Statutory Instruments
FINANCIAL SERVICES AND MARKETS
Made
26th April 2007
Laid before Parliament
27th April 2007
Coming into force
6th June 2007
The Treasury make the following Order in exercise of the powers conferred upon them by sections 22(1) and (5) and 428(3) of, and paragraph 25 of Schedule 2 to, the Financial Services and Markets Act 2000(1):
1. This Order may be cited as the Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2007 and comes into force on 6th June 2007.
2. The Financial Services and Markets Act 2000 (Regulated Activities) Order 2001(2) is amended as follows.
3. In article 3(1), in the definition of “qualifying contract of insurance”, in paragraph (b), omit sub-paragraph (ii).
Alan Campbell
Kevin Brennan
Two of the Lords Commissioners of Her Majesty’s Treasury
26th April 2007
(This note is not part of the Order)
The Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 specifies kinds of activities and investments for the purposes of the Financial Services and Markets Act 2000 (“the Act”). When an activity of a specified kind is carried on by way of business in relation to an investment of a specified kind, it is a “regulated activity” for the purposes of the Act.
The amendment made by this Order concerns investments described as “qualifying contracts of insurance”. The definition of a qualifying contract of insurance excludes contracts which contain a condition that the contract must provide that benefits are payable on death (other than death due to an accident) only where the death occurs within ten years of the date on which the life of the person in question was first insured under the contract, or where death occurs before that person attains a specified age, not exceeding 70 years.
The Order removes the above condition in relation to contracts excluded from the definition of qualifying contracts of insurance, with the effect that more contracts of long-term insurance will not fall within the definition of a qualifying contract of insurance and therefore will be subject to less stringent regulation.
A Regulatory Impact Assessment of the effect of this instrument on the costs of business has been prepared, which may be obtained from the Financial Services Strategy Team, HM Treasury, 1 Horse Guards Road, London SW1A 2HQ. It is also available on HM Treasury’s website (www.hm-treasury.gov.uk), and a copy of the document has been placed in the libraries of both Houses of Parliament.