F1PART 7Transitional and saving provision: exemption from the general prohibition
CHAPTER 1Exemption from the general prohibition
Exemption from the general prohibition under Part 2 of the Financial Services and Markets Act 2000C147
1
A person to whom this regulation applies is an exempt person for the purposes of section 19(1)(b) of the 2000 Act (the general prohibition).
2
The exemption has effect only in respect of a regulated activity specified (by reference to regulations 49 to 51) in regulation 52.
Application of regulation 4748
1
Regulation 47 applies to a person who—
a
is authorised, under the law of the person’s home state, to carry on an activity which is regulated by the person’s home state regulator, and
b
satisfies the conditions in regulation 49, F249A, 50 or 51.
2
Regulation 47 applies to such a person for the period determined in accordance with regulation 66.
Conditions to be satisfied for regulation 47 to apply: persons who cease to be authorised on F7IP completion day49
The conditions are that the person is one—
a
who, immediately before F6IP completion day—
i
is authorised to carry on a regulated activity in the United Kingdom by virtue of section 31(1)(b) or (c) of the 2000 Act, and
ii
is carrying on such an activity F4or, subject to paragraph (3), providing a payment service in the United Kingdom other than through an establishment in the United Kingdom,
F3aa
who is not a Gibraltar firm,
b
who, on F6IP completion day, is not authorised to carry on a regulated activity by virtue of section 31(1)(a) of the 2000 Act, and
c
to whom regulation 8 does not apply.
2
In this regulation, reference to carrying on a regulated activity at a particular time includes where the performance of a pre-existing contract requires, or may require, a regulated activity to be carried on at another time.
F53
The reference to providing a payment service in paragraph (a)(ii) applies only to a credit institution which was providing the service in the United Kingdom immediately before F6IP completion day in accordance with the exercise of an EEA passport right under Title 5 of Directive 2013/36/EU as in force immediately before F6IP completion day.
Conditions to be satisfied for regulation 47 to apply: persons to whom regulation 28 ceases to apply50
The conditions are that the person is one—
a
to whom regulation 28 ceases to apply, in accordance with regulation 41(7),
b
who, on regulation 28 ceasing to apply, is not authorised by virtue of section 31(1)(a) of the 2000 Act to carry on a regulated activity to which, immediately before regulation 28 ceases to apply, the person is permitted to carry on by virtue of that regulation,
c
who, immediately before regulation 28 ceases to apply, is carrying on such an activity in the United Kingdom other than through an establishment in the United Kingdom, and
d
who is the subject of a direction under section 55JA of the 2000 Act (inserted by regulation 43 in respect of persons to whom regulation 28 or 24 applies).
Conditions to be satisfied for regulation 47 to apply: persons to whom regulation 34 ceases to apply51
The conditions are that the person is one—
a
to whom regulation 34 ceases to apply, in accordance with regulation 41(5), (7) or (9),
b
who, on regulation 34 ceasing to apply, is not authorised by virtue of section 31(1)(a) of the 2000 Act to carry on a regulated activity which, immediately before regulation 34 ceases to apply, the person is permitted to carry on by virtue of that regulation,
c
who, immediately before regulation 34 ceases to apply, is carrying on such an activity in the United Kingdom other than through an establishment in the United Kingdom, and
d
who is the subject of a direction under section 55JA of the 2000 Act (inserted by regulation 43 in respect of persons to whom regulation 28 or 24 applies).
Regulated activities to which regulation 47 has effect52
1
A regulated activity in respect of which the exemption in regulation 47 has effect is one—
a
which is necessary for the performance of a pre-existing contract,
b
which is a carried on for the purposes of performing such a contract,
c
which is not a regulated activity the person is authorised to carry on by virtue of section 31(1)(a) of the 2000 Act,
d
which is an activity which, if carried on in the person’s home state—
i
would need authorisation by the person’s home state regulator, and
ii
is authorised by the person’s home state regulator, and
e
to which paragraph (2) applies.
2
This paragraph applies to a regulated activity—
a
in the case of a person who satisfies the conditions in regulation 49, which the person is, immediately before F8IP completion day, authorised to carry on in the United Kingdom by virtue of section 31(1)(b) or (c) of the 2000 Act;
b
in the case of a person who satisfies the conditions in regulation 50, which the person is, immediately before the day on which regulation 28 ceases to apply, permitted to carry on in the United Kingdom by virtue of that regulation;
c
in the case of a person who satisfies the conditions in regulation 51, which the person is, immediately before the day on which regulation 34 ceases to apply, permitted to carry on in the United Kingdom by virtue of that regulation.
3
For the purposes of paragraph (1), the performance of a pre-existing contract includes the performance of an obligation under the contract which is contingent or conditional.
4
The person is also exempt in respect of a regulated activity which is necessary—
a
for the purposes of reducing the financial risk of—
i
a party to a pre-existing contract, or
ii
a third-party affected by the performance of a pre-existing contract;
b
in order to transfer the property, rights or liabilities under a pre-existing contract to a person authorised to carry on a regulated activity by virtue of section 31(1)(a) of the 2000 Act (other than by virtue of these Regulations);
c
in order to comply with a requirement imposed by or under an enactment.
5
A person is only exempt in respect of a regulated activity in so far as is necessary for the purposes specified in paragraph (1) or (3).
Pt. 7 inserted (1.3.2019) by The Financial Services Contracts (Transitional and Saving Provision) (EU Exit) Regulations 2019 (S.I. 2019/405), regs. 1(2), 3