Part III Authorisation and Exemption

Exemption

39AF1Certain tied agents operating outside United Kingdom

1

This section applies to an authorised person whose relevant office is in the United Kingdom if—

a

he is a party to a contract with a person (other than an authorised person) who is F3established in the United Kingdom; and

b

the contract is a relevant contract.

2

A contract is a “relevant contract” if it satisfies conditions A to C.

3

Condition A is that the contract permits or requires the person mentioned in subsection (1)(a) (the “agent”) to carry on investment services business.

4

Condition B is that F4the FCA is satisfied that no such business is, or is likely to be, carried on by the agent in the United Kingdom.

5

Condition C is that the business is of a description that, if carried on in the United Kingdom, would be prescribed for the purposes of section 39(1)(a)(i).

6

An authorised person to whom this section applies who—

a

enters into or continues to perform a relevant contract with an agent which does not comply with the applicable requirements,

b

enters into or continues to perform a relevant contract without accepting or having accepted responsibility in writing for the agent's activities in carrying on investment services business,

F2c

enters into a relevant contract with an agent who is not entered on—

i

the record maintained by the FCA by virtue of section 347(1)(ha), or

F5ii

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

d

continues to perform a relevant contract with an agent when he knows or ought to know that the agent is not entered on that record F6... ,

is to be taken for the purposes of this Act to have contravened a requirement imposed on him by or under this Act.

7

The “applicable requirements” are the requirements prescribed for the purposes of subsection (1)(a)(ii) of section 39 which have effect in the case of a person to whom subsection (1A) of that section applies.

F78

Section 39(7) applies for the purposes of this section.

9

In this section—

  • F8...

  • “relevant office” means—

    1. a

      in relation to a body corporate, its registered office or, if it has no registered office, its head office, and

    2. b

      in relation to a person other than a body corporate, the person's head office.