The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2001

Explanatory Note

(This note is not part of the Order)

This Order amends the Financial Services and Markets Act 2000 (Regulated Activities Order) 2001 (S.I. 2001/544) (“the principal Order”).

Article 3 amends article 8 of the principal Order, which provides an exclusion from the regulated activity of accepting deposits for sums received by persons who are authorised (or exempt) in relation to certain investment activities. The amendment widens the exclusion so that it applies to sums received in the course of, or for the purposes of, not only certain regulated activities but also activities which would be such activities but for exclusions in the principal Order.

Article 4 makes a minor amendment to article 18 of the principal Order (exclusion from the activity of dealing as principal, for companies issuing their own shares and share warrants and persons issuing their own debentures and debenture warrants).

Article 5 amends article 30 of the principal Order, which provides an exclusion from the regulated activity of arranging deals for certain arrangements made by money-lenders in connection with lending on the security of insurance policies. The amendment widens the exclusion so that it applies to arrangements involving introductions of existing (as well as new) customers of the money-lender, and arrangements involving the giving of advice to persons to approach the money-lender.

Article 6 extends the exclusion in article 38 of the principal Order (management of investments by attorneys) to cases where relevant decisions are taken on behalf of the attorney by an overseas person.

Article 7 clarifies article 45(2) of the principal Order (causing dematerialised instructions to be sent).

Article 8 clarifies the definitions of “regulated mortgage contract” in article 61 of the principal Order, and the scope of the regulated activity of “administering” such contracts.

Article 9 amends article 67 of the principal Order, which provides exclusions for certain activities carried on in the course of a profession or non-investment business. The amendment provides that the exclusions apply where the profession or business does not consist of carrying on regulated activities in the United Kingdom.

Article 10 makes a minor clarification to article 68(3) of the principal Order (exclusion for certain activities carried on in connection with the sale of goods or supply of services).