EXPLANATORY NOTE
(This note is not part of the Order)
This Order specifies, for the purposes of the Financial Services and Markets Act 2000, which regulated activities are “PRA-regulated activities” and so are the regulated activities which are subject to prudential regulation by the Prudential Regulation Authority (“PRA”), rather than the Financial Conduct Authority.
Article 2 provides that the activities of accepting deposits and effecting or carrying out contracts of insurance are specified as PRA-regulated activities. Acting as a managing agent at Lloyd’s and the arranging by the Society of Lloyd’s of contracts of insurance written at Lloyd’s are also PRA-regulated activities.
The activity of dealing in investments as principal is a PRA-regulated activity only to the extent designated by the PRA under article 3. Designations relate to particular persons (rather than a class of person). Article 3 sets out the criteria which must be applied by the PRA in designating persons.
Article 4 sets out the procedure the PRA must follow when designating a person under article 3.
Article 5 requires the PRA to keep under review designations under article 3.
Article 6 enables the PRA to withdraw a designation and sets out the procedure for withdrawal.
Article 7 provides that a designation ceases to have effect if the person concerned ceases to have permission to carry on the activity of dealing in investment as principal.
Article 8 requires the PRA to prepare and issue a statement of its policy in relation to designation under article 3, the review of designations under article 5 and the withdrawal of designations under article 6. Article 9 sets out the procedure that the PRA must follow in preparing a statement of policy.
Article 10 makes transitional provision to deal with cases where, after 1 April 2013, an authorised person becomes a PRA-authorised person by virtue of a designation under article 3.
Article 11 makes transitional provision to deal with cases where a PRA-authorised person ceases to be a PRA-authorised person by virtue of a rescission or withdrawal of authorisation.
A full impact assessment of the effect that this Order will have on the costs of business and the voluntary sector is available from, Her Majesty’s Treasury, 1 Horse Guards Road, London SW1A 2HQ or on www.hm-treasury.gov.uk and is published alongside the Order on www.legislation.gov.uk.