EXPLANATORY NOTE
(This note is not part of the Order)
This Order amends the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (“the Principal Order”) so as to specify new regulated activities. The Principal Order specifies kinds of activities and investments for the purposes of the Financial Services and Markets Act 2000 (c.8) (“the Act”). The regulated activities which may be specified include activities relating to the setting of benchmarks (paragraphs 24E to 24H of Schedule 2 to the Act, inserted by section 7 of the Financial Services Act 2012 (c.21)). This Order specifies the activities of providing information in relation to and administering a specified benchmark.
Article 3 of the Order makes consequential amendments to sections 1G, 1H and 425A of the Act to adjust the definition of a consumer in order that the consumer protection objective applies with regard to the new regulated activities and so that those affected by the carrying on of the new regulated activities may benefit from the provisions in the Act to protect consumers.
Articles 4 to 6 of the Order insert a new article and a new schedule into the Principal Order to specify the new regulated activities and to set out the specified benchmarks.
Article 7 of the Order provides for a Part 4A permission to be deemed to be extended to those firms which immediately before commencement of this Order were already carrying on the activity of providing information to the administrator of a benchmark listed in Schedule 5 to the Principal Order that was required for the determination of that benchmark and who already had a Part 4 permission.
Article 8 provides for an interim permission to be granted to persons wishing to undertake administering, analysing or determining activities. This permission is granted automatically to those already undertaking these activities on commencement of this Order. An interim permission lapses either on a notice of cancellation given by the Financial Conduct Authority after an application for Part 4A permission to undertake these activities has been granted or, if earlier, on either cancellation of permission under section 55H of the Act or the exercise by the Financial Conduct Authority of its power to cancel permission under section 55J of the Act.
Article 9 enables the Financial Conduct Authority to modify amongst other things, its rules in their application to persons with an interim permission.
Article 10 sets out the application of the Act to persons with interim permission.
An impact assessment of the effect of this instrument on the costs of business and the voluntary sector has been prepared and is available from Her Majesty’s Treasury, 1 Horse Guards Road, London, SW1A 2HQ, or on www.hm-treasury.gov.uk and is published with the Explanatory Memorandum alongside this Order on www.legislation.gov.uk.