2001 No. 3771
The Financial Services and Markets Act 2000 (Scope of Permission Notices) Order 2001
Made
Laid before Parliament
Coming into force on
The Treasury in the exercise of the powers conferred on them by sections 426 to 428 of the Financial Services and Markets Act 20001 and of all other powers enabling them in that behalf hereby make the following Order:—
Citation, commencement and interpretation1
1
This Order may be cited as the Financial Services and Markets Act 2000 (Scope of Permission Notices) Order 2001 and comes into force on 1st December 2001.
2
In this Order—
“the Act” means the Financial Services and Markets Act 2000;
“the Authorised Persons Order” means the Financial Services and Markets Act 2000 (Transitional Provisions) (Authorised Persons etc.) Order 20012;
“commencement” means the beginning of 1st December 2001;
“the Regulated Activities Order” means the Financial Services and Markets Act 2000 (Regulated Activities) Order 20013.
Revision of scope of permission notices2
1
This article applies where—
a
the Authority has given, before commencement, a scope of permission notice under article 55 of the Authorised Persons Order;
b
that notice falls within one of the cases specified in article 3;
c
the recipient of the notice has, before commencement, notified the Authority in accordance with article 56(1)(a) of the Authorised Persons Order that he agrees with the matters stated in the notice;
d
the Authority has, before commencement, given that recipient a notice (“the revision notice”) revising the scope of permission notice in a permitted manner.
2
If the recipient of the scope of permission notice does not, on or before 4 January 2002, notify the Authority that he objects to the revision notice, then article 57(1) of the Authorised Persons Order applies as if—
a
the reference to the scope of permission notice in that article were to the scope of permission notice as revised by the revision notice; and
b
the person has agreed to that notice as so revised.
3
If the recipient of the scope of permission notice notifies the Authority on or before 4 January 2002 that he objects to the revision notice, then article 57(1) of the Authorised Persons Order applies as if the revision notice had not been sent.
Cases in which scope of permission notices may be revised3
The cases specified in this article are as follows:
CASE 1
Where—
a
the recipient of the scope of permission notice was, at the time the notice was sent, an authorised person within the meaning of the Financial Services Act 19864;
b
that person is to be treated, by virtue of Part II of the Authorised Persons Order, as having a Part IV permission to carry on a regulated activity of the kind specified by article 14 of the Regulated Activities Order (dealing in investments as principal) in so far as the activity consists of his entering into a transaction relating to contractually based investments;
c
the person is not subject, by virtue of Part III of the Authorised Persons Order, to a requirement imposed under section 43 of the Act preventing him from carrying on the regulated activity in paragraph (b); and
d
the scope of permission notice did not specify that the person had a Part IV permission to carry on the regulated activity in paragraph (b).
CASE 2
Where—
a
the recipient of the scope of permission notice was, at the time the notice was sent, a member of the Personal Investment Authority Limited;
b
the scope of permission notice specified that he had a Part IV permission to carry on a regulated activity of the kind specified by article 53 of the Regulated Activities Order (advising on investments) in relation to a particular specified kind of investment (“investment A”);
c
the person is to be treated, by virtue of Part II of the Authorised Persons Order, as having a Part IV permission to carry on that regulated activity also in relation to rights to or interests in (within the meaning of activity 89 of the Regulated Activities Order) investment A;
d
the person is not subject, by virtue of Part III of the Authorised Persons Order, to a requirement imposed under section 43 of the Act preventing him from carrying on that regulated activity in relation to rights to or interests in investment A; and
e
the scope of permission notice did not specify that he had a Part IV permission to carry on that regulated activity in relation to rights to or interests in investment A.
CASE 3
Where—
a
the scope of permission notice specified that the recipient of the notice has a Part IV permission to carry on a regulated activity in relation to a particular specified kind of investment (“investment B”); and
b
the scope of permission notice purported also to specify that he had permission to carry on that regulated activity in relation to rights to and interests in investments generally rather than only in relation to rights to or interests in investment B.
CASE 4
Where—
a
the recipient of the scope of permission notice was, at the time the notice was sent, a member of either the Investment Management Regulatory Organisation Limited or the Personal Investment Authority Limited;
b
the scope of permission notice specified that he had a Part IV permission to carry on a regulated activity of the kind specified by article 40 of the Regulated Activities Order (safeguarding and administering investments);
c
the scope of permission notice also specified that he was subject to a requirement under section 43 of the Act that he should not hold or control client money; and
d
the person is not subject, by virtue of Part III of the Authorised Persons Order, to that requirement.
CASE 5
Where—
a
the recipient of the scope of permission notice was, at the time the notice was sent, a member of either the Investment Management Regulatory Organisation Limited or the Personal Investment Authority Limited;
b
the scope of permission notice specified that he had a Part IV permission to carry on a regulated activity of the kind specified by either article 51 of the Regulated Activities Order (establishing etc. a collective investment scheme) or article 52 of that Order (establishing etc. a stakeholder pension scheme);
c
the scope of permission notice purported to limit that permission to carrying on the activity in relation to a specified kind of investment; and
d
the Part IV permission that the person is to be treated as having by virtue of Parts II and III of the Authorised Persons Order is not subject to that limitation.
CASE 6
Where—
a
the recipient of the scope of permission notice was, at the time the notice was sent, a member of the Investment Management Regulatory Organisation Limited;
b
the scope of permission notice specified that he had a Part IV permission to carry on a regulated activity of the kind specified by article 21 of the Regulated Activities Order (dealing in investments as agent) for the purpose of stock lending activities;
c
the scope of permission notice purported further to limit his permission so that he could not carry on that activity in relation to investments of the kind specified by article 78 of the Regulated Activities Order (government and public securities); and
d
the Part IV permission that the person is to be treated as having by virtue of Parts II and III of the Authorised Persons Order is not subject to that limitation.
Permitted revisions4
For the purposes of article 2(1)(d), a revision notice revises the scope of permission notice in a permitted manner if—
a
in Case 1 in article 3, it results in the scope of permission notice specifying that the recipient has a Part IV permission to carry on the regulated activities described in paragraph (b) of that Case;
b
in Case 2 in article 3, it results in the scope of permission notice specifying that the recipient has a Part IV permission to carry on the regulated activity described in paragraph (c) of that Case;
c
in Case 3 in article 3, it results in the scope of permission notice specifying that his Part IV permission to carry on a particular regulated activity in relation to rights to or interests in investments is limited to rights to or interests in investment B (as defined in that Case);
d
in Case 4 in article 3, it results either in the lifting of the requirement that the recipient should not control client money or in the lifting of the requirement that he should not hold or control client money;
e
in Case 5 in article 3, it results in the removal of the limitation described in paragraph (c) of that Case;
f
in Case 6 in article 3, it results in the removal of the limitation described in paragraph (c) of that Case;
g
in any Case in article 3, it results in the scope of permission notice specifying that the recipient has a Part IV permission to carry on a regulated activity of the kind specified by article 64 of the Regulated Activities Order (agreeing to carry on specified kinds of activity) to the extent appropriate having regard to paragraphs (a) to (f) above.
Amendment of earlier provisions5
1
The Financial Services and Markets Act 2000 (Miscellaneous Provisions) Order 20015 is amended as follows.
2
In article 29 for paragraphs (2) and (3) substitute—
2
Where this article applies if the person does not, on or before 4 January 2002, notify the Authority that he objects to the revision notice, then article 57(1) of the Authorised Persons Order applies as if—
a
the reference to the scope of permission notice in that article were to the scope of permission notice as revised by the revision notice; and
b
the person had agreed to that notice as so revised.
3
If the person notifies the Authority on or before 4 January 2002 that he objects to the revision notice, then article 57(1) of the Authorised Persons Order applies as if the revision notice had not been sent.
3
In article 30 for paragraphs (2) and (3) substitute—
2
Where this article applies if the person does not, on or before 4 January 2002, notify the Authority that he objects to the revision notice, then article 57(1) of the Authorised Persons Order applies as if—
a
the reference to the scope of permission notice in that article were to the scope of permission notice as revised by the revision notice; and
b
the person had agreed to that notice as so revised.
3
If the person notifies the Authority on or before 4 January 2002 that he objects to the revision notice, then article 57(1) of the Authorised Persons Order applies as if the revision notice had not been sent
(This note is not part of the Regulations)