PART 4AMENDMENTS OF OTHER SECONDARY LEGISLATION

Amendments of the Financial Services and Markets Act 2000 (Financial Promotion) Order 200530

1

The Financial Services and Markets Act 2000 (Financial Promotion) Order 200511 is amended as follows.

2

In article 28B(1)(a) (one off non-real time communications and solicited real time communications) for “10G or 10H” substitute “10G, 10H, 10I, 10J or 10K”.

3

In article 73(2) (advice centres)—

a

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

b

after sub-paragraph (e) insert—

  • ; or

    1. a

      a regulated sale and rent back agreement

4

In Schedule 1 Part 1 (controlled activities)—

a

after paragraph 10H (advising on a regulated home purchase plan) insert—

Providing a regulated sale and rent back agreement10I

Entering into a regulated sale and rent back agreement as agreement provider is a controlled activity.

Arranging a regulated sale and rent back agreement10J

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.

Advising on a regulated sale and rent back agreement10K

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.

5

In Schedule 1 Part 2 (controlled investments)—

a

after paragraph 26B (regulated home purchase plans) insert—

Regulated sale and rent back agreement26C

Rights under a regulated sale and rent back agreement.

b

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

c

in paragraph 28 (interpretation)—

i

before the definition of “buying” insert—

  • “agreement provider” has the meaning given in paragraph (3) of article 63J of the Regulated Activities Order, read with paragraphs (6) and (7) of that article;

  • “agreement seller” has the meaning given in article 63J(3) of the Regulated Activities Order

ii

after the definition of “regulated home reversion plan” and “reversion seller” insert—

  • “regulated sale and rent back agreement” has the meaning given in article 63J(3) of the Regulated Activities Order;