The Financial Services and Markets Act 2000 (Exemption) Order 2001

Statutory Instruments

2001 No. 1201

FINANCIAL SERVICES AND MARKETS

The Financial Services and Markets Act 2000 (Exemption) Order 2001

Made

26th March 2001

Coming into force

In accordance with article 1

Whereas this Order is the first Order to be made, or to contain provisions made, under section 38 of the Financial Services and Markets Act 2000M1 ;

And whereas a draft of this Order has been approved by a resolution of each House of Parliament pursuant to section 429(3) and (5) of that Act;

Now, therefore, the Treasury, in exercise of the powers conferred on them by sections 38 and 428(3) of that Act, hereby make the following Order:

Marginal Citations

M1 2000 c. 8.

Citation and commencement U.K.

1.  This Order may be cited as the Financial Services and Markets Act 2000 (Exemption) Order 2001 and comes into force on the day on which section 19 of the Act comes into force.

Interpretation U.K.

2.  In this Order—

• “the Act" means the Financial Services and Markets Act 2000;

• “charity"—

  (a)

  in relation to Scotland, means a [F1 body entered in the Scottish Charity Register]; and

  (b)

  otherwise, has the meaning given by section 96(1) of the Charities Act 1993 M2 or by section 35 of the Charities Act (Northern Ireland) 1964 M3 ;

• [F2 “credit institution” has the meaning given by the Regulated Activities Order;]

• “deposit" has the meaning given by the Regulated Activities Order;

• “industrial and provident society" has the meaning given by section 417(1) of the Act but does not include a credit union within the meaning of the Credit Unions Act 1979 M4 or the Credit Unions (Northern Ireland) Order 1985 M5 ;

• [F2 “investment firm” has the meaning given by the Regulated Activities Order;]

• “local authority" means—

  (a)

  in England and Wales, a local authority within the meaning of the Local Government Act 1972 M6 , 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 1973 M7 ; and

  (c)

  in Northern Ireland, a district council within the meaning of the Local Government Act (Northern Ireland) 1972 M8 ;

• [F3 “non-qualifying contract of insurance” means a contract of insurance (within the meaning of the Regulated Activities Order) which is not a qualifying contract of insurance (within the meaning of that Order);]

• “the Regulated Activities Order" means the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 M9 .

Textual Amendments

F1 Words in art. 2 substituted (1.4.2006) by The Charities and Trustee Investment (Scotland) Act 2005 (Consequential Provisions and Modifications) Order 2006 (S.I. 2006/242), art. 1(3), Sch. para. 11

F2 Words in art. 2 inserted (1.11.2007) by The Financial Services and Markets Act 2000 (Exemption) (Amendment) Order 2007 (S.I. 2007/125), arts. 1, 3

F3 Words in art. 2 inserted (14.1.2005) by The Financial Services and Markets Act 2000 (Exemption) (Amendment) (No. 2) Order 2003 (S.I. 2003/1675), arts. 1(3), 2(2)

Marginal Citations

M2 1993 c. 10.

M3 1964 c. 33 (N.I.).

M4 1979 c. 34; amended by the Deregulation (Credit Unions) Order 1996 (S.I. 1996/1189).

M5 S.I. 1985/1205 (N.I. 12); relevant amendments are made by paragraphs 28 and 29 of Schedule 21 to the Friendly Societies Act 1992 (c. 40), and by S.I. 1997/2984 (N.I. 22).

M6 1972 c. 70; the definition of “local authority" in section 270 has been repealed in part by Schedule 17 to the Local Government Act 1985 (c. 51), and amended by section 1(5) of the Local Government (Wales) Act 1994 (c. 19).

M7 1973 c. 65; the definition of “local authority" in section 235 was substituted by paragraph 92(66) of Schedule 13 to the Local Government etc. (Scotland) Act 1994 (c. 39).

M8 1972 c. 9 (N.I.).

M9 S.I. 2001/544.

Persons exempt in respect of any regulated activity other than insurance business U.K.

3.  Each of the persons listed in Part I of the Schedule is exempt from the general prohibition in respect of any regulated activity other than an activity of the kind specified by article 10 of the Regulated Activities Order (effecting and carrying out contracts of insurance).

Persons exempt in respect of accepting deposits U.K.

4.  Subject to the limitations, if any, expressed in relation to him, each of the persons listed in Part II of the Schedule is exempt from the general prohibition in respect of any regulated activity of the kind specified by article 5 of the Regulated Activities Order (accepting deposits).

Persons exempt in respect of particular regulated activities U.K.

5.—(1) Subject to the limitation, if any, expressed in relation to him, each of the persons listed in Part III of the Schedule is exempt from the general prohibition in respect of any regulated activity of the kind specified by any of the following provisions of the Regulated Activities Order, or article 64 of that Order (agreeing to carry on specified kinds of activity) so far as relevant to any such activity—

(a) article 14 (dealing in investments as principal);

(b) article 21 (dealing in investments as agent);

(c) article 25 (arranging deals in investments);

[F4 (ca) article 25D (operating a multilateral trading facility);]

(d) article 37 (managing investments);

[F5 (da) article 39A (assisting in the administration and performance of a contract of insurance);]

(e) article 40 (safeguarding and administering investments);

(f) article 45 (sending dematerialised instructions);

[F6 (ga) article 51ZA (managing a UCITS);

(gb) article 51ZB (acting as a trustee or depositary of a UCITS);

(gc) article 51ZC (managing an AIF);

(gd) article 51ZD (acting as a trustee or depositary of an AIF);

(ge) article 51ZE (establishing etc. a collective investment scheme);]

(h) article 52 (establishing etc. a F7 ... pension scheme);

(i) article 53 (advising on investments).

(2) Subject to the limitation, if any, expressed in relation to him, each of the persons listed in Part IV of the Schedule is exempt from the general prohibition in respect of any regulated activity of the kind referred to in relation to him, or an activity of the kind specified by article 64 of the Regulated Activities Order so far as relevant to any such activity.

Textual Amendments

F4 Art. 5(1)(ca) inserted (1.11.2007) by The Financial Services and Markets Act 2000 (Exemption) (Amendment) Order 2007 (S.I. 2007/125), arts. 1, 4

F5 Art. 5(1)(da) inserted (14.1.2005) by The Financial Services and Markets Act 2000 (Exemption) (Amendment) (No. 2) Order 2003 (S.I. 2003/1675), arts. 1(3), 2(3)

F6 Art. 5(1)(ga)-(ge) substituted for art. 5(1)(g) (22.7.2013) by The Alternative Investment Fund Managers Regulations 2013 (S.I. 2013/1773), reg. 1, Sch. 2 para. 8(2)

F7 Word in art. 5(1)(h) omitted (6.4.2007) by virtue of The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2006 (S.I. 2006/1969), arts. 1(3), 10

Transitional exemption for credit unions U.K.

6.  A credit union, within the meaning F8 ..., is exempt from the general prohibition in respect of any regulated activity of the kind specified by article 5 of the Regulated Activities Order, but only until 1st July 2002.

Textual Amendments

F8 Words in art. 6 omitted (1.12.2001) by virtue of The Financial Services and Markets Act 2000 (Exemption) (Amendment) Order 2001 (S.I. 2001/3623), arts. 1, 3

Jim Dowd

Greg Pope

Two of the Lords Commissioners of Her Majesty’s Treasury

Articles 3 to 5

SCHEDULE U.K.

PART I U.K. PERSONS EXEMPT IN RESPECT OF ANY REGULATED ACTIVITY OTHER THAN INSURANCE BUSINESS

1.  The Bank of England. U.K.

2.  The central bank of an EEA State other than the United Kingdom. U.K.

3.  The European Central Bank. U.K.

4.  The European Community. U.K.

5.  The European Atomic Energy Community. U.K.

6.  The European Coal and Steel Community. U.K.

7.  The European Investment Bank. U.K.

8.  The International Bank for Reconstruction and Development. U.K.

9.  The International Finance Corporation. U.K.

10.  The International Monetary Fund. U.K.

11.  The African Development Bank. U.K.

12.  The Asian Development Bank. U.K.

13.  The Caribbean Development Bank. U.K.

14.  The Inter-American Development Bank. U.K.

15.  The European Bank for Reconstruction and Development. U.K.

[F9 15A.   Bank for International Settlements.] U.K.

Textual Amendments

F9 Sch. para. 15A inserted (1.3.2003) by The Financial Services and Markets Act 2000 (Exemption) (Amendment) Order 2003 (S.I. 2003/47), arts. 1, 2

[F10 15B.   Bank of England Asset Purchase Facility Fund Limited] U.K.

Textual Amendments

F10 Sch. para. 15B inserted (2.2.2009) by The Financial Services and Markets Act 2000 (Exemption) (Amendment) Order 2009 (S.I. 2009/118), arts. 1, 2(2)

PART II U.K. PERSONS EXEMPT IN RESPECT OF ACCEPTING DEPOSITS

16.  A municipal bank, that is to say a company which was, immediately before the coming into force of this Order, exempted from the prohibition in section 3 of the Banking Act 1987 M10 by virtue of section 4(1) of, and paragraph 4 of Schedule 2 to, that Act. U.K.

Marginal Citations

M10 1987 c. 22; section 3 was amended by paragraph 3 of Schedule 5 to the Bank of England Act 1998 (c. 11). “Municipal bank" was defined in section 103 of the Banking Act 1987, which was amended by paragraph 22 of Schedule 3 to the Local Government Act 1992 (c. 19) and by paragraph 21 of Schedule 3 to the Local Government and Rating Act 1997 (c. 29).

17.     U.K.

(1) Keesler Federal Credit Union, in so far as it accepts deposits from members, or dependants of members, of a visiting force of the United States of America, or from members, or dependants of members, of a civilian component of such a force.

(2) In sub-paragraph (1), “member", “dependent" and “visiting force" have the meanings given by section 12 of the Visiting Forces Act 1952 M11 and “member of a civilian component" has the meaning given by section 10 of that Act.

Marginal Citations

M11 1952 c. 67; the definition of “visiting force" was amended by paragraph 14 of Schedule 15 to the Criminal Justice Act 1988 (c. 33).

18.  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. U.K.

F11 19.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

Textual Amendments

F11 Sch. para. 19 omitted (14.2.2014 for specified purposes, 1.4.2014 in so far as not already in force) by virtue of The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2014 (S.I. 2014/366), arts. 1(3)(4), 8(2)

20.     U.K.

(1) Any body which by virtue of any enactment has power to issue a precept to a local authority in England or 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.

(2) In sub-paragraph (1), “enactment" includes an enactment comprised in, or in an instrument made under, an Act of the Scottish Parliament.

[F12 21.   The Council of Europe Development Bank.] U.K.

Textual Amendments

F12 Sch. para. 21 substituted (5.6.2002) by The Financial Services and Markets Act 2000 (Financial Promotion and Miscellaneous Amendments) Order 2002 (S.I. 2002/1310), arts. 1, 4(2)

22.  A charity, in so far as it accepts deposits— U.K.

(a) from another charity; or

(b) in respect of which no interest or premium is payable.

23.  The National Children’s Charities Fund in so far as— U.K.

(a) it accepts deposits in respect of which no interest or premium is payable; and

(b) the total value of the deposits made by any one person does not exceed £10,000.

24.  An industrial and provident society, in so far as it accepts deposits in the form of withdrawable share capital. U.K.

F13 24A.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

Textual Amendments

F13 Sch. para. 24A revoked (31.3.2012) by The Financial Services and Markets Act 2000 (Exemption) (Amendment No. 2) Order 2011 (S.I. 2011/2716), arts. 1, 2

F14 25.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

Textual Amendments

F14 Sch. para. 25 omitted (30.3.2015) by virtue of The Financial Services and Markets Act 2000 (Exemption) (Amendment) Order 2015 (S.I. 2015/447), arts. 1, 2(2)

PART III U.K. PERSONS EXEMPT IN RESPECT OF ANY REGULATED ACTIVITY MENTIONED IN ARTICLE 5(1)

26.  The National Debt Commissioners. U.K.

[F15 27.   Partnerships UK.] U.K.

Textual Amendments

F15 Sch. para. 27 substituted (13.7.2003) by The Financial Services and Markets Act 2000 (Exemption) (Amendment) (No. 2) Order 2003 (S.I. 2003/1675), arts. 1(2), 2(4)(a)

28.  The International Development Association. U.K.

29.  The English Tourist Board. U.K.

30.  F16 .... U.K.

Textual Amendments

F16 Words in Sch. Pt. 3 omitted (23.11.2005) by virtue of The Wales Tourist Board (Transfer of Functions to the National Assembly for Wales and Abolition) Order 2005 (S.I. 2005/3225), art. 1(1), Sch. 2 Pt. 2 para. 4 (with art. 3(1))

[F17 31.   VisitScotland.] U.K.

Textual Amendments

F17 Words in Sch. para. 31 substituted (1.4.2007) by Tourist Boards (Scotland) Act 2006 (asp 15), s. 5(1), sch. 2 para. 10; S.S.I. 2007/47, art. 2

32.  The Northern Ireland Tourist Board. U.K.

33.  Scottish Enterprise. U.K.

[F18 33A.   Invest Northern Ireland.] U.K.

Textual Amendments

F18 Sch. para. 33A inserted (20.7.2007) by The Financial Services and Markets Act 2000 (Exemption) (Amendment No. 2) Order 2007 (S.I. 2007/1821), arts. 1(2), 2(2)

34.  The Multilateral Investment Guarantee Agency. U.K.

[F19 34A.   The Board of the Pension Protection Fund.] U.K.

Textual Amendments

F19 Sch. para. 34A inserted (6.4.2005) by The Financial Services and Markets Act 2000 (Exemption) (Amendment) Order 2005 (S.I. 2005/592), arts. 1(2)(a), 2(1)

[F20 34B.   Capital for Enterprise Limited, in so far as in carrying on any regulated activity it provides services only to the Crown.] U.K.

Textual Amendments

F20 Sch. para. 34B inserted (1.4.2008) by The Financial Services and Markets Act 2000 (Exemption) (Amendment) Order 2008 (S.I. 2008/682), arts. 1, 2(2)

[F21 34C.   BIS (Postal Services Act 2011) Company Limited.] U.K.

Textual Amendments

F21 Sch. para. 34C inserted (with effect in accordance with art. 1(2) of the amending S.I.) by The Financial Services and Markets Act 2000 (Exemption) (Amendment) Order 2012 (S.I. 2012/763), arts. 1(2), 2(2)

35.  A person acting as an official receiver within the meaning of section 399 of the Insolvency Act 1986 M12 or article 2 of the Insolvency (Northern Ireland) Order 1989 M13 . U.K.

Marginal Citations

M12 1986 c. 45.

M13 S.I. 1989/2405 (N.I. 19); to which there are amendments not relevant to this Order.

F22 36.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

Textual Amendments

F22 Sch. para. 36 revoked (1.11.2007) by The Financial Services and Markets Act 2000 (Exemption) (Amendment) Order 2007 (S.I. 2007/125), arts. 1, 5

37.     U.K.

[F23 (1) An Operator, in so far he carries on—

(a) any regulated activity for the purposes of the performance of his functions as an Operator under the Uncertificated Securities Regulations 1995; or

(b) any other regulated activity for the purposes of operating a computer-based system and procedures which—

(i) enable title to investments to be evidenced and transferred without a written instrument; or

(ii) facilitate matters supplementary or incidental to those specified in sub-paragraph (i),

other than a regulated activity in respect of which a recognised clearing house is exempt from the general prohibition by virtue of section 285(3) [F24 or (3A)] of the Act.]

(2) In sub-paragraph (1), “Operator" means a person approved as such by the Treasury under the Uncertificated Securities Regulations 1995.

Textual Amendments

F23 Sch. para. 37(1) substituted (1.12.2001) by The Financial Services and Markets Act 2000 (Exemption) (Amendment) Order 2001 (S.I. 2001/3623), arts. 1, 5

F24 Words in Sch. 1 para. 37(1) inserted (1.4.2013) by The Financial Services and Markets Act 2000 (Over the Counter Derivatives, Central Counterparties and Trade Repositories) Regulations 2013 (S.I. 2013/504), regs. 1(2), 34(2) (with regs. 52-58)

38.  A person acting as a judicial factor. U.K.

F25 39.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

Textual Amendments

F25 Sch. para. 39 omitted (14.2.2014 for specified purposes, 1.4.2014 in so far as not already in force) by virtue of The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2014 (S.I. 2014/366), arts. 1(3)(4), 8(3)

PART IV U.K. PERSONS EXEMPT IN RESPECT OF PARTICULAR REGULATED ACTIVITIES

Enterprise schemes U.K.

40.     U.K.

(1) Any body corporate which has as its principal object (or one of its principal objects)—

(a) the promotion or encouragement of industrial or commercial activity or enterprise in the United Kingdom or in any particular area of it; or

(b) the dissemination of information concerning persons engaged in such activity or enterprise or requiring capital to become so engaged;

is exempt from the general prohibition in respect of any regulated activity of the kind specified by [F26 articles 25, 36A, 39D, 39E and 89A of the Regulated Activities Order (arranging deals in investments, credit broking, debt adjusting, debt-counselling and providing credit information services)] so long as it does not carry on that activity for, or with the prospect of, direct or indirect pecuniary gain.

(2) For the purposes of this paragraph, such sums as may reasonably be regarded as necessary to meet the costs of carrying on the activity mentioned in sub-paragraph (1) do not constitute a pecuniary gain.

[F27 (3) This paragraph does not apply where an investment firm or credit institution—

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

(b) in doing so, but for the operation of [F28 sub-paragraph (1)], it would be treated as carrying on an activity of a kind specified by Part 2 of the Regulated Activities Order [F29 in breach of the general prohibition].]

Textual Amendments

F26 Words in Sch. para. 40(1) substituted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013 (S.I. 2013/1881), arts. 1(2)(6), 14(2)

F27 Sch. para. 40(3) inserted (1.11.2007) by The Financial Services and Markets Act 2000 (Exemption) (Amendment) Order 2007 (S.I. 2007/125), arts. 1, 6(a)

F28 Words in Sch. para. 40(3)(b) substituted (1.11.2007) by The Financial Services and Markets Act 2000 (Exemption) (Amendment No. 2) Order 2007 (S.I. 2007/1821), arts. 1(3), 2(3)(i)

F29 Words in Sch. para. 40(3)(b) inserted (1.11.2007) by The Financial Services and Markets Act 2000 (Exemption) (Amendment No. 2) Order 2007 (S.I. 2007/1821), arts. 1(3), 2(3)(ii)

Employee share schemes in electricity industry shares U.K.

41.     U.K.

(1) Each of the persons to whom this paragraph applies is exempt from the general prohibition in respect of any regulated activity of the kind specified by article 14, 21 or 25 of the Regulated Activities Order (dealing in investments as principal or agent or arranging deals in investments) which he carries on for the purpose of—

(a) enabling or facilitating transactions in electricity industry shares or debentures between or for the benefit of any qualifying person; or

(b) the holding of electricity industry shares or debentures by or for the benefit of any qualifying person.

(2) This paragraph applies to—

(a) The National Grid Holding plc;

(b) Electricity Association Limited;

(c) any body corporate in the same group as the person mentioned in sub-paragraph (a) or (b);

(d) any company listed in Schedule 1 to the Electricity Act 1989 (Nominated Companies) (England and Wales) Order 1990 M14 ; and

(e) a person holding shares in or debentures of a body corporate as trustee in pursuance of arrangements made for either of the purposes mentioned in sub-paragraph (1) by the Secretary of State, by any of the bodies mentioned in sub-paragraphs (a) to (c) or by an electricity successor company or by some or all of them.

(3) In this paragraph—

(a) “electricity industry shares or debentures" means—

(i) any investment of the kind specified by article 76 [F30 , 77 or 77A] of the Regulated Activities Order (shares or instruments creating or acknowledging indebtedness [F31 or alternative finance investment bonds]) in or of an electricity successor company;

(ii) any investment of the kind specified by article 79 or 80 of that Order (instruments giving entitlement to investments and certificates representing certain securities), so far as relevant to the investments mentioned in sub-paragraph (i); and

(iii) any investment of the kind specified by article 89 of that Order (rights to or interests in investments) so far as relevant to the investments mentioned in sub-paragraphs (i) and (ii);

(b) “qualifying person" means—

(i) the bona fide employees or former employees of The National Grid Holding plc, Electricity Association Limited or any other body corporate in the same group as either of them; and

(ii) the wives, husbands, widows, widowers [F32 , civil partners, surviving civil partners,] or children (including, in Northern Ireland, adopted children) or step-children under the age of eighteen of such employees or former employees;

(c) references to an electricity successor company include any body corporate that is in the same group and “electricity successor company" means a body corporate which is a successor company for the purposes of Part II of the Electricity Act 1989 M15 ;

(d) “former employees" of a person (“the employer") include any person who has never been employed by the employer so long as he occupied a position in relation to some other person of such a kind that it may reasonably be assumed that he would have been a former employee of the employer had the reorganisation of the electricity industry under Part II of the Electricity Act 1989 been affected before he ceased to occupy the relevant position.

Textual Amendments

F30 Words in Sch. para. 41(3)(a)(i) substituted (24.2.2010) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2010 (S.I. 2010/86), art. 1(2), Sch. para. 7(2)(a)

F31 Words in Sch. para. 41(3)(a)(i) inserted (24.2.2010) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2010 (S.I. 2010/86), art. 1(2), Sch. para. 7(2)(b)

F32 Words in Sch. para. 41 inserted (5.12.2005) by The Civil Partnership Act 2004 (Amendments to Subordinate Legislation) Order 2005 (S.I. 2005/2114), art. 1, Sch. 16 para. 4

Marginal Citations

M14 S.I. 1990/224.

M15 1989 c. 29.

Gas industry U.K.

42.     U.K.

(1) Transco plc is exempt from the general prohibition in respect of any regulated activity of the kind specified by article 14, 21 [F33 , 25 or 25D] of the Regulated Activities Order (dealing in investments as principal or agent [F33 , arranging deals in investments or operating a multilateral trading facility]) which it carries on—

(a) in its capacity as a gas transporter under the Transco Licence; and

(b) for the purposes of enabling or facilitating gas shippers to buy or sell an investment of the kind specified by article 84 or 85 of the Regulated Activities Order (futures or contracts for differences etc.).

(2) ENMO Ltd. is exempt from the general prohibition in respect of any regulated activity of the kind specified by article 14, 21 [F34 , 25 or 25D] of the Regulated Activities Order (dealing in investments as principal or agent [F34 , arranging deals in investments or operating a multilateral trading facility]) which it carries on—

(a) in its capacity as the operator of the balancing market; and

(b) for the purpose of enabling or facilitating Transco plc and relevant gas shippers, for the purpose of participating in the balancing market, to buy or sell investments of the kind specified by article 84 or 85 of that Order (futures or contracts for differences etc.).

(3) Transco plc and relevant gas shippers are exempt from the general prohibition in respect of any regulated activity of the kind specified by article 14 or 21 of the Regulated Activities Order (dealing in investments as principal or agent) in so far as that activity relates to an investment of the kind specified by article 84 or 85 of that Order (futures or contracts for differences etc.) and is carried on for the purpose of participating in the balancing market.

(4) In this paragraph—

(a) “the balancing market" means the market to regulate the delivery and off-take of gas in Transco plc’s pipeline system for the purpose of balancing the volume of gas in that system;

(b) “gas shipper" has the same meaning as in Part I of the Gas Act 1986 M16 ;

(c) “relevant gas shippers" means gas shippers who have entered into a subscription agreement with ENMO Ltd. for the purpose of participating in the balancing market;

(d) “Transco Licence" means the licence treated as granted to Transco plc as a gas transporter under section 7 of the Gas Act 1986 M17 ;

(e) the reference to enabling or facilitating includes acting pursuant to rules governing the operation of the balancing market which apply in the event of one of the participants appearing to be unable, or likely to become unable, to meet his obligations in respect of one or more contracts entered into through the balancing market.

Textual Amendments

F33 Words in Sch. para. 42(1) substituted (1.11.2007) by The Financial Services and Markets Act 2000 (Exemption) (Amendment) Order 2007 (S.I. 2007/125), arts. 1, 6(b)(i)

F34 Words in Sch. para. 42(2) substituted (1.11.2007) by The Financial Services and Markets Act 2000 (Exemption) (Amendment) Order 2007 (S.I. 2007/125), arts. 1, 6(b)(ii)

Marginal Citations

M16 1986 c. 44; see section 7A which was inserted by section 6(1) of the Gas Act 1995 (c. 45).

M17 Substituted by the Gas Act 1995 (c. 45) and amended by the Utilities Act 2000 (c. 27) section 76 (although this amendment was not in force on the day on which this Order was laid).

Trade unions and employers’ associations U.K.

43.     U.K.

(1) A trade union or employers’ association is exempt from the general prohibition in respect of any regulated activity of the kind specified by article 10 of the Regulated Activities Order (effecting and carrying out contracts of insurance) which it carries on in order to provide provident benefits or strike benefits for its members.

(2) In sub-paragraph (1), “trade union" and “employers’ association" have the meanings given by section 1 and section 122(1) of the Trade Union and Labour Relations (Consolidation) Act 1992 M18 or, in Northern Ireland, the meanings given by article 3(1) and article 4(1) of the Industrial Relations (Northern Ireland) Order 1992 M19 .

Marginal Citations

M18 1992 c. 52.

M19 S.I. 1992/807 (NI 5); to which there are amendments not relevant to this Order.

Charities U.K.

44.     U.K.

[F35 (A1) A charity is exempt from the general prohibition in respect of any regulated activity of the kind specified by article 36H of the Regulated Activities Order (operating an electronic system in relation to lending) which it carries on in relation to an article 36H agreement (within the meaning given in article 36H(4) of the Regulated Activities Order) under or in connection with which the only amount payable to the lender is the amount of credit provided.]

(1) A charity is exempt from the general prohibition in respect of any regulated activity of the kind specified by [F36 articles 51ZA to 51ZE of the Regulated Activities Order (managing or acting as trustee or depositary of a UCITS or an AIF, or establishing etc. a collective investment scheme)] which it carries on in relation to a fund established under—

(a) section 22A of the Charities Act 1960 M20 ;

(b) section 25 of the Charities Act 1993 M21 ; or

(c) section 25 of the Charities Act (Northern Ireland) 1964 M22 .

(2) A charity is exempt from the general prohibition in respect of any regulated activity of the kind specified by [F37 articles 51ZA to 51ZE of the Regulated Activities Order (managing or acting as trustee or depositary of a UCITS or an AIF, or establishing etc. a collective investment scheme)] which it carries on in relation to a pooling scheme fund established under—

(a) section 22 of the Charities Act 1960; or

(b) section 24 of the Charities Act 1993.

(3) In sub-paragraph (2), “pooling scheme fund" means a fund established by a common investment scheme the trusts of which provide that property is not to be transferred to the fund except by or on behalf of a charity, the charity trustees (within the meaning of section 97(1) of the Charities Act 1993) of which are the trustees appointed to manage the fund.

Textual Amendments

F35 Sch. para. 44(A1) inserted (1.4.2014) by The Financial Services and Markets Act 2000 (Consumer Credit) (Miscellaneous Provisions) (No. 2) Order 2014 (S.I. 2014/506), arts. 1(4), 2(2)

F36 Words in Sch. para. 44(1) substituted (22.7.2013) by The Alternative Investment Fund Managers Regulations 2013 (S.I. 2013/1773), reg. 1, Sch. 2 para. 8(3)

F37 Words in Sch. para. 44(2) substituted (22.7.2013) by The Alternative Investment Fund Managers Regulations 2013 (S.I. 2013/1773), reg. 1, Sch. 2 para. 8(3)

Marginal Citations

M20 1960 c. 58. Inserted by section 16 of the Charities Act 1992 (c. 41); repealed by the Charities Act 1993 (c. 10) Schedule 7.

M21 1993 c. 10.

M22 1964 c. 33 (N.I.).

Schemes established under the Trustee Investments Act 1961 U.K.

45.  A person acting in his capacity as manager or operator of a fund established under section 11 of the Trustee Investments Act 1961 M23 is exempt from the general prohibition in respect of any regulated activity of the kind specified by [F38 articles 51ZA to 51ZE of the Regulated Activities Order (managing or acting as trustee or depositary of a UCITS or an AIF, or establishing etc. a collective investment scheme)] which he carries on in relation to that fund. U.K.

Textual Amendments

F38 Words in Sch. para. 45 substituted (22.7.2013) by The Alternative Investment Fund Managers Regulations 2013 (S.I. 2013/1773), reg. 1, Sch. 2 para. 8(3)

Marginal Citations

M23 1961 c. 62; amended by the Local Government Act 1963 (c. 33) Schedule 8; and by the Local Government Act 1985 (c.51) Schedule 17.

Former members of Lloyd’s U.K.

46.  Any person who ceased to be an underwriting member (within the meaning of Lloyd’s Act 1982 M24 ) of Lloyd’s before 24th December 1996 is exempt from the general prohibition in respect of any regulated activity of the kind specified by article 10(2) of the Regulated Activities Order (carrying out contracts of insurance) which relates to contracts of insurance that he has underwritten at Lloyd’s. U.K.

Marginal Citations

M24 1982 c. 14.

Local authorities U.K.

F39 47.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

Textual Amendments

F39 Sch. para. 47 omitted (14.2.2014 for specified purposes, 1.4.2014 in so far as not already in force) by virtue of The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2014 (S.I. 2014/366), arts. 1(3)(4), 8(4)(a)

Social housing U.K.

[F40 48.— (1) A relevant housing body is exempt from the general prohibition in respect of any regulated activity of the kind specified by— U.K.

(a) article 21, 25(1) or (2), 39A or 53 of the Regulated Activities Order (dealing in investments as agent, arranging deals in investments, assisting in the administration and performance of a contract of insurance or advising on investments) which relates to a non-qualifying contract of insurance; F41 ...

(b) [F42 article 25A, 53A or 61 of that Order (arranging, advising on, entering into or administering a regulated mortgage contract);][F42 article 25A(1)(b) and (2) of that Order (arranging a regulated mortgage contract);]

[F43 (c) article 25B, 53B or 63B of that Order (arranging, advising on, entering into or administering a regulated home reversion plan); F44 ...

(d) article 25C, 53C or 63F of that Order (arranging, advising on, entering into or administering a regulated home purchase plan)];

[F45 (e) article 25E, 53D or 63J of that Order (arranging, advising on, entering into or administering a regulated sale and rent back agreement)].

[F46 (1A) A relevant housing body is exempt from the general prohibition in respect of any regulated activity of the kind specified by article 25A(1)(a) or (2A), 53A or 61 of that Order (arranging, advising on, entering into or administering a regulated mortgage contract) in so far as the contract—

[F47 (a) was entered into before 21st March 2016; or

(b) is entered into on or after 21st March 2016 and—

(i) is of a kind to which the mortgages directive does not apply by virtue of Article 3(2) of that directive;

(ii) is a bridging loan; or

(iii) is a restricted public loan in relation to which the requirements of sub-paragraph (1B) are met.]

(1B) The requirements of this sub-paragraph are that—

(a) the borrower receives timely information on the main features, risks and costs of the loan at the pre-contractual stage; and

(b) any advertising of the loan is fair, clear and not misleading.]

(2) In this paragraph, “relevant housing body” means any of the following—

(a) a registered social landlord within the meaning of Part I of the Housing Act 1996;

[F48 (aa) a non-profit registered provider of social housing;]

(b) a registered social landlord within the meaning of the Housing (Scotland) Act 2001;

F49 (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F50 (ca) the Homes and Communities Agency;]

(d) [F51 Scottish Homes;]

(e) the body established under article 9 of the Housing (Northern Ireland) Order 1981 known as the Northern Ireland Housing Executive;

[F52 (f) [F51 Communities Scotland;]]

[F53 (g) a housing association within the meaning of Part 2 of the Housing (Northern Ireland) Order 1992;]]

[F54 (h) except for the purposes of sub-paragraph (1)(a), the Scottish Ministers;

(i) except for the purposes of sub-paragraph (1)(a), the Welsh Ministers.]

[F55 (3) Except for the purposes of sub-paragraph (1)(a), “relevant housing body” also includes a wholly-owned subsidiary of a body listed in sub-paragraph (2)(a), (aa), (b), (ca), (h) or (i).

(4) In this paragraph—

“bridging loan” has the meaning given by Article 4(23) of the mortgages directive;

“borrower” means a person receiving credit;

“credit” includes a cash loan and any other form of financial accommodation;

“restricted public loan” means credit that is—

(a)

offered to a particular class of borrower and not offered to the public generally;

(b)

offered under an enactment with a general interest purpose; and

(c)

provided on terms which are more favourable to the borrower than those prevailing on the market, because it meets one of the following conditions—

(i)

it is interest free;

(ii)

the rate of interest is lower than that prevailing on the market; or

(iii)

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; and

“wholly-owned subsidiary” has the same meaning as in section 1159 (meaning of “subsidiary” etc.) of the Companies Act 2006 and, for the purposes of this definition, a relevant housing body is to be treated as a body corporate.]

Textual Amendments

F40 Sch. para. 48 substituted (31.10.2004 for specified purposes, 14.1.2005 in so far as not already in force) by The Financial Services and Markets Act 2000 (Exemption) (Amendment) (No. 2) Order 2003 (S.I. 2003/1675), arts. 1(3), 2(4)(c)

F41 Word in Sch. para. 48(1)(a) omitted (6.11.2006 for specified purposes, 6.4.2007 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2006 (S.I. 2006/2383), arts. 1(2), 30(b)(i)

F42 Words in Sch. para. 48(1)(b) substituted (20.4.2015 for specified purposes, 21.12.2015 for specified purposes, 21.3.2016 in so far as not already in force) by The Mortgage Credit Directive Order 2015 (S.I. 2015/910), art. 1(5), Sch. 1 para. 5(2) (with Pt. 4)

F43 Sch. paras. 48(1)(c)(d) inserted (6.11.2006 for specified purposes, 6.4.2007 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2006 (S.I. 2006/2383), arts. 1(2), 30(b)(ii)

F44 Word in Sch. para. 48(1)(c) omitted (1.7.2009 for specified purposes, 30.6.2010 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2009 (S.I. 2009/1342), arts. 1(2), 28(b)(i)

F45 Sch. para. 48(1)(e) inserted (1.7.2009 for specified purposes, 30.6.2010 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2009 (S.I. 2009/1342), arts. 1(2), 28(b)(ii)

F46 Sch. para. 48(1A)(1B) inserted (20.4.2015 for specified purposes, 21.12.2015 for specified purposes, 21.3.2016 in so far as not already in force) by The Mortgage Credit Directive Order 2015 (S.I. 2015/910), art. 1(5), Sch. 1 para. 5(3) (with Pt. 4)

F47 Sch. para. 48(1A)(a)(b) substituted for Sch. para. 48(1A)(a)-(c) (17.3.2016 for specified purposes, 21.3.2016 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2016 (S.I. 2016/392), arts. 1(2)(3)(c), 4 (with Pt. 5)

F48 Sch. para. 48(2)(aa) inserted (1.4.2010) by The Housing and Regeneration Act 2008 (Consequential Provisions) (No. 2) Order 2010 (S.I. 2010/671), art. 1(2), Sch. 1 para. 27 (with Sch. 2); S.I. 2010/862, art. 2

F49 Sch. para. 48(2)(c) omitted (E.W.) (1.4.2012) by virtue of The Localism Act 2011 (Regulation of Social Housing) (Consequential Provisions) Order 2012 (S.I. 2012/641), arts. 1(2)(3), 2(5) (with art. 3)

F50 Sch. para. 48(2)(ca) inserted (E.W.) (1.12.2008) by The Housing and Regeneration Act 2008 (Consequential Provisions) (No. 2) Order 2008 (S.I. 2008/2831), art. 1(2), Sch. 1 para. 11 (with Sch. 3, Sch. 4 paras. 5, 6); S.I. 2008/3068, art. 2(1)(b)

F51 Sch. para. 48(2)(d)(f) omitted (20.4.2015 for specified purposes, 21.12.2015 for specified purposes, 21.3.2016 in so far as not already in force) by virtue of The Mortgage Credit Directive Order 2015 (S.I. 2015/910), art. 1(5), Sch. 1 para. 5(4)(a) (with Pt. 4)

F52 Sch. para. 48(2)(f) inserted (6.4.2005) by The Financial Services and Markets Act 2000 (Exemption) (Amendment) Order 2005 (S.I. 2005/592), arts. 1(2)(a), 2(2)

F53 Sch. para. 48(2)(g) inserted (26.7.2011) by The Financial Services and Markets Act 2000 (Exemption) (Amendment) Order 2011 (S.I. 2011/1626), arts. 1, 2

F54 Sch. para. 48(2)(h)(i) inserted (20.4.2015 for specified purposes, 21.12.2015 for specified purposes, 21.3.2016 in so far as not already in force) by The Mortgage Credit Directive Order 2015 (S.I. 2015/910), art. 1(5), Sch. 1 para. 5(4)(b) (with Pt. 4)

F55 Sch. para. 48(3)(4) inserted (20.4.2015 for specified purposes, 21.12.2015 for specified purposes, 21.3.2016 in so far as not already in force) by The Mortgage Credit Directive Order 2015 (S.I. 2015/910), art. 1(5), Sch. 1 para. 5(5) (with Pt. 4)

[F56 Electricity industry U.K.

Textual Amendments

F56 Sch. para. 49 and cross-heading inserted (1.12.2001) by The Financial Services and Markets Act 2000 (Exemption) (Amendment) Order 2001 (S.I. 2001/3623), arts. 1, 8

49.— (1) NGC is exempt from the general prohibition in respect of any regulated activity of the kind specified by article 14, 21, 25 [F57 , 25D] or 53 of the Regulated Activities Order (dealing in investments as principal or agent, arranging deals in investments [F57 , operating a multilateral trading facility] or advising on investments) which it carries on in the course of—

(a) its participation in the Balancing and Settlement Arrangements as operator of the electricity transmission system in [F58 Great Britain] under the Transmission Licence; or

(b) the acquisition by it of Balancing Services in accordance with the Electricity Act 1989 and the Transmission Licence.

(2) ELEXON Clear Limited is exempt from the general prohibition in respect of any regulated activity of the kind specified by article 14, 21 [F59 , 25 or 25D] of that Order which it carries on in the course of its participation in the Balancing and Settlement Arrangements as clearer for the purposes of (among other things) receiving from and paying to BSC Parties trading and reconciliation charges arising under the Balancing and Settlement Arrangements.

(3) Each BSC Party is exempt from the general prohibition in respect of any regulated activity of the kind specified by article 14, 21, 25 [F60 , 25D] or 53 of that Order which it carries on in the course of—

(a) its participation in the Balancing and Settlement Arrangements; or

(b) the provision by it (or, in the case of an activity of the kind specified by article 21 of that Order, its principal) of Balancing Services to NGC.

(4) ELEXON Limited is exempt from the general prohibition in respect of any regulated activity of the kind specified by article 25 [F61 or 25D] of that Order which it carries on in the course of its participation in the Balancing and Settlement Arrangements as administrator.

(5) Each BSC Agent and each Volume Notification Agent is exempt from the general prohibition in respect of any regulated activity of the kind specified by article 25 [F62 or 25D] of that Order which it carries on in that capacity.

F63 (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7) In this paragraph—

“Ancillary Services” means services which generators and suppliers of electricity and those making transfers of electricity across an Interconnector are required (as a condition of their connection to the transmission system in [F58 Great Britain]), or have agreed, to make available to NGC for the purpose of securing the stability of the electricity transmission or any distribution system in [F58 Great Britain] or any system linked to it by an Interconnector;

“Balancing and Settlement Arrangements” means—

(a)

the Balancing Mechanism; and

(b)

arrangements—

(i)

for the determination and allocation to BSC Parties of the quantities of electricity that have been delivered to and taken off the electricity transmission system and any distribution system in [F58 Great Britain]; and

(ii)

which set, and provide for the determination and financial settlement of, BSC Parties' obligations arising by reference to the quantities referred to in sub-paragraph (i), including the difference between such quantities (after taking account of accepted bids and offers in the Balancing Mechanism) and the quantities of electricity contracted for sale and purchase between BSC Parties;

“Balancing Mechanism” means the arrangements pursuant to which BSC Parties may make, and NGC may accept, offers or bids to increase or decrease the quantities of electricity to be delviered to or taken off the electricity transmission system or any distribution system in [F58 Great Britain] at any time or during any period so as to assist NGC in operating and balancing the electricity transmission system, and arrangements for the settlement of financial obligations arising from the acceptance of such offers and bids;

“Balancing Services” means—

(a)

offers and bids made in the Balancing Mechanism;

(b)

Ancillary Services; and

(c)

other services available to NGC which assist it in operating the electricity transmission system in accordance with the Electricity Act 1989 and the Transmission Licence;

“BSC Agents” means the persons for the time being engaged by or on behalf of ELEXON Limited for the purpose of providing services to all BSC Parties, NGC, ELEXON Limited and ELEXON Clear Limited in connection with the operation of the Balancing and Settlement Arrangements;

[F64 “BSC Framework Agreement” means the agreement of that title in the form approved by the Secretary of State for the purpose of conditions of the Transmission Licence and which is dated 14 August 2000; and “conditions” for the purposes of this definition means conditions determined by the Secretary of State under powers granted by section 137(1) of the Energy Act 2004. and incorporated into existing electricity transmission licences by a scheme made by the Secretary of State pursuant to section 138 of, and Schedule 17 to, that Act;]

“BSC Parties” means those persons (other than NGC, ELEXON Limited and ELEXON Clear Limited) who have signed or acceded to (in accordance with the terms of the BSC Framework Agreement), and not withdrawn from, the BSC Framework Agreement;

“Interconnector” means the electric lines and electrical plant [F65 and meters] used [F66 solely] for the transfer of electricity to or from the electricity transmission system F67 ... in [F58 Great Britain] into or out of [F58 Great Britain];

“NGC” means F68 ... National Grid Company plc;

F69 ...

“the Transmission Licence” means the licence to [F70 participate in the transmission of] electricity in [F58 Great Britain] granted [F71 , or treated as granted,] to NGC under section 6(1)(b) of the Electricity Act 1989; and

“Volume Notification Agents” means the persons for the time being appointed and authorised under and in accordance with the Balancing and Settlement Arrangements on behalf of BSC Parties to notify to the BSC Agent designated for that purpose pursuant to the Balancing and Settlement Arrangements quantities of electricity contracted for the sale and purchase between those BSC Parties to be taken into account for the purposes of the Balancing and Settlement Arrangements.]

Textual Amendments

F57 Words in Sch. para. 49(1) inserted (1.11.2007) by The Financial Services and Markets Act 2000 (Exemption) (Amendment) Order 2007 (S.I. 2007/125), arts. 1, 6(c)(i)

F58 Words in Sch. para. 49 substituted (1.4.2005) by The Financial Services and Markets Act 2000 (Exemption) (Amendment) Order 2005 (S.I. 2005/592), arts. 1(2)(b), 3(2)

F59 Words in Sch. para. 49(2) substituted (1.11.2007) by The Financial Services and Markets Act 2000 (Exemption) (Amendment) Order 2007 (S.I. 2007/125), arts. 1, 6(c)(ii)

F60 Word in Sch. para. 49(3) inserted (1.11.2007) by The Financial Services and Markets Act 2000 (Exemption) (Amendment) Order 2007 (S.I. 2007/125), arts. 1, 6(c)(iii)

F61 Words in Sch. para. 49(4) inserted (1.11.2007) by The Financial Services and Markets Act 2000 (Exemption) (Amendment) Order 2007 (S.I. 2007/125), arts. 1, 6(c)(iv)

F62 Words in Sch. para. 49(5) inserted (1.11.2007) by The Financial Services and Markets Act 2000 (Exemption) (Amendment) Order 2007 (S.I. 2007/125), arts. 1, 6(c)(v)

F63 Sch. para. 49(6) omitted (1.4.2005) by virtue of The Financial Services and Markets Act 2000 (Exemption) (Amendment) Order 2005 (S.I. 2005/592), arts. 1(2)(b), 3(3)

F64 Words in Sch. para. 49(7) substituted (1.4.2005) by The Financial Services and Markets Act 2000 (Exemption) (Amendment) Order 2005 (S.I. 2005/592), arts. 1(2)(b), 3(4)(a)

F65 Words in Sch. para. 49(7) inserted (1.4.2005) by The Financial Services and Markets Act 2000 (Exemption) (Amendment) Order 2005 (S.I. 2005/592), arts. 1(2)(b), 3(4)(b)(i)

F66 Word in Sch. para. 49(7) inserted (1.4.2005) by The Financial Services and Markets Act 2000 (Exemption) (Amendment) Order 2005 (S.I. 2005/592), arts. 1(2)(b), 3(4)(b)(ii)

F67 Words in Sch. para. 49(7) omitted (1.4.2005) by virtue of The Financial Services and Markets Act 2000 (Exemption) (Amendment) Order 2005 (S.I. 2005/592), arts. 1(2)(b), 3(4)(b)(iii)

F68 Word in Sch. para. 49(7) revoked (1.4.2005) by The Financial Services and Markets Act 2000 (Exemption) (Amendment) Order 2005 (S.I. 2005/592), arts. 1(2)(b), 3(4)(c)

F69 Words in Sch. para. 49(7) omitted (1.4.2005) by virtue of The Financial Services and Markets Act 2000 (Exemption) (Amendment) Order 2005 (S.I. 2005/592), arts. 1(2)(b), 3(4)(d)

F70 Words in Sch. para. 49(7) substituted (1.4.2005) by The Financial Services and Markets Act 2000 (Exemption) (Amendment) Order 2005 (S.I. 2005/592), arts. 1(2)(b), 3(4)(e)(i)

F71 Words in Sch. para. 49(7) inserted (1.4.2005) by The Financial Services and Markets Act 2000 (Exemption) (Amendment) Order 2005 (S.I. 2005/592), arts. 1(2)(b), 3(4)(e)(ii)

[F72 Freight forwarders and storage firms U.K.

Textual Amendments

F72 Sch. paras. 50, 51 and cross-headings inserted (20.7.2007) by The Financial Services and Markets Act 2000 (Exemption) (Amendment No. 2) Order 2007 (S.I. 2007/1821), arts. 1(2), 2(4)

50.— (1) A freight forwarder or storage firm is exempt from the general prohibition in respect of any regulated activity of the kind specified by article 21, 25, 39A or 53 of the Regulated Activities Order (dealing in investments as agent, arranging deals in investments, assisting in the administration and performance of a contract of insurance or advising on investments) in the circumstances referred to in paragraph 2. U.K.

(2) The circumstances are—

(a) where a freight forwarder (“F”)—

(i) holds a policy of insurance which insures F in respect of loss of or damage to goods which F transports or of which F arranges the transportation, and

(ii) makes available to a customer rights under that policy to enable the customer to claim directly against the insurer in respect of loss or damage to those goods; or

(b) where a storage firm (“S”)—

(i) holds a policy of insurance which insures S in respect of loss of or damage to goods which S stores or for which S arranges storage, and

(ii) makes available to a customer rights under that policy to enable the customer to claim directly against the insurer in respect of loss or damage to those goods.

(3) In this paragraph—

(a) “freight forwarder” means a person whose principal business is arranging or carrying out the transportation of goods;

(b) “storage firm” means a person whose principal business is storing goods or arranging storage for goods;

(c) “customer” means a person F73 ... who uses the service of a freight forwarder or storage firm.

Textual Amendments

F73 Words in Sch. para. 50(3) omitted (6.4.2009) by virtue of The Financial Services and Markets Act 2000 (Exemption) (Amendment) (No. 2) Order 2009 (S.I. 2009/264), arts. 1, 2(2)

Policyholder Advocates U.K.

51.— (1) A person acting as a policyholder advocate is exempt from the general prohibition in respect of any regulated activity of the kind specified by article 25 or 53 of the Regulated Activities Order (arranging deals in investments or advising on investments) in so far as he carries on these activities in connection with, or for the purposes of, his role as policyholder advocate. U.K.

(2) In sub-paragraph (1), “policyholder advocate” means a person who is—

(a) appointed by an insurer (“I”) to represent the interests of policyholders in negotiations with I about I’s proposals to redefine the rights and interests in any surplus assets arising in I’s with-profits fund; and

(b) approved or nominated by the [F74 FCA] to carry out that role.

(3) In sub-paragraph (2), “with-profits fund” means a long-term insurance fund in which policyholders are eligible to participate in surplus assets of the fund.]

Textual Amendments

F74 Word in Sch. para. 51(2)(b) substituted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 38

[F75 [F76 Official receivers] etc. U.K.

Textual Amendments

F75 Sch. paras. 52-54 and cross-headings inserted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013 (S.I. 2013/1881), arts. 1(2)(6), 14(4)

F76 Words in Sch. para. 52 cross-heading substituted (14.2.2014 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2014 (S.I. 2014/366), arts. 1(3)(4), 8(4)(b)

52.— (1) A person acting as— U.K.

F77 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) an official receiver within the meaning of section 399 of the Insolvency Act 1986 or article 2 of the Insolvency (Northern Ireland) Order 1989, or

(c) a judicial factor,

is exempt from the general prohibition in respect of any regulated activity of the kind specified by any of articles 39D to 39G (activities in relation to debt) or 89A (providing credit information services) of the Regulated Activities Order.

F78 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F79 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F77 Sch. para. 52(1)(a) omitted (14.2.2014 for specified purposes, 1.4.2014 in so far as not already in force) by virtue of The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2014 (S.I. 2014/366), arts. 1(3)(4), 8(4)(c)

F78 Sch. para. 52(2) omitted (14.2.2014 for specified purposes, 1.4.2014 in so far as not already in force) by virtue of The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2014 (S.I. 2014/366), arts. 1(3)(4), 8(4)(c)

F79 Sch. para. 52(3) omitted (14.2.2014 for specified purposes, 1.4.2014 in so far as not already in force) by virtue of The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2014 (S.I. 2014/366), arts. 1(3)(4), 8(4)(c)

Cycle to work U.K.

53.— (1) An employer who provides or makes available to their employees a cycle or cyclist's safety equipment up to the value of £1,000 under a relevant employee benefit scheme is exempt from the general prohibition in respect of any regulated activity of the kind specified by article 60N of the Regulated Activities Order (regulated consumer hire agreements). U.K.

(2) For the purposes of this paragraph—

“cycle” has the meaning given by section 192(1) of the Road Traffic Act 1988 (general interpretation);

“relevant employee benefit scheme” means a scheme operated by an employer which is designed to allow employees to take advantage of section 244 of the Income Tax (Earnings and Pensions) Act 2003 (no liability to income tax in relation to cycles and cyclist's safety equipment) and under which cycles or cyclist's safety equipment are made available in the manner described in any guidance issued by the Secretary of State.

Tracing agents U.K.

54.— (1) A person who takes steps to ascertain the identity or location (or the means of ascertaining the identity or location) of a borrower or hirer is exempt from the general prohibition in respect of any regulated activity of the kind specified by article 39F of the Regulated Activities Order (debt-collecting) so long as the person is not the lender under the agreement concerned or the owner under the consumer hire agreement concerned and takes no other steps to procure the payment of debts due under the agreement. U.K.

(2) In this [F80 paragraph], “borrower”, “hirer” “lender” and “owner” have the meanings given by the Regulated Activities Order.]

Textual Amendments

F80 Word in Sch. para. 54(2) substituted (18.3.2015) by The Financial Services and Markets Act 2000 (Miscellaneous Provisions) (No. 2) Order 2015 (S.I. 2015/352), arts. 1, 3(2)(a)

[F81 Persons who carry on activities for the service of certain documents U.K.

Textual Amendments

F81 Sch. para. 54A and cross-heading inserted (18.3.2015) by The Financial Services and Markets Act 2000 (Miscellaneous Provisions) (No. 2) Order 2015 (S.I. 2015/352), arts. 1, 3(2)(b)

54A.— (1) A person who serves, or takes steps to serve, a relevant document on a borrower or hirer is exempt from the general prohibition in respect of any regulated activity of the kind specified by article 39F of the Regulated Activities Order (debt-collecting) so long as that person— U.K.

(a) is not the lender or owner under the relevant agreement; and

(b) takes no other steps to procure the payment of the debt or any other debt due from the borrower or hirer under the relevant agreement.

(2) A person who serves, or takes steps to serve, a relevant document on a borrower or hirer is exempt from the general prohibition in respect of any regulated activity of the kind specified by article 39G of the Regulated Activities Order (debt administration) so long as that person is not the lender or owner under the relevant agreement and does not take—

(a) any other steps to exercise or enforce rights under that agreement; or

(b) any steps in the performance of any duties under that agreement.

(3) In sub-paragraph (1) “relevant document” means any document which is for service for the purposes of any legal proceedings brought, or to be brought, for the payment of a debt due under the relevant agreement.

(4) In sub-paragraph (2) “relevant document” means any document which is for service for the purposes of any legal proceedings brought, or to be brought, for the exercise or enforcement of rights under the relevant agreement.

(5) In this paragraph—

“borrower”, “hirer”, “lender” and “owner” have the meaning given in article 3 of the Regulated Activities Order;

“legal proceedings” includes arbitration and insolvency proceedings; and

“relevant agreement”, in relation to a person who is a borrower or hirer, means—

(a)

the credit agreement (within the meaning given by article 60B of the Regulated Activities Order) or article 36H agreement (within the meaning given by article 36H of that Order) under which that person is the borrower; or

(b)

the consumer hire agreement (within the meaning given by article 60N of the Regulated Activities Order) under which that person is the hirer.]

[F82 Persons exercising, or having the right to exercise, the rights of the person who provided credit under a regulated credit agreement U.K.

Textual Amendments

F82 Sch. paras. 55, 56 and cross-headings inserted (1.4.2014) by The Financial Services and Markets Act 2000 (Consumer Credit) (Miscellaneous Provisions) (No. 2) Order 2014 (S.I. 2014/506), arts. 1(4), 2(3)

55.— (1) A person within the description in sub-paragraph (3) (“P”) is exempt from the general prohibition in respect of any activity of the kind specified by article 60B(2) of the Regulated Activities Order (regulated credit agreements) carried on in relation to a qualifying agreement provided that the conditions in sub-paragraphs (4) and (5) are satisfied in respect of the agreement. U.K.

(2) Where P is exempt from the general prohibition in respect of any activity of the kind specified by article 60B(2) of the Regulated Activities Order by virtue of sub-paragraph (1), P is also exempt from the general prohibition in respect of any activity of the kind specified by article 39E(1) (debt-counselling) or 39F(1) (debt-collecting) of the Regulated Activities Order carried on in relation to the qualifying agreement in an exempt period.

(3) P is within the description in this sub-paragraph if P—

(a) is not the original lender;

(b) does not grant, is not required to grant, and does not promise to grant credit under the qualifying agreement or any other regulated credit agreement; and

(c) does not undertake any activity of the kind specified in article 39D(1) (debt adjusting), 39E(1) or 39F(1) of the Regulated Activities Order, or which would be so specified but for article 39H(1) of that Order, except in an exempt period.

(4) The condition in this sub-paragraph is that—

(a) P has entered into a servicing arrangement in relation to the qualifying agreement; or

(b) an exempt period has not expired.

(5) The condition in this sub-paragraph is that—

(a) P has arranged for the servicer to comply with the provisions listed in sub-paragraph (6); and

(b) where P (and not the servicer acting on behalf of P) varies the qualifying agreement, P complies with the provisions listed in sub-paragraph (6).

(6) The provisions are—

(a) any provision of, or made under, the Act applicable to authorised persons that relates to the exercise of the right of the lender under a regulated credit agreement to vary terms and conditions of the agreement (including, in particular, the right to vary the rate of interest, charges, or other amount due to the lender under the agreement); and

(b) the requirements of, or made under, section 82 of the Consumer Credit Act 1974 (variation of agreements).

(7) For the purposes of this paragraph, there are excluded from articles 39E(1) and 39F(1) of the Regulated Activities Order activities carried on by P under or for the purposes of a servicing arrangement.

(8) In this paragraph—

“an exempt period” is the period of thirty days beginning on the day after the day on which a servicing arrangement came to an end;

“the original lender” means the person who provided credit under the qualifying agreement;

“a qualifying agreement” means a regulated credit agreement under which P exercises, or has the right to exercise, the rights of the original lender;

“regulated credit agreement” has the meaning given in article 60B of the Regulated Activities Order;

“the servicer” means the person with whom P enters into a servicing arrangement, where that person is an authorised person with permission to carry on an activity of the kind specified in article 39F, 39G (debt administration) or 60B of the Regulated Activities Order;

“a servicing arrangement” means an arrangement between P and the servicer for the servicer to exercise on P’s behalf P’s rights under a qualifying agreement other than the right to transfer, assign or otherwise dispose of those rights.

Persons exercising, or having the right to exercise, the rights of the person who provided credit under a regulated consumer hire agreement U.K.

56.— (1) A person within the description in sub-paragraph (3) (“P”) is exempt from the general prohibition in respect of any activity of the kind specified by article 60N(2) of the Regulated Activities Order (regulated consumer hire agreements) carried on in relation to a qualifying agreement provided that the conditions in sub-paragraphs (4) and (5) are satisfied in respect of each such agreement. U.K.

(2) Where P is exempt from the general prohibition in respect of any activity of the kind specified by article 60N(2) of the Regulated Activities Order by virtue of sub-paragraph (1), P is also exempt from the general prohibition in respect of any activity of the kind specified by article 39E(2) (debt-counselling) or 39F(2) (debt-collecting) of the Regulated Activities Order carried on in relation to the qualifying agreement in an exempt period.

(3) P is within the description in this sub-paragraph if P—

(a) is not the original owner; and

(b) does not undertake any activity of the kind specified in article 39D(2) (debt adjusting), 39E(2) or 39F(2) of the Regulated Activities Order, or which would be so specified but for article 39H(2) of that Order, except in an exempt period.

(4) The condition in this sub-paragraph is that—

(a) P has entered into a servicing arrangement in relation to the qualifying agreement; or

(b) an exempt period has not expired.

(5) The condition in this sub-paragraph is that—

(a) P has arranged for the servicer to comply with the provisions listed in sub-paragraph (6); and

(b) where P (and not the servicer acting on behalf of P) varies the qualifying agreement, P complies with the provisions listed in sub-paragraph (6).

(6) The provisions are—

(a) any provision of, or made under, the Act applicable to authorised persons that relates to the exercise of the right of the owner under a regulated consumer hire agreement to vary terms and conditions of the agreement (including, in particular, the right to vary the hire payments, other charges, or any other amount due to the owner under the agreement); and

(b) the requirements of, or made under, section 82 of the Consumer Credit Act 1974 (variation of agreements).

(7) For the purposes of this paragraph, there are excluded from articles 39E(2) and 39F(2) of the Regulated Activities Order activities carried on by P under or for the purposes of a servicing arrangement.

(8) In this paragraph—

“an exempt period” is the period of thirty days beginning on the day after the day on which a servicing arrangement came to an end;

“the original owner” means the person who entered into the qualifying agreement as owner;

“a qualifying agreement” means a regulated consumer hire agreement under which P exercises, or has the right to exercise, the rights of the original owner;

“regulated consumer hire agreement” has the meaning given in article 60N of the Regulated Activities Order;

“the servicer” means the person with whom P enters into a servicing arrangement, where that person is an authorised person with permission to carry on an activity of the kind specified in article 39F, 39G (debt administration) or 60N of the Regulated Activities Order;

“a servicing arrangement” means an arrangement between P and the servicer for the servicer to exercise on P’s behalf P’s rights under a qualifying agreement other than the right to transfer, assign or otherwise dispose of those rights.]

[F83 Student Loans Company U.K.

Textual Amendments

F83 Sch. para. 57 and cross-heading inserted (30.3.2015) by The Financial Services and Markets Act 2000 (Exemption) (Amendment) Order 2015 (S.I. 2015/447), arts. 1, 2(3)

57.— (1) The Student Loans Company Limited is exempt from the general prohibition in respect of— U.K.

(a) any regulated activity of the kind specified by article 5 of the Regulated Activities Order (accepting deposits) in so far as it accepts deposits from the Secretary of State or the Scottish Ministers, in connection with, or for the purposes of, enabling eligible students to receive loans;

(b) any regulated activity of the kind specified by article 39G of the Regulated Activities Order (debt administration) in connection with, or for the purposes of, loans to eligible students.

(2) In sub-paragraph (1)(a), “eligible student” means—

(a) any person who is an eligible student pursuant to regulations made under Part 2 of the Teaching and Higher Education Act 1998;

(b) any person to whom, or in respect of whom, loans may be paid under section 73(f) of the Education (Scotland) Act 1980;

(c) any person who is an eligible student pursuant to regulations made under article 3 of the Education (Student Support) (Northern Ireland) Order 1998;

(d) any person who is in receipt of or who is eligible to receive a loan of the kind mentioned in article 3(1) of the Teaching and Higher Education Act 1998 (Commencement No. 2 and Transitional Provisions) Order 1998 or article 3(1) of the Education (Student Support) (Northern Ireland) Order 1998 (Commencement and Transitional Provisions) Order (Northern Ireland) 1998.

(3) In sub-paragraph (1)(b), “eligible student” means any person who is in receipt of or who is eligible to receive a loan of the kind mentioned in article 3(1) of the Teaching and Higher Education Act 1998 (Commencement No. 2 and Transitional Provisions) Order 1998 or article 3(1) of the Education (Student Support) (Northern Ireland) Order 1998 (Commencement and Transitional Provisions) Order (Northern Ireland) 1998.]

Explanatory Note

(This note is not part of the Order)

This Order provides for certain persons to be exempt from the general prohibition which is imposed by section 19 of the Financial Services and Markets Act 2000 (c. 8) (“the Act"). Exempt persons are not required to be authorised to carry on regulated activities. Regulated activities are activities of a kind specified by the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544) which relate to an investment of a kind specified by that Order and which are carried on by way of business.

The persons listed in Part I of the Schedule to this Order are exempt from the general prohibition in respect of any regulated activity other than effecting and carrying out contracts of insurance. The list comprises certain persons who were previously exempted persons under the Banking Act 1987 (c. 22) (by way of Schedule 2 to that Act) and/or the Financial Services Act 1986 (c. 60) (by way of section 35 of that Act and the Financial Services Act 1986 (Miscellaneous Exemptions) Order 1988 (S.I. 1988/350)). The list also includes the European Central Bank.

The persons listed in Part II of the Schedule are exempt from the general prohibition in so far as they accept deposits. The list includes certain persons who were previously exempted persons under the Banking Act 1987 (by way of Schedule 2 to that Act or the Banking Act 1987 (Exempt Transactions) Regulations 1997 (S.I. 1997/817)).

The persons listed in Part III of the Schedule are exempt from the general prohibition in respect of the conduct of investment business (but not, among other activities, effecting and carrying out contracts of insurance, accepting deposits or entering into a regulated mortgage contract). The persons listed in Part IV of the Schedule are exempt from the general prohibition in respect of any regulated activity of the kind specified in that Part. The lists in Parts III and IV of the Schedule include certain persons who were previously exempted persons under the Financial Services Act 1986 (by way of section 45 of that Act or orders made under section 46 of that Act).

Article 6 of the Order contains a transitional exemption for credit unions in so far as they accept deposits. This exemption will cease to have effect on 1st July 2002.