FINANCIAL SERVICES AND MARKETS Citation and commencement 1 1 This Order may be cited as the Financial Services and Markets Act 2000 (Professions) (Non-Exempt Activities) Order 2001. 2 Subject to paragraph (3), this Order comes into force on the day on which section 19 of the Act comes into force. 3 This Order comes into force— a for the purposes of article 4(g), on 1st January 2002; and b for the purposes of article 4(h), nine months after the day on which section 19 of the Act comes into force. Interpretation 2 1 In this Order— “the Act” means the Financial Services and Markets Act 2000; “contractually based investment” has the meaning given by article 3(1) of the Regulated Activities Order ; “occupational pension scheme” and “personal pension scheme” have the meaning given by section 1 of the Pension Schemes Act 1993 ; “the Regulated Activities Order” means the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 ; “relevant investment” means a security or a contractually based investment; “security” has the meaning given by article 3(1) of the Regulated Activities Order; “syndicate” has the meaning given by article 3(1) of the Regulated Activities Order. 2 For the purposes of this Order, a person is a member of a personal pension scheme if he is a person to or in respect of whom benefits are or may become payable under the scheme. Activities to which exemption from the general prohibition does not apply 3 The activities in articles 4 to 8 are specified for the purposes of section 327(6) of the Act. 4 An activity of the kind specified by any of the following provisions of the Regulated Activities Order— a article 5 (accepting deposits); b article 10 (effecting and carrying out contracts of insurance); c article 14 (dealing in investments as principal); d article 51 (establishing etc. a collective investment scheme); e article 52 (establishing etc. a stakeholder pension scheme); f article 57 (managing the underwriting capacity of a Lloyd’s syndicate); g article 59 (funeral plan contracts); h article 61 (regulated mortgage contracts). 5 1 An activity of the kind specified by article 37 of the Regulated Activities Order (managing investments) in so far as it consists of buying or subscribing for a relevant investment. 2 Paragraph (1) does not apply— a if all routine or day to day decisions, so far as relating to that activity, are taken by an authorised person with permission to carry on that activity or by a person who is an exempt person in relation to such an activity; or b to an activity undertaken in accordance with the advice of an authorised person with permission to give advice in relation to such an activity or a person who is an exempt person in relation to the giving of such advice. 6 1 An activity of the kind specified by article 53 of the Regulated Activities Order (advising on investments) where the advice in question falls within either paragraph (2) or (3). 2 Subject to paragraph (4), advice falls within this paragraph in so far as— a it is given to an individual (or his agent) other than where the individual acts— i in connection with the carrying on of a business of any kind by himself or by an undertaking of which he is, or would become as a result of the transaction to which the advice relates, a controller; or ii in his capacity as a trustee of an occupational pension scheme; b it consists of a recommendation to buy or subscribe for a particular relevant investment; and c the transaction to which the advice relates would be made— i with a person acting in the course of carrying on the business of buying, selling, subscribing for or underwriting the relevant investment, whether as principal or agent; ii on an investment exchange or any other market to which that investment is admitted for dealing; or iii in response to an invitation to subscribe for a relevant investment which is, or is to be, admitted for dealing on an investment exchange or any other market. 3 Subject to paragraph (4), advice falls within this paragraph in so far as it consists of a recommendation to a member of a personal pension scheme (or his agent) to dispose of any rights or interests which the member has in or under the scheme. 4 Advice does not fall within paragraph (2) or (3) if it endorses a corresponding recommendation given to the individual (or, as the case may be, the member) by an authorised person with permission to give advice in relation to the proposed transaction or a person who is an exempt person in relation to the giving of such advice. 7 1 Advising a person to become a member of a particular Lloyd’s syndicate. 2 Paragraph (1) does not apply to advice which endorses that of an authorised person with permission to give such advice or a person who is an exempt person in relation to the giving of such advice. 8 Agreeing to carry on any of the activities mentioned in articles 4 to 7 other than the activities mentioned in article 4(a), (b), (d) and (e). Greg Pope Clive Betts Two of the Lords Commissioners of Her Majesty’s Treasury 27th March 2001