Amendment of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001I2I3I12

1

The Financial Services and Markets Act 2000 (Regulated Activities) Order 20015 is amended as follows.

2

In article 60C (exempt agreements: exemption relating to the nature of the agreement) for paragraph (2) substitute—

2

A credit agreement is an exempt agreement if—

a

by entering into the agreement as lender, a person is or was carrying on an activity of a kind specified by article 61(1) (entering into regulated mortgage contracts); or

b

by entering into the agreement as home purchase provider, a person is or was carrying on an activity of a kind specified by article 63F(1) (entering into regulated home purchase plans).

3

In article 60C(2) (as substituted by paragraph (2) of this article)—

a

omit “or” after sub-paragraph (a); and

b

after sub-paragraph (b) insert—

; or

c

in the case of an agreement entered into before 31st October 2004, by administering the agreement on 21st March 2016 a person is carrying on an activity of a kind specified by article 61(2) (administering regulated mortgage contracts).

4

In article 61 (regulated mortgage contracts), in paragraph (2) for “, where the contract was entered into by way of business after the coming into force of this article” substitute—

where—

a

the contract was entered into by way of business on or after 31st October 2004; or

b

the contract—

i

was entered into by way of business before 31st October 2004, and

ii

was a regulated credit agreement immediately before 21st March 2016.

5

In article 61A (mortgage contracts which are not regulated mortgage contracts)—

a

in paragraph (1)—

i

omit “or” after sub-paragraph (d); and

ii

after sub-paragraph (e) insert—

; or

f

an exempt equitable mortgage bridging loan;

b

in paragraph (6) after the definition of “exempt consumer buy-to-let mortgage contract” insert—

  • “exempt equitable mortgage bridging loan” is a contract that—

    1. a

      is a bridging loan;

    2. b

      is secured by an equitable mortgage on land; and

    3. c

      is an exempt agreement within the meaning of article 60B(3) (regulated credit agreements) by virtue of article 60E(2) (exempt agreements: exemptions relating to the nature of the lender).