- Latest available (Revised)
- Point in Time (23/03/2019)
- Original (As made)
Point in time view as at 23/03/2019.
There are currently no known outstanding effects for the The Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, PART I.
Revised legislation carried on this site may not be fully up to date. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial team. Please see ‘Frequently Asked Questions’ for details regarding the timescales for which new effects are identified and recorded on this site.
1. Accepting deposits is a controlled activity if—
(a)money received by way of deposit is lent to others; or
(b)any other activity of the person accepting the deposit is financed wholly, or to a material extent, out of the capital of or interest on money received by way of deposit,
and the person accepting the deposit holds himself out as accepting deposits on a day to day basis.
2.—(1) Effecting a contract of insurance as principal is a controlled activity.
(2) Carrying out a contract of insurance as principal is a controlled activity.
(3) There is excluded from sub-paragraph (1) or (2) the effecting or carrying out of a contract of insurance of the kind described in article 12 of the Regulated Activities Order by a person who does not otherwise carry on an activity falling within those sub-paragraphs.
3.—(1) Buying, selling, subscribing for or underwriting securities[F1, structured deposits] or contractually based investments (other than investments of the kind specified by paragraph 25, or paragraph 27 so far as relevant to that paragraph) as principal or agent is a controlled activity.
(2) A person does not carry on the activity in sub-paragraph (1) by accepting an instrument creating or acknowledging indebtedness in respect of any loan, credit, guarantee or other similar financial accommodation or assurance which he has made, granted or provided.
(3) The reference in sub-paragraph (2) to a person accepting an instrument includes a reference to a person becoming a party to an instrument otherwise than as a debtor or a surety.
Textual Amendments
F1Words in Sch. 1 para. 3(1) inserted (1.4.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2017 (S.I. 2017/488), art. 1(2), Sch. para. 9(10)(a)
4.—(1) Making arrangements for another person (whether as principal or agent) to buy, sell, subscribe for or underwrite a particular investment which is—
(a)a security;
[F2(aa)a structured deposit;]
(b)a contractually based investment; or
(c)an investment of the kind specified by paragraph 24, or paragraph 27 so far as relevant to that paragraph,
is a controlled activity.
(2) Making arrangements with a view to a person who participates in the arrangements buying, selling, subscribing for or underwriting investments falling within sub-paragraph (1)(a), [F3(aa),] (b) or (c) (whether as principal or agent) is a controlled activity.
(3) A person does not carry on an activity falling within paragraph (2) merely by providing means by which one party to a transaction (or potential transaction) is able to communicate with other such parties.
Textual Amendments
F2Sch. 1 para. 4(1)(aa) inserted (1.4.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2017 (S.I. 2017/488), art. 1(2), Sch. para. 9(10)(b)(i)
F3Word in Sch. 1 para. 4(2) inserted (1.4.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2017 (S.I. 2017/488), art. 1(2), Sch. para. 9(10)(b)(ii)
4A. Operating a multilateral trading facility on which MiFID instruments are traded is a controlled activity.]
Textual Amendments
F4Sch. 1 para. 4A inserted (1.4.2007 for specified purposes, 1.11.2007 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment No. 3) Order 2006 (S.I. 2006/3384), arts. 1(2), 40(2)(a)
4AA. Operating an organised trading facility on which non-equity MiFID instruments are traded is a controlled activity.]
Textual Amendments
F5Sch. 1 para. 4AA inserted (1.4.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2017 (S.I. 2017/488), art. 1(2), Sch. para. 9(10)(c)
4B.—(1) Each of the following is a controlled activity—
(a)effecting an introduction of an individual or relevant recipient of credit to a person who enters into as lender relevant credit agreements [F6(other than credit agreements which are exempt agreements under the relevant provisions)] by way of business;
[F7(b)effecting an introduction of an individual or relevant recipient of credit to a person who, by way of business, enters into as owner regulated consumer hire agreements or agreements which would be regulated consumer hire agreements but for article 60O (exempt agreements: exemptions relating to nature of agreement) or article 60Q (exempt agreements: exemptions relating to the nature of the hirer) of the Regulated Activities Order;]
(c)effecting an introduction of an individual or relevant recipient of credit to a person who carries on an activity of the kind specified in paragraph (a) or (b) by way of business;
(d)presenting or offering an agreement which would (if entered into) be a relevant credit agreement [F8(other than a credit agreement which is an exempt agreement under the relevant provisions)] to an individual or relevant recipient of credit;
(e)assisting an individual or relevant recipient of credit by undertaking preparatory work in respect of a relevant credit agreement [F9(other than a credit agreement which is an exempt agreement under the relevant provisions)];
(f)entering into a relevant credit agreement [F10(other than a credit agreement which is an exempt agreement under the relevant provisions)] on behalf of a lender.
[F11(1A) But an activity is not a controlled activity falling within sub-paragraph (1) to the extent that it is a controlled activity falling within paragraph 10A (arranging qualifying credit etc.).]
[F12(2) For the purposes of paragraph (1)—
(a)“relevant provisions” are article 60E(5) (exempt agreements: exemptions relating to the nature of the lender) and article 60F(exempt agreements: exemptions relating to number of repayments to be made) of the Regulated Activities Order;
(b)it is immaterial whether the relevant credit agreement or the consumer hire agreement is subject to the law of a country other than the United Kingdom.]
Textual Amendments
F6Words in Sch. 1 para. 4B(1)(a) inserted (24.3.2015) by The Financial Services and Markets Act 2000 (Miscellaneous Provisions) Order 2015 (S.I. 2015/853), arts. 1(2), 4(4)(a)
F7Sch. 1 para. 4B(1)(b) substituted (24.3.2015) by The Financial Services and Markets Act 2000 (Miscellaneous Provisions) Order 2015 (S.I. 2015/853), arts. 1(2), 4(4)(b)
F8Words in Sch. 1 para. 4B(1)(d) inserted (24.3.2015) by The Financial Services and Markets Act 2000 (Miscellaneous Provisions) Order 2015 (S.I. 2015/853), arts. 1(2), 4(4)(c)
F9Words in Sch. 1 para. 4B(1)(e) inserted (24.3.2015) by The Financial Services and Markets Act 2000 (Miscellaneous Provisions) Order 2015 (S.I. 2015/853), arts. 1(2), 4(4)(c)
F10Words in Sch. 1 para. 4B(1)(f) inserted (24.3.2015) by The Financial Services and Markets Act 2000 (Miscellaneous Provisions) Order 2015 (S.I. 2015/853), arts. 1(2), 4(4)(c)
F11Sch. 1 para. 4B(1A) inserted (14.2.2014 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2014 (S.I. 2014/366), arts. 1(3)(4), 10(8)(a)
F12Sch. 1 para. 4B(2) substituted (24.3.2015) by The Financial Services and Markets Act 2000 (Miscellaneous Provisions) Order 2015 (S.I. 2015/853), arts. 1(2), 4(4)(d)
4C.—(1) Where the [F14conditions in sub-paragraphs (2), (2A) and (2C) are] satisfied, operating an electronic system which enables the operator (“A”) to facilitate persons (“B” and “C”) becoming the lender and borrower under a paragraph 4C agreement is a controlled activity.
(2) The condition [F15in this sub-paragraph] is that the system operated by A is capable of determining which agreements should be made available to each of B and C (whether in accordance with general instructions provided to A by B or C or otherwise).
[F16(2A) The condition in this sub-paragraph is that A, or another person (“X”) acting under an arrangement with A or at A’s direction, undertakes to—
(a)receive payments in respect of [F17either interest or capital or both] due under the agreement from C, and
(b)make payments in respect of [F18either interest or capital or both] due under the agreement to B.
(2B) For the purposes of sub-paragraph (2A)—
(a)an agreement by A to appoint X to perform the activities in that paragraph is to be treated as an undertaking by A within the meaning of that sub-paragraph;
(b)it is immaterial that—
(i)payments may be subject to conditions;
(ii)A, or X, may be entitled to retain a portion or the entirety of any payment received from C.
(2C) The condition in this sub-paragraph is that A, or another person (“X”) acting under an arrangement with A or at A’s direction, undertakes to perform, or A undertakes to appoint or direct another person to perform, either or both of the following—
(a)to take steps to procure the payment of a debt under the agreement;
(b)to exercise or enforce rights under the agreement on behalf of B.]
[F19(2D) Where A carries on the activity specified by sub-paragraph (1), it is a controlled activity for A to operate an electronic system where—
(a)that system enables A to facilitate a person (“B”) assuming the rights of the lender under a paragraph 4C agreement by assignment or operation of law, and
(b)the conditions in sub-paragraphs (2), (2A) and (2C) are satisfied where C is the borrower under the agreement in paragraph (a).]
(3) The following are controlled activities if carried on by A in the course of, or in connection with, the carrying on by A of the activity specified by [F20sub-paragraph] (1) [F21or (2D)]—
(a)presenting or offering paragraph 4C agreements to [F22either B or C] with a view to B becoming the lender under the paragraph 4C agreement [F23or] C becoming the borrower under the paragraph 4C agreement,
(b)furnishing information relevant to the financial standing of a person (“Y”) with a view to assisting in the determination as to whether another person should—
(i)enter into, as the lender, a paragraph 4C agreement with Y, or
(ii)assume the rights of the lender under a paragraph 4C agreement under which Y is the borrower,
(c)taking steps to procure the payment of a debt due under a paragraph 4C agreement,
(d)[F24taking steps to perform duties, or exercise or enforce] rights under a paragraph 4C agreement on behalf of the lender,
(e)[F25taking steps with a view to] ascertaining whether a credit information agency (within the meaning given by article 89A(6)) holds information relevant to the financial standing of an individual or relevant person,
(f)[F26taking steps with a view to] ascertaining the contents of such information,
(g)[F27taking steps with a view to] securing the correction of, the omission of anything from, or the making of any other kind of modification of, such information, F28...
(h)[F29taking steps with a view to] securing that a credit information agency which holds such information—
(i)stops holding the information, or
(ii)does not provide it to any other person[F30, or
(i)giving advice in relation to the taking of any of the steps in sub-paragraphs (e) to (h)]
[F31(4) A “paragraph 4C agreement” is an agreement by which one person provides another person with credit and in relation to which—
(a)the condition in sub-paragraph (4A) is satisfied, and
(b)the condition in either sub-paragraph (5) or (6) is satisfied, or was satisfied at the time the agreement was entered into.
(4A) The condition in this sub-paragraph is that A does not provide credit, assume the rights (by assignment or operation of law) of a person who provided credit, or receive credit under the agreement.]
(5) The condition in this [F32sub-paragraph] is that the lender is an individual or relevant person.
(6) The condition in this [F33sub-paragraph] is that the borrower is an individual or relevant person and—
(a)the lender provides the borrower with credit less than or equal to £25,000, or
(b)the agreement is not entered into by the borrower wholly or predominantly for the purposes of a business carried on, or intended to be carried on, by the borrower.
(7) Paragraphs (5) and (6) of article 60C of the Regulated Activities Order (exempt agreements: exemptions relating to nature of agreement) apply for the purposes of paragraph (6)(b).
(8) It is immaterial for the purposes of this paragraph whether the lender is carrying on a regulated activity.
[F34(9) In this paragraph—
“assignment”, in relation to Scotland, means assignation;
“borrower” means a person who receives credit under a paragraph 4C agreement or a person to whom the rights and duties of a borrower under such an agreement have passed by assignment or operation of law;
“credit” has the meaning given by article 60L of the Regulated Activities Order;
“lender” means—
a person providing credit under a paragraph 4C agreement, or
a person who by assignment or operation of law has assumed the rights of a person who provided credit under such an agreement;
“relevant person” means—
a partnership consisting of two or three persons not all of whom are bodies corporate, or
an unincorporated body of persons which does not consist entirely of bodies corporate and is not a partnership.]
[F35(10) For the purposes of the application of section 21(9) and (10) of the Act (restrictions on financial promotion) to an activity of a kind specified by this paragraph, paragraph 26D of this Schedule (relevant credit agreements), and article 4 (definition of controlled activities and controlled investments) in so far as it relates to that paragraph, [F36have] effect as if the reference to a relevant credit agreement in paragraph 26D includes a reference to a paragraph 4C agreement.]]
Textual Amendments
F13Sch. 1 paras. 4B, 4C inserted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013 (S.I. 2013/1881), arts. 1(2)(6), 17(6)(a)
F14Words in Sch. 1 para. 4C(1) substituted (14.2.2014 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2014 (S.I. 2014/366), arts. 1(3)(4), 10(8)(b)(i)
F15Words in Sch. 1 para. 4C(2) inserted (14.2.2014 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2014 (S.I. 2014/366), arts. 1(3)(4), 10(8)(b)(ii)
F16Sch. 1 paras. 4C(2A)-(2C) inserted (14.2.2014 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2014 (S.I. 2014/366), arts. 1(3)(4), 10(8)(b)(iii)
F17Words in Sch. 1 para. 4C(2A)(a) substituted (17.3.2016) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2016 (S.I. 2016/392), arts. 1(2)(3)(a), 6(2)(a) (with Pt. 5)
F18Words in Sch. 1 para. 4C(2A)(b) substituted (17.3.2016) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2016 (S.I. 2016/392), arts. 1(2)(3)(a), 6(2)(a) (with Pt. 5)
F19Sch. 1 para. 4C(2D) inserted (17.3.2016) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2016 (S.I. 2016/392), arts. 1(2)(3)(a), 6(2)(b) (with Pt. 5)
F20Word in Sch. 1 para. 4C(3) substituted (14.2.2014 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2014 (S.I. 2014/366), arts. 1(3)(4), 10(8)(b)(iv)
F21Words in Sch. 1 para. 4C(3) inserted (17.3.2016) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2016 (S.I. 2016/392), arts. 1(2)(3)(a), 6(2)(c)(i) (with Pt. 5)
F22Words in Sch. 1 para. 4C(3)(a) substituted (17.3.2016) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2016 (S.I. 2016/392), arts. 1(2)(3)(a), 6(2)(c)(ii)(aa) (with Pt. 5)
F23Word in Sch. 1 para. 4C(3)(a) substituted (17.3.2016) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2016 (S.I. 2016/392), arts. 1(2)(3)(a), 6(2)(c)(ii)(bb) (with Pt. 5)
F24Words in Sch. 1 para. 4C(3)(d) substituted (17.3.2016) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2016 (S.I. 2016/392), arts. 1(2)(3)(a), 6(2)(c)(iii) (with Pt. 5)
F25Words in Sch. 1 para. 4C(3)(e) inserted (17.3.2016) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2016 (S.I. 2016/392), arts. 1(2)(3)(a), 6(2)(c)(iv) (with Pt. 5)
F26Words in Sch. 1 para. 4C(3)(f) inserted (17.3.2016) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2016 (S.I. 2016/392), arts. 1(2)(3)(a), 6(2)(c)(iv) (with Pt. 5)
F27Words in Sch. 1 para. 4C(3)(g) inserted (17.3.2016) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2016 (S.I. 2016/392), arts. 1(2)(3)(a), 6(2)(c)(iv) (with Pt. 5)
F28Word in Sch. 1 para. 4C(3)(g) deleted (17.3.2016) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2016 (S.I. 2016/392), arts. 1(2)(3)(a), 6(2)(c)(v) (with Pt. 5)
F29Words in Sch. 1 para. 4C(3)(h) inserted (17.3.2016) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2016 (S.I. 2016/392), arts. 1(2)(3)(a), 6(2)(c)(iv) (with Pt. 5)
F30Sch. 1 para. 4C(3)(i) and preceding word inserted (17.3.2016) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2016 (S.I. 2016/392), arts. 1(2)(3)(a), 6(2)(c)(vi) (with Pt. 5)
F31Sch. 1 para. 4C(4)(4A) substituted for Sch. 1 para. 4C(4) (17.3.2016) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2016 (S.I. 2016/392), arts. 1(2)(3)(a), 6(2)(d) (with Pt. 5)
F32Word in Sch. 1 para. 4C(5) substituted (14.2.2014 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2014 (S.I. 2014/366), arts. 1(3)(4), 10(8)(b)(vi)
F33Word in Sch. 1 para. 4C(6) substituted (14.2.2014 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2014 (S.I. 2014/366), arts. 1(3)(4), 10(8)(b)(vii)
F34Sch. 1 para. 4C(9) substituted (17.3.2016) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2016 (S.I. 2016/392), arts. 1(2)(3)(a), 6(2)(e) (with Pt. 5)
F35Sch. 1 para. 4C(10) inserted (14.2.2014 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2014 (S.I. 2014/366), arts. 1(3)(4), 10(8)(b)(viii)
F36Word in Sch. 1 para. 4C(10) substituted (17.3.2016) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2016 (S.I. 2016/392), arts. 1(2)(3)(a), 6(2)(f) (with Pt. 5)
5. Managing assets belonging to another person, in circumstances involving the exercise of discretion, is a controlled activity if—
(a)the assets consist of or include any investment which is a security[F37, structured deposit] or a contractually based investment; or
(b)the arrangements for their management are such that the assets may consist of or include such investments, and either the assets have at any time since 29th April 1988 done so, or the arrangements have at any time (whether before or after that date) been held out as arrangements under which the assets would do so.
Textual Amendments
F37Words in Sch. 1 para. 5(a) inserted (1.4.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2017 (S.I. 2017/488), art. 1(2), Sch. para. 9(10)(d)
5A.—(1) The following activities are, when carried on in relation to debts due under a relevant credit agreement, controlled activities—
(a)negotiating with the lender, on behalf of the borrower, terms for the discharge of a debt;
(b)taking over, in return for payments by the borrower, that person’s obligation to discharge a debt;
(c)any similar activity concerned with the liquidation of a debt.
(2) The following activities are, when carried on in relation to debts due under a consumer hire agreement, controlled activities—
(a)negotiating with the owner, on behalf of the hirer, terms for the discharge of a debt;
(b)taking over, in return for payments by the hirer, that person’s obligation to discharge a debt;
(c)any similar activity concerned with the liquidation of a debt.
Textual Amendments
F38Sch. 1 paras. 5A, 5B inserted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013 (S.I. 2013/1881), arts. 1(2)(6), 17(6)(b)
5B.—(1) Advising a borrower about the liquidation of a debt due under a relevant credit agreement is a controlled activity.
(2) Advising a hirer about the liquidation of a debt due under a consumer hire agreement is a controlled activity.]
Textual Amendments
F38Sch. 1 paras. 5A, 5B inserted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013 (S.I. 2013/1881), arts. 1(2)(6), 17(6)(b)
6.—(1) The activity consisting of both—
(a)the safeguarding of assets belonging to another; and
(b)the administration of those assets,
or arranging for one or more other persons to carry on that activity, is a controlled activity if either the condition in paragraph (a) or (b) of sub-paragraph (2) is met.
(2) The condition is that—
(a)the assets consist of or include any investment which is a security or a contractually based investment; or
(b)the arrangements for their safeguarding and administration are such that the assets may consist of or include investments of the kind mentioned in sub-paragraph (a) and either the assets have at any time since 1st June 1997 done so, or the arrangements have at any time (whether before or after that date) been held out as ones under which such investments would be safeguarded and administered.
(3) For the purposes of this article—
(a)it is immaterial that title to the assets safeguarded and administered is held in uncertificated form;
(b)it is immaterial that the assets safeguarded and administered may be transferred to another person, subject to a commitment by the person safeguarding and administering them, or arranging for their safeguarding and administration, that they will be replaced by equivalent assets at some future date or when so requested by the person to whom they belong.
(4) For the purposes of this article, the following activities do not constitute the administration of assets—
(a)providing information as to the number of units or the value of any assets safeguarded;
(b)converting currency;
(c)receiving documents relating to an investment solely for the purpose of onward transmission to, from or at the direction of the person to whom the investment belongs.
7.—[F39(1)] Advising a person is a controlled activity if the advice is—
(a)given to the person in his capacity as an investor or potential investor, or in his capacity as agent for an investor or a potential investor; and
(b)advice on the merits of his doing any of the following (whether as principal or agent)—
(i)buying, selling, subscribing for or underwriting a particular investment which is a security[F40, structured deposit] or a contractually based investment; or
(ii)exercising any right conferred by such an investment to buy, sell, subscribe for or underwrite such an investment.
[F41(2) Advising a person is a controlled activity if the advice is—
(a)given to the person in that person’s capacity as a lender or potential lender under a relevant paragraph 4C agreement, or in that person’s capacity as an agent for a lender or potential lender under such an agreement; and
(b)advice on the merits of the person doing any of the following (whether as principal or agent)—
(i)entering into a relevant paragraph 4C agreement as a lender or assuming the rights of a lender under such an agreement,
(ii)providing instructions to an operator with a view to entering into a relevant paragraph 4C agreement as a lender or to assuming the rights of a lender under such an agreement by assignment or operation of law, where the instructions involve—
(aa)accepting particular parameters for the terms of the agreement presented by an operator,
(bb)choosing between options governing the parameters of the terms of the agreement presented by an operator, or
(cc)specifying the parameters of the terms of the agreement by other means,
(iii)enforcing or exercising the lender’s rights under a relevant paragraph 4C agreement, or
(iv)assigning rights under a relevant paragraph 4C agreement.
(3) In sub-paragraph (2)—
“operator” means a person carrying on a controlled activity of the kind specified by paragraph 4C(1) or (2D), and
“relevant paragraph 4C agreement” means a paragraph 4C agreement (within the meaning of that paragraph) which has been, or is to be, entered into with the facilitation of a person carrying on a controlled activity of the kind specified by paragraph 4C(1) or (2D) not in contravention of the general prohibition.
(4) For the purposes of the application of section 21(9) and (10) of the Act (restrictions on financial promotion) to an activity of a kind specified by sub-paragraph (2), paragraph 26D of this Schedule (relevant credit agreements), and article 4 (definition of controlled activities and controlled investments) in so far as it relates to that paragraph, have effect as if the reference to a relevant credit agreement in paragraph 26D includes a reference to a paragraph 4C agreement.]
Textual Amendments
F39Sch. 1 para. 7 renumbered as Sch. 1 para. 7(1) (17.3.2016 for specified purposes, 6.4.2016 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2016 (S.I. 2016/392), arts. 1(2)(3)(d), 6(3)(a) (with Pt. 5)
F40Words in Sch. 1 para. 7(1)(b)(i) inserted (1.4.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2017 (S.I. 2017/488), art. 1(2), Sch. para. 9(10)(e)
F41Sch. 1 para. 7(2)-(4) inserted (17.3.2016 for specified purposes, 6.4.2016 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2016 (S.I. 2016/392), arts. 1(2)(3)(d), 6(3)(b) (with Pt. 5)
8. Advising a person to become, or continue or cease to be, a member of a particular Lloyd's syndicate is a controlled activity.
9.—(1) Entering as provider into a qualifying funeral plan contract is a controlled activity.
(2) A “qualifying funeral plan contract” is a contract under which—
(a)a person (“the customer”) makes one or more payments to another person (“the provider”);
(b)the provider undertakes to provide, or to secure that another person provides, a funeral in the United Kingdom for the customer (or some other person who is living at the date when the contract is entered into) on his death; and
(c)the provider is a person who carries on the regulated activity specified in article 59 of the Regulated Activities Order.
10.—(1) Providing qualifying credit is a controlled activity.
(2) “Qualifying credit” is a credit provided pursuant to an agreement under which—
(a)the lender is a person who carries on the regulated activity specified in article 61 of the Regulated Activities Order; and
(b)the obligation of the borrower to repay is secured (in whole or in part) on land.
(3) “Credit” includes a cash loan and any other form of financial accommodation.
10A.—[F42(1)] Making arrangements—
(a)for another person to enter as borrower into an agreement for the provision of qualifying credit; or
(b)for a borrower under a regulated mortgage contract [F43falling within sub-paragraph (2)] to vary the terms of that contract in such a way as to vary his obligations under that contract,
is a controlled activity.
[F44(2) A regulated mortgage contract falls within this sub-paragraph if—
(a)the contract was entered into on or after 31st October 2004; or
(b)the contract—
(i)was entered into before 31st October 2004; and
(ii)was a regulated credit agreement immediately before 21st March 2016.
(3) In this paragraph “regulated mortgage contract” has the meaning given by article 61(3) of the Regulated Activities Order.]
Textual Amendments
F42Sch. 1 para. 10A renumbered as Sch. 1 para. 10A(1) (17.3.2016 for specified purposes, 21.3.2016 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2016 (S.I. 2016/392), arts. 1(2)(3)(c), 6(4)(a) (with Pt. 5)
F43Words in Sch. 1 para. 10A(1)(b) substituted (17.3.2016 for specified purposes, 21.3.2016 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2016 (S.I. 2016/392), arts. 1(2)(3)(c), 6(4)(b) (with Pt. 5)
F44Sch. 1 para. 10A(2)(3) inserted (17.3.2016 for specified purposes, 21.3.2016 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2016 (S.I. 2016/392), arts. 1(2)(3)(c), 6(4)(c) (with Pt. 5)
10B.—(1) Advising a person is a controlled activity if the advice is—
(a)given to the person in his capacity as a borrower or potential borrower; and
(b)advice on the merits of his doing any of the following—
(i)entering into an agreement for the provision of qualifying credit, or
(ii)varying the terms of a regulated mortgage contract [F45falling within sub-paragraph (1A)] in such a way as to vary his obligations under that contract.
[F46(1A) A regulated mortgage contract falls within this sub-paragraph if—
(a)the contract was entered into on or after 31st October 2004; or
(b)the contract—
(i)was entered into before 31st October 2004; and
(ii)was a regulated credit agreement immediately before 21st March 2016.]
(2) In this paragraph, “borrower” and “regulated mortgage contract” have the meaning given by article 61(3) of the Regulated Activities Order.
Textual Amendments
F45Words in Sch. 1 para. 10B(1) substituted (17.3.2016 for specified purposes, 21.3.2016 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2016 (S.I. 2016/392), arts. 1(2)(3)(c), 6(5)(a) (with Pt. 5)
F46Sch. 1 para. 10B(1A) inserted (17.3.2016 for specified purposes, 21.3.2016 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2016 (S.I. 2016/392), arts. 1(2)(3)(c), 6(5)(b) (with Pt. 5)
10BA. Entering into a relevant credit agreement[F48, other than an agreement under which qualifying credit within the meaning of paragraph 10 is provided,] as lender, or exercising or having the rights to exercise the rights of the lender under such an agreement, is a controlled activity.
Textual Amendments
F47Sch. 1 paras. 10BA, 10BB inserted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013 (S.I. 2013/1881), arts. 1(2)(6), 17(6)(c)
F48Words in Sch. 1 para. 10BA inserted (14.2.2014 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2014 (S.I. 2014/366), arts. 1(3)(4), 10(8)(c)
10BAA. Advising a person is a controlled activity if the advice—
(a)is given to the person in the person's capacity as a recipient of credit, or potential recipient of credit; and
(b)consists of the provision of personal recommendations to the person in respect of one or more transactions relating to a relevant credit agreement where the person intends to use the credit to acquire or retain property rights in land or in an existing or projected building, other than an agreement under which qualifying credit within the meaning of paragraph 10 is provided.]
Textual Amendments
F47Sch. 1 paras. 10BA, 10BB inserted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013 (S.I. 2013/1881), arts. 1(2)(6), 17(6)(c)
F49Sch. 1 para. 10BAA inserted (20.4.2015 for specified purposes, 21.12.2015 for specified purposes, 21.3.2016 in so far as not already in force) by The Mortgage Credit Directive Order 2015 (S.I. 2015/910), art. 1(5), Sch. 1 para. 12(2) (with Pt. 4)
10BB. Entering into a regulated consumer hire agreement[F50, or an agreement that would be such an agreement but for article 60O (exempt agreements: exemptions relating to nature of agreement) or 60Q (exempt agreements: exemptions relating to nature of hirer) of the Regulated Activities Order,] as owner or exercising or having the right to exercise the rights of the owner under such an agreement is a controlled activity.]
Textual Amendments
F47Sch. 1 paras. 10BA, 10BB inserted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013 (S.I. 2013/1881), arts. 1(2)(6), 17(6)(c)
F50Words in Sch. 1 para. 10BB inserted (14.2.2014 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2014 (S.I. 2014/366), arts. 1(3)(4), 10(8)(d)
10C. Entering into a regulated home reversion plan as plan provider is a controlled activity.
Textual Amendments
F51Sch. 1 paras. 10C-10H inserted (6.11.2006 for specified purposes, 6.4.2007 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2006 (S.I. 2006/2383), arts. 1(2), 35(5)(a)
10D. Making arrangements—
(a)for another person to enter as reversion seller or plan provider into a regulated home reversion plan; or
(b)for a reversion seller or a plan provider under a regulated home reversion plan, entered into on or after 6th April 2007 by him, to vary the terms of that plan in such a way as to vary his obligations under that plan,
is a controlled activity.
Textual Amendments
F51Sch. 1 paras. 10C-10H inserted (6.11.2006 for specified purposes, 6.4.2007 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2006 (S.I. 2006/2383), arts. 1(2), 35(5)(a)
10E. Advising a person is a controlled activity if the advice is—
(a)given to the person in his capacity as reversion seller, potential reversion seller, plan provider or potential plan provider; and
(b)advice on the merits of his doing either of the following—
(i)entering into a regulated home reversion plan, or
(ii)varying the terms of a regulated home reversion plan, entered into on or after 6th April 2007 by him, in such a way as to vary his obligations under that plan.
Textual Amendments
F51Sch. 1 paras. 10C-10H inserted (6.11.2006 for specified purposes, 6.4.2007 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2006 (S.I. 2006/2383), arts. 1(2), 35(5)(a)
10F. Entering into a regulated home purchase plan as home purchase provider is a controlled activity.
Textual Amendments
F51Sch. 1 paras. 10C-10H inserted (6.11.2006 for specified purposes, 6.4.2007 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2006 (S.I. 2006/2383), arts. 1(2), 35(5)(a)
10G. Making arrangements—
(a)for another person to enter as home purchaser into a regulated home purchase plan; or
(b)for a home purchaser under a regulated home purchase plan, entered into on or after 6th April 2007 by him, to vary the terms of that plan in such a way as to vary his obligations under that plan,
is a controlled activity.
Textual Amendments
F51Sch. 1 paras. 10C-10H inserted (6.11.2006 for specified purposes, 6.4.2007 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2006 (S.I. 2006/2383), arts. 1(2), 35(5)(a)
10H. Advising a person is a controlled activity if the advice is—
(a)given to the person in his capacity as home purchaser or potential home purchaser; and
(b)advice on the merits of his doing either of the following—
(i)entering into a regulated home purchase plan, or
(ii)varying the terms of a regulated home purchase plan, entered into on or after 6th April 2007 by him, in such a way as to vary his obligations under that plan.]
Textual Amendments
F51Sch. 1 paras. 10C-10H inserted (6.11.2006 for specified purposes, 6.4.2007 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2006 (S.I. 2006/2383), arts. 1(2), 35(5)(a)
10I. Entering into a regulated sale and rent back agreement as agreement provider is a controlled activity.
Textual Amendments
F52Sch. 1 paras. 10I-10K inserted (1.7.2009 for specified purposes, 30.6.2010 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2009 (S.I. 2009/1342), arts. 1(2), 30(4)(a)
10J. Making arrangements—
(a)for another person to enter as agreement seller or agreement provider into a regulated sale and rent back agreement; or
(b)for an agreement seller or an agreement provider under a regulated sale and rent back agreement, entered into on or after 1st July 2009, to vary the terms of that plan in such a way as to vary the obligations of the agreement seller or the agreement provider under that plan,
is a controlled activity.
Textual Amendments
F52Sch. 1 paras. 10I-10K inserted (1.7.2009 for specified purposes, 30.6.2010 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2009 (S.I. 2009/1342), arts. 1(2), 30(4)(a)
10K. Advising a person (“A”) is a controlled activity if the advice is—
(a)given to A in A’s capacity as agreement seller, potential agreement seller, agreement provider or potential agreement provider; and
(b)advice on the merits of A doing either of the following—
(i)entering into a regulated sale and rent back agreement, or
(ii)varying the terms of a regulated sale and rent back agreement, entered into on or after 1st July 2009 by A, in such a way as to vary A’s obligations under that agreement.]
Textual Amendments
F52Sch. 1 paras. 10I-10K inserted (1.7.2009 for specified purposes, 30.6.2010 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2009 (S.I. 2009/1342), arts. 1(2), 30(4)(a)
11. Agreeing to carry on any controlled activity falling within any of paragraphs 3 to [F5310BB] above [F54(other than paragraph 4A)] is a controlled activity.
Textual Amendments
F53Word in Sch. 1 para. 11 substituted (14.2.2014 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2014 (S.I. 2014/366), arts. 1(3)(4), 10(8)(e)
F54Words in Sch. 1 para. 11 inserted (1.4.2007 for specified purposes, 1.11.2007 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment No. 3) Order 2006 (S.I. 2006/3384), arts. 1(2), 40(2)(b)
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