PART 4AMENDMENTS OF OTHER SECONDARY LEGISLATION

Amendments of the Financial Services and Markets Act 2000 (Financial Promotion) Order 200535

1

The Financial Services and Markets Act 2000 (Financial Promotion) Order 200521 is amended as follows.

2

In the title of article 28B (real time communications: introductions in connection with qualifying credit) delete “in connection with qualifying credit”.

3

In article 28B(1)(a) for “paragraphs 10, 10A or 10B” substitute “paragraph 10, 10A, 10B, 10C, 10D, 10E, 10F, 10G or 10H”.

4

In article 73(2) (advice centres)—

a

delete “or” at the end of sub-paragraph (b);

b

after sub-paragraph (c) insert—

;

d

a regulated home reversion plan; or

e

a regulated home purchase plan

5

In Schedule 1 Part 1 (controlled activities)—

a

after paragraph 10B (advising on qualifying credit etc.) insert—

Providing a regulated home reversion plan10C

Entering into a regulated home reversion plan as plan provider is a controlled activity.

Arranging a regulated home reversion plan10D

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.

Advising on a regulated home reversion plan10E

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.

Providing a regulated home purchase plan10F

Entering into a regulated home purchase plan as home purchase provider is a controlled activity.

Arranging a regulated home purchase plan10G

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.

Advising on a regulated home purchase plan10H

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.

6

In Schedule 1 Part 2 (controlled investments)—

a

after paragraph 26 (agreements for qualifying credit) insert—

Regulated home reversion plans26A

Rights under a regulated home reversion plan.

Regulated home purchase plans26B

Rights under a regulated home purchase plan.

b

in paragraph 27(1) (rights to or interests in investments) for “paragraph 26” substitute “paragraph 26, 26A or 26B”;

c

in paragraph 28 (interpretation)—

i

after the definition of “contractually based investment” insert—

  • “home purchase provider” and “home purchaser” have the meanings given in article 63F(3) of the Regulated Activities Order;

ii

after the definition of “occupational pension scheme” insert—

  • “plan provider” has the meaning given by paragraph (3) of article 63B of the Regulated Activities Order, read with paragraphs (7) and (8) of that article;

iii

after the definition of “qualifying funeral plan contract” insert—

  • “regulated home purchase plan” has the meaning given in article 63F(3) of the Regulated Activities Order;

  • “regulated home reversion plan” and “reversion seller” have the meanings given in article 63B(3) of the Regulated Activities Order;