified in SI 2009/1342 art.32)

Extent

Pt II(XVC) art. 63K(a)-(b): United Kingdom 

SI 2001/544 Page 124
Law In Force

[ 63L. Administration pursuant to agreement with authorised person

A person who is not an authorised person does not carry on an activity of the kind specified by

article 63J(2) in relation to a regulated sale and rent back agreement where that person administers

the agreement pursuant to an agreement with an authorised person who has permission to carry on

activity of that kind. ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2009/1342 Pt 2

art.17 (July 1, 2009: insertion has effect subject to transitional provisions specified in SI 2009/1342 art.32)

Extent

Pt II(XVC) art. 63L: United Kingdom 

Law In Force

[ 63M. Other exclusions

Article 63J is also subject to the exclusions in article 66 (trustees etc.), 72 (overseas persons) and

72A (information society services). ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2009/1342 Pt 2

art.17 (July 1, 2009: insertion has effect subject to transitional provisions specified in SI 2009/1342 art.32)

Extent

Pt II(XVC) art. 63M: United Kingdom 

[ CHAPTER 15D

ACTIVITIES OF RECLAIM FUNDS ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2009/1389

art.4 (July 13, 2009)

[The activities]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2009/1389

art.4 (July 13, 2009)

SI 2001/544 Page 125
Law In Force

[ 63N Dormant account funds

(1) The following are specified kinds of activity—

(a) the meeting of repayment claims by a reclaim fund;

(b) the management of dormant account funds (including the investment of such funds) by

a reclaim fund.

(2) In this article—

“account”, “balance”, “dormant” and “reclaim fund”have the same meaning as in Part 1 of

the Dormant Bank and Building Society Accounts Act 2008 (transfer of balances in dormant

accounts) (see section 6 of that Act);

“dormant account funds” and “repayment claims”have the same meaning as in section 5 of

that Act;

“management of dormant account funds” means the acceptance of a transfer from a bank

or building society of the balance of a dormant account, or a proportion of such a balance,

and the management of those funds in such a way as to enable the reclaim fund to meet

whatever repayment claims it is prudent to anticipate.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2009/1389

art.4 (July 13, 2009)

Extent

Pt II(XVD) art. 63N(1)-(2) definition of "management of dormant account funds": United Kingdom 

[ CHAPTER 15E

SPECIFIED BENCHMARKS ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2013/655 Pt 3

art.5 (April 2, 2013: insertion has effect subject to transitional provisions specified in SI 2013/655 Pt 4)

[The activities]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2013/655 Pt 3

art.5 (April 2, 2013: insertion has effect subject to transitional provisions specified in SI 2013/655 Pt 4)

Law In Force

[ 63O.— Specified benchmarks

(1) The following are specified kinds of activity—

(a) providing information in relation to a specified benchmark;

SI 2001/544 Page 126
(b) administering a specified benchmark.

(2) In this Chapter—

(a) “providing information” in relation to a specified benchmark means providing any

information or expression of opinion that is—

(i) provided to, or for the purpose of passing to, a person who has permission to

carry on the activity specified in paragraph (1)(b) in relation to that specified

benchmark;

(ii) required in connection with the determination of the specified benchmark; and

(iii) provided for the purpose of determining the specified benchmark;

(b) “administering” a specified benchmark means—

(i) administering the arrangements for determining a specified benchmark;

(ii) collecting, analysing or processing information or expressions of opinion

provided for the purpose of determining a specified benchmark;

(iii) determining a specified benchmark through the application of a formula or

other method of calculation to the information or expressions of opinion provided

for that purpose.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2013/655 Pt 3

art.5 (April 2, 2013: insertion has effect subject to transitional provisions specified in SI 2013/655 Pt 4)

Extent

Pt II(XVE) art. 63O(1)-(2)(b)(iii): United Kingdom 

Law In Force

[ 63P. Publicly available factual data and subscription services

A person does not carry on an activity of the kind specified by article 63O(1)(a) in relation to a

specified benchmark where the information provided—

(a) consists solely of factual data obtained from a publicly available source; or

(b) is—

(i) compiled by a subscription service for purposes other than in connection with

the determination of a specified benchmark;

(ii) provided to a person who has permission to carry on an activity of the kind

specified by article 63O(1)(b) and who is a subscriber to the service; and

(iii) provided to such a person only in that person's capacity as a subscriber.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2013/655 Pt 3

art.5 (April 2, 2013: insertion has effect subject to transitional provisions specified in SI 2013/655 Pt 4)

Extent

Pt II(XVE) art. 63P(a)-(b)(iii): United Kingdom 

SI 2001/544 Page 127
Law In Force

[ 63Q.— Administration of a specified benchmark by the FCA

(1) The FCA does not carry on the activity of the kind specified by article 63O(1)(b) in relation to

a specified benchmark where the FCA administers the specified benchmark itself.

(2) Where a specified benchmark is administered by the FCA, the reference in article 63O(2)(a)(i)

to a person who has permission to carry on the activity specified in 63O(1)(b) in relation to that

specified benchmark is to be read as referring to the FCA.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2013/655 Pt 3

art.5 (April 2, 2013: insertion has effect subject to transitional provisions specified in SI 2013/655 Pt 4)

Extent

Pt II(XVE) art. 63Q(1)-(2): United Kingdom 

Law In Force

[ 63R. Schedule

Schedule 5 specifies benchmarks for the purposes of section 22(1A)(b) of the Act. ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2013/655 Pt 3

art.5 (April 2, 2013: insertion has effect subject to transitional provisions specified in SI 2013/655 Pt 4)

Extent

Pt II(XVE) art. 63R: United Kingdom 

CHAPTER XVI

AGREEING TO CARRY ON ACTIVITIES

The activity

P Partially In Force

64. Agreeing to carry on specified kinds of activity

Agreeing to carry on an activity of the kind specified by any other provision of this Part [ or Part

3A ]

1

 (other than [ article 5, 9B, 10, 25D, 51ZA, 51ZB, 51ZC, 51ZD, 51ZE, 52 or 63N ]

2

) is a

specified kind of activity.

Notes

1 Words inserted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order

2013/1881 Pt 2 art.8(1) (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

SI 2001/544 Page 128
2 Word substituted by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(14) (July 22,

2013: substitution has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

Commencement

Pt II(XVI) art. 64: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(XVI) art. 64: United Kingdom 

[Exclusions]

1

Notes

1

Substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order

2002/1776 art.3(17) (August 21, 2002)

Law In Force

[ 65. Overseas persons etc

Article 64 is subject to the exclusions in articles 72 (overseas persons) and 72A (information society

services). ]

1

Notes

1

Substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order

2002/1776 art.3(17) (August 21, 2002)

Commencement

Pt II(XVI) art. 65: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(XVI) art. 65: United Kingdom 

CHAPTER XVII

EXCLUSIONS APPLYING TO SEVERAL SPECIFIED KINDS OF ACTIVITY

Law In Force

66.— Trustees, nominees and personal representatives

(1) A person (“X”) does not carry on an activity of the kind specified by article 14 where he enters

into a transaction as bare trustee or, in Scotland, as nominee for another person (“Y”) and—

(a) X is acting on Y's instructions; and

(b) X does not hold himself out as providing a service of buying and selling securities or

contractually based investments.

SI 2001/544 Page 129
(2) Subject to paragraph (7), there are excluded from [ articles 25(1) and (2), 25A(1) and (2), 25B(1)

and (2), 25C(1) and (2) and 25E(1) and (2) ]

1

 arrangements made by a person acting as trustee or

personal representative for or with a view to a transaction which is or is to be entered into—

(a) by that person and a fellow trustee or personal representative (acting in their capacity

as such); or

(b) by a beneficiary under the trust, will or intestacy.

(3) Subject to paragraph (7), there is excluded from article 37 any activity carried on by a person

acting as trustee or personal representative, unless—

(a) he holds himself out as providing a service comprising an activity of the kind specified

by article 37; or

(b) the assets in question are held for the purposes of an occupational pension scheme, and,

by virtue of article 4 of the Financial Services and Markets Act 2000 (Carrying on Regulated

Activities by Way of Business) Order 2001, he is to be treated as carrying on that activity

by way of business.

[ (3A) Subject to paragraph (7), there is excluded from article 39A any activity carried on by a

person acting as trustee or personal representative, unless he holds himself out as providing a service

comprising an activity of the kind specified by article 39A. ]

2

(4) Subject to paragraph (7), there is excluded from article 40 any activity carried on by a person

acting as trustee or personal representative, unless he holds himself out as providing a service

comprising an activity of the kind specified by article 40.

[ (4A) There is excluded from article 40 any activity carried on by a person acting as trustee which

consists of arranging for one or more other persons to safeguard and administer trust assets where–

(a) that other person is a qualifying custodian; or

(b) that safeguarding and administration is also arranged by a qualifying custodian.

In this paragraph, “qualifying custodian”has the meaning given by article 41(2).

]

3

(5) A person does not, by sending or causing to be sent a dematerialised instruction (within the

meaning of article 45), carry on an activity of the kind specified by that article if the instruction

relates to an investment which that person holds as trustee or personal representative.

(6) Subject to paragraph (7), there is excluded from [ articles 53, 53A, 53B, 53C and 53D ]

4

 the

giving of advice by a person acting as trustee or personal representative where he gives the advice

to—

(a) a fellow trustee or personal representative for the purposes of the trust or the estate; or

(b) a beneficiary under the trust, will or intestacy concerning his interest in the trust fund

or estate.

[ (6A) Subject to paragraph (7), a person acting as trustee or personal representative does not carry

on an activity of the kind specified by article 61(1) or (2) where the borrower under the regulated

mortgage contract in question is a beneficiary under the trust, will or intestacy. ]

5

[ (6B) Subject to paragraph (7), a person acting as trustee or personal representative does not carry

on an activity of the kind specified by article 63B(1) or (2) where the reversion seller under the

regulated home reversion plan in question is a beneficiary under the trust, will or intestacy.

SI 2001/544 Page 130
(6C) Subject to paragraph (7), a person acting as trustee or personal representative does not carry

on an activity of the kind specified by article 63F(1) or (2) where the home purchaser under the

regulated home purchase plan in question is a beneficiary under the trust, will or intestacy. ]

6

[ (6D) Subject to paragraph (7), a person acting as a trustee or personal representative does not

carry on an activity of the kind specified by article 63J(1) or (2) where the agreement seller under

the regulated sale and rent back agreement is a beneficiary under the trust, will or intestacy. ]

7

(7) Paragraphs (2), (3) [ , (3A) ]

8

 , [ (4), (6) [ , (6A), (6B) [ , (6C) and (6D) ]

11 ]10 ]9

 do not apply

if the person carrying on the activity is remunerated for what he does in addition to any remuneration

he receives as trustee or personal representative, and for these purposes a person is not to be regarded

as receiving additional remuneration merely because his remuneration is calculated by reference

to time spent.

[ (8) This article is subject to article 4(4A). ]

12

Notes

1 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order

2009/1342 Pt 2 art.18(a) (July 1, 2009: substitution has effect subject to transitional provisions specified in SI

2009/1342 art.32)

2 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2003/1476

Pt 2 art.10(1)(a) (October 31, 2004 in relation to contracts of long-term care insurance; January 14, 2005 otherwise)

3 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2005/593 art.2(4)

(April 6, 2005)

4 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order

2009/1342 Pt 2 art.18(b) (July 1, 2009: substitution has effect subject to transitional provisions specified in SI

2009/1342 art.32)

5 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 1) Order 2003/1475

Pt 2 art.18(c) (October 31, 2004)

6 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2006/2383

Pt 2 art.19(c) (November 6, 2006 for the purposes of enabling applications as specified in SI 2006/2383 art.1(2)(a);

April 6, 2007 otherwise)

7 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2009/1342 Pt 2

art.18(c) (July 1, 2009: insertion has effect subject to transitional provisions specified in SI 2009/1342 art.32)

8 Word inserted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order

2003/1476 Pt 2 art.10(1)(b) (October 31, 2004 in relation to contracts of long-term care insurance; January 14,

2005 otherwise)

9 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 1) Order

2003/1475 Pt 2 art.18(d) (October 31, 2004)

10 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order

2006/2383 Pt 2 art.19(d) (November 6, 2006 for the purposes of enabling applications as specified in SI 2006/2383

art.1(2)(a); April 6, 2007 otherwise)

11 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order

2009/1342 Pt 2 art.18(d) (July 1, 2009: substitution has effect subject to transitional provisions specified in SI

2009/1342 art.32)

12 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment No. 3) Order 2006/3384

Pt 2 art.19 (April 1, 2007: insertion has effect on April 1, 2007 for the purposes specified in SI 2006/3384 art.1(2)(a);

November 1, 2007 otherwise)

Commencement

Pt II(XVII) art. 66(1)-(7): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s.

19; SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

SI 2001/544 Page 131
Extent

Pt II(XVII) art. 66(1)-(8): United Kingdom 

Law In Force

67.— Activities carried on in the course of a profession or non-investment business

(1) There is excluded from [ articles 21, 25(1) and (2), 25A, 25B, 25C, 25E, 39A, 40, 53, 53A,

53B, 53C and 53D ]

1

 any activity which—

(a) is carried on in the course of carrying on any profession or business which does not

otherwise consist of [ the carrying on of regulated activities in the United Kingdom ]

2

 ;

and

(b) may reasonably be regarded as a necessary part of other services provided in the course

of that profession or business.

(2) But the exclusion in paragraph (1) does not apply if the activity in question is remunerated

separately from the other services.

[ (3) This article is subject to article 4(4) and (4A). ]

3

Notes

1 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order

2009/1342 Pt 2 art.19(b) (July 1, 2009: substitution has effect subject to transitional provisions specified in SI

2009/1342 art.32)

2 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order

2001/3544 art.9 (December 1, 2001)

3 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment No. 3) Order 2006/3384

Pt 2 art.20 (April 1, 2007: insertion has effect on April 1, 2007 for the purposes specified in SI 2006/3384 art.1(2)(a);

November 1, 2007 otherwise)

Commencement

Pt II(XVII) art. 67(1)-(2): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s.

19; SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(XVII) art. 67(1)-(3): United Kingdom 

Law In Force

68.— Activities carried on in connection with the sale of goods or supply of services

(1) Subject to paragraphs (9), (10) and (11), this article concerns certain activities carried on for

the purposes of or in connection with the sale of goods or supply of services by a supplier to a

customer, where—

“supplier” means a person whose main business is to sell goods or supply services and not

to carry on any activities of the kind specified by any of [ articles 14, 21, 25, 37, 39A, 40,

45, 51ZA, 51ZB, 51ZC, 51ZD, 51ZE, 52 and 53 ]

1

 and, where the supplier is a member of

a group, also means any other member of that group; and

SI 2001/544 Page 132
“customer” means a person, other than an individual, to whom a supplier sells goods or

supplies services, or agrees to do so, and, where the customer is a member of a group, also

means any other member of that group;

and in this article “related sale or supply” means a sale of goods or supply of services to the customer

otherwise than by the supplier, but for or in connection with the same purpose as the sale or supply

mentioned above.

(2) There is excluded from article 14 any transaction entered into by a supplier with a customer, if

the transaction is entered into for the purposes of or in connection with the sale of goods or supply

of services, or a related sale or supply.

(3) There is excluded from article 21 any transaction entered into [ by a supplier as agent for a

customer ]

2

 , if the transaction is entered into for the purposes of or in connection with the sale of

goods or supply of services, or a related sale or supply, and provided that—

(a) where the investment to which the transaction relates is a security, the supplier does

not hold himself out (other than to the customer) as engaging in the business of buying

securities of the kind to which the transaction relates with a view to selling them, and does

not regularly solicit members of the public for the purpose of inducing them (as principals

or agents) to buy, sell, subscribe for or underwrite securities;

(b) where the investment to which the transaction relates is a contractually based investment,

the supplier enters into the transaction—

(i) with or through an authorised person, or an exempt person acting in the course

of a business comprising a regulated activity in relation to which he is exempt; or

(ii) through an office outside the United Kingdom maintained by a party to the

transaction, and with or through a person whose head office is situated outside the

United Kingdom and whose ordinary business involves him in carrying on activities

of the kind specified by any of [ articles 14, 21, 25, 37, 40, 45, 51ZA, 51ZB, 51ZC,

51ZD, 51ZE, 52 and 53 ]

1

 or, so far as relevant to any of those articles, article 64,

or would do so apart from any exclusion from any of those articles made by this

Order.

(4) In paragraph (3)(a), “members of the public”has the meaning given by article 15(2), references

to “A”being read as references to the supplier.

(5) There are excluded from article 25(1) and (2) arrangements made by a supplier for, or with a

view to, a transaction which is or is to be entered into by a customer for the purposes of or in

connection with the sale of goods or supply of services, or a related sale or supply.

(6) There is excluded from article 37 any activity carried on by a supplier where the assets in

question—

(a) are those of a customer; and

(b) are managed for the purposes of or in connection with the sale of goods or supply of

services, or a related sale or supply.

(7) There is excluded from article 40 any activity carried on by a supplier where the assets in

question are or are to be safeguarded and administered for the purposes of or in connection with

the sale of goods or supply of services, or a related sale or supply.

(8) There is excluded from article 53 the giving of advice by a supplier to a customer for the purposes

of or in connection with the sale of goods or supply of services, or a related sale or supply, or to a

SI 2001/544 Page 133
person with whom the customer proposes to enter into a transaction for the purposes of or in

connection with such a sale or supply or related sale or supply.

(9) Paragraphs (2), (3) and (5) do not apply in the case of a transaction for the sale or purchase of

a [ contract of insurance ]

3

 , an investment of the kind specified by article 81, or an investment of

the kind specified by article 89 so far as relevant to such a contract or such an investment.

(10) Paragraph (6) does not apply where the assets managed consist of qualifying contracts of

insurance, investments of the kind specified by article 81, or investments of the kind specified by

article 89 so far as relevant to such contracts or such investments.

(11) Paragraph (8) does not apply in the case of advice in relation to an investment which is a

[ contract of insurance ]

4

 , is of the kind specified by article 81, or is of the kind specified by article

89 so far as relevant to such a contract or such an investment.

[ (12) This article is subject to article 4(4). ]

5

Notes

1 Word substituted by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(14) (July 22,

2013: substitution has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

2 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order

2001/3544 art.10 (December 1, 2001)

3 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order

2003/1476 Pt 2 art.10(3)(b) (October 31, 2004 in relation to contracts of long-term care insurance; January 14,

2005 otherwise)

4 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order

2003/1476 Pt 2 art.10(3)(c) (October 31, 2004 in relation to contracts of long-term care insurance; January 14,

2005 otherwise)

5 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment No. 3) Order 2006/3384

Pt 2 art.21 (April 1, 2007: insertion has effect on April 1, 2007 for the purposes specified in SI 2006/3384 art.1(2)(a);

November 1, 2007 otherwise)

Commencement

Pt II(XVII) art. 68(1)-(11): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s.

19; SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(XVII) art. 68(1)-(12): United Kingdom 

Law In Force

69.— Groups and joint enterprises

(1) There is excluded from article 14 any transaction into which a person enters as principal with

another person if that other person is also acting as principal and—

(a) they are members of the same group; or

(b) they are, or propose to become, participators in a joint enterprise and the transaction is

entered into for the purposes of or in connection with that enterprise.

SI 2001/544 Page 134
(2) There is excluded from article 21 any transaction into which a person enters as agent for another

person if that other person is acting as principal, and the condition in paragraph (1)(a) or (b) is met,

provided that—

(a) where the investment to which the transaction relates is a security, the agent does not

hold himself out (other than to members of the same group or persons who are or propose

to become participators with him in a joint enterprise) as engaging in the business of buying

securities of the kind to which the transaction relates with a view to selling them, and does

not regularly solicit members of the public for the purpose of inducing them (as principals

or agents) to buy, sell, subscribe for or underwrite securities;

(b) where the investment to which the transaction relates is a contractually based investment,

the agent enters into the transaction—

(i) with or through an authorised person, or an exempt person acting in the course

of a business comprising a regulated activity in relation to which he is exempt; or

(ii) through an office outside the United Kingdom maintained by a party to the

transaction, and with or through a person whose head office is situated outside the

United Kingdom and whose ordinary business involves him in carrying on activities

of the kind specified by any of [ articles 14, 21, 25, 37, 40, 45, 51ZA, 51ZB, 51ZC,

51ZD, 51ZE, 52 and 53 ]

1

 or, so far as relevant to any of those articles, article 64,

or would do so apart from any exclusion from any of those articles made by this

Order.

(3) In paragraph (2)(a), “members of the public”has the meaning given by article 15(2), references

to “A”being read as references to the agent.

(4) There are excluded from article 25(1) and (2) arrangements made by a person if—

(a) he is a member of a group and the arrangements in question are for, or with a view to,

a transaction which is or is to be entered into, as principal, by another member of the same

group; or

(b) he is or proposes to become a participator in a joint enterprise, and the arrangements

in question are for, or with a view to, a transaction which is or is to be entered into, as

principal, by another person who is or proposes to become a participator in that enterprise,

for the purposes of or in connection with that enterprise.

(5) There is excluded from article 37 any activity carried on by a person if—

(a) he is a member of a group and the assets in question belong to another member of the

same group; or

(b) he is or proposes to become a participator in a joint enterprise with the person to whom

the assets belong, and the assets are managed for the purposes of or in connection with that

enterprise.

(6) There is excluded from article 40 any activity carried on by a person if—

(a) he is a member of a group and the assets in question belong to another member of the

same group; or

(b) he is or proposes to become a participator in a joint enterprise, and the assets in

question—

(i) belong to another person who is or proposes to become a participator in that

joint enterprise; and

(ii) are or are to be safeguarded and administered for the purposes of or in connection

with that enterprise.

SI 2001/544 Page 135
(7) A person who is a member of a group does not carry on an activity of the kind specified by

article 45 where he sends a dematerialised instruction, or causes one to be sent, on behalf of another

member of the same group, if the investment to which the instruction relates is one in respect of

which a member of the same group is registered as holder in the appropriate register of securities,

or will be so registered as a result of the instruction.

(8) In paragraph (7), “dematerialised instruction” and “register of securities”have the meaning

given by [ regulation 3 of the Uncertificated Securities Regulations 2001 ]

2

.

(9) There is excluded from article 53 the giving of advice by a person if—

(a) he is a member of a group and gives the advice in question to another member of the

same group; or

(b) he is, or proposes to become, a participator in a joint enterprise and the advice in question

is given to another person who is, or proposes to become, a participator in that enterprise

for the purposes of or in connection with that enterprise.

[(10) Paragraph (2) does not apply to a transaction for the sale or purchase of a contract of insurance.

(11) Paragraph (4) does not apply to arrangements for, or with a view to, a transaction for the sale

or purchase of a contract of insurance.

(12) Paragraph (9) does not apply where the advice relates to a transaction for the sale or purchase

of a contract of insurance. ]

3

[ (13) This article is subject to article 4(4). ]

4

Notes

1 Word substituted by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(14) (July 22,

2013: substitution has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

2 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2002/682

Pt III art.13(4) (April 27, 2002)

3 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2003/1476

Pt 2 art.10(4) (October 31, 2004 in relation to contracts of long-term care insurance; January 14, 2005 otherwise)

4 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment No. 3) Order 2006/3384

Pt 2 art.22 (April 1, 2007: insertion has effect on April 1, 2007 for the purposes specified in SI 2006/3384 art.1(2)(a);

November 1, 2007 otherwise)

Commencement

Pt II(XVII) art. 69(1)-(9)(b): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II

s. 19; SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(XVII) art. 69(1)-(13): United Kingdom 

Law In Force

70.— Activities carried on in connection with the sale of a body corporate

(1) A person does not carry on an activity of the kind specified by article 14 by entering as principal

into a transaction if—

SI 2001/544 Page 136
(a) the transaction is one to acquire or dispose of shares in a body corporate other than an

open-ended investment company, or is entered into for the purposes of such an acquisition

or disposal; and

(b) either—

(i) the conditions set out in paragraph (2) are met; or

(ii) those conditions are not met, but the object of the transaction may nevertheless

reasonably be regarded as being the acquisition of day to day control of the affairs

of the body corporate.

(2) The conditions mentioned in paragraph (1)(b) are that—

(a) the shares consist of or include 50 per cent or more of the voting shares in the body

corporate; or

(b) the shares, together with any already held by the person acquiring them, consist of or

include at least that percentage of such shares; and

(c) in either case, the acquisition or disposal is between parties each of whom is a body

corporate, a partnership, a single individual or a group of connected individuals.

(3) In paragraph (2)(c), “a group of connected individuals” means —

(a) in relation to a party disposing of shares in a body corporate, a single group of persons

each of whom is—

(i) a director or manager of the body corporate;

(ii) a close relative of any such director or manager;

(iii) a person acting as trustee for any person falling within paragraph (i) or (ii);

and

(b) in relation to a party acquiring shares in a body corporate, a single group of persons

each of whom is—

(i) a person who is or is to be a director or manager of the body corporate;

(ii) a close relative of any such person; or

(iii) a person acting as trustee for any person falling within paragraph (i) or (ii).

(4) A person does not carry on an activity of the kind specified by article 21 by entering as agent

into a transaction of the kind described in paragraph (1).

(5) There are excluded from article 25(1) and (2) arrangements made for, or with a view to, a

transaction of the kind described in paragraph (1).

(6) There is excluded from article 53 the giving of advice in connection with a transaction (or

proposed transaction) of the kind described in paragraph (1).

[ (7) Paragraphs (4), (5) and (6) do not apply in the case of a transaction for the sale or purchase of

a contract of insurance. ]

1

[ (8) This article is subject to article 4(4). ]

2

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2003/1476

Pt 2 art.10(5) (October 31, 2004 in relation to contracts of long-term care insurance; January 14, 2005 otherwise)

2 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment No. 3) Order 2006/3384

Pt 2 art.23 (April 1, 2007: insertion has effect on April 1, 2007 for the purposes specified in SI 2006/3384 art.1(2)(a);

November 1, 2007 otherwise)

SI 2001/544 Page 137
Commencement

Pt II(XVII) art. 70(1)-(6): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s.

19; SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(XVII) art. 70(1)-(8): United Kingdom 

Law In Force

71.— Activities carried on in connection with employee share schemes

(1) A person (“C”), a member of the same group as C or a relevant trustee does not carry on an

activity of the kind specified by article 14 by entering as principal into a transaction the purpose

of which is to enable or facilitate—

(a) transactions in shares in, or debentures issued by, C between, or for the benefit of, any

of the persons mentioned in paragraph (2); or

(b) the holding of such shares or debentures by, or for the benefit of, such persons.

(2) The persons referred to in paragraph (1) are—

(a) the bona fide employees or former employees of C or of another member of the same

group as C;

(b) the wives, husbands, widows, widowers, [ civil partners, surviving civil partners, ]

1

or children or step-children under the age of eighteen of such employees or former

employees.

(3) C, a member of the same group as C or a relevant trustee does not carry on an activity of the

kind specified by article 21 by entering as agent into a transaction of the kind described in paragraph

(1).

(4) There are excluded from article 25(1) or (2) arrangements made by C, a member of the same

group as C or a relevant trustee if the arrangements in question are for, or with a view to, a transaction

of the kind described in paragraph (1).

(5) There is excluded from article 40 any activity if the assets in question are, or are to be,

safeguarded and administered by C, a member of the same group as C or a relevant trustee for the

purpose of enabling or facilitating transactions of the kind described in paragraph (1).

(6) In this article—

(a) “shares” and “debentures”include—

(i) any investment of the kind specified by [ article 76, 77 or 77A ]

2

;

(ii) any investment of the kind specified by article 79 or 80 so far as relevant to

[ articles 76, 77 and 77A ]

3

; and

(iii) any investment of the kind specified by article 89 so far as relevant to

investments of the kind mentioned in paragraph (i) or (ii);

(b) “relevant trustee” means a person who, in pursuance of the arrangements made for the

purpose mentioned in paragraph (1), holds, as trustee, shares in or debentures issued by C.

Notes

1 Words inserted by Civil Partnership Act 2004 (Amendments to Subordinate Legislation) Order 2005/2114 Sch.16(1)

para.1(4) (December 5, 2005)

SI 2001/544 Page 138
2 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2010/86

Sch.1 para.5(c) (February 24, 2010)

3 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2010/86

Sch.1 para.5(d) (February 24, 2010)

Commencement

Pt II(XVII) art. 71(1)-(6)(b): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II

s. 19; SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(XVII) art. 71(1)-(6)(b): United Kingdom 

Law In Force

72.— Overseas persons

(1) An overseas person does not carry on an activity of the kind specified by [ article 14 or 25D ]

1

by—

(a) entering into a transaction as principal with or though an authorised person, or an exempt

person acting in the course of a business comprising a regulated activity in relation to which

he is exempt; or

(b) entering into a transaction as principal with a person in the United Kingdom, if the

transaction is the result of a legitimate approach.

(2) An overseas person does not carry on an activity of the kind specified by [ article 21 or 25D ]

2

by—

(a) entering into a transaction as agent for any person with or through an authorised person

or an exempt person acting in the course of a business comprising a regulated activity in

relation to which he is exempt; or

(b) entering into a transaction with another party (“X”) as agent for any person (“Y”), other

than with or through an authorised person or such an exempt person, unless—

(i) either X or Y is in the United Kingdom; and

(ii) the transaction is the result of an approach (other than a legitimate approach)

made by or on behalf of, or to, whichever of X or Y is in the United Kingdom.

(3) There are excluded from [ article 25(1) or 25D ]

3

 arrangements made by an overseas person

with an authorised person, or an exempt person acting in the course of a business comprising a

regulated activity in relation to which he is exempt.

(4) There are excluded from [ article 25(2) or 25D ]

4

 arrangements made by an overseas person

with a view to transactions which are, as respects transactions in the United Kingdom, confined

to—

(a) transactions entered into by authorised persons as principal or agent; and

(b) transactions entered into by exempt persons, as principal or agent, in the course of

business comprising regulated activities in relation to which they are exempt.

(5) There is excluded from article 53 the giving of advice by an overseas person as a result of a

legitimate approach.

SI 2001/544 Page 139
[ (5A) An overseas person does not carry on an activity of the kind specified by [ article 25A(1)(a),

25B(1)(a), 25C(1)(a) or 25E(1)(a) ]

6

 if each person who may be contemplating entering into the

relevant type of agreement in the relevant capacity is non-resident.

(5B) There are excluded from [ articles 25A(1)(b), 25B(1)(b), 25C(1)(b) and 25E(1)(b) ]

7

arrangements made by an overseas person to vary the terms of a qualifying agreement.

(5C) There are excluded from [ articles 25A(2), 25B(2), 25C(2) and 25E(2) ]

8

, arrangements made

by an overseas person which are made solely with a view to non-resident persons who participate

in those arrangements entering, in the relevant capacity, into the relevant type of agreement.

(5D) An overseas person does not carry on an activity of the kind specified in [ article 61(1), 63B(1),

63F(1) or 63J(1) ]

9

 by entering into a qualifying agreement.

(5E) An overseas person does not carry on an activity of the kind specified in [ article 61(2), 63B(2),

63F(2) or 63J(2) ]

10 where he administers a qualifying agreement.

(5F) In paragraphs (5A) to (5E)—

(a) “non-resident” means not normally resident in the United Kingdom;

(b) “qualifying agreement” means—

(i) in relation to articles 25A and 61, a regulated mortgage contract where the

borrower (or each borrower) is non-resident when he enters into it;

(ii) in relation to articles 25B and 63B, a regulated home reversion plan where the

reversion seller (or each reversion seller) is non-resident when he enters into it;

(iii) in relation to articles 25C and 63F, a regulated home purchase plan where the

home purchaser (or each home purchaser) is non-resident when he enters into it;

[ (iv) in relation to articles 25E and 63J, a regulated sale and rent back agreement

where the agreement seller (or each agreement seller) is non-resident when the

agreement seller enters into it; ]

11

(c) “the relevant capacity” means—

(i) in the case of a regulated mortgage contract, as borrower;

(ii) in the case of a regulated home reversion plan, as reversion seller or plan

provider;

(iii) in the case of a regulated home purchase plan, as home purchaser;

[ (iv) in the case of a regulated sale and rent back agreement, as agreement seller

or agreement provider; ]

12

(d) “the relevant type of agreement” means—

(i) in relation to article 25A, a regulated mortgage contract;

(ii) in relation to article 25B, a regulated home reversion plan;

(iii) in relation to article 25C, a regulated home purchase plan [ ; ]

13

[ (iv) in relation to article 25E, a regulated sale and rent back agreement. ]

13

]

5

(6) There is excluded from article 64 any agreement made by an overseas person to carry on an

activity of the kind specified by [ article 25(1) or (2), 37, 39A, 40 or 45 ]

14 if the agreement is the

result of a legitimate approach.

(7) In this article, “legitimate approach” means —

(a) an approach made to the overseas person which has not been solicited by him in any

way, or has been solicited by him in a way which does not contravene section 21 of the

Act; or

SI 2001/544 Page 140
(b) an approach made by or on behalf of the overseas person in a way which does not

contravene that section.

[ (8) Paragraphs (1) to (5) do not apply where the overseas person is an investment firm or credit

institution—

(a) who is providing or performing investment services and activities on a professional

basis; and

(b) whose home Member State is the United Kingdom.

]

15

[ (9) Paragraphs (1) to (5) do not apply where the overseas person is providing clearing services as

a central counterparty (within the meaning of section 313(1) of the Act). ]

16

Notes

1 Words inserted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment No. 3) Order

2006/3384 Pt 2 art.24(a) (April 1, 2007: insertion has effect on April 1, 2007 for the purposes specified in SI

2006/3384 art.1(2)(a); November 1, 2007 otherwise)

2 Words inserted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment No. 3) Order

2006/3384 Pt 2 art.24(b) (April 1, 2007: insertion has effect on April 1, 2007 for the purposes specified in SI

2006/3384 art.1(2)(a); November 1, 2007 otherwise)

3 Words inserted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment No. 3) Order

2006/3384 Pt 2 art.24(c) (April 1, 2007: insertion has effect on April 1, 2007 for the purposes specified in SI

2006/3384 art.1(2)(a); November 1, 2007 otherwise)

4 Words inserted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment No. 3) Order

2006/3384 Pt 2 art.24(d) (April 1, 2007: insertion has effect on April 1, 2007 for the purposes specified in SI

2006/3384 art.1(2)(a); November 1, 2007 otherwise)

5

Substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order

2006/2383 Pt 2 art.21 (November 6, 2006 for the purposes of enabling applications as specified in SI 2006/2383

art.1(2)(a); April 6, 2007 otherwise)

6 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order

2009/1342 Pt 2 art.20(a) (July 1, 2009: substitution has effect subject to transitional provisions specified in SI

2009/1342 art.32)

7 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order

2009/1342 Pt 2 art.20(b) (July 1, 2009: substitution has effect subject to transitional provisions specified in SI

2009/1342 art.32)

8 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order

2009/1342 Pt 2 art.20(c) (July 1, 2009: substitution has effect subject to transitional provisions specified in SI

2009/1342 art.32)

9 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order

2009/1342 Pt 2 art.20(d) (July 1, 2009: substitution has effect subject to transitional provisions specified in SI

2009/1342 art.32)

10 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order

2009/1342 Pt 2 art.20(e) (July 1, 2009: substitution has effect subject to transitional provisions specified in SI

2009/1342 art.32)

11 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2009/1342 Pt 2

art.20(f) (July 1, 2009: insertion has effect subject to transitional provisions specified in SI 2009/1342 art.32)

12 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2009/1342 Pt 2

art.20(g) (July 1, 2009: insertion has effect subject to transitional provisions specified in SI 2009/1342 art.32)

13 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2009/1342 Pt 2

art.20(h) (July 1, 2009: insertion has effect subject to transitional provisions specified in SI 2009/1342 art.32)

SI 2001/544 Page 141
14 Word inserted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order

2003/1476 Pt 2 art.10(6) (October 31, 2004 in relation to contracts of long-term care insurance; January 14, 2005

otherwise)

15 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment No. 3) Order 2006/3384

Pt 2 art.24(e) (April 1, 2007: insertion has effect on April 1, 2007 for the purposes specified in SI 2006/3384

art.1(2)(a); November 1, 2007 otherwise)

16 Added by Financial Services and Markets Act 2000 (Over the Counter Derivatives, Central Counterparties and

Trade Repositories) Regulations 2013/504 Pt 8 reg.33(5) (April 1, 2013: insertion has effect subject to transitional

and savings provisions specified in SI 2013/504 Pt 9)

Commencement

Pt II(XVII) art. 72(1)-(7)(b): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II

s. 19; SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt II(XVII) art. 72(1)-(9): United Kingdom 

Law In Force

[ 72A.— Information society services

(1) There is excluded from this Part any activity consisting of the provision of an information

society service from an EEA State other than the United Kingdom.

(2) The exclusion in paragraph (1) does not apply to the activity of effecting or carrying out a

contract of insurance as principal, where—

(a) the activity is carried on by an undertaking which has received official authorisation in

accordance with [ Article 4 of the life assurance consolidation directive ]

2

 or the first

non-life insurance directive, and

(b) the insurance falls within the scope of any of the insurance directives.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2002/1776

art.2 (August 21, 2002)

2 Words substituted by Life Assurance Consolidation Directive (Consequential Amendments) Regulations 2004/3379

Pt 3 reg.17 (January 11, 2005)

Extent

Pt II(XVII) art. 72A(1)-(2)(b): United Kingdom 

Law In Force

[ 72AA.— Managers of UCITS and AIFs

(1) This article applies to a person with a Part 4A permission to carry on the activity of the kind

specified by article 51ZA or 51ZC.

SI 2001/544 Page 142
(2) Activities carried on by the person in connection with or for the purposes of managing a UCITS

or, as the case may be, managing an AIF, are excluded from the activities specified by this Part,

other than the activities mentioned in paragraph (1).

]

1

Notes

1 Added by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(16) (July 22, 2013:

insertion has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

Extent

Pt II(XVII) art. 72AA(1)-(2): United Kingdom 

P Partially In Force

[ 72B.— Activities carried on by a provider of relevant goods or services

(1) In this article–

“connected contract of insurance” means a contract of insurance which–

(a) is not a contract of long-term insurance;

(b) has a total duration (or would have a total duration were any right to renew

conferred by the contract exercised) of five years or less;

(c) has an annual premium (or, where the premium is paid otherwise than by way

of annual premium, the equivalent of an annual premium) of 500 euro or less, or

the equivalent amount in sterling or other currency;

(d) covers the risk of–

(i) breakdown, loss of, or damage to, non-motor goods supplied by the

provider; or

[ (ii) damage to, or loss of, baggage and other risks linked to the travel

booked with the provider (“travel risks”) in circumstances where—

(aa) the travel booked with the provider relates to attendance at an

event organised or managed by that provider and the party seeking

insurance is not an individual (acting in his private capacity) or a

small business; or

(bb) the travel booked with the provider is only the hire of an aircraft,

vehicle or vessel which does not provide sleeping accommodation;

]

2

(e) does not cover any liability risks (except, in the case of a contract which covers

travel risks, where that cover is ancillary to the main cover provided by the contract);

(f) is complementary to the non-motor goods being supplied or service being

provided by the provider; and

(g) is of such a nature that the only information that a person requires in order to

carry on an activity of the kind specified by article 21, 25, 39A or 53 in relation to

it is the cover provided by the contract;

“non-motor goods” means goods which are not mechanically propelled road vehicles;

“provider” means [ a person who supplies non-motor goods or provides services related to

travel in the course of carrying on a profession or business which does not otherwise consist

SI 2001/544 Page 143
of the carrying on of regulated activities. For these purposes, the transfer of possession of

an aircraft, vehicle or vessel under an agreement for hire which is not—

(a) a hire-purchase agreement [...]4, or

(b) any other agreement which contemplates that the property in those goods will

also pass at some time in the future,

is the provision of a service related to travel, not a supply of goods]

3

[ ; ]

5

[ “small business” means—

(a) subject to paragraph (b) a sole trader, body corporate, partnership or an

unincorporated association which had a turnover in the last financial year of less

than £1,000,000;

(b) where the business concerned is a member of a group within the meaning of

[section 474(1) of the Companies Act 2006 ]

6

), reference to its turnover means the

combined turnover of the group;

“turnover” means the amounts derived from the provision of goods and services falling

within the business's ordinary activities, after deduction of trade discounts, value added tax

and any other taxes based on the amounts so derived. ]

5

(2) There is excluded from article 21 any transaction for the sale or purchase of a connected contract

of insurance into which a provider enters as agent.

(3) There are excluded from aarticle 25(1) and (2) any arrangements made by a provider for, or

with a view to, a transaction for the sale or purchase of a connected contract of insurance.

(4) There is excluded from article 39A any activity carried on by a provider where the contract of

insurance in question is a connected contract of insurance.

(5) There is excluded from article 53 the giving of advice by a provider in relation to a transaction

for the sale or purchase of a connected contract of insurance.

(6) For the purposes of this article, a contract of insurance which covers travel risks is not to be

treated as a contract of long-term insurance, notwithstanding the fact that it contains related and

subsidiary provisions such that it might be regarded as a contract of long-term insurance, if the

cover to which those provisions relate is ancillary to the main cover provided by the contract.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2003/1476

Pt 2 art.11 (October 31, 2004 in relation to contracts of long-term care insurance; January 14, 2005 otherwise)

2

Substituted subject to transitional provisions specified in SI 2007/3510 Part 3 by Financial Services and Markets

Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2007/3510 Pt 2 art.2(2) (January 1, 2009: substitution

has effect on June 30, 2008 for purposes specified in SI 2007/3510 art.1(2)(a) subject to transitional provisions

specified in SI 2007/3510 Part 3; January 1, 2009 otherwise)

3 Words inserted subject to transitional provisions specified in SI 2007/3510 Part 3 by Financial Services and Markets

Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2007/3510 Pt 2 art.2(3) (January 1, 2009: insertion

has effect on June 30, 2008 for purposes specified in SI 2007/3510 art.1(2)(a) subject to transitional provisions

specified in SI 2007/3510 Part 3; January 1, 2009 otherwise)

4 Words repealed by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order

2013/1881 Pt 2 art.9(1) (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

5 Definitions inserted subject to transitional provisions specified in SI 2007/3510 Part 3 by Financial Services and

Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2007/3510 Pt 2 art.2(3) (January 1, 2009:

insertion has effect on June 30, 2008 for purposes specified in SI 2007/3510 art.1(2)(a) subject to transitional

provisions specified in SI 2007/3510 Part 3; January 1, 2009 otherwise)

SI 2001/544 Page 144
6 Words substituted by Companies Act 2006 (Consequential Amendments and Transitional Provisions) Order

2011/1265 art.13(5) (May 12, 2011)

Extent

Pt II(XVII) art. 72B(1)-(6): United Kingdom 

Law In Force

[ 72C.— Provision of information on an incidental basis

(1) There is excluded from articles 25(1) and (2) the making of arrangements for, or with a view

to, a transaction for the sale or purchase of a contract of insurance or an investment of the kind

specified by article 89, so far as relevant to such a contract, where that activity meets the conditions

specified in paragraph (4).

(2) There is excluded from articles 37 and 40 any activity–

(a) where the assets in question are rights under a contract of insurance or an investment

of the kind specified by article 89, so far as relevant to such a contract; and

(b) which meets the conditions specified in paragraph (4).

(3) There is excluded from article 39A any activity which meets the conditions specified in paragraph

(4).

(4) The conditions specified in this paragraph are that the activity–

(a) consists of the provision of information to the policyholder or potential policyholder;

(b) is carried on by a person in the course of carrying on a profession or business which

does not otherwise consist of the carrying on of regulated activities; and

(c) may reasonably be regarded as being incidental to that profession or business.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2003/1476

Pt 2 art.11 (October 31, 2004 in relation to contracts of long-term care insurance; January 14, 2005 otherwise)

Extent

Pt II(XVII) art. 72C(1)-(4)(c): United Kingdom 

Law In Force

[ 72D.— Large risks contracts where risk situated outside the EEA

(1) There is excluded from articles 21, 25(1) and (2), 39A and 53 any activity which is carried on

in relation to a large risks contract of insurance, to the extent that the risk or commitment covered

by the contract is not situated in an EEA State.

(2) In this article, a “large risks contract of insurance” is a contract of insurance the principal object

of which is to cover–

(a) risks falling within paragraph 4 (railway rolling stock), 5 (aircraft), 6 (ships), 7 (goods

in transit), 11 (aircraft liability) or 12 (liability of ships) of Part 1 of Schedule 1;

SI 2001/544 Page 145
(b) risks falling within paragraph 14 (credit) or 15 (suretyship) of that Part provided that

the risks relate to a business carried on by the policyholder; or

(c) risks falling within paragraph 3 (land vehicles), 8 (fire and natural forces), 9 (damage

to property), 10 (motor vehicle liability), 13 (general liability) or 16 (miscellaneous financial

loss) of that Part provided that the risks relate to a business carried on by the policyholder

and that the condition specified in paragraph (3) is met in relation to that business.

(3) The condition specified in this paragraph is that at least two of the three following criteria were

met in the most recent financial year for which information is available–

(a) the balance sheet total of the business [ (within the meaning of section 382(5) or 465(5)

of the Companies Act 2006) ]

2

 exceeded 6.2 million euro,

(b) the net turnover [ (within the meaning given to “turnover” by section 474(1) of the

Companies Act 2006) ]

3

 exceeded 12.8 million euro,

(c) the number of employees [ (within the meaning given by sections 382(6) and 465(6)

of the Companies Act 2006) ]

4

 exceeded 250,

and for a financial year which is a company's financial year but not in fact a year, the net turnover

of the policyholder shall be proportionately adjusted.

(4) For the purposes of paragraph (3), where the policyholder is a member of a group for which

consolidated accounts (within the meaning of the Seventh Company Law Directive) are drawn up,

the question whether the condition specified by that paragraph is met is to be determined by reference

to those accounts.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2003/1476

Pt 2 art.11 (October 31, 2004 in relation to contracts of long-term care insurance; January 14, 2005 otherwise)

2 Words substituted by Companies Act 2006 (Consequential Amendments and Transitional Provisions) Order

2011/1265 art.13(6)(a) (May 12, 2011)

3 Words substituted by Companies Act 2006 (Consequential Amendments and Transitional Provisions) Order

2011/1265 art.13(6)(b) (May 12, 2011)

4 Words substituted by Companies Act 2006 (Consequential Amendments and Transitional Provisions) Order

2011/1265 art.13(6)(c) (May 12, 2011)

Extent

Pt II(XVII) art. 72D(1)-(4): United Kingdom 

Law In Force

[ 72E.— Business Angel-led Enterprise Capital Funds

(1) A body corporate of a type specified in paragraph (7) does not carry on the activity of the kind

specified by article 21 by entering as agent into a transaction on behalf of the participants of a

Business Angel-led Enterprise Capital Fund.

(2) There are excluded from article 25(1) and (2) arrangements, made by a body corporate of a type

specified in paragraph (7), for or with a view to a transaction which is or is to be entered into by

or on behalf of the participants in a Business Angel-led Enterprise Capital Fund.

SI 2001/544 Page 146
(3) There is excluded from article 37 any activity, carried on by a body corporate of a type specified

in paragraph (7), which consists in the managing of assets belonging to the participants in a Business

Angel-led Enterprise Capital Fund.

(4) There is excluded from article 40 any activity, carried on by a body corporate of a type specified

in paragraph (7), in respect of assets belonging to the participants in a Business Angel-led Enterprise

Capital Fund.

(5) A body corporate of a type specified in paragraph (7) does not carry on the activity of the kind

specified in [ 51ZA, 51ZC or 51ZE ]

2

 where it carries on the activity of establishing, operating or

winding up a Business Angel-led Enterprise Capital Fund.

(6) A body corporate of a type specified in paragraph (7) does not carry on the activity of the kind

specified in article 53 where it is advising the participants in a Business Angel-led Enterprise Capital

Fund on investments to be made by or on behalf of the participants of that Business Angel-led

Enterprise Capital Fund.

(7) The type of body corporate specified is a limited company—

(i) which operates a Business Angel-led Enterprise Capital Fund; and

(ii) the members of which are participants in the Business Angel-led Enterprise Capital

Fund operated by that limited company and between them have invested at least 50 per cent

of the total investment in that Business Angel-led Enterprise Capital Fund excluding any

investment made by the Secretary of State.

(8) For the purposes of paragraph (7), “a limited company” means a body corporate with limited

liability which is a company or firm formed in accordance with the law of an EEA State and having

its registered office, central administration or principal place of business within the territory of an

EEA State.

(9) Nothing in this article has the effect of excluding a body corporate from the application of the

[ Money Laundering Regulations 2007 ]

3

, in so far as those Regulations would have applied to it

but for this article.

(10) Nothing in this article has the effect of excluding a body corporate from the application of

section 397 of the Act (misleading statements and practices), in so far as that section would have

applied to it but for this article.

[ (11) This article is subject to article 4(4). ]

4

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2005/1518

art.2(3) (October 1, 2005)

2 Word substituted by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(15) (July 22,

2013: substitution has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

3 Word substituted by Money Laundering Regulations 2007/2157 Sch.6(2) para.10 (December 15, 2007)

4 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment No. 3) Order 2006/3384

Pt 2 art.25 (April 1, 2007: insertion has effect on April 1, 2007 for the purposes specified in SI 2006/3384 art.1(2)(a);

November 1, 2007 otherwise)

Extent

Pt II(XVII) art. 72E(1)-(11): United Kingdom 

SI 2001/544 Page 147
Law In Force

[ 72F.— Interpretation

(1) For the purposes of this article and of article 72E—

“Business Angel-led Enterprise Capital Fund” means a collective investment scheme

which—

(a) is established for the purpose of enabling participants to participate in or receive

profits or income arising from the acquisition, holding, management or disposal of

investments falling within one or more of—

(i) article 76, being shares in an unlisted company;

(ii) article 77, being instruments creating or acknowledging indebtedness

in respect of an unlisted company; and

[ (iia) article 77A, being rights under an alternative finance investment bond

issued by an unlisted company; ]

2

(iii) article 79, being warrants or other instruments entitling the holder to

subscribe for shares in an unlisted company;

(b) has only the following as its participants—

(i) the Secretary of State;

(ii) a body corporate of a type specified in article 72E(7); and

(iii) one or more persons each of whom at the time they became a participant

was—

(aa) a sophisticated investor;

(bb) a high net worth individual;

(cc) a high net worth company;

(dd) a high net worth unincorporated association;

(ee) a trustee of a high value trust; or

(ff) a self-certified sophisticated investor;

(c) is prevented, by the arrangements by which it is established, from—

(i) acquiring investments, other than those falling within paragraphs (i) to

(iii) of sub-paragraph (a); and

(ii) acquiring investments falling within paragraphs (i) to (iii) of

sub-paragraph (a) in an unlisted company, where the aggregated cost of those

investments exceeds £2 million, unless that acquisition is necessary to prevent

or reduce the dilution of an existing share-holding in that unlisted company;

“high net worth company” means a body corporate which—

(a) falls within article 49(2)(a) of the Financial Services and Markets Act 2000

(Financial Promotion) Order 20013 (high net worth companies, unincorporated

associations etc.); and

(b) has executed a document [ (in a manner which binds the company) ]

4

 in the

following terms:

“This company is a high net worth company and falls within article 49(2)(a)

of the Financial Services and Markets Act 2000 (Financial Promotion) Order

2001. We understand that any Business Angel-led Enterprise Capital Fund

(within the meaning of article 72F of the Financial Services and Markets

Act 2000 (Regulated Activities) Order 2001), in which this company

participates, or any person who operates that Business Angel-led Enterprise

Capital Fund, in which this company participates, will not be authorised

SI 2001/544 Page 148
under the Financial Services and Markets Act 2000 (and so will not have to

satisfy the threshold conditions set out in Part I of Schedule 6 to that Act

and will not be subject to Financial Services Authority rules such as those

on holding client money). We understand that this means that redress through

the Financial Services Authority, the Financial Ombudsman Scheme or the

Financial Services Compensation Scheme will not be available. We also

understand the risks associated in investing in a Business Angel-led Enterprise

Capital Fund and are aware that it is open to us to seek advice from someone

who is authorised under the Financial Services and Markets Act 2000 and

who specialises in advising on this kind of investment.”

“high net worth individual” means an individual who—

(a) is a “certified high net worth individual” within the meaning of article 48(2) of

the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001

(certified high net worth individuals); and

(b) has signed a statement in the following terms:

“I declare that I am a certified high net worth individual within the meaning

of article 48(2) of the Financial Services and Markets Act 2000 (Financial

Promotion) Order 2001 and that I understand that any Business Angel-led

Enterprise Capital Fund (within the meaning of article 72F of the Financial

Services and Markets Act 2000 (Regulated Activities) Order 2001), in which

I participate, or any person who operates that Business Angel-led Enterprise

Capital Fund, in which I participate, will not be authorised under the Financial

Services and Markets Act 2000 (and so will not have to satisfy the threshold

conditions set out in Part I of Schedule 6 to that Act and will not be subject

to Financial Services Authority rules such as those on holding client money).

I understand that this means that redress through the Financial Services

Authority, the Financial Ombudsman Scheme or the Financial Services

Compensation Scheme will not be available. I also understand the risks

associated in investing in a Business Angel-led Enterprise Capital Fund and

am aware that it is open to me to seek advice from someone who is authorised

under the Financial Services and Markets Act 2000 and who specialises in

advising on this kind of investment.”;

“high net worth unincorporated association” means an unincorporated association—

(a) which falls within article 49(2)(b) of the Financial Services and Markets Act

2000 (Financial Promotion) Order 2001; and

(b) on behalf of which an officer of that association or a member of its governing

body has signed a statement in the following terms:

“This unincorporated association is a high net worth unincorporated

association and falls within article 49(2)(b) of the Financial Services and

Markets Act 2000 (Financial Promotion) Order 2001. I understand that any

Business Angel-led Enterprise Capital Fund (within the meaning of article

72F of the Financial Services and Markets Act 2000 (Regulated Activities)

Order 2001), in which this association participates, or any person who

operates that Business Angel-led Enterprise Capital Fund, in which this

association participates, will not be authorised under the Financial Services

SI 2001/544 Page 149
and Markets Act 2000 (and so will not have to satisfy the threshold conditions

set out in Part I of Schedule 6 to that Act and will not be subject to Financial

Services Authority rules such as those on holding client money). I understand

that this means that redress through the Financial Services Authority, the

Financial Ombudsman Scheme or the Financial Services Compensation

Scheme will not be available. I also understand the risks associated in

investing in a Business Angel-led Enterprise Capital Fund and am aware

that it is open to the association to seek advice from someone who is

authorised under the Financial Services and Markets Act 2000 and who

specialises in advising on this kind of investment.”;

“high value trust” means a trust—

(a) where the aggregate value of the cash and investments which form a part of the

trust's assets (before deducting the amount of its liabilities) is £10 million or more;

(b) on behalf of which a trustee has signed a statement in the following terms:

“This trust is a high value trust. I understand that any Business Angel-led

Enterprise Capital Fund (within the meaning of article 72F of the Financial

Services and Markets Act 2000 (Regulated Activities) Order 2001), in which

this trust participates, or any person who operates that Business Angel-led

Enterprise Capital Fund, in which this trust participates, will not be authorised

under the Financial Services and Markets Act 2000 (and so will not have to

satisfy the threshold conditions set out in Part I of Schedule 6 to that Act

and will not be subject to Financial Services Authority rules such as those

on holding client money). I understand that this means that redress through

the Financial Services Authority, the Financial Ombudsman Scheme or the

Financial Services Compensation Scheme will not be available. I also

understand the risks associated in investing in a Business Angel-led Enterprise

Capital Fund and am aware that it is open to the trust to seek advice from

someone who is authorised under the Financial Services and Markets Act

2000 and who specialises in advising on this kind of investment.”;

“self-certified sophisticated investor” means an individual who—

(a) is a “self-certified sophisticated investor” within the meaning of article 50A of

the Financial Services and Markets Act 2000 (Financial Promotion) Order 20015;

(b) has signed a statement in the following terms:

“I declare that I am a self-certified sophisticated investor within the meaning

of article 50A of the Financial Services and Markets Act 2000 (Financial

Promotion) Order 2001 and that I understand that any Business Angel-led

Enterprise Capital Fund (within the meaning of article 72F of the Financial

Services and Markets Act 2000 (Regulated Activities) Order 2001), in which

I participate, or any person who operates that Business Angel-led Enterprise

Capital Fund, in which I participate, will not be authorised under the Financial

Services and Markets Act 2000 (and so will not have to satisfy the threshold

conditions set out in Part I of Schedule 6 to that Act and will not be subject

to Financial Services Authority rules such as those on holding client money).

I understand that this means that redress through the Financial Services

Authority, the Financial Ombudsman Scheme or the Financial Services

SI 2001/544 Page 150
Compensation Scheme will not be available. I also understand the risks

associated in investing in a Business Angel-led Enterprise Capital Fund and

am aware that it is open to me to seek advice from someone who is authorised

under the Financial Services and Markets Act 2000 and who specialises in

advising on this kind of investment.”;

“sophisticated investor” means an individual who—

(a) is a “certified sophisticated investor” within the meaning of article 50(1) of the

Financial Services and Markets Act 2000 (Financial Promotion) Order 2001; and

(b) has signed a statement in the following terms:

“I declare that I am a certified sophisticated investor within the meaning of

article 50(1) of the Financial Services and Markets Act 2000 (Financial

Promotion) Order 2001 and that I understand that any Business Angel-led

Enterprise Capital Fund (within the meaning of article 72F of the Financial

Services and Markets Act 2000 (Regulated Activities) Order 2001), in which

I participate, or any person who operates that Business Angel-led Enterprise

Capital Fund, in which I participate, will not be authorised under the Financial

Services and Markets Act 2000 (and so will not have to satisfy the threshold

conditions set out in Part I of Schedule 6 to that Act and will not be subject

to Financial Services Authority rules such as those on holding client money).

I understand that this means that redress through the Financial Services

Authority, the Financial Ombudsman Scheme or the Financial Services

Compensation Scheme will not be available. I also understand the risks

associated in investing in a Business Angel-led Enterprise Capital Fund and

am aware that it is open to me to seek advice from someone who is authorised

under the Financial Services and Markets Act 2000 and who specialises in

advising on this kind of investment.”;

“unlisted company”has the meaning given by article 3 of the Financial Services and Markets

Act 2000 (Financial Promotion) Order 2001.

(2) References in this Article and in Article 72E to a participant in a Business Angel-led Enterprise

Capital Fund, doing things on behalf of such a participant and property belonging to such a

participant are, respectively, references to that participant in that capacity, to doing things on behalf

of that participant in that capacity or to the property of that participant held in that capacity.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2005/1518

art.2(3) (October 1, 2005)

2 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2010/86 Sch.1

para.5(e) (February 24, 2010)

3

S.I. 2001/1335; relevant amending instruments are S.I. 2002/1310 and S.I. 2005/270.

4 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order

2006/2383 Pt 2 art.22 (November 6, 2006 for the purposes of enabling applications as specified in SI 2006/2383

art.1(2)(a); April 6, 2007 otherwise)

5 Article 50A was inserted by S.I. 2005/270

SI 2001/544 Page 151
Extent

Pt II(XVII) art. 72F(1)-(2): United Kingdom 

PART III

SPECIFIED INVESTMENTS

Law In Force

73. Investments: general

The following kinds of investment are specified for the purposes of section 22 of the Act.

Commencement

Pt III art. 73: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI 2001/544

Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt III art. 73: United Kingdom 

Law In Force

74. Deposits

A deposit.

Commencement

Pt III art. 74: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI 2001/544

Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt III art. 74: United Kingdom 

Law In Force

[ 74A. Electronic money

Electronic money. ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2002/682 Pt II

art.6 (April 27, 2002)

Extent

Pt III art. 74A: United Kingdom 

SI 2001/544 Page 152
Law In Force

75. Contracts of insurance

Rights under a contract of insurance.

Commencement

Pt III art. 75: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI 2001/544

Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt III art. 75: United Kingdom 

Law In Force

76.— Shares etc.

(1) Shares or stock in the share capital of—

(a) any body corporate (wherever incorporated), and

(b) any unincorporated body constituted under the law of a country or territory outside the

United Kingdom.

(2) Paragraph (1) includes—

(a) any shares of a class defined as deferred shares for the purposes of section 119 of the

Building Societies Act 1986 [ or section 31A of the Credit Unions Act 1979 ]

1

; and

(b) any transferable shares in a body incorporated under the law of, or any part of, the

United Kingdom relating to industrial and provident societies or credit unions, or in a body

constituted under the law of another EEA State for purposes equivalent to those of such a

body.

(3) But subject to paragraph (2) there are excluded from paragraph (1) shares or stock in the share

capital of—

(a) an open-ended investment company;

(b) a building society incorporated under the law of, or any part of, the United Kingdom;

(c) a body incorporated under the law of, or any part of, the United Kingdom relating to

industrial and provident societies or credit unions;

(d) any body constituted under the law of an EEA State for purposes equivalent to those

of a body falling within sub-paragraph (b) or (c).

Notes

1 Words inserted by Legislative Reform (Industrial and Provident Societies and Credit Unions) Order 2011/2687

Pt 5 art.22 (January 8, 2012)

Commencement

Pt III art. 76(1)-(3)(d): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19;

SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt III art. 76(1)-(3)(d): United Kingdom 

SI 2001/544 Page 153
Law In Force

77.— Instruments creating or acknowledging indebtedness

(1) Subject to paragraph (2), such of the following as do not fall within [ article 78 ]

1—

(a) debentures;

(b) debenture stock;

(c) loan stock;

(d) bonds;

(e) certificates of deposit;

(f) any other instrument creating or acknowledging indebtedness.

(2) If and to the extent that they would otherwise fall within paragraph (1), there are excluded from

that paragraph—

(a) an instrument acknowledging or creating indebtedness for, or for money borrowed to

defray, the consideration payable under a contract for the supply of goods or services;

(b) a cheque or other bill of exchange, a banker's draft or a letter of credit (but not a bill of

exchange accepted by a banker);

(c) a banknote, a statement showing a balance on a current, deposit or savings account, a

lease or other disposition of property, or a heritable security; [ and ]

2

[...]3

(d) a contract of insurance [ . ]

2

(e) [...]2

(3) An instrument excluded from paragraph (1) of article 78 by paragraph (2)(b) of that article is

not thereby to be taken to fall within paragraph (1) of this article.

Notes

1 Words repealed by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2011/133

art.2(2)(a) (February 16, 2011: repeal came into force on February 16, 2011 but for all tax purposes is to be treated

as having come into force on February 24, 2010 immediately after the coming into force of SI 2010/86 subject to

the election provision specified in 2011 c.11 s.89)

2 Revoked by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2011/133

art.2(2)(b) (February 16, 2011: repeal came into force on February 16, 2011 but for all tax purposes is to be treated

as having come into force on February 24, 2010 immediately after the coming into force of SI 2010/86 subject to

the election provision specified in 2011 c.11 s.89)

3 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2010/86 art.2(2)(b)

(February 24, 2010)

Commencement

Pt III art. 77(1)-(3): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt III art. 77(1)-(3): United Kingdom 

Law In Force

[ 77A.— Alternative finance investment bonds

(1) Rights under an alternative finance investment bond, to the extent that they do not fall within

[ article 77 or 78 ]

2

.

SI 2001/544 Page 154
(2) For the purposes of this article, arrangements constitute an alternative finance investment bond

if—

(a) the arrangements provide for a person (“the bond-holder”) to pay a sum of money (“the

capital”) to another (“the bond-issuer”);

(b) the arrangements identify assets, or a class of assets, which the bond-issuer will acquire

for the purpose of generating income or gains directly or indirectly (“the bond assets”);

(c) the arrangements specify a period at the end of which they cease to have effect (“the

bond term”);

(d) the bond-issuer undertakes under the arrangements—

(i) to make a repayment in respect of the capital (“the redemption payment”) to the

bond-holder during or at the end of the bond term (whether or not in instalments);

and

(ii) to pay to the bond-holder other payments on one or more occasions during or

at the end of the bond term (“the additional payments”);

(e) the amount of the additional payments does not exceed an amount which would, at the

time at which the bond is issued, be a reasonable commercial return on a loan of the capital;

and

(f) the arrangements are a security admitted to—

(i) an official list (in accordance with the provisions of Directive 2001/34/EC of

the European Parliament and of the Council on the admission of securities to official

stock exchange listing and on information to be published on those securities); or

(ii) trading on a regulated market (within the meaning of Article 4.1(14) of Directive

2004/39/EC of the European Parliament and of the Council on markets in financial

instruments) or on a recognised investment exchange (within the meaning of section

285 of the Act).

(3) For the purposes of paragraph (2)—

(a) the bond-issuer may acquire the bond assets before or after the arrangements take effect;

(b) the bond assets may be property of any kind, including rights in relation to property

owned by someone other than the bond-issuer;

(c) the identification of the bond assets mentioned in paragraph (2)(b) and the undertakings

mentioned in paragraph (2)(d) may (but need not) be described as, or accompanied by a

document described as, a declaration of trust;

(d) the reference to a period in paragraph (2)(c) includes any period specified to end upon

the redemption of the bond by the bond-issuer;

(e) the bond-holder may (but need not) be entitled under the arrangements to terminate

them, or participate in terminating them, before the end of the bond term;

(f) the amount of the additional payments may be—

(i) fixed at the beginning of the bond term;

(ii) determined wholly or partly by reference to the value of or income generated

by the bond assets; or

(iii) determined in some other way;

(g) if the amount of the additional payments is not fixed at the beginning of the bond term,

the reference in paragraph (2)(e) to the amount of the additional payments is a reference to

the maximum amount of the additional payments;

(h) the amount of the redemption payment may (but need not) be subject to reduction in

the event of a fall in the value of the bond assets or in the rate of income generated by them;

and

SI 2001/544 Page 155
(i) entitlement to the redemption payment may (but need not) be capable of being satisfied

(whether or not at the option of the bond-issuer or the bond-holder) by the issue or transfer

of shares or other securities.

(4) An instrument excluded from paragraph (1) of article 78 by paragraph (2)(b) of that article is

not thereby taken to fall within paragraph (1) of this article.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2010/86 art.2(3)

(February 24, 2010)

2 Words inserted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2011/133

art.2(3) (February 16, 2011: insertion came into force on February 16, 2011 but for all tax purposes is to be treated

as having come into force on February 24, 2010 immediately after the coming into force of SI 2010/86 subject to

the election provision specified in 2011 c.11 s.89)

Extent

Pt III art. 77A(1)-(4): United Kingdom 

Law In Force

78.— Government and public securities

(1) Subject to paragraph (2), loan stock, bonds and other instruments creating or acknowledging

indebtedness, issued by or on behalf of any of the following—

(a) the government of the United Kingdom;

(b) the Scottish Administration;

(c) the Executive Committee of the Northern Ireland Assembly;

(d) the National Assembly for Wales;

(e) the government of any country or territory outside the United Kingdom;

(f) a local authority in the United Kingdom or elsewhere; or

(g) a body the members of which comprise—

(i) states including the United Kingdom or another EEA State; or

(ii) bodies whose members comprise states including the United Kingdom or another

EEA State.

(2) [ Subject to paragraph (3), there ]

1

 are excluded from paragraph (1)—

(a) so far as applicable, the instruments mentioned in article 77(2)(a) to (d);

(b) any instrument creating or acknowledging indebtedness in respect of—

(i) money received by the Director of Savings as deposits or otherwise in connection

with the business of the National Savings Bank;

(ii) money raised under the National Loans Act 1968 under the auspices of the

Director of Savings or treated as so raised by virtue of section 11(3) of the National

Debt Act 1972.

[ (3) Paragraph (2)(a) does not exclude an instrument which meets the requirements set out in

sub-paragraphs (a) to (e) of article 77A(2). ]

2

SI 2001/544 Page 156
Notes

1 Words inserted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2010/86

art.2(4) (February 24, 2010)

2 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2010/86 art.2(5)

(February 24, 2010)

Commencement

Pt III art. 78(1)-(2)(b)(ii): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s.

19; SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt III art. 78(1)-(3): United Kingdom 

Law In Force

79.— Instruments giving entitlements to investments

(1) Warrants and other instruments entitling the holder to subscribe for any investment of the kind

specified by [ article 76, 77, 77A or 78 ]

1

.

(2) It is immaterial whether the investment to which the entitlement relates is in existence or

identifiable.

(3) An investment of the kind specified by this article is not to be regarded as falling within article

83, 84 or 85.

Notes

1 Word inserted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2010/86

Sch.1 para.5(f) (February 24, 2010)

Commencement

Pt III art. 79(1)-(3): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt III art. 79(1)-(3): United Kingdom 

Law In Force

80.— Certificates representing certain securities

(1) Subject to paragraph (2), certificates or other instruments which confer contractual or property

rights (other than rights consisting of an investment of the kind specified by article 83)—

(a) in respect of any investment of the kind specified by any of articles 76 to 79, being an

investment held by a person other than the person on whom the rights are conferred by the

certificate or instrument; and

(b) the transfer of which may be effected without the consent of that person.

SI 2001/544 Page 157
(2) There is excluded from paragraph (1) any certificate or other instrument which confers rights

in respect of two or more investments issued by different persons, or in respect of two or more

different investments of the kind specified by article 78 and issued by the same person.

Commencement

Pt III art. 80(1)-(2): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt III art. 80(1)-(2): United Kingdom 

Law In Force

81. Units in a collective investment scheme

Units in a collective investment scheme (within the meaning of Part XVII of the Act).

Commencement

Pt III art. 81: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI 2001/544

Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt III art. 81: United Kingdom 

Law In Force

[ 82.— Rights under a pension scheme

(1) Rights under a stakeholder pension scheme.

(2) Rights under a personal pension scheme.

]

1

Notes

1

Substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2006/1969

art.2(5) (October 1, 2006 for purposes specified in SI 2006/1969 art.1(2)(a); April 6, 2007 otherwise)

Commencement

Pt III art. 82: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI 2001/544

Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt III art. 82(1)-(2): United Kingdom 

SI 2001/544 Page 158
Law In Force

[ 82A. Greenhouse gas emissions allowances

Greenhouse gas emissions allowances which are auctioned as financial instruments or as two-day

spots within the meaning of Article 3.3 of the emission allowance auctioning regulation. ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2012/1906 Pt 2

art.2(4) (July 20, 2012)

Extent

Pt III art. 82A: United Kingdom 

Law In Force

[ 83. Options

(1) Options to acquire or dispose of—

(a) a security or contractually based investment (other than one of a kind specified by this

article);

(b) currency of the United Kingdom or any other country or territory;

(c) palladium, platinum, gold or silver; [...]2

(d) an option to acquire or dispose of an investment of the kind specified by this article

by virtue of paragraph (a), (b) or (c) [ ; ]

3

[(e) subject to paragraph (4), an option to acquire or dispose of an option to which paragraph

5, 6, 7 or 10 of Section C of Annex I to the markets in financial instruments directive (the

text of which is set out in Part I of Schedule 2) applies. ]

3

[ (2) Subject to paragraph (4), options—

(a) to which paragraph (1) does not apply;

(b) which relate to commodities;

(c) which may be settled physically; and

(d) either—

(i) to which paragraph 5 or 6 of Section C of Annex I to the markets in financial

instruments directive, the text of which is set out in Part 1 of Schedule 2, applies,

or

(ii) which in accordance with Article 38 of the Commission Regulation (the text of

which is set out in Part 2 of Schedule 2) are to be considered as having the

characteristics of other derivative financial instruments and not being for commercial

purposes, and to which paragraph 7 of Section C of Annex I to the markets in

financial instruments directive applies.

(3) Subject to paragraph (4), options—

(a) to which paragraph (1) does not apply;

(b) which may be settled physically; and

(c) to which paragraph 10 of Section C of Annex I to the markets in financial instruments

directive (read with the Commission Regulation) applies.

(4) Paragraphs (1)(e), (2) and (3) only apply to options in relation to which—

SI 2001/544 Page 159
(a) an investment firm or credit institution is providing or performing investment services

and activities on a professional basis,

(b) a management company is providing, in accordance with [ Article 6(3) ]

5

 of the UCITS

directive, the investment service specified in paragraph 4 or 5 of Section A, or the ancillary

service specified in paragraph 1 of Section B, of Annex I to the markets in financial

instruments directive, or

(c) a market operator is providing the investment service specified in paragraph 8 of Section

A of Annex I to the markets in financial instruments directive.

(5) Expressions used in paragraphs (1)(e), (2) and (3) and in the markets in financial instruments

directive have the same meaning as in that directive. ]

4

]

1

Notes

1 Existing art.83 renumbered as art.83(1) by Financial Services and Markets Act 2000 (Regulated Activities)

(Amendment No. 3) Order 2006/3384 Pt 2 art.26(a) (April 1, 2007: substitution has effect on April 1, 2007 for

the purposes specified in SI 2006/3384 art.1(2)(a); November 1, 2007 otherwise)

2 Word repealed by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment No. 3) Order

2006/3384 Pt 2 art.26(b)(i) (April 1, 2007: repeal has effect on April 1, 2007 for the purposes specified in SI

2006/3384 art.1(2)(a); November 1, 2007 otherwise)

3 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment No. 3) Order 2006/3384

Pt 2 art.26(b)(ii) (April 1, 2007: insertion has effect on April 1, 2007 for the purposes specified in SI 2006/3384

art.1(2)(a); November 1, 2007 otherwise)

4 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment No. 3) Order 2006/3384

Pt 2 art.26(c) (April 1, 2007: insertion has effect on April 1, 2007 for the purposes specified in SI 2006/3384

art.1(2)(a); November 1, 2007 otherwise)

5 Words substituted by Undertakings for Collective Investment in Transferable Securities Regulations 2011/1613

Sch.1 para.1(3) (July 1, 2011)

Commencement

Pt III art. 83(a)-(d): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt III art. 83(a)-(5): United Kingdom 

Law In Force

84.— Futures

(1) Subject to paragraph (2), rights under a contract for the sale of a commodity or property of any

other description under which delivery is to be made at a future date and at a price agreed on when

the contract is made.

[ (1A) Subject to paragraph (1D), futures—

(a) to which paragraph (1) does not apply;

(b) which relate to commodities;

(c) which may be settled physically; and

(d) to which paragraph 5 or 6 of Section C of Annex I to the markets in financial instruments

directive applies.

SI 2001/544 Page 160
(1B) Subject to paragraph (1D), futures and forwards—

(a) to which paragraph (1) does not apply;

(b) which relate to commodities;

(c) which may be settled physically;

(d) which in accordance with Article 38 of the Commission Regulation (the text of which

is set out in Part 2 of Schedule 2) are to be considered as having the characteristics of other

derivative financial instruments and not being for commercial purposes; and

(e) to which paragraph 7 of Section C of Annex I to the markets in financial instruments

directive applies.

(1C) Subject to paragraph (1D), futures—

(a) to which paragraph (1) does not apply;

(b) which may be settled physically; and

(c) to which paragraph 10 of Section C of Annex I to the markets in financial instruments

directive (read with the Commission Regulation) applies.

(1D) Paragraph (1A), (1B) and (1C) only apply to futures or forwards in relation to which—

(a) an investment firm or credit institution is providing or performing investment services

and activities on a professional basis,

(b) a management company is providing, in accordance with [ Article 6(3) ]

2

 of the UCITS

directive, the investment service specified in paragraph 4 or 5 of Section A, or the ancillary

service specified in paragraph 1 of Section B, of Annex I to the markets in financial

instruments directive, or

(c) a market operator is providing the investment service specified in paragraph 8 of Section

A of Annex I to the markets in financial instruments directive.

(1E) Expressions used in paragraphs (1A) to (1C) and in the markets in financial instruments

directive have the same meaning as in that directive. ]

1

(2) There are excluded from paragraph (1) rights under any contract which is made for commercial

and not investment purposes.

(3) A contract is to be regarded as made for investment purposes if it is made or traded on a

recognised investment exchange, or is made otherwise than on a recognised investment exchange

but is expressed to be as traded on such an exchange or on the same terms as those on which an

equivalent contract would be made on such an exchange.

(4) A contract not falling within paragraph (3) is to be regarded as made for commercial purposes

if under the terms of the contract delivery is to be made within seven days, unless it can be shown

that there existed an understanding that (notwithstanding the express terms of the contract) delivery

would not be made within seven days.

(5) The following are indications that a contract not falling within paragraph (3) or (4) is made for

commercial purposes and the absence of them is an indication that it is made for investment

purposes—

(a) one or more of the parties is a producer of the commodity or other property, or uses it

in his business;

(b) the seller delivers or intends to deliver the property or the purchaser takes or intends to

take delivery of it.

(6) It is an indication that a contract is made for commercial purposes that the prices, the lot, the

delivery date or other terms are determined by the parties for the purposes of the particular contract

SI 2001/544 Page 161
and not by reference (or not solely by reference) to regularly published prices, to standard lots or

delivery dates or to standard terms.

(7) The following are indications that a contract is made for investment purposes—

(a) it is expressed to be as traded on an investment exchange;

(b) performance of the contract is ensured by an investment exchange or a clearing house;

(c) there are arrangements for the payment or provision of margin.

(8) For the purposes of paragraph (1), a price is to be taken to be agreed on when a contract is

made—

(a) notwithstanding that it is left to be determined by reference to the price at which a

contract is to be entered into on a market or exchange or could be entered into at a time and

place specified in the contract; or

(b) in a case where the contract is expressed to be by reference to a standard lot and quality,

notwithstanding that provision is made for a variation in the price to take account of any

variation in quantity or quality on delivery.

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment No. 3) Order 2006/3384

Pt 2 art.27 (April 1, 2007: insertion has effect on April 1, 2007 for the purposes specified in SI 2006/3384 art.1(2)(a);

November 1, 2007 otherwise)

2 Words substituted by Undertakings for Collective Investment in Transferable Securities Regulations 2011/1613

Sch.1 para.1(4) (July 1, 2011)

Commencement

Pt III art. 84(1)-(8)(b): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19;

SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt III art. 84(1)-(8)(b): United Kingdom 

Law In Force

85.— Contracts for differences etc.

(1) Subject to paragraph (2), rights under—

(a) a contract for differences; or

(b) any other contract the purpose or pretended purpose of which is to secure a profit or

avoid a loss by reference to fluctuations in—

(i) the value or price of property of any description; or

(ii) an index or other factor designated for that purpose in the contract.

(2) There are excluded from paragraph (1)—

(a) rights under a contract if the parties intend that the profit is to be secured or the loss is

to be avoided by one or more of the parties taking delivery of any property to which the

contract relates;

(b) rights under a contract under which money is received by way of deposit on terms that

any interest or other return to be paid on the sum deposited will be calculated by reference

to fluctuations in an index or other factor;

SI 2001/544 Page 162
(c) rights under any contract under which—

(i) money is received by the Director of Savings as deposits or otherwise in

connection with the business of the National Savings Bank; or

(ii) money is raised under the National Loans Act 1968 under the auspices of the

Director of Savings or treated as so raised by virtue of section 11(3) of the National

Debt Act 1972;

(d) rights under a qualifying contract of insurance.

[ (3) Subject to paragraph (4), derivative instruments for the transfer of credit risk—

(a) to which neither article 83 nor paragraph (1) applies; and

(b) to which paragraph 8 of Section C of Annex I to the markets in financial instruments

directive applies.

(4) Paragraph (3) only applies to derivatives in relation to which—

(a) an investment firm or credit institution is providing or performing investment services

and activities on a professional basis,

(b) a management company is providing, in accordance with [ Article 6(3) ]

2

 of the UCITS

directive, the investment service specified in paragraph 4 or 5 of Section A, or the ancillary

service specified in paragraph 1 of Section B, of Annex I to the markets in financial

instruments directive, or

(c) a market operator is providing the investment service specified in paragraph 8 of Section

A of Annex I to the markets in financial instruments directive.

(5) “Derivative instruments for the transfer of credit risk”has the same meaning as in the markets

in financial instruments directive. ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment No. 3) Order 2006/3384

Pt 2 art.28 (April 1, 2007: insertion has effect on April 1, 2007 for the purposes specified in SI 2006/3384 art.1(2)(a);

November 1, 2007 otherwise)

2 Words substituted by Undertakings for Collective Investment in Transferable Securities Regulations 2011/1613

Sch.1 para.1(5) (July 1, 2011)

Commencement

Pt III art. 85(1)-(2)(d): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19;

SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt III art. 85(1)-(5): United Kingdom 

Law In Force

86.— Lloyd's syndicate capacity and syndicate membership

(1) The underwriting capacity of a Lloyd's syndicate.

(2) A person's membership (or prospective membership) of a Lloyd's syndicate.

SI 2001/544 Page 163
Commencement

Pt III art. 86(1)-(2): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt III art. 86(1)-(2): United Kingdom 

Law In Force

87. Funeral plan contracts

Rights under a funeral plan contract.

Commencement

Pt III art. 87: January 1, 2002 (SI 2001/544 Pt I art. 2(2)(a))

Extent

Pt III art. 87: United Kingdom 

Law In Force

88. Regulated mortgage contracts

Rights under a regulated mortgage contract.

Commencement

Pt III art. 88: October 31, 2005 october 31, 2004 as specified in the London Gazette dated July 14, 2003 (SI 2001/544

Pt I art. 2(2)(b))

Extent

Pt III art. 88: United Kingdom 

Law In Force

[ 88A. Regulated home reversion plans

Rights under a regulated home reversion plan. ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2006/2383

Pt 2 art.23 (November 6, 2006 for the purposes of enabling applications as specified in SI 2006/2383 art.1(2)(a);

April 6, 2007 otherwise)

Extent

Pt III art. 88A: United Kingdom 

SI 2001/544 Page 164
Law In Force

[ 88B. Regulated home purchase plans

Rights under a regulated home purchase plan. ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2006/2383

Pt 2 art.23 (November 6, 2006 for the purposes of enabling applications as specified in SI 2006/2383 art.1(2)(a);

April 6, 2007 otherwise)

Extent

Pt III art. 88B: United Kingdom 

Law In Force

[ 88C. Regulated sale and rent back agreements

Rights under a regulated sale and rent back agreement. ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2009/1342 Pt 2

art.21 (July 1, 2009: insertion has effect subject to transitional provisions specified in SI 2009/1342 art.32)

Extent

Pt III art. 88C: United Kingdom 

P Partially In Force

[ 88D. Credit agreement

Rights under a credit agreement. ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.7 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

Extent

Pt III art. 88D: United Kingdom 

P Partially In Force

[ 88E. Consumer hire agreement

Rights under a consumer hire agreement. ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.7 (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

SI 2001/544 Page 165
Extent

Pt III art. 88E: United Kingdom 

Law In Force

89.— Rights to or interests in investments

(1) Subject to paragraphs (2) to (4), any right to or interest in anything which is specified by any

other provision of this Part (other than [ article 88, 88A, 88B or 88C]

1

).

(2) Paragraph (1) does not include interests under the trusts of an occupational pension scheme.

(3) Paragraph (1) does not include—

(a) rights to or interests in a contract of insurance of the kind referred to in paragraph (1)(a)

of article 60; or

(b) interests under a trust of the kind referred to in paragraph (1)(b) of that article.

(4) Paragraph (1) does not include anything which is specified by any other provision of this Part.

Notes

1 Words substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order

2009/1342 Pt 2 art.22 (July 1, 2009: substitution has effect subject to transitional provisions specified in SI

2009/1342 art.32)

Commencement

Pt III art. 89(1)-(4): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Pt III art. 89(1)-(4): United Kingdom 

[ PART 3A

SPECIFIED ACTIVITIES IN RELATION TO INFORMATION

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.8(2) (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

[The activities]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.8(2) (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

SI 2001/544 Page 166
P Partially In Force

[ 89A.— Providing credit information services

(1) Taking any of the steps in paragraph (3) on behalf of an individual or relevant recipient of credit

is a specified kind of activity.

(2) Giving advice to an individual or relevant recipient of credit in relation to the taking of any of

the steps specified in paragraph (3) is a specified kind of activity.

(3) Subject to paragraph (4), the steps specified in this paragraph are steps taken with a view to—

(a) ascertaining whether a credit information agency holds information relevant to the

financial standing of an individual or relevant recipient of credit;

(b) ascertaining the contents of such information;

(c) securing the correction of, the omission of anything from, or the making of any other

kind of modification of, such information;

(d) securing that a credit information agency which holds such information—

(i) stops holding the information, or

(ii) does not provide it to any other person.

(4) Steps taken by a credit information agency in relation to information held by that agency are

not steps specified in paragraph (3).

(5) Paragraphs (1) and (2) do not apply to an activity of the kind specified by article 36H (operating

an electronic system in relation to lending).

(6) “Credit information agency” means a person who carries on by way of business an activity of

the kind specified by any of the following—

(a) article 36A (credit broking);

(b) article 39D (debt adjusting);

(c) article 39E (debt-counselling);

(d) article 39F (debt-collecting);

(e) article 39G (debt administration);

(f) article 60B (regulated credit agreements) disregarding the effect of article 60F;

(g) article 60N (regulated consumer hire agreements) disregarding the effect of article 60P;

(h) article 89B (providing credit references).

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.8(2) (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

Extent

Pt IIIA art. 89A(1)-(6)(h): United Kingdom 

P Partially In Force

[ 89B.— Providing credit references

(1) Furnishing of persons with information relevant to the financial standing of individuals or

relevant recipients of credit is a specified kind of activity if the person has collected the information

for that purpose.

SI 2001/544 Page 167
(2) There are excluded from paragraph (1) activities carried on in the course of a business which

does not primarily consist of activities of the kind specified by paragraph (1).

(3) Paragraph (1) does not apply to an activity of the kind specified by article 36H (operating an

electronic system in relation to lending).

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.8(2) (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

Extent

Pt IIIA art. 89B(1)-(3): United Kingdom 

[Exclusions]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.8(2) (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

P Partially In Force

[ 89C.— Activities carried on by members of the legal profession etc.

(1) There are excluded from articles 89A and 89B activities carried on by—

(a) a barrister or advocate acting in that capacity;

(b) a solicitor (within the meaning of the Solicitors Act 1974) acting in the course of

contentious business (as defined in section 87(1) of that Act);

(c) a solicitor within the meaning of the Solicitors (Scotland) Act 1980 engaging in business

done in or for the purposes of proceedings before a court or before an arbitrator;

(d) a solicitor in Northern Ireland engaging in contentious business as defined in Article

3(2) of the Solicitors (Northern Ireland) Order 1976;

(e) a relevant person (other than a person falling within sub-paragraph (a) to (d)) acting in

the course of contentious business.

(2) In sub-paragraph (e) of paragraph (1)—

“contentious business” means business done in or for the purposes of proceedings begun

before a court or before an arbitrator, not being non-contentious or common form probate

business (within the meaning of section 128 of the Senior Courts Act 1981);

“relevant person” means a person who, for the purposes of the Legal Services Act 2007, is

an authorised person in relation to an activity which constitutes the exercise of a right of

audience or the conduct of litigation (within the meaning of that Act).

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.8(2) (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

SI 2001/544 Page 168
Extent

Pt IIIA art. 89C(1)-(2) definition of "relevant process": United Kingdom 

P Partially In Force

[ 89D. Information society services

Articles 89A and 89B are subject to the exclusion in article 72A (information society services). ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.8(2) (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

Extent

Pt IIIA art. 89D: United Kingdom 

[ Supplemental ]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.8(2) (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

P Partially In Force

[ 89E.— Meaning of “consumer” etc.

(1) For the purposes of sections 1G, 404E and 425A of the Act (meaning of “consumer”)—

(a) an individual or a relevant recipient of credit who is, may be, has been or may have

been the subject of the information referred to in article 89A, and

(b) an individual or a relevant recipient of credit who is, may be, has been or may have

been the subject of information furnished in the course of a person carrying on an activity

of the kind specified by article 89B,

is to be treated as a “consumer”.

(2) For the purposes of section 328(8) of the Act (meaning of “clients”)—

(a) an individual or a relevant recipient of credit who is, may be, has been or may have

been the subject of the information referred to in article 89A, and

(b) an individual or a relevant recipient of credit who is, may be, has been or may have

been the subject of information furnished in the course of a person carrying on an activity

of the kind specified by article 89B,

is to be treated as a “client”.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.8(2) (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

SI 2001/544 Page 169
Extent

Pt IIIA art. 89E(1)-(2)(b): United Kingdom 

PART IV

CONSEQUENTIAL PROVISIONS

Regulated mortgage contracts: consequential provisions

P Partially In Force

90.— [...]1

Notes

1 Revoked by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.9(2) (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

P Partially In Force

91.— [...]1

Notes

1 Revoked by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881

Pt 2 art.9(3) (July 26, 2013 for purposes specified in SI 2013/1881 art.1(2); April 1, 2014 otherwise)

[ PART V

UNATHORISED PERSONS CARRYING ON INSURANCE MEDIATION ACTIVITIES

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2003/1476

Pt 3 art.13 (October 31, 2004 in relation to contracts of long-term care insurance; January 14, 2005 otherwise)

Law In Force

[ 92. Interpretation

In this Part–

“designated professional body” means a body which is for the time being designated by the

Treasury under section 326 of the Act (designation of professional bodies)2;

“insurance mediation activity” means any regulated activity of the kind specified by article

21, 25(1) or (2), 39A or 53, or, so far as relevant to any of those articles, article 64, which

is carried on in relation to a contract of insurance;

SI 2001/544 Page 170
“the record” means the record maintained by [ the FCA ]

3

 under section 347 of the Act

(public record of authorised persons etc.);

“recorded insurance intermediary”has the meaning given by article 93(4);

“a relevant member”, in relation to a designated professional body, means a member (within

the meaning of section 325(2) of the Act) of the profession in relation to which that

designated professional body is established, or a person who is controlled or managed by

one or more such members.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2003/1476

Pt 3 art.13 (October 31, 2004 in relation to contracts of long-term care insurance; January 14, 2005 otherwise)

2

See S.I. 2001/1226 made under s. 326 of the Act.

3 Words substituted by Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order

2013/472 Sch.2 para.35(a) (April 1, 2013)

Extent

Pt V art. 92 definition of "designated professional body"- definition of "a relevant member": United Kingdom 

Law In Force

[ 93.— Duty to maintain a record of unauthorised persons carrying on insurance mediation

activities

(1) Subject to articles 95 and 96 , [ the FCA ]

2

 must include in the record every person who–

(a) as a result of information obtained by virtue of its rules or by virtue of a direction given,

or requirement imposed, under [section 55U(4) ]

3

 of the Act (procedure for applications

under [ Part 4A ]

4

 ), appears to [ the FCA ]

2

 to fall within paragraph (2); or

(b) as a result of information obtained by virtue of article 94 , appears to [ the FCA ]

2

 to

fall within paragraph (3).

(2) A person falls within this paragraph if he is, or has entered into a contract by virtue of which

he will be, an appointed representative who carries on any insurance mediation activity.

(3) A person falls within this paragraph if–

(a) he is a relevant member of a designated professional body who carries on, or is proposing

to carry on, any insurance mediation activity; and

(b) the general prohibition does not (or will not) apply to the carrying on of those activities

by virtue of section 327 of the Act (exemption from the general prohibition).

(4) In this Part, “recorded insurance intermediary” means a person who is included in the record

by virtue of paragraph (1).

(5) The record must include–

(a) in the case of any recorded insurance intermediary, its address; and

(b) in the case of a recorded insurance intermediary which is not an individual, the name

of the individuals who are responsible for the management of the business carried on by

the intermediary, so far as it relates to insurance mediation activities.

]

1

SI 2001/544 Page 171
Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2003/1476

Pt 3 art.13 (October 31, 2004 in relation to contracts of long-term care insurance; January 14, 2005 otherwise)

2 Words substituted by Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order

2013/472 Sch.2 para.35(a) (April 1, 2013)

3 Words substituted by Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order

2013/472 Sch.2 para.35(h) (April 1, 2013)

4 Words substituted by Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order

2013/472 art.4 (April 1, 2013)

Extent

Pt V art. 93(1)-(5)(b): United Kingdom 

Law In Force

[ 94.— Members of designated professional bodies

(1) A designated professional body must, by notice in writing, inform [ the FCA ]

2

 of–

(a) the name,

(b) the address, and

(c) in the case of a relevant member which is not an individual, the name of the individuals

who are responsible for the management of the business carried on by the member, so far

as it relates to insurance mediation activities,

of any relevant member who falls within paragraph (2).

(2) A relevant member of a designated professional body falls within this paragraph if, in accordance

with the rules of that body, he carries on, or proposes to carry on any insurance mediation activity

but does not have, and does not propose to apply for, Part IV permission on the basis that the general

prohibition does not (or will not) apply to the carrying on of that activity by virtue of section 327

of the Act.

(3) A designated professional body must also, by notice in writing, inform [ the FCA ]

2

 of any

change in relation to the matters specified in sub-paragraphs (a) to (c) of paragraph (1).

(4) A designated professional body must inform [ the FCA ]

2

 when a relevant member to whom

paragraph (2) applies ceases, for whatever reason, to carry on insurance mediation activities.

(5) [ The FCA ]

2

 may give directions to a designated professional body as to the manner in which

the information referred to in paragraphs (1), (3) and (4) must be provided.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2003/1476

Pt 3 art.13 (October 31, 2004 in relation to contracts of long-term care insurance; January 14, 2005 otherwise)

2 Words substituted by Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order

2013/472 Sch.2 para.35(a) (April 1, 2013)

Extent

Pt V art. 94(1)-(5): United Kingdom 

SI 2001/544 Page 172
Law In Force

[ 95.— Exclusion from record where not fit and proper to carry on insurance mediation

activities

(1) If it appears to [ the FCA ]

2

 that a person who falls within article 93(2) (appointed

representatives) (“AR”) is not a fit and proper person to carry on insurance mediation activities, it

may decide not to include him in the record or, if that person is already included in the record, to

remove him from the record.

(2) Where [ the FCA ]

2

 proposes to make a determination under paragraph (1), it must give AR

a warning notice.

(3) If [ the FCA ]

2

 makes a determination under paragraph (1), it must give AR a decision notice.

(4) If [ the FCA ]

2

 gives AR a decision notice under paragraph (3), AR may refer the matter to

the Tribunal.

(5) [ The FCA ]

2

 may, on the application of AR, revoke a determination under paragraph (1).

(6) If [ the FCA ]

2

 decides to grant the application, it must give AR written notice of its decision.

(7) If [ the FCA ]

2

 proposes to refuse the application, it must give AR a warning notice.

(8) If [ the FCA ]

2

 decides to refuse the application, it must give AR a decision notice.

(9) If [ the FCA ]

2

 gives AR a decision notice under paragraph (8), AR may refer the matter to

the Tribunal.

(10) Sections 393 and 394 of the Act (third party rights and access to [ FCA or PRA ]

3

 material)

apply to a warning notice given in accordance with paragraph (2) or (7) and to a decision notice

given in accordance with paragraph (3) or (8).

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2003/1476

Pt 3 art.13 (October 31, 2004 in relation to contracts of long-term care insurance; January 14, 2005 otherwise)

2 Words substituted by Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order

2013/472 Sch.2 para.35(a) (April 1, 2013)

3 Word substituted by Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order

2013/472 Sch.2 para.35(i) (April 1, 2013)

Extent

Pt V art. 95(1)-(10): United Kingdom 

Law In Force

[ 96.— Exclusion from the record where [ FCA ]

2

 has exercised its powers under Part XX

of the Act

(1) If a person who appears to [ the FCA ]

3

 to fall within article 93(3) (member of a designated

professional body) falls within paragraph (2) or (3), [the FCA ]

3

 must not include him in the record

or, if that person is already included in the record, must remove him from the record.

SI 2001/544 Page 173
(2) A person falls within this paragraph if, by virtue of a direction given by [ the FCA ]

3

 under

section 328(1) of the Act (directions in relation to the general prohibition), section 327(1) of the

Act does not apply in relation to the carrying on by him of any insurance mediation activity.

(3) A person falls within this paragraph if [ the FCA ]

3

 has made an order under section 329(2)

of the Act (orders in relation to the general prohibition) disapplying section 327(1) of the Act in

relation to the carrying on by him of any insurance mediation activity.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2003/1476

Pt 3 art.13 (October 31, 2004 in relation to contracts of long-term care insurance; January 14, 2005 otherwise)

2 Word substituted by Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order

2013/472 Sch.2 para.35(j) (April 1, 2013)

3 Words substituted by Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order

2013/472 Sch.2 para.35(a) (April 1, 2013)

Extent

Pt V art. 96(1)-(3): United Kingdom 

[ PART 6

MISCELLANEOUS

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2004/1610 art.3

(July 15, 2004)

Law In Force

[ 97. Disapplication of section 49(2) of the Act

In section 49 of the Act (persons connected with an applicant for [ Part 4A ]

2

 permission), after

subsection (2) insert–

“(2A) But subsection (2) does not apply to the extent that the permission relates to–

(a) an insurance mediation activity (within the meaning given by paragraph 2(5)

of Schedule 6); or

(b) a regulated activity involving a regulated mortgage contract.”.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2004/1610 art.3

(July 15, 2004)

2 Words substituted by Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order

2013/472 art.4 (April 1, 2013)

SI 2001/544 Page 174
Extent

Pt VI art. 97: United Kingdom 

Law In Force

Greg Pope

Jim Dowd

Two of the Lords Commissioners of Her Majesty's Treasury

26th February 2001

SCHEDULE 1

CONTRACTS OF INSURANCE

Article 3(1)

PART I

CONTRACTS OF GENERAL INSURANCE

Law In Force

1. Accident

Contracts of insurance providing fixed pecuniary benefits or benefits in the nature of indemnity

(or a combination of both) against risks of the person insured or, in the case of a contract made by

virtue of section 140, 140A or 140B of the Local Government Act 19721 (or, in Scotland, section

86(1) of the Local Government (Scotland) Act 19732), a person for whose benefit the contract is

made—

(a) sustaining injury as the result of an accident or of an accident of a specified class; or

(b) dying as a result of an accident or of an accident of a specified class; or

(c) becoming incapacitated in consequence of disease or of disease of a specified class,

including contracts relating to industrial injury and occupational disease but excluding contracts

falling within paragraph 2 of Part I of, or paragraph IV of Part II of, this Schedule.

Notes

1

S.I. 1999/2725, amended by S.I. 2000/1797.

2

Section 140 was amended by the Local Government (Miscellaneous Provisions) Act 1982 (c. 30), s. 39(1) and

Sch. 7, Part XVI; by the Insurance Companies Act 1982 (c. 50), Sch. 5, para. 13; and by the London Regional

Transport Act 1984 (c. 32), Sch. 7. Section 140A was inserted by s. 39(2) of the Local Government (Miscellaneous

Provisions) Act 1982 (c. 30), and amended by the Planning (Consequential Provisions) Act 1990 (c. 10), Sch. 2,

para. 28, and by the Environment Act 1995 (c. 25), Sch. 24. Section 140B was inserted by s. 39(2) of the Local

Government (Miscellaneous Provisions) Act 1982, and amended by the Local Government Act 1985 (c. 51), Sch.

17, and by the Local Government (Wales) Act 1994 (c. 19), Sch. 15, para. 31.

Commencement

Sch. 1(I) para. 1(a)-(c): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19;

SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

SI 2001/544 Page 175
Extent

Sch. 1(I) para. 1(a)-(c): United Kingdom 

Law In Force

2. Sickness

Contracts of insurance providing fixed pecuniary benefits or benefits in the nature of indemnity

(or a combination of both) against risks of loss to the persons insured attributable to sickness or

infirmity but excluding contracts falling within paragraph IV of Part II of this Schedule.

Commencement

Sch. 1(I) para. 2: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Sch. 1(I) para. 2: United Kingdom 

Law In Force

3. Land vehicles

Contracts of insurance against loss of or damage to vehicles used on land, including motor vehicles

but excluding railway rolling stock.

Commencement

Sch. 1(I) para. 3: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Sch. 1(I) para. 3: United Kingdom 

Law In Force

4. Railway rolling stock

Contract of insurance against loss of or damage to railway rolling stock.

Commencement

Sch. 1(I) para. 4: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Sch. 1(I) para. 4: United Kingdom 

SI 2001/544 Page 176
Law In Force

5. Aircraft

Contracts of insurance upon aircraft or upon the machinery, tackle, furniture or equipment of

aircraft.

Commencement

Sch. 1(I) para. 5: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Sch. 1(I) para. 5: United Kingdom 

Law In Force

6. Ships

Contracts of insurance upon vessels used on the sea or on inland water, or upon the machinery,

tackle, furniture or equipment of such vessels.

Commencement

Sch. 1(I) para. 6: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Sch. 1(I) para. 6: United Kingdom 

Law In Force

7. Goods in transit

Contracts of insurance against loss of or damage to merchandise, baggage and all other goods in

transit, irrespective of the form of transport.

Commencement

Sch. 1(I) para. 7: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Sch. 1(I) para. 7: United Kingdom 

Law In Force

8. Fire and natural forces

Contracts of insurance against loss of or damage to property (other than property to which paragraphs

3 to 7 relate) due to fire, explosion, storm, natural forces other than storm, nuclear energy or land

subsidence.

SI 2001/544 Page 177
Commencement

Sch. 1(I) para. 8: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Sch. 1(I) para. 8: United Kingdom 

Law In Force

9. Damage to property

Contracts of insurance against loss of or damage to property (other than property to which paragraphs

3 to 7 relate) due to hail or frost or any other event (such as theft) other than those mentioned in

paragraph 8.

Commencement

Sch. 1(I) para. 9: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Sch. 1(I) para. 9: United Kingdom 

Law In Force

10. Motor vehicle liability

Contracts of insurance against damage arising out of or in connection with the use of motor vehicles

on land, including third-party risks and carrier's liability.

Commencement

Sch. 1(I) para. 10: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Sch. 1(I) para. 10: United Kingdom 

Law In Force

11. Aircraft liability

Contracts of insurance against damage arising out of or in connection with the use of aircraft,

including third-party risks and carrier's liability.

SI 2001/544 Page 178
Commencement

Sch. 1(I) para. 11: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Sch. 1(I) para. 11: United Kingdom 

Law In Force

12. Liability of ships

Contracts of insurance against damage arising out of or in connection with the use of vessels on

the sea or on inland water, including third party risks and carrier's liability.

Commencement

Sch. 1(I) para. 12: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Sch. 1(I) para. 12: United Kingdom 

Law In Force

13. General liability

Contracts of insurance against risks of the persons insured incurring liabilities to third parties, the

risks in question not being risks to which paragraph 10, 11 or 12 relates.

Commencement

Sch. 1(I) para. 13: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Sch. 1(I) para. 13: United Kingdom 

Law In Force

14. Credit

Contracts of insurance against risks of loss to the persons insured arising from the insolvency of

debtors of theirs or from the failure (otherwise than through insolvency) of debtors of theirs to pay

their debts when due.

SI 2001/544 Page 179
Commencement

Sch. 1(I) para. 14: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Sch. 1(I) para. 14: United Kingdom 

Law In Force

15.— Suretyship

(1) Contracts of insurance against the risks of loss to the persons insured arising from their having

to perform contracts of guarantee entered into by them.

(2) Fidelity bonds, performance bonds, administration bonds, bail bonds or customs bonds or similar

contracts of guarantee, where these are—

(a) effected or carried out by a person not carrying on a banking business;

(b) not effected merely incidentally to some other business carried on by the person effecting

them; and

(c) effected in return for the payment of one or more premiums.

Commencement

Sch. 1(I) para. 15(1)-(2)(c): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s.

19; SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Sch. 1(I) para. 15(1)-(2)(c): United Kingdom 

Law In Force

16. Miscellaneous financial loss

Contracts of insurance against any of the following risks, namely—

(a) risks of loss to the persons insured attributable to interruptions of the carrying on of

business carried on by them or to reduction of the scope of business so carried on;

(b) risks of loss to the persons insured attributable to their incurring unforeseen expense

(other than loss such as is covered by contracts falling within paragraph 18);

(c) risks which do not fall within sub-paragraph (a) or (b) and which are not of a kind such

that contracts of insurance against them fall within any other provision of this Schedule.

Commencement

Sch. 1(I) para. 16(a)-(c): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19;

SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Sch. 1(I) para. 16(a)-(c): United Kingdom 

SI 2001/544 Page 180
Law In Force

17. Legal expenses

Contracts of insurance against risks of loss to the persons insured attributable to their incurring

legal expenses (including costs of litigation).

Commencement

Sch. 1(I) para. 17: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Sch. 1(I) para. 17: United Kingdom 

Law In Force

18. Assistance

Contracts of insurance providing either or both of the following benefits, namely—

(a) assistance (whether in cash or in kind) for persons who get into difficulties while

travelling, while away from home or while away from their permanent residence; or

(b) assistance (whether in cash or in kind) for persons who get into difficulties otherwise

than as mentioned in sub-paragraph (a).

Commencement

Sch. 1(I) para. 18(a)-(b): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19;

SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Sch. 1(I) para. 18(a)-(b): United Kingdom 

PART II

CONTRACTS OF LONG-TERM INSURANCE

Law In Force

I. Life and annuity

Contracts of insurance on human life or contracts to pay annuities on human life, but excluding (in

each case) contracts within paragraph III.

Commencement

Sch. 1(II) para. I: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Sch. 1(II) para. I: United Kingdom 

SI 2001/544 Page 181
Law In Force

II. Marriage and birth

Contract of insurance to provide a sum on marriage [ or the formation of a civil partnership ]

1

 or

on the birth of a child, being contracts expressed to be in effect for a period of more than one year.

Notes

1 Words inserted by Civil Partnership Act 2004 (Amendments to Subordinate Legislation) Order 2005/2114 Sch.16(1)

para.1(5) (December 5, 2005)

Commencement

Sch. 1(II) para. II: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Sch. 1(II) para. II: United Kingdom 

Law In Force

III. Linked long term

Contracts of insurance on human life or contracts to pay annuities on human life where the benefits

are wholly or party to be determined by references to the value of, or the income from, property of

any description (whether or not specified in the contracts) or by reference to fluctuations in, or in

an index of, the value of property of any description (whether or not so specified).

Commencement

Sch. 1(II) para. III: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Sch. 1(II) para. III: United Kingdom 

Law In Force

IV. Permanent health

Contracts of insurance providing specified benefits against risks of persons becoming incapacitated

in consequence of sustaining injury as a result of an accident or of an accident of a specified class

or of sickness or infirmity, being contracts that—

(a) are expressed to be in effect for a period of not less than five years, or until the normal

retirement age for the persons concerned, or without limit of time; and

(b) either are not expressed to be terminable by the insurer, or are expressed to be so

terminable only in special circumstances mentioned in the contract.

SI 2001/544 Page 182
Commencement

Sch. 1(II) para. IV(a)-(b): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s.

19; SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Sch. 1(II) para. IV(a)-(b): United Kingdom 

Law In Force

V. Tontines

Tontines.

Commencement

Sch. 1(II) para. V: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Sch. 1(II) para. V: United Kingdom 

Law In Force

VI. Capital redemption contracts

Capital redemption contracts, where effected or carried out by a person who does not carry on a

banking business, and otherwise carries on a regulated activity of the kind specified by article 10(1)

or (2).

Commencement

Sch. 1(II) para. VI: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Sch. 1(II) para. VI: United Kingdom 

Law In Force

VII. Pension fund management

(a) Pension fund management contracts, and

(b) pension fund management contracts which are combined with contracts of insurance

covering either conservation of capital or payment of a minimum interest,

where effected or carried out by a person who does not carry on a banking business, and otherwise

carries on a regulated activity of the kind specified by article 10(1) or (2).

SI 2001/544 Page 183
Commencement

Sch. 1(II) para. VII(a)-(b): December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s.

19; SI 2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Sch. 1(II) para. VII(a)-(b): United Kingdom 

Law In Force

VIII. Collective insurance etc.

Contracts of a kind referred to in article 1(2)(e) of the first life insurance directive.

Commencement

Sch. 1(II) para. VIII: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Sch. 1(II) para. VIII: United Kingdom 

Law In Force

IX. Social insurance

Contracts of a kind referred to in article 1(3) of the first life insurance directive.

Commencement

Sch. 1(II) para. IX: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI

2001/544 Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Sch. 1(II) para. IX: United Kingdom 

[ SCHEDULE 2

SECTIONS A AND C OF ANNEX I TO THE MARKETS IN FINANCIAL INSTRUMENTS

DIRECTIVE AND RELATED COMMUNITY SUBORDINATE LEGISLATION

Article 3(1)

]

1

Notes

1 Existing Sch.2 is substituted for a new Sch.2 consisting of Parts 1-4 by Financial Services and Markets Act 2000

(Regulated Activities) (Amendment No. 3) Order 2006/3384 Pt 2 art.29 (April 1, 2007: substitution has effect on

April 1, 2007 for the purposes specified in SI 2006/3384 art.1(2)(a); November 1, 2007 otherwise)

SI 2001/544 Page 184
Law In Force

[ Existing Sch.2 is not repealed but has been substituted for a new Sch.2 consisting of Parts.1–4 ]

1

Notes

1 Existing Sch.2 is substituted for a new Sch.2 consisting of Parts 1-4 by Financial Services and Markets Act 2000

(Regulated Activities) (Amendment No. 3) Order 2006/3384 Pt 2 art.29 (April 1, 2007: substitution has effect on

April 1, 2007 for the purposes specified in SI 2006/3384 art.1(2)(a); November 1, 2007 otherwise)

Commencement

Sch. 2 para. 1: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI 2001/544

Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Sch. 2 para. 1: United Kingdom 

[ PART 1

SECTION C OF ANNEX I TO THE MARKETS IN FINANCIAL INSTRUMENTS

DIRECTIVE

]

1

Notes

1 Existing Sch.2 is substituted for a new Sch.2 consisting of Parts 1-4 by Financial Services and Markets Act 2000

(Regulated Activities) (Amendment No. 3) Order 2006/3384 Pt 2 art.29 (April 1, 2007: substitution has effect on

April 1, 2007 for the purposes specified in SI 2006/3384 art.1(2)(a); November 1, 2007 otherwise)

Law In Force

[

“Financial instruments

1. 

Transferable securities;

2. 

Money-market instruments;

3. 

Units in collective investment undertakings;

SI 2001/544 Page 185
4. 

Options, futures, swaps, forward rate agreements and any other derivative contracts relating

to securities, currencies, interest rates or yields, or other derivatives instruments, financial

indices or financial measures which may be settled physically or in cash;

5. 

Options, futures, swaps, forward rate agreements and any other derivative contracts relating

to commodities that must be settled in cash or may be settled in cash at the option of one

of the parties (otherwise than by reason of a default or other termination event);

6. 

Options, futures, swaps, and any other derivative contracts relating to commodities that can

be physically settled provided that they are traded on a regulated market and/or an MTF;

7. 

Options, futures, swaps, forwards and any other derivative contracts relating to commodities,

that can be physically settled not otherwise mentioned in C.6 and not being for commercial

purposes, which have the characteristics of other derivative financial instruments, having

regard to whether, inter alia, they are cleared and settled through recognised clearing houses

or are subject to regular margin calls;

8. 

Derivative instruments for the transfer of credit risk;

9. 

Financial contracts for differences;

10. 

Options, futures, swaps, forward rate agreements and any other derivative contracts relating

to climatic variables, freight rates, emission allowances or inflation rates or other official

economic statistics that must be settled in cash or may be settled in cash at the option of

one of the parties (otherwise than by reason of a default or other termination event), as well

as any other derivative contracts relating to assets, rights, obligations, indices and measures

not otherwise mentioned in this Section, which have the characteristics of other derivative

financial instruments, having regard to whether, inter alia, they are traded on a regulated

market or an MTF, are cleared and settled through recognised clearing houses or are subject

to regular margin calls.”

]

1

Notes

1 Existing Sch.2 is substituted for a new Sch.2 consisting of Parts 1-4 by Financial Services and Markets Act 2000

(Regulated Activities) (Amendment No. 3) Order 2006/3384 Pt 2 art.29 (April 1, 2007: substitution has effect on

April 1, 2007 for the purposes specified in SI 2006/3384 art.1(2)(a); November 1, 2007 otherwise)

SI 2001/544 Page 186
Extent

Sch. 2(1) para. 1: United Kingdom 

[ PART 2

CHAPTER VI OF THE COMMISSION REGULATION

]

1

Notes

1 Existing Sch.2 is substituted for a new Sch.2 consisting of Parts 1-4 by Financial Services and Markets Act 2000

(Regulated Activities) (Amendment No. 3) Order 2006/3384 Pt 2 art.29 (April 1, 2007: substitution has effect on

April 1, 2007 for the purposes specified in SI 2006/3384 art.1(2)(a); November 1, 2007 otherwise)

Law In Force

[

“Derivative financial instruments

Article 38 Characteristics of other derivative financial instruments

1. 

For the purposes of Section C(7) of Annex I to Directive 2004/39/EC, a contract which is

not a spot contract within the meaning of paragraph 2 of this Article and which is not covered

by paragraph 4 shall be considered as having the characteristics of other derivative financial

instruments and not being for commercial purposes if it satisfies the following conditions:

(a) it meets one of the following sets of criteria:

(i) it is traded on a third country trading facility that performs a similar

function to a regulated market or an MTF;

(ii) it is expressly stated to be traded on, or is subject to the rules of, a

regulated market, an MTF or such a third country trading facility;

(iii) it is expressly stated to be equivalent to a contract traded on a regulated

market, MTF or such a third country trading facility;

(b) it is cleared by a clearing house or other entity carrying out the same functions

as a central counterparty, or there are arrangements for the payment or provision of

margin in relation to the contract;

(c) it is standardised so that, in particular, the price, the lot, the delivery date or

other terms are determined principally by reference to regularly published prices,

standard lots or standard delivery dates.

SI 2001/544 Page 187
2. 

A spot contract for the purposes of paragraph 1 means a contract for the sale of a commodity,

asset or right, under the terms of which delivery is scheduled to be made within the longer

of the following periods:

(a) two trading days;

(b) the period generally accepted in the market for that commodity, asset or right

as the standard delivery period.

However, a contract is not a spot contract if, irrespective of its explicit terms, there is an

understanding between the parties to the contract that delivery of the underlying is to be

postponed and not to be performed within the period mentioned in the first subparagraph.

3. 

For the purposes of Section C(10) of Annex I to Directive 2004/39/EC, a derivative contract

relating to an underlying referred to in that Section or in Article 39 shall be considered to

have the characteristics of other derivative financial instruments if one of the following

conditions is satisfied:

(a) that contract is settled in cash or may be settled in cash at the option of one or

more of the parties, otherwise than by reason of a default or other termination event;

(b) that contract is traded on a regulated market or an MTF;

(c) the conditions laid down in paragraph 1 are satisfied in relation to that contract.

4. 

A contract shall be considered to be for commercial purposes for the purposes of Section

C(7) of Annex I to Directive 2004/39/EC, and as not having the characteristics of other

derivative financial instruments for the purposes of Sections C(7) and (10) of that Annex,

if it is entered into with or by an operator or administrator of an energy transmission grid,

energy balancing mechanism or pipeline network, and it is necessary to keep in balance the

supplies and uses of energy at a given time.

Article 39 Derivatives within Section C(10) of Annex I to Directive 2004/39/EC

In addition to derivative contracts of a kind referred to in Section C(10) of Annex I to

Directive 2004/39/EC, a derivative contract relating to any of the following shall fall within

that Section if it meets the criteria set out in that Section and in Article 38(3):

(a) telecommunications bandwidth;

(b) commodity storage capacity;

(c) transmission or transportation capacity relating to commodities, whether cable,

pipeline or other means;

(d) an allowance, credit, permit, right or similar asset which is directly linked to

the supply, distribution or consumption of energy derived from renewable resources;

(e) a geological, environmental or other physical variable;

(f) any other asset or right of a fungible nature, other than a right to receive a service,

that is capable of being transferred;

(g) an index or measure related to the price or value of, or volume of transactions

in any asset, right, service or obligation.”

SI 2001/544 Page 188
]

1

Notes

1 Existing Sch.2 is substituted for a new Sch.2 consisting of Parts 1-4 by Financial Services and Markets Act 2000

(Regulated Activities) (Amendment No. 3) Order 2006/3384 Pt 2 art.29 (April 1, 2007: substitution has effect on

April 1, 2007 for the purposes specified in SI 2006/3384 art.1(2)(a); November 1, 2007 otherwise)

Extent

Sch. 2(2) para. 1: United Kingdom 

[ PART 3

SECTION A OF ANNEX I TO THE MARKETS IN FINANCIAL INSTRUMENTS

DIRECTIVE

]

1

Notes

1 Existing Sch.2 is substituted for a new Sch.2 consisting of Parts 1-4 by Financial Services and Markets Act 2000

(Regulated Activities) (Amendment No. 3) Order 2006/3384 Pt 2 art.29 (April 1, 2007: substitution has effect on

April 1, 2007 for the purposes specified in SI 2006/3384 art.1(2)(a); November 1, 2007 otherwise)

Law In Force

[

“Investment services and activities

1. 

Reception and transmission of orders in relation to one or more financial instruments.

2. 

Execution of orders on behalf of clients.

3. 

Dealing on own account.

4. 

Portfolio management.

5. 

Investment advice.

SI 2001/544 Page 189
6. 

Underwriting of financial instruments and/or placing of financial instruments on a firm

commitment basis.

7. 

Placing of financial instruments without a firm commitment basis.

8. 

Operation of Multilateral Trading Facilities.”

]

1

Notes

1 Existing Sch.2 is substituted for a new Sch.2 consisting of Parts 1-4 by Financial Services and Markets Act 2000

(Regulated Activities) (Amendment No. 3) Order 2006/3384 Pt 2 art.29 (April 1, 2007: substitution has effect on

April 1, 2007 for the purposes specified in SI 2006/3384 art.1(2)(a); November 1, 2007 otherwise)

Extent

Sch. 2(3) para. 1: United Kingdom 

[ PART 4

ARTICLE 52 OF COMMISSION DIRECTIVE 2006/73/EC

]

1

Notes

1 Existing Sch.2 is substituted for a new Sch.2 consisting of Parts 1-4 by Financial Services and Markets Act 2000

(Regulated Activities) (Amendment No. 3) Order 2006/3384 Pt 2 art.29 (April 1, 2007: substitution has effect on

April 1, 2007 for the purposes specified in SI 2006/3384 art.1(2)(a); November 1, 2007 otherwise)

Law In Force

[

“Article 52

Investment advice

For the purposes of the definition of “investment advice” in Article 4(1)(4) of Directive

2004/39/EC, a personal recommendation is a recommendation that is made to a person in

his capacity as an investor or potential investor, or in his capacity as an agent for an investor

or potential investor.

That recommendation must be presented as suitable for that person, or must be based on a

consideration of the circumstances of that person, and must constitute a recommendation

to take one of the following sets of steps:

SI 2001/544 Page 190
(a) to buy, sell, subscribe for, exchange, redeem, hold or underwrite a particular

financial instrument;

(b) to exercise or not to exercise any right conferred by a particular financial

instrument to buy, sell, subscribe for, exchange, or redeem a financial instrument.

A recommendation is not a personal recommendation if it is issued exclusively through

distribution channels or to the public.”

]

1

Notes

1 Existing Sch.2 is substituted for a new Sch.2 consisting of Parts 1-4 by Financial Services and Markets Act 2000

(Regulated Activities) (Amendment No. 3) Order 2006/3384 Pt 2 art.29 (April 1, 2007: substitution has effect on

April 1, 2007 for the purposes specified in SI 2006/3384 art.1(2)(a); November 1, 2007 otherwise)

Extent

Sch. 2(4) para. 1: United Kingdom 

[ SCHEDULE 3

ARTICLE 2 OF THE MARKETS IN FINANCIAL INSTRUMENTS DIRECTIVE

]

1

Notes

1

Substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment No. 3) Order 2006/3384

Pt 2 art.30 (April 1, 2007: substitution has effect on April 1, 2007 for the purposes specified in SI 2006/3384

art.1(2)(a); November 1, 2007 otherwise)

Law In Force

[

“Article 2

Exemptions

1. 

This Directive shall not apply to:

(a) insurance undertakings as defined in Article 1 of Directive 73/239/EEC or

assurance undertakings as defined in Article 1 of Directive 2002/83/EC or

undertakings carrying on the reinsurance and retrocession activities referred to in

Directive 64/225/EEC;

(b) persons which provide investment services exclusively for their parent

undertakings, for their subsidiaries or for other subsidiaries of their parent

undertakings;

SI 2001/544 Page 191
(c) persons providing an investment service where that service is provided in an

incidental manner in the course of a professional activity and that activity is regulated

by legal or regulatory provisions or a code of ethics governing the profession which

do not exclude the provision of that service;

(d) persons who do not provide any investment services or activities other than

dealing on own account unless they are market makers or deal on own account

outside a regulated market or an MTF on an organised, frequent and systematic

basis by providing a system accessible to third parties in order to engage in dealings

with them;

(e) persons which provide investment services consisting exclusively in the

administration of employee-participation schemes;

(f) persons which provide investment services which only involve both

administration of employee-participation schemes and the provision of investment

services exclusively for their parent undertakings, for their subsidiaries or for other

subsidiaries of their parent undertakings;

(g) the members of the European System of Central Banks and other national bodies

performing similar functions and other public bodies charged with or intervening

in the management of the public debt;

(h) collective investment undertakings and pension funds whether coordinated at

Community level or not and the depositaries and managers of such undertakings;

(i) persons dealing on own account in financial instruments, or providing investment

services in commodity derivatives or derivative contracts included in Annex I,

Section C10 to the clients of their main business, provided this is an ancillary activity

to their main business, when considered on a group basis, and that main business is

not the provision of investment services within the meaning of this Directive or

banking services under Directive 2000/12/EC;

(j) persons providing investment advice in the course of providing another

professional activity not covered by this Directive provided that the provision of

such advice is not specifically remunerated;

(k) persons whose main business consists of dealing on own account in commodities

and/or commodity derivatives. This exception shall not apply where the persons

that deal on own account in commodities and/or commodity derivatives are part of

a group the main business of which is the provision of other investment services

within the meaning of this Directive or banking services under Directive 2000/12/EC;

(l) firms which provide investment services and/or perform investment activities

consisting exclusively in dealing on own account on markets in financial futures or

options or other derivatives and on cash markets for the sole purpose of hedging

positions on derivatives markets or which deal for the accounts of other members

of those markets or make prices for them and which are guaranteed by clearing

members of the same markets, where responsibility for ensuring the performance

of contracts entered into by such firms is assumed by clearing members of the same

markets;

(m) associations set up by Danish and Finnish pensions funds with the sole aim of

managing the assets of pension funds that are members of those associations;

(n) ‘agenti di cambio’ whose activities and functions are governed by Article 201

of Italian Legislative Decree No 58 of 24 February 1998.

SI 2001/544 Page 192
2. 

The rights conferred by this Directive shall not extend to the provision of services as

counterparty in transactions carried out by public bodies dealing with public debt or by

members of the European System of Central Banks performing their tasks as provided for

by the Treaty and the Statute of the European System of Central Banks and of the European

Central Bank or performing equivalent functions under national provisions.

3. 

In order to take account of developments on financial markets, and to ensure the uniform

application of this Directive, the Commission, acting in accordance with the procedure

referred to in Article 64(2), may, in respect of exemptions (c), (i) and (k) define the criteria

for determining when an activity is to be considered as ancillary to the main business on a

group level as well as for determining when an activity is provided in an incidental manner.”

]

1

Notes

1

Substituted by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment No. 3) Order 2006/3384

Pt 2 art.30 (April 1, 2007: substitution has effect on April 1, 2007 for the purposes specified in SI 2006/3384

art.1(2)(a); November 1, 2007 otherwise)

Commencement

Sch. 3 para. 1: December 1, 2001 which is the date 2000 c.8 s.19 is brought into force (2000 c. 8 Pt II s. 19; SI 2001/544

Pt I art. 2; SI 2001/3538 art. 2(1))

Extent

Sch. 3 para. 1: United Kingdom 

[ SCHEDULE 4

RELEVANT TEXT OF THE INSURANCE MEDIATION DIRECTIVE

Article 4

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2003/1476

Pt 2 art.12 (October 31, 2004 in relation to contracts of long-term care insurance; January 14, 2005 otherwise)

[ Part 1

Article 1.2

]

1

SI 2001/544 Page 193
Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2003/1476

Pt 2 art.12 (October 31, 2004 in relation to contracts of long-term care insurance; January 14, 2005 otherwise)

Law In Force

[

“This Directive shall not apply to persons providing mediation services for insurance contracts if

all the following conditions are met:

(a) the insurance contract only requires knowledge of the insurance cover that is provided;

(b) the insurance contract is not a life assurance contract;

(c) the insurance contract does not cover any liability risks;

(d) the principal professional activity of the person is other than insurance mediation;

(e) the insurance is complementary to the product or service supplied by any provider,

where such insurance covers:

(i) the risk of breakdown, loss of or damage to goods supplied by that provider; or

(ii) damage to or loss of baggage and other risks linked to the travel booked with

that provider, even if the insurance covers life assurance or liability risks, provided

that the cover is ancillary to the main cover for the risks linked to that travel;

(f) the amount of the annual premium does not exceed EUR 500 and the total duration of

the insurance contract, including any renewals, does not exceed five years.”

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2003/1476

Pt 2 art.12 (October 31, 2004 in relation to contracts of long-term care insurance; January 14, 2005 otherwise)

Extent

Sch. 4(I) para. 1: United Kingdom 

[ Part II

Article 2.3

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2003/1476

Pt 2 art.12 (October 31, 2004 in relation to contracts of long-term care insurance; January 14, 2005 otherwise)

Law In Force

[

SI 2001/544 Page 194
““Insurance mediation” means the activities of introducing, proposing or carrying out other work

preparatory to the conclusion of contracts of insurance, or of concluding such contracts, or of

assisting in the administration and performance of such contracts, in particular in the event of a

claim.

These activities when undertaken by an insurance undertaking or an employee of an insurance

undertaking who is acting under the responsibility of the insurance undertaking shall not be

considered as insurance mediation.

The provision of information on an incidental basis in the context of another professional activity

provided that the purpose of that activity is not to assist the customer in concluding or performing

an insurance contract, the management of claims of an insurance undertaking on a professional

basis, and loss adjusting and expert appraisal of claims shall also not be considered as insurance

mediation.”

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2003/1476

Pt 2 art.12 (October 31, 2004 in relation to contracts of long-term care insurance; January 14, 2005 otherwise)

Extent

Sch. 4(II) para. 1: United Kingdom 

[ Part III

Article 2.4

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2003/1476

Pt 2 art.12 (October 31, 2004 in relation to contracts of long-term care insurance; January 14, 2005 otherwise)

Law In Force

[

““Reinsurance mediation” means the activities of introducing, proposing or carrying out other work

preparatory to the conclusion of contracts of reinsurance, or of concluding such contracts, or of

assisting in the administration and performance of such contracts, in particular in the event of a

claim.

These activities when undertaken by a reinsurance undertaking or an employee of a reinsurance

undertaking who is acting under the responsibility of the reinsurance undertaking are not considered

as reinsurance mediation.

The provision of information on an incidental basis in the context of another professional activity

provided that the purpose of that activity is not to assist the customer in concluding or performing

a reinsurance contract, the management of claims of a reinsurance undertaking on a professional

basis, and loss adjusting and expert appraisal of claims shall also not be considered as reinsurance

mediation.”

SI 2001/544 Page 195
]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2003/1476

Pt 2 art.12 (October 31, 2004 in relation to contracts of long-term care insurance; January 14, 2005 otherwise)

Extent

Sch. 4(III) para. 1: United Kingdom 

[ SCHEDULE 5

SPECIFIED BENCHMARKS

Article 63R

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2013/655 Pt 3

art.6 (April 2, 2013: insertion has effect subject to transitional provisions specified in SI 2013/655 Pt 4)

Law In Force

[

The following benchmarks are specified:

1. The benchmarks that are known as the London Interbank Offered Rate, also known as

LIBOR.

]

1

Notes

1 Added by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2013/655 Pt 3

art.6 (April 2, 2013: insertion has effect subject to transitional provisions specified in SI 2013/655 Pt 4)

Extent

Sch. 5 para. 1: United Kingdom 

[ SCHEDULE 6

FUNCTIONS INCLUDED IN THE ACTIVITY OF MANAGING A UCITS:ANNEX II TO

THE UCITS DIRECTIVE

Article51ZA

]

1

SI 2001/544 Page 196
Notes

1 Added by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(17) (July 22, 2013:

insertion has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

Law In Force

[ 1. 

Investment management.

]

1

Notes

1 Added by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(17) (July 22, 2013:

insertion has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

Extent

Sch. 6 para. 1: United Kingdom 

Law In Force

[ 2. 

Administration—

(a) legal and fund management accounting services;

(b) customer inquiries;

(c) valuation and pricing (including tax returns);

(d) regulatory compliance monitoring;

(e) maintenance of unit-holder register;

(f) distribution of income;

(g) unit issues and redemptions;

(h) contract settlements (including certificate dispatch);

(i) record keeping.

]

1

Notes

1 Added by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(17) (July 22, 2013:

insertion has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

Extent

Sch. 6 para. 2(a)-(i): United Kingdom 

Law In Force

[ 3. 

Marketing.

]

1

SI 2001/544 Page 197
Notes

1 Added by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(17) (July 22, 2013:

insertion has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

Extent

Sch. 6 para. 3: United Kingdom 

[ SCHEDULE 7

ADDITIONAL ACTIVITIES INCLUDED IN THE ACTIVITY OF MANAGINGAN AIF

LISTED IN PARAGRAPH 2 OF ANNEX I TO THE ALTERNATIVE INVESTMENT

FUNDMANAGERS DIRECTIVE

Article51ZC

]

1

Notes

1 Added by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(17) (July 22, 2013:

insertion has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

Law In Force

[

(a) Administration—

(i) legal and fund management accounting services;

(ii) customer inquiries;

(iii) valuation and pricing, including tax returns;

(iv) regulatory compliance monitoring;

(v) maintenance of unit-/shareholder register;

(vi) distribution of income;

(vii) unit/shares issues and redemptions;

(viii) contract settlements, including certificate dispatch;

(ix) record keeping:

(b) Marketing;

(c) Activities related to the assets of AIFs, namely services necessary to meet the fiduciary

duties of the AIFM, facilities management, real estate administration activities, advice to

undertakings on capital structure, industrial strategy and related matters, advice and services

related to mergers and the purchase of undertakings and other services connected to the

management of the AIF and the companies and other assets in which it has invested.

]

1

Notes

1 Added by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(17) (July 22, 2013:

insertion has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

SI 2001/544 Page 198
Extent

Sch. 7 para. 1(a)-(c): United Kingdom 

[ SCHEDULE 8

PERSONS EXCLUDED FROM REGULATED ACTIVITY OF MANAGINGAN AIF

Article51ZF

]

1

Notes

1 Added by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(17) (July 22, 2013:

insertion has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

[Interpretation of this Schedule ]

1

Notes

1 Added by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(17) (July 22, 2013:

insertion has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

Law In Force

[ 1. 

Any expression used in this Schedule which is used in the alternative investment fund managers

directive has the same meaning as in that directive.

]

1

Notes

1 Added by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(17) (July 22, 2013:

insertion has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

Extent

Sch. 8 para. 1: United Kingdom 

[ Persons excluded ]

1

Notes

1 Added by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(17) (July 22, 2013:

insertion has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

SI 2001/544 Page 199
Law In Force

[ 2. 

A small registered UK AIFM, in respect of the AIFs managed by it by virtue of which it is entitled

to be registered as a small registered UK AIFM (but not in respect of any other AIFs managed by

it).

]

1

Notes

1 Added by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(17) (July 22, 2013:

insertion has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

Extent

Sch. 8 para. 2: United Kingdom 

Law In Force

[ 3.— 

An AIFM in so far as it manages one or more AIFs whose only investors are—

(a) the AIFM,

(b) the parent undertakings of the AIFM,

(c) the subsidiaries of the AIFM, or

(d) other subsidiaries of those parent undertakings,

provided that none of the investors is an AIF.

]

1

Notes

1 Added by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(17) (July 22, 2013:

insertion has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

Extent

Sch. 8 para. 3(a)-(d): United Kingdom 

Law In Force

[ 4. 

An institution for occupational retirement provision which falls within the scope of Directive

2003/41/EC of the European Parliament and of the Council of 3 June 2003 on the activities and

supervision of institutions for occupational retirement provision2, including, where applicable, the

authorised entities responsible for managing such institutions and acting on their behalf referred

to in Article 2.1 of that directive, or the investment managers appointed pursuant to Article 19.1

of that directive, in so far as they do not manage AIFs.

]

1

Notes

1 Added by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(17) (July 22, 2013:

insertion has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

SI 2001/544 Page 200
2 OJ L 235, 23.9.2003, p10.

Extent

Sch. 8 para. 4: United Kingdom 

Law In Force

[ 5. 

The European Central Bank, the European Investment Bank, the European Investment Fund, a

bilateral development bank, the World Bank, the International Monetary Fund, any other

supranational institution or similar international organisation, or a European Development Finance

Institution, in the event that such institution or organisation manages AIFs and in so far as those

AIFs act in the public interest.

]

1

Notes

1 Added by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(17) (July 22, 2013:

insertion has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

Extent

Sch. 8 para. 5: United Kingdom 

Law In Force

[ 6. 

A national central bank.

]

1

Notes

1 Added by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(17) (July 22, 2013:

insertion has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

Extent

Sch. 8 para. 6: United Kingdom 

Law In Force

[ 7. 

A national, regional or local government or body or other institution which manages funds supporting

social security and pension systems.

]

1

Notes

1 Added by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(17) (July 22, 2013:

insertion has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

SI 2001/544 Page 201
Extent

Sch. 8 para. 7: United Kingdom 

Law In Force

[ 8. 

A holding company.

]

1

Notes

1 Added by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(17) (July 22, 2013:

insertion has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

Extent

Sch. 8 para. 8: United Kingdom 

Law In Force

[ 9. 

An employee participation scheme or employee savings scheme.

]

1

Notes

1 Added by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(17) (July 22, 2013:

insertion has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

Extent

Sch. 8 para. 9: United Kingdom 

Law In Force

[ 10. 

A securitisation special purpose entity.

]

1

Notes

1 Added by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(17) (July 22, 2013:

insertion has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

Extent

Sch. 8 para. 10: United Kingdom 

SI 2001/544 Page 202
Law In Force

!

Amendment(s) Pending

[ 11. 

An AIFM, the registered office of which is not in an EEA State [ , that is registered in the United

Kingdom in accordance with Article 3 of the alternative investment fund managers directive ]

2

 .

]

1

Notes

1 Added by Alternative Investment Fund Managers Regulations 2013/1773 Sch.2(1) para.1(17) (July 22, 2013:

insertion has effect subject to transitional provisions specified in SI 2013/1773 Pt 9)

2 Words inserted by Alternative Investment Fund Managers Regulations 2013/1773 Pt 10 reg.81(3) (July 22, 2013:

insertion has effect subject to transitional and saving provisions specified in SI 2013/1821 Pt 7)

Amendments Pending

Sch. 8 para. 11: revoked by Alternative Investment Fund Managers (Amendment) Regulations 2013/1797, Sch. 2(1)

para. 2 (date to be appointed)

Extent

Sch. 8 para. 11: United Kingdom 

EXPLANATORY NOTE

(This note is not part of the Order)

This Order specifies kinds of activities and investments for the purposes of the Financial Services

and Markets Act 2000 (“the Act”). When an activity of a specified kind is carried on by way of

business in relation to an investment of a specified kind, it is a “regulated activity” for the purposes

of the Act. The Financial Services and Markets Act 2000 (Carrying on Regulated Activities by

Way of Business) Order 2001 (S.I. 2001/1177) makes provision as to the circumstances in which

a person is, or is not, to be regarded as carrying on a regulated activity by way of business. Section

19 of the Act prohibits person who are not authorised or exempt from carrying on any regulated

activity in the United Kingdom. Contravention of that prohibition is a criminal offence.

Part I of this Order makes provision for the citation, commencement and interpretation of the Order.

Part II specifies types of activities. Those activities are accepting deposits; effecting and carrying

out contracts of insurance; dealing in investments as principal, or as agent; arranging deals in

investments; managing investments; safeguarding and administering investments; sending

dematerialised instructions; establishing etc. a collective investment scheme, or a stakeholder

pension scheme; advising on investments; certain activities in relation to Lloyd's; entering into

funeral plan contracts, or regulated mortgage contracts; and agreeing to carry on certain of the

above activities.

Part II also sets out the exclusions (if any) applicable to each kind of specified activity.

SI 2001/544 Page 203
Part III of the Order specifies the kinds of investment which are relevant for determining whether

a person is carrying on a regulated activity for the purposes of the Act.

Part IV makes consequential amendments to the Consumer Credit Act 1974, and subordinate

legislation under that Act, so as to exclude from its scope those categories of mortgage contract

which are specified under this Order and which will therefore be regulated under the Act.

Schedule 1 to the Order lists the classes of insurance contract which are relevant to the scope of

the activity specified by article 10.

Schedules 2 and 3 set out the text of certain provisions of Council Directive No. 93/22/EEC on

investment services in the securities field which are relevant to the applicability of the exclusions

contained in the Order (see article 4).

SI 2001/544 Page 204
Modifications

Legal Services Act 2007 (Designation as a Licensing Authority) (No. 2) Order

2011/2866, Sch. 3 para. 1

Pt II(II) art. 7(1)

Uncertificated Securities (Amendment) (Eligible Debt Securities) Regulations

2003/1633, Sch. 2 para. 8(2)(w)

Pt II(IV) art. 17(1)

Uncertificated Securities (Amendment) (Eligible Debt Securities) Regulations

2003/1633, Sch. 2 para. 9

Pt II(IV) art. 17(2)

Financial Services and Markets Act 2000 (Regulated Activities) (Amendment)

(No.2) Order 2006/2383, Sch. 1 para. 9

Pt II(VI) art. 29

Financial Services and Markets Act 2000 (Regulated Activities) (Amendment)

(No.2) Order 2006/2383, Sch. 1 para. 10

Pt II(VI) art. 29A(2)(a)

Financial Services and Markets Act 2000 (Regulated Activities) (Amendment)

(No.2) Order 2006/2383, Sch. 1 para. 10

Pt II(VI) art. 29A(3)(a)

Uncertificated Securities (Amendment) (Eligible Debt Securities) Regulations

2003/1633, Sch. 2 para. 8(2)(w)

Pt II(VI) art. 31(1)

Uncertificated Securities (Amendment) (Eligible Debt Securities) Regulations

2003/1633, Sch. 2 para. 9

Pt II(VI) art. 31(2)

Uncertificated Securities (Amendment) (Eligible Debt Securities) Regulations

2003/1633, Sch. 2 para. 8(2)(w)

Pt III art. 77(1)

Uncertificated Securities (Amendment) (Eligible Debt Securities) Regulations

2003/1633, Sch. 2 para. 8(2)(w)

Pt III art. 78

SI 2001/544 Page 205
Table of Contents

Financial Services and Markets Act 2000 (Regulated Activities) Order 2001/544. . . . . . . . . . 1

Preamble . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Part I GENERAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

art. 1 Citation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

art. 2 Commencement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

P art. 3 Interpretation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Part II SPECIFIED ACTIVITIES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

GENERAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

P art. 4 Specified activities: general. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

ACCEPTING DEPOSITS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

The activity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

art. 5 Accepting deposits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

art. 6 Sums paid by certain persons. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

art. 7 Sums received by solicitors etc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

art. 8 Sums received by persons authorised to deal etc.. . . . . . . . . . . . . . . . . . . . . . . 16

art. 9 Sums received in consideration for the issue of debt securities. . . . . . . . . . . 16

art. 9A Sums received in exchange for electronic money. . . . . . . . . . . . . . . . . . . . . . 17

art. 9AA Information society services and managers of UCITS and AIFs. . . . . . 17

art. 9AB Funds received for payment services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

ELECTRONIC MONEY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

The activity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

art. 9B Issuing electronic money. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

art. 9BA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

art. 9C Persons certified as small issuers etc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

art. 9D Applications for certificates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

art. 9E Revocation of certificate on FCA's own initiative. . . . . . . . . . . . . . . . . . . . . . 21

art. 9F Revocation of certificate on request. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

art. 9G Obtaining information from certified persons etc.. . . . . . . . . . . . . . . . . . . . . 22

Supplemental. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

art. 9H Rules prohibiting the issue of electronic money at a discount. . . . . . . . . . 24

art. 9I False claims to be a certified person. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

art. 9J Exclusion of electronic money from the compensation scheme. . . . . . . . . 25

art. 9K Record of certified persons. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

R art. 9L Funds received for payment services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

INSURANCE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

The activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

SI 2001/544 Page 206
art. 10 Effecting and carrying out contracts of insurance. . . . . . . . . . . . . . . . . . . . . . 26

Exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

art. 11 Community co-insurers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

art. 12 Breakdown insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

art. 12A Information society services and managers of UCITS and AIFs. . . . . . . 28

Supplemental. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

art. 13 Application of sections 327 and 332 of the Act to insurance market

activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

DEALING IN INVESTMENTS AS PRINCIPAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

The activity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

art. 14 Dealing in investments as principal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

art. 15 Absence of holding out etc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

art. 16 Dealing in contractually based investments. . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

art. 17 Acceptance of instruments creating or acknowledging indebtedness. . . . 32

art. 18 Issue by a company of its own shares etc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

art. 18A Dealing by a company in its own shares. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

art. 19 Risk management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

art. 20 Other exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

DEALING IN INVESTMENTS AS AGENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

The activity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

art. 21 Dealing in investments as agent. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

art. 22 Deals with or through authorised persons. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

art. 23 Risk management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

art. 24 Other exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

BIDDING IN EMISSIONS AUCTIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

The activity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

art. 24A Bidding in emissions auctions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

Exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

art. 24B Miscellaneous exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

ARRANGING DEALS IN INVESTMENTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

The activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

art. 25 Arranging deals in investments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

art. 25A Arranging regulated mortgage contracts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

art. 25B Arranging regulated home reversion plans. . . . . . . . . . . . . . . . . . . . . . . . . . . 40

art. 25C Arranging regulated home purchase plans. . . . . . . . . . . . . . . . . . . . . . . . . . . 41

art. 25D Operating a multilateral trading facility. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

art. 25E Arranging regulated sale and rent back agreements. . . . . . . . . . . . . . . . . . . 42

SI 2001/544 Page 207
Exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

art. 26 Arrangements not causing a deal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

art. 27 Enabling parties to communicate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

art. 28 Arranging transactions to which the arranger is a party. . . . . . . . . . . . . . . . . 43

art. 28A Arranging contracts, plans or agreements to which the arranger is a

party. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

art. 29 Arranging deals with or through authorised persons. . . . . . . . . . . . . . . . . . . 45

art. 29A Arrangements made in the course of administration by authorised

person. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

art. 30 Arranging transactions in connection with lending on the security of insurance

policies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

art. 31 Arranging the acceptance of debentures in connection with loans. . . . . . . 48

art. 32 Provision of finance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

art. 33 Introducing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

art. 33A Introducing to authorised persons etc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

art. 34 Arrangements for the issue of shares etc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

art. 35 International securities self-regulating organisations. . . . . . . . . . . . . . . . . . . 52

art. 35A Trade repositories. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

art. 36 Other exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

CREDIT BROKING. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

The activity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

P art. 36A Credit broking. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

Exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

P art. 36B Introducing by individuals in the course of canvassing off trade

premises. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

P art. 36C Activities for which no fee is paid. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

P art. 36D Transaction to which the broker is a party. . . . . . . . . . . . . . . . . . . . . . . . . . . 57

P art. 36E Activities in relation to certain agreements relating to land. . . . . . . . . . . . 58

P art. 36F Activities carried on by members of the legal profession etc.. . . . . . . . . . 58

P art. 36G Information society services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

OPERATING AN ELECTRONIC SYSTEM IN RELATION TO LENDING. . . . . . . . 59

The activity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

P art. 36H Operating an electronic system in relation to lending. . . . . . . . . . . . . . . . . 59

Exclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

P art. 36I Information society services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

Supplemental. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

P art. 36J Meaning of “consumer”. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

MANAGING INVESTMENTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

The activity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

art. 37 Managing investments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

SI 2001/544 Page 208
Exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

art. 38 Attorneys. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

art. 39 Other exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

ASSISTING IN THE ADMINISTRATION AND PERFORMANCE OF A CONTRACT

OF INSURANCE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

The activity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

art. 39A Assisting in the administration and performance of a contract of

insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

Exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

art. 39B Claims management on behalf of an insurer etc.. . . . . . . . . . . . . . . . . . . . . 65

art. 39C Other exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

ACTIVITIES IN RELATION TO DEBT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

The activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

P art. 39D Debt adjusting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67

P art. 39E Debt-counselling. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67

P art. 39F Debt-collecting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67

P art. 39G Debt administration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

Exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

P art. 39H Activities where person has a connection to the agreement. . . . . . . . . . . 69

P art. 39I Activities carried on by certain energy suppliers. . . . . . . . . . . . . . . . . . . . . . 70

P art. 39J Activities carried on in relation to a relevant agreement in relation to

land. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

P art. 39K Activities carried on by members of the legal profession etc.. . . . . . . . . 70

P art. 39L Information society services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

Supplemental. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

P art. 39M Meaning of “consumer” etc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72

SAFEGUARDING AND ADMINISTRATING INVESTMENTS. . . . . . . . . . . . . . . . . . . . 72

The activity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72

art. 40 Safeguarding and administering investments. . . . . . . . . . . . . . . . . . . . . . . . . . 72

Exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

art. 41 Acceptance of responsibility by third party. . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

art. 42 Introduction to qualifying custodians. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74

art. 42A Depositaries of UCITS and AIFs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74

art. 43 Activities not constituting administration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75

art. 44 Other exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75

SENDING DEMATERIALISED INSTRUCTIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

The activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

art. 45 Sending dematerialised instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

Exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77

art. 46 Instructions on behalf of participating issuers. . . . . . . . . . . . . . . . . . . . . . . . . 77

SI 2001/544 Page 209
art. 47 Instructions on behalf of settlement banks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77

art. 48 Instructions in connection with takeover offers. . . . . . . . . . . . . . . . . . . . . . . . 77

art. 49 Instructions in the course of providing a network. . . . . . . . . . . . . . . . . . . . . . 78

art. 50 Other exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

COLLECTIVE INVESTMENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

The activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

R art. 51 Establishing etc. a collective investment scheme. . . . . . . . . . . . . . . . . . . . . . . 79

art. 51ZA Managing a UCITS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

art. 51ZB Acting as trustee or depositary of a UCITS. . . . . . . . . . . . . . . . . . . . . . . . . 80

art. 51ZC Managing an AIF. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80

art. 51ZD Acting as trustee or depositary of an AIF. . . . . . . . . . . . . . . . . . . . . . . . . . . 81

art. 51ZE Establishing etc. a collective investment scheme. . . . . . . . . . . . . . . . . . . . 82

Exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82

art. 51ZF Persons excluded from managing an AIF. . . . . . . . . . . . . . . . . . . . . . . . . . . 82

art. 51ZG Operating a collective investment scheme in relation to a UCITS or an

AIF. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83

art. 51A Information society services and managers of UCITS and AIFs. . . . . . . 83

PENSION SCHEMES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84

The activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84

art. 52 Establishing etc. a pension scheme. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84

Exclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85

art. 52A Information society services and managers of UCITS and AIFs. . . . . . . 85

PROVIDING BASIC ADVICE ON STAKEHOLDER PRODUCTS. . . . . . . . . . . . . . . . . 85

The activity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85

art. 52B Providing basic advice on stakeholder products. . . . . . . . . . . . . . . . . . . . . . 85

ADVISING ON INVESTMENTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86

The activity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86

art. 53 Advising on investments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86

art. 53A Advising on regulated mortgage contracts. . . . . . . . . . . . . . . . . . . . . . . . . . . 87

art. 53B Advising on regulated home reversion plans. . . . . . . . . . . . . . . . . . . . . . . . . 87

art. 53C Advising on regulated home purchase plans. . . . . . . . . . . . . . . . . . . . . . . . . 88

art. 53D Advising on regulated sale and rent back agreements. . . . . . . . . . . . . . . . . 88

Exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89

art. 54 Advice given in newspapers etc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89

art. 54A Advice given in the course of administration by authorised person. . . . 90

art. 55 Other exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91

LLOYD'S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92

The activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92

art. 56 Advice on syndicate participation at Lloyd's. . . . . . . . . . . . . . . . . . . . . . . . . . . 92

SI 2001/544 Page 210
art. 57 Managing the underwriting capacity of a Lloyd's syndicate. . . . . . . . . . . . 92

art. 58 Arranging deals in contracts of insurance written at Lloyd's. . . . . . . . . . . . 93

Exclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93

art. 58A Information society services and managers of UCITS and AIFs. . . . . . . 93

FUNERAL PLAN CONTRACTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94

The activity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94

art. 59 Funeral plan contracts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94

Exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94

art. 60 Plans covered by insurance or trust arrangements. . . . . . . . . . . . . . . . . . . . . . 94

art. 60A Information society services and managers of UCITS and AIFs. . . . . . . 95

REGULATED CREDIT AGREEMENTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96

The activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96

P art. 60B Regulated credit agreements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96

P art. 60C Exempt agreements: exemptions relating to the nature of the agreement. 97

P art. 60D Exempt agreements: exemption relating to the purchase of land for

non-residential purposes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98

P art. 60E Exempt agreements: exemptions relating to the nature of the lender. . . 98

P art. 60F Exempt agreements: exemptions relating to number of repayments to be

made. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101

P art. 60G Exempt agreements: exemptions relating to the total charge for credit. 103

P art. 60H Exempt agreements: exemptions relating to the nature of the borrower. 104

Exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105

P art. 60I Arranging administration by authorised person. . . . . . . . . . . . . . . . . . . . . . 105

P art. 60J Administration pursuant to agreement with authorised person. . . . . . . . 105

P art. 60K Information society services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105

Supplemental. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106

P art. 60L Interpretation of Chapter 14A etc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106

P art. 60M Total charge for credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109

REGULATED CONSUMER HIRE AGREEMENTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110

The activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110

P art. 60N Regulated consumer hire agreements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110

P art. 60O Exempt agreements: exemptions relating to nature of agreement. . . . 111

P art. 60P Exempt agreements: exemptions relating to supply of essential services. 112

P art. 60Q Exempt agreements: exemptions relating to the nature of the hirer. . . 112

Exclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113

P art. 60R Information society services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113

REGULATED MORTGAGE CONTRACTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113

The activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113

art. 61 Regulated mortgage contracts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113

SI 2001/544 Page 211
Exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115

art. 62 Arranging administration by authorised person. . . . . . . . . . . . . . . . . . . . . . . 115

art. 63 Administration pursuant to agreement with authorised person. . . . . . . . . 115

art. 63A Other exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115

REGULATED HOME REVERSION PLANS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116

The activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116

art. 63B Entering into and administering regulated home reversion plans. . . . . 116

Exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118

art. 63C Arranging administration by authorised person. . . . . . . . . . . . . . . . . . . . . 118

art. 63D Administration pursuant to agreement with authorised person. . . . . . . 119

art. 63E Other exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119

REGULATED HOME PURCHASE PLANS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119

The activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120

art. 63F Entering into and administering regulated home purchase plans. . . . . . 120

Exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121

art. 63G Arranging administration by authorised person. . . . . . . . . . . . . . . . . . . . . 121

art. 63H Administration pursuant to agreement with authorised person. . . . . . . 121

art. 63I Other exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122

REGULATED SALE AND RENT BACK AGREEMENTS. . . . . . . . . . . . . . . . . . . . . . . . . 122

The activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122

art. 63J Entering into and administering regulated sale and rent back agreements. 122

Exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124

art. 63K Arranging administration by authorised person. . . . . . . . . . . . . . . . . . . . . 124

art. 63L Administration pursuant to agreement with authorised person. . . . . . . 125

art. 63M Other exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125

ACTIVITIES OF RECLAIM FUNDS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125

The activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125

art. 63N Dormant account funds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126

SPECIFIED BENCHMARKS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126

The activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126

art. 63O Specified benchmarks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126

art. 63P Publicly available factual data and subscription services. . . . . . . . . . . . . 127

art. 63Q Administration of a specified benchmark by the FCA. . . . . . . . . . . . . . . 128

art. 63R Schedule. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128

AGREEING TO CARRY ON ACTIVITIES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128

The activity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128

P art. 64 Agreeing to carry on specified kinds of activity. . . . . . . . . . . . . . . . . . . . . . 128

Exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129

art. 65 Overseas persons etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129

SI 2001/544 Page 212
EXCLUSIONS APPLYING TO SEVERAL SPECIFIED KINDS OF ACTIVITY. . 129

art. 66 Trustees, nominees and personal representatives. . . . . . . . . . . . . . . . . . . . . . . . 129

art. 67 Activities carried on in the course of a profession or non-investment

business. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132

art. 68 Activities carried on in connection with the sale of goods or supply of

services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132

art. 69 Groups and joint enterprises. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134

art. 70 Activities carried on in connection with the sale of a body corporate. . . . . 136

art. 71 Activities carried on in connection with employee share schemes. . . . . . . . 138

art. 72 Overseas persons. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139

art. 72A Information society services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142

art. 72AA Managers of UCITS and AIFs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142

P art. 72B Activities carried on by a provider of relevant goods or services. . . . . . . . 143

art. 72C Provision of information on an incidental basis. . . . . . . . . . . . . . . . . . . . . . . 145

art. 72D Large risks contracts where risk situated outside the EEA. . . . . . . . . . . . . 145

art. 72E Business Angel-led Enterprise Capital Funds. . . . . . . . . . . . . . . . . . . . . . . . . 146

art. 72F Interpretation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148

Part III SPECIFIED INVESTMENTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152

art. 73 Investments: general. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152

art. 74 Deposits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152

art. 74A Electronic money. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152

art. 75 Contracts of insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153

art. 76 Shares etc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153

art. 77 Instruments creating or acknowledging indebtedness. . . . . . . . . . . . . . . . . . . . . . 154

art. 77A Alternative finance investment bonds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154

art. 78 Government and public securities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156

art. 79 Instruments giving entitlements to investments. . . . . . . . . . . . . . . . . . . . . . . . . . . . 157

art. 80 Certificates representing certain securities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157

art. 81 Units in a collective investment scheme. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158

art. 82 Rights under a pension scheme. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158

art. 82A Greenhouse gas emissions allowances. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159

art. 83 Options. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159

art. 84 Futures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160

art. 85 Contracts for differences etc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162

art. 86 Lloyd's syndicate capacity and syndicate membership. . . . . . . . . . . . . . . . . . . . . 163

art. 87 Funeral plan contracts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164

art. 88 Regulated mortgage contracts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164

art. 88A Regulated home reversion plans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164

art. 88B Regulated home purchase plans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165

SI 2001/544 Page 213
art. 88C Regulated sale and rent back agreements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165

P art. 88D Credit agreement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165

P art. 88E Consumer hire agreement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165

art. 89 Rights to or interests in investments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166

Part IIIA SPECIFIED ACTIVITIES IN RELATION TO INFORMATION. . . . . . . . . . 166

The activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166

P art. 89A Providing credit information services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167

P art. 89B Providing credit references. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167

Exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168

P art. 89C Activities carried on by members of the legal profession etc.. . . . . . . . . . . 168

P art. 89D Information society services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169

Supplemental. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169

P art. 89E Meaning of “consumer” etc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169

Part IV CONSEQUENTIAL PROVISIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170

Regulated mortgage contracts: consequential provisions. . . . . . . . . . . . . . . . . . . . . . . . . . . 170

P art. 90 Consequential amendments of the Consumer Credit Act 1974. . . . . . . . . . . 170

P art. 91 Consequential amendments of subordinate legislation under the Consumer

Credit Act 1974. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170

Part V UNATHORISED PERSONS CARRYING ON INSURANCE MEDIATION

ACTIVITIES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170

art. 92 Interpretation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170

art. 93 Duty to maintain a record of unauthorised persons carrying on insurance mediation

activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171

art. 94 Members of designated professional bodies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172

art. 95 Exclusion from record where not fit and proper to carry on insurance mediation

activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173

art. 96 Exclusion from the record where FCA has exercised its powers under Part XX of

the Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173

Part VI MISCELLANEOUS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174

art. 97 Disapplication of section 49(2) of the Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174

Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175

Schedule 1 CONTRACTS OF INSURANCE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175

Part I CONTRACTS OF GENERAL INSURANCE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175

para. 1 Accident. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175

para. 2 Sickness. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176

para. 3 Land vehicles. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176

para. 4 Railway rolling stock. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176

para. 5 Aircraft. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177

para. 6 Ships. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177

para. 7 Goods in transit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177

SI 2001/544 Page 214
para. 8 Fire and natural forces. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177

para. 9 Damage to property. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178

para. 10 Motor vehicle liability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178

para. 11 Aircraft liability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178

para. 12 Liability of ships. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179

para. 13 General liability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179

para. 14 Credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179

para. 15 Suretyship. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180

para. 16 Miscellaneous financial loss. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180

para. 17 Legal expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181

para. 18 Assistance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181

Part II CONTRACTS OF LONG-TERM INSURANCE. . . . . . . . . . . . . . . . . . . . . . . . . . . 181

para. I Life and annuity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181

para. II Marriage and birth. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182

para. III Linked long term. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182

para. IV Permanent health. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182

para. V Tontines. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183

para. VI Capital redemption contracts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183

para. VII Pension fund management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183

para. VIII Collective insurance etc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184

para. IX Social insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184

Schedule 2 SECTIONS A AND C OF ANNEX I TO THE MARKETS IN FINANCIAL

INSTRUMENTS DIRECTIVE AND RELATED COMMUNITY SUBORDINATE

LEGISLATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184

para. 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185

Part 1 SECTION C OF ANNEX I TO THE MARKETS IN FINANCIAL INSTRUMENTS

DIRECTIVE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185

para. 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185

Part 2 CHAPTER VI OF THE COMMISSION REGULATION. . . . . . . . . . . . . . . . . . . 187

para. 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187

Part 3 SECTION A OF ANNEX I TO THE MARKETS IN FINANCIAL INSTRUMENTS

DIRECTIVE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189

para. 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189

Part 4 ARTICLE 52 OF COMMISSION DIRECTIVE 2006/73/EC. . . . . . . . . . . . . . . . 190

para. 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190

Schedule 3 ARTICLE 2 OF THE MARKETS IN FINANCIAL INSTRUMENTS

DIRECTIVE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191

para. 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191

Schedule 4 RELEVANT TEXT OF THE INSURANCE MEDIATION DIRECTIVE. . 193

Part I Article 1.2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193

SI 2001/544 Page 215
para. 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194

Part II Article 2.3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194

para. 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194

Part III Article 2.4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195

para. 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195

Schedule 5 SPECIFIED BENCHMARKS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196

para. 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196

Schedule 6 FUNCTIONS INCLUDED IN THE ACTIVITY OF MANAGING A UCITS:

ANNEX II TO THE UCITS DIRECTIVE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196

para. 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197

para. 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197

para. 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197

Schedule 7 ADDITIONAL ACTIVITIES INCLUDED IN THE ACTIVITY OF MANAGING

AN AIF LISTED IN PARAGRAPH 2 OF ANNEX I TO THE ALTERNATIVE

INVESTMENT FUND MANAGERS DIRECTIVE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198

para. 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198

Schedule 8 PERSONS EXCLUDED FROM REGULATED ACTIVITY OF MANAGING

AN AIF. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199

Interpretation of this Schedule. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199

para. 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199

Persons excluded. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199

para. 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200

para. 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200

para. 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200

para. 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201

para. 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201

para. 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201

para. 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 202

para. 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 202

para. 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 202

!

para. 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203

Explanatory Note . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203

para. 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203

Modifications. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205

Table of Contents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206

SI 2001/544 Page 216