C1PART 3Amendments to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001
C1IntroductionI39C1120
The Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 M1 is amended as follows.
C1Article 3 (interpretation)I2C1121
1
In article 3 (interpretation) paragraph (1) is amended as set out in paragraphs (2) to (13).
2
3
In the definition of “contract of insurance”M7, for paragraph (f) substitute—
f
contracts relating to the length of human life that are regulated by or under any enactment relating to social security, in so far as they are effected or carried out at their own risk by undertakings with permission to effect or carry out contracts of long-term insurance as principals;
4
In the definition of “financial instrument”M8, for “Section C of Annex I to the markets in financial instruments directive (the text of which is set out in Part 1 of Schedule 2)” substitute “
Part 1 of Schedule 2
”
.
5
Omit the definition of “home Member State”M9 and insert in the appropriate place—
“home State”—
a
in relation to a qualifying credit institution, means the State in which the institution has been granted authorisation;
b
in relation to a legal person (other than a qualifying credit institution) that has a registered office under the person's national law, means the State in which that office is located;
c
in relation to any other person, means the State in which the person's head office is located;
6
For the definition of “investment firm”M10 substitute—
“investment firm” means a person whose regular occupation or business is the provision or performance of investment services and activities on a professional basis, other than—
a
a person excluded by Schedule 3, read with the Commission Regulation and with Commission Delegated Regulation (EU) 2017/592 of 1 December 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council with regard to regulatory technical standards for the criteria to establish when an activity is considered to be ancillary to the main business;
b
a person whose home State is not the United Kingdom and who would be excluded by Schedule 3, read with the Commission Regulation and with Commission Delegated Regulation (EU) 2017/592, if the person's registered office (or head office, in the case of a person that is not a body corporate or a person that is a body corporate but has no registered office) was in the United Kingdom;
7
For the definition of “management company”M11 substitute—
“management company” has the meaning given by section 237(2) of the Act;
8
For the definition of “market operator”M12 substitute—
“market operator” means—
a
a person that manages or operates the business of a UK regulated market (including a person who does so as the UK regulated market itself), or
b
a person that would fall within paragraph (a) if the person had its registered office (or, if it does not have one, its head office) in the United Kingdom,
other than a person falling within paragraph (1A);
9
For the definition of “multilateral trading facility”M13 substitute—
“multilateral trading facility” or “MTF” means—
a
a UK multilateral trading facility (within the meaning of Article 2.1.14A of the markets in financial instruments regulation) operated by an investment firm, a qualifying credit institution or a market operator, or
b
a facility which—
i
is operated by an investment firm, qualifying credit institution or market operator whose home State is not the United Kingdom, and
ii
if its operator's home State was the United Kingdom, would be a UK multilateral trading facility (within the meaning of Article 2.1.14A of the markets in financial instruments regulation);
10
For the definition of “organised trading facility”M14 substitute—
“organised trading facility” or “OTF” means—
a
a UK organised trading facility (within the meaning of Article 2.1.15A of the markets in financial instruments regulation) operated by an investment firm, a qualifying credit institution or a market operator, or
b
a facility which—
i
is operated by an investment firm, qualifying credit institution or market operator whose home State is not the United Kingdom, and
ii
if its operator's home State was the United Kingdom, would be a UK organised trading facility (within the meaning of Article 2.1.15A of the markets in financial instruments regulation);
11
At the appropriate places insert—
“portfolio management” has the meaning given by Article 2.7 of the Commission Regulation;
“qualifying credit institution” means a credit institution which—
a
is a person who—
i
has Part 4A permission to carry on the regulated activity of accepting deposits, or
ii
satisfies the conditions for being given permission under Part 4A to carry on that activity, or
iii
is a body corporate incorporated in the United Kingdom and would satisfy those conditions—
aa
were its head office in the United Kingdom, or
bb
if it has a registered office, were its registered office, or its registered office and its head office, in the United Kingdom,
b
is not a friendly society,
c
is not a society registered as a credit union under—
i
i)the Co-operative and Community Benefit Societies Act 2014 M15,
ii
the Credit Unions (Northern Ireland) Order 1985 M16, or
iii
the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969 M17, and
d
is not a person excluded from the definition of “investment firm” by Schedule 3, read with the Commission Regulation and with Commission Delegated Regulation (EU) 2017/592 of 1 December 2016 supplementing Directive 2014/65/EU of the European Parliament and the Council with regard to regulatory technical standards for the criteria to establish when an activity is considered to be ancillary to the main business;
12
In the definition of “trade repository”M18, for “ESMA” in all four places substitute “
the FCA
”
.
13
At the appropriate places insert—
“UK regulated market” has the meaning given by Article 2.1.13A of the markets in financial instruments regulation;
“UK UCITS” has the meaning given by section 237(3) of the Act;
14
After paragraph (1) of article 3 insert—
1A
A person falls within this paragraph if—
a
the person is excluded from the definition of “investment firm” by Schedule 3, read with the Commission Regulation and with Commission Delegated Regulation (EU) 2017/592 of 1 December 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council with regard to regulatory technical standards for the criteria to establish when an activity is considered to be ancillary to the main business, or
b
the person is one whose home State is not the United Kingdom and who would be excluded from that definition by Schedule 3, read with the Commission Regulation and with Commission Delegated Regulation (EU) 2017/592, if the person had its registered office (or, if it does not have one, its head office) in the United Kingdom.
15
After paragraph (3) of article 3 insert—
4
In this Order any reference to a sourcebook is to a sourcebook in the Handbook of Rules and Guidance published by the FCA containing rules made by the FCA under the Act, as the sourcebook has effect on F1IP completion day.
C1Article 4 (specified activities: general)I3C1122
1
Article 4 (specified activities: general) is amended as follows.
2
In paragraph (4) M19, for “credit institution” (in both places) substitute “
qualifying credit institution
”
.
3
In paragraph (4A) M20, in sub-paragraph (a), for “an EEA State” substitute “
the United Kingdom
”
.
4
After that paragraph insert—
4AA
In its application to any activity relating to a contract of insurance entered into before F2IP completion day, paragraph (4A)(a) has effect as if “or an EEA State” were inserted after “the United Kingdom.
5
In paragraph (4B) M21, for “does not fall within Article 3(2) or (3) of the mortgages directive” substitute “
neither relates to an agreement to which section 423A(3) of the Act applies nor falls within the scope of any of the derogations set out in Article 3(3) of the mortgages directive (as it had effect immediately before F3IP completion day)
”
.
6
In paragraph (5) M22—
a
in the definition of “ancillary insurance intermediary”, after “Schedule 4” insert “
, read with the modifications set out in paragraph 3 of Part 6 M23 of that Schedule
”
;
b
in the definition of “insurance distribution”, after “respectively” insert “
, read with the modification set out in paragraph 4 of Part 6 of that Schedule
”
;
c
in the definition of “reinsurance distribution”, after “respectively” insert “
, read with the modifications set out in paragraphs 2 and 4 of Part 6 of that Schedule
”
.
C1Article 6 (sums paid by certain persons)I4C1123
1
In article 6 (sums paid by certain persons) paragraph (1)(a) is amended as follows.
2
In paragraph (i) omit “, the central bank of an EEA State other than the United Kingdom, or the European Central Bank”.
3
Omit paragraph (x) M24.
C1Article 9B (issuing electronic money)I5C1124
In article 9B M25 (issuing electronic money), in paragraph (a), for “credit institution” substitute “
qualifying credit institution
”
.
C1Article 9C (persons certified as small issuers etc)I6C1125
In article 9C M26 (persons certified as small issuers etc), in paragraph (2) omit “as defined in Article 4(1)(1) of the capital requirements regulation”.
Article 24A (bidding in emissions auctions)F12126
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Article 24B (miscellaneous exclusions)F13127
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C1Article 33B (provision of information – contracts of insurance)I7C1128
1
Article 33B M27 (provision of information – contracts of insurance) is amended as follows.
2
In paragraph (4)—
a
for the definition of “insurance intermediary” substitute—
“insurance intermediary” means a person other than—
a
an insurance or reinsurance undertaking or an employee of such an undertaking, or
b
an ancillary insurance intermediary,
who, for remuneration, takes up or pursues the activity of insurance distribution;
b
for the definition of “reinsurance intermediary” substitute—
“reinsurance intermediary” means a person other than—
a
a reinsurance undertaking, or
b
an employee of a reinsurance undertaking,
who, for remuneration, takes up or pursues the activity of reinsurance distribution;
3
After that paragraph insert—
5
In paragraph (4)—
“ancillary insurance intermediary”, “insurance distribution” and “reinsurance distribution” have the same meaning as in article 4;
“remuneration” means any commission, fee, charge or other payment, including an economic benefit of any kind or any other financial or non-financial advantage or incentive offered or given.
C1Article 35 (international securities self-regulating organisations)I8C1129
1
In article 35 (international securities self-regulating organisations) paragraph (3) is amended as follows.
2
In sub-paragraph (ba) M28 omit “an EEA central counterparty (as defined in section 285(1)(c) of the Act) or”.
3
In sub-paragraph (bb) M29 omit “an EEA CSD (as defined in section 285(1)(f) of the Act) or”.
C1Article 35A (trade repositories)I1130
At the end of article 35A M30 (trade repositories), the existing text of which becomes paragraph (1), insert—
2
The reference in paragraph (1)(a) to Regulation (EU) 648/2012 is a reference to that instrument as it has effect at the beginning of the day on which the Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019 are made (but see regulation 2 of the European Union (Withdrawal) Act 2018 (Consequential Modifications and Repeals and Revocations) Regulations 2019 M31, which may further update the reference).
C1Article 42A (depositaries of UCITS and AIFs)I9C1131
1
Article 42A M32 (depositaries of UCITS and AIFs) is amended as follows.
2
In the heading, for “UCITS” substitute “
UK UCITS
”
.
3
In paragraph (a), for “a UCITS” substitute “
a UK UCITS
”
.
C1Article 51ZA (managing a UCITS)I10C1132
1
Article 51ZA M33 (managing a UCITS) is amended as set out in paragraphs (2) to (4).
2
In the heading and in paragraph (1), for “a UCITS” substitute “
a UK UCITS
”
.
3
For paragraph (2) substitute—
2
A person manages a UK UCITS when the person carries on collective portfolio management of it.
2A
In paragraph (2) “collective portfolio management” includes investment management, administration and marketing; and “administration” here means—
a
legal and fund management accounting services;
b
customer inquiries;
c
valuation and pricing (including tax returns);
d
regulatory compliance monitoring;
e
maintenance of unit-holder register;
f
distribution of income;
g
unit issues and redemptions;
h
contract settlements (including certificate dispatch);
i
record keeping.”.
4
In paragraph (3), for “a UCITS” substitute “
a UK UCITS
”
.
5
In consequence of the amendments made by paragraphs (2) to (4)—
a
in article 72H M34, in paragraph (2)(m), for “a UCITS” substitute “
a UK UCITS
”
;
b
omit Schedule 6.
C1Article 51ZB (acting as trustee or depositary of a UCITS)I11C1133
1
In article 51ZB M35 (acting as trustee or depositary of a UCITS), in the heading and in paragraph (1), for “a UCITS” substitute “
a UK UCITS
”
.
2
In consequence of the amendments made by paragraph (1), in article 72H, in paragraph (2)(n), for “a UCITS” substitute “
a UK UCITS
”
.
C1Article 51ZD (acting as trustee or depositary of an AIF)I12C1134
1
Article 51ZD M36 (acting as trustee or depositary of an AIF) is amended as follows.
2
In paragraph (2) omit sub-paragraph (b) and the preceding “or”.
3
In paragraph (3), for sub-paragraph (a) substitute—
a
a person appointed as a depositary by the AIFM in compliance with a requirement imposed by rule 3.11.10, 3.11.12 or 3.11.33 of the Investment Funds sourcebook; or
C1Article 51ZG (operating a collective investment scheme in relation to a UCITS or an AIF)I13C1135
1
Article 51ZG M37 (operating a collective investment scheme in relation to a UCITS or an AIF) is amended as follows.
2
In the heading and in paragraph (1)(a), for “a UCITS” substitute “
a UK UCITS
”
.
3
In paragraph (2)(b) and (c), for “the UCITS or AIF” substitute “
the UK UCITS or the AIF
”
.
C1Article 53DA (advising on regulated credit agreements for the acquisition of land)I14C1136
In article 53DA M38 (advising on regulated credit agreements for the acquisition of land), for paragraph (2) substitute—
2
In this article—
a
a reference to any land or building—
i
in relation to an agreement entered into before F4IP completion day, is a reference to any land or building in the United Kingdom or within the territory of an EEA State;
ii
in relation to an agreement entered into on or after F4IP completion day, is a reference to any land or building in the United Kingdom;
b
“regulated credit agreement” has the meaning given by article 60B(3).
C1Article 54 (advice given in newspapers etc)I15C1137
1
In article 54 (advice given in newspapers etc), in paragraph (1)(b)(va) M39, after “land” and after “building” insert “
in the United Kingdom
”
.
2
The amendment made by paragraph (1) does not apply in relation to any advice published or given before F5IP completion day.
C1Article 60D (exempt agreements: exemption relating to the purchase of land for non-residential purposes)I16C1138
In article 60D (exempt agreements: exemption relating to the purchase of land for non-residential purposes), for paragraph (4) M40 substitute—
4
This article does not apply to an agreement if—
a
the agreement is entered into on or after 21st March 2016,
b
under the agreement a mortgage creditor grants or promises to grant a credit in the form of a deferred payment, loan or other similar financial accommodation,
c
the credit is granted or promised to an individual who is acting for purposes outside those of any trade, business or profession carried on by the individual,
d
the purpose of the agreement is to acquire or retain property rights in land or in an existing or projected building, and
e
the agreement does not meet the conditions in paragraphs (i) to (iii) of article 61(3)(a) (regulated mortgage contracts).
5
A reference in paragraph (4)(d) to any land or building—
a
in relation to an agreement entered into before F6IP completion day, is a reference to any land or building in the United Kingdom or within the territory of an EEA State;
b
in relation to an agreement entered into on or after F6IP completion day, is a reference to any land or building in the United Kingdom.
C1Article 60E (exempt agreements: exemptions relating to the nature of the lender)I17C1139
In Article 60E M41, in subsection (6)(a), for “credit institution” substitute “
qualifying credit institution
”
.
C1Article 60G (exempt agreements: exemptions relating to the total charge for credit)I18C1140
1
Article 60G M42 (exempt agreements: exemptions relating to the total charge for credit) is amended as follows.
2
In paragraph (2A)(a) M43, for “of a type described in Article 3(1) of the mortgages directive” substitute “
one to which subsection (2) of section 423A of the Act applies
”
.
3
In paragraph (2A)(b)—
a
for “of such a type” substitute “
one to which that subsection applies
”
;
b
in paragraph (i), for “of a kind to which the mortgages directive does not apply by virtue of Article 3(2) of that directive” substitute “
one to which subsection (3) of that section applies
”
;
c
in paragraph (ii) omit “within the meaning of Article 4(23) of the mortgages directive”.
4
In paragraph (8) M44, for “of a type described in Article 3(1) of the mortgages directive” substitute “
to which subsection (2) of section 423A of the Act applies
”
.
5
After that paragraph insert—
9
In this article “bridging loan” means a mortgage agreement that—
a
is of no fixed duration or is due to be repaid within 12 months, and
b
is used by a consumer, within the meaning given by section 423A(4) of the Act, as a temporary financing solution while transitioning to another financial arrangement for the immovable property concerned.
C1Article 60H (exempt agreements: exemptions relating to the nature of the borrower)I19C1141
1
Article 60H M45 (exempt agreements: exemptions relating to the nature of the borrower) is amended as follows.
2
In paragraph (1)(b)(ii) M46 omit sub-paragraph (bb) and the preceding “or”.
3
Omit paragraph (2) M47.
C1Article 60HA (exempt agreements: exemptions not permitted under the mortgages directive)I20C1142
1
Article 60HA M48 (exempt agreements: exemptions not permitted under the mortgages directive) is amended as follows.
2
In the heading, for “exemptions not permitted under the mortgages directive” substitute “
provision qualifying articles 60E, 60F and 60H
”
.
3
In paragraph (1) M49, for the words after “article 60E(2) or (5)” substitute “
or 60F(4) if it is a mortgage agreement to which paragraph (2) does not apply
”
.
4
In paragraph (2)—
a
after “This paragraph applies” insert “
to an agreement
”
;
b
omit paragraph (a);
c
in paragraph (b), for “of Article 4(23) of the mortgages directive” substitute “
given by article 60G(9)
”
.
C1Article 60JA (payment institutions)I21C1143
1
Omit article 60JA M50 (payment institutions).
2
In relation to a person who has transitional authorisation by virtue of paragraph 14 of Schedule 3 to the Electronic Money, Payment Services and Payment Systems (Amendment and Transitional Provisions) (EU Exit) Regulations 2018 M51 (“the 2018 Regulations”), the amendment made by paragraph (1) does not apply during the transition period (within the meaning given by paragraph 22 of that Schedule).
F142A
In relation to a person who has a continued authorisation for a limited purpose in accordance with paragraph 26 of Schedule 3 to the 2018 Regulations or is exempt from the prohibition in regulation 138(1) of Payment Services Regulations 2017 by virtue of paragraph 36 of Schedule 3 to the 2018 Regulations, the amendment made by paragraph (1) does not apply during the extension period (within the meaning given by paragraph 31 of that Schedule) or the period of exemption (within the meaning given by paragraph 36 of that Schedule).
C1Article 60JB (electronic money institutions)I22C1144
1
Omit article 60JB M53 (electronic money institutions).
2
In relation to a person who has transitional authorisation by virtue of paragraph 2 of Schedule 3 to the Electronic Money, Payment Services and Payment Systems (Amendment and Transitional Provisions) (EU Exit) Regulations 2018 (“the 2018 Regulations”), the amendment made by paragraph (1) does not apply during the transition period (within the meaning given by paragraph 10 of that Schedule).
F162A
In relation to a person who has continued authorisation for limited purposes in accordance with paragraph 12B of Schedule 3 to the 2018 Regulations or is exempt from the prohibition in regulation 63(1) of Electronic Money Regulations 2011 by virtue of paragraph 12L of Schedule 3 to the 2018 Regulations, the amendment made by paragraph (1) does not apply during the extension period (within the meaning given by paragraph 12G of that Schedule) or the period of exemption (within the meaning given by paragraph 12L of that Schedule).
C1Article 61 (regulated mortgage contracts)I23C1145
1
Article 61 (regulated mortgage contracts) is amended as follows.
2
In paragraph (3)(a)(ii) M55 omit “in the EEA”.
3
In paragraph (4), after sub-paragraph (a) insert—
C1Article 61A (mortgage contracts which are not regulated mortgage contracts)I24C1146
1
In article 61A M56 (mortgage contracts which are not regulated mortgage contracts) paragraph (6) is amended as follows.
2
In the definition of “bridging loan”, for “Article 4(23) of the mortgages directive” substitute “
article 60G(9)
”
.
3
In the definition of “exempt consumer buy-to-let mortgage contract”, in paragraph (a), for “of a kind to which the mortgages directive does not apply by virtue of Article 3(2) of that directive” substitute “
an agreement to which section 423A(3) of the Act applies
”
.
4
In the definition of “exempt housing authority loan”M57, in paragraph (b)—
a
for sub-paragraph (i) substitute—
i
is an agreement to which section 423A(3) of the Act applies,”;
b
in sub-paragraph (iii), for “exemptions not permitted under the mortgages directive” substitute “
provision qualifying articles 60E, 60F and 60H
”
.
C1Article 72 (overseas persons)I25C1147
1
Article 72 (overseas persons) is amended as follows.
2
In paragraph (8) M58, for “credit institution” substitute “
qualifying credit institution
”
.
3
In paragraphs (8)(b) and (10) M59 omit “Member”.
4
In paragraph (9A) M60—
a
in sub-paragraph (a) omit “23(2) or”;
b
omit sub-paragraph (b) and the preceding “or”.
5
After paragraph (10) insert—
10A
This article does not apply in the following two cases.
6
In paragraph (11) M61, for “This Article does not apply” substitute “
The first case is
”
.
7
After paragraph (11) insert—
11A
The second case is where the overseas person is—
a
a third-country firm, as defined by Article 2.1.42 of the markets in financial instruments regulation;
b
established in a county that is the subject of F18an equivalence determination; and
c
carrying on an activity a third country firm established in that third country may carry on, by virtue of the F19equivalence determination, under—
i
Article 46.1 of the markets in financial instruments regulation, if it is registered by the FCA in the register of third country firms established in accordance with Article 48 of that regulation, or
ii
Article 46.5 of that regulation.
8
In paragraph (12) M62—
a
for “paragraph (11)” substitute “
paragraphs (11) and (11A)
”
;
b
in sub-paragraph (a)—
i
after “by the Commission”, in both places, insert “
before F8IP completion day”
;
ii
omit the “and” at the end;
c
after sub-paragraph (b) insert—
F20c
“equivalence determination” means a determination made by the Treasury—
i
in regulations under Article 47.1 of the markets in financial instruments regulation and not revoked; or
ii
by direction under regulation 2 of the Equivalence Determinations for Financial Services and Miscellaneous Provisions (Amendment etc) (EU Exit) Regulations 2019 and not revoked;
F21d
a country is the subject of an equivalence determination if a period of more than three years has elapsed since—
i
the date on which the equivalence determination came into force, or
ii
where two or more equivalence determinations have been made in succession in relation to the country concerned, the date on which the first equivalence determination came into force;
e
for the purposes of sub-paragraph (d), an equivalence determination is not made in succession to an earlier determination if the earlier determination ceased to have effect before the later determination came into force.
C1Article 72AA (managers of UCITS and AIFs)I26C1148
1
In Article 72AA M63 (managers of UCITS and AIFs)—
a
in the heading, for “UCITS” substitute “
UK UCITS
”
;
b
in paragraph (2), for “a UCITS” substitute “
a UK UCITS
”
.
2
In consequence of the amendments made by paragraph (1), for “UCITS” substitute “
UK UCITS
”
in the following provisions—
a
article 9AA M64;
b
article 12A M65;
c
article 20 M66;
d
article 24;
e
article 36(1), (2) and (3);
f
article 39;
g
article 39C M67;
h
article 44;
i
article 50;
j
article 51A M68;
k
article 52A M69;
l
article 55(1) and (2);
m
article 58A M70;
n
article 60A M71;
o
article 63A M72;
p
article 63E M73;
q
article 63I M74;
r
article 63M M75.
C1Article 72D (large risks contracts where risk situated outside the EEA)I27C1149
1
Article 72D M76 (large risks contracts where risk situated outside the EEA) is amended as set out in paragraphs (2) to (4).
2
In the heading, for “the EEA” substitute “
the United Kingdom
”
.
3
In paragraph (1), for “an EEA State” substitute “
the United Kingdom
”
.
4
In paragraph (4) omit “(within the meaning of the Seventh Company Law Directive)”.
C1Article 72E (Business Angel-led Enterprise Capital Funds)I28C1150
In article 72E M81 (Business Angel-led Enterprise Capital Funds), in paragraph (8)—
a
for “in accordance with the law of an EEA State” substitute “
under the law of any part of the United Kingdom
”
;
b
for “within the territory of an EEA State” substitute “
in the United Kingdom
”
.
C1Article 72G (local authorities)I29C1151
1
Article 72G M82 (local authorities) is amended as follows.
2
In paragraph (3B)(b), for paragraph (i) substitute—
i
is an agreement to which section 423A(3) of the Act applies;
3
In paragraph (4)(a), in paragraph (ii), for the words after “a credit agreement” substitute “
falling within paragraph (6A) or within section 423A(2)(a) or (b) or (3)(b), (d), (e) or (f) of the Act;
”
.
4
In paragraph (4)(b), for paragraph (i) substitute—
i
it is an agreement to which section 423A(3) of the Act applies;
5
After paragraph (4) insert—
4A
A reference in paragraph (4) to any land or building—
a
in relation to an agreement entered into before F9IP completion day, is a reference to any land or building in the United Kingdom or within the territory of an EEA State;
b
in relation to an agreement entered into on or after F9IP completion day, is a reference to any land or building in the United Kingdom.
6
After paragraph (6) insert—
6A
The following credit agreements fall within this paragraph—
a
an agreement involving a total amount of credit of less than 200 euro;
b
an agreement that involves a total amount of credit of more than 75,000 euro, other than an unsecured credit agreement the purpose of which is the renovation of a residential immovable property;
c
a hiring or leasing agreement under which an obligation to purchase the object of the agreement is not laid down either by the agreement itself or by any separate agreement;
d
an agreement under which the credit is granted free of interest and without any other charges;
e
an agreement under which the credit has to be repaid within three months and only insignificant charges are payable;
f
an agreement concluded with an investment firm or a credit institution for the purposes of allowing an investor to carry out a transaction relating to one or more of the instruments listed in Part 1 of Schedule 2, where the investment firm or credit institution granting the credit is involved in that transaction;
g
an agreement under which the consumer's liability is strictly limited to an item that the consumer is requested to deposit, upon the conclusion of the agreement, as security in the creditor's safe-keeping;
h
an agreement that relates to a restricted public loan.
6B
For the purposes of subsection (6A)(c), an obligation to purchase the object of the agreement is deemed to exist if the creditor decides that it does.
7
In paragraph (7)—
a
in the definition of “bridging loan”, for “Article 4(23) of the mortgages directive” substitute “
article 60G(9)
”
;
b
at the appropriate place insert—
“consumer” means an individual who is acting for purposes outside those of any trade, business or profession carried on by the individual;
c
omit the definition of “consumer credit directive”.
C1Article 77A (alternative finance investment bonds)I30C1152
1
Article 77A M83 (alternative finance investment bonds) is amended as follows.
2
In paragraph (2), for sub-paragraph (f) M84 substitute—
f
the arrangements are—
i
a security that is admitted to the official list in accordance with Part 6 of the Act,
ii
a security that is admitted to an official list in the EEA (in accordance with the provisions of Directive 2001/34/EC of the European Parliament and of the Council on the admission of securities to official stock exchange listing and on information to be published on those securities) and has been so admitted since before F10IP completion day,
iii
a security that is admitted to trading on a recognised investment exchange or a UK trading venue, or
iv
a security that is admitted to trading on an EU trading venue and has been so admitted since before F10IP completion day.
3
After paragraph (3) insert—
3A
In sub-paragraph (2)(f)—
“EU trading venue” has the meaning given by Article 2.1.16B of the markets in financial instruments regulation;
“UK trading venue” has the meaning given by Article 2.1.16A of that regulation.
C1Article 78 (government and public securities)I31C1153
In article 78 (government and public securities), in paragraph (1)(g)(i) and (ii) omit “or another EEA State”.
Article 82A (greenhouse gas emissions allowances)F23154
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C1Article 82B (emission allowances)I32C1155
1
Article 82B M85 (emission allowances) is amended as follows.
F222
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
In paragraph (2), for sub-paragraphs (a) to (d) substitute—
a
an investment firm or qualifying credit institution is providing or performing investment services and activities on a professional basis,
b
a management company which has a Part 4A permission to do so is providing the investment service specified in paragraph 4 or 5 of Part 3 of Schedule 2 or the ancillary service specified in paragraph 1 of Part 3A of that Schedule,
c
a market operator is providing the investment service specified in paragraph 8 or 9 of Part 3 of that Schedule, or
d
a full-scope UK AIFM which has a Part 4A permission to do so is providing the investment service specified in paragraph 1, 4 or 5 of Part 3 of that Schedule or the ancillary service specified in paragraph 1 of Part 3A of that Schedule.
C1Article 83 (options)I33C1156
1
Article 83 (options) is amended as follows.
2
In paragraph (1)(e) M86, for the words after “an option to which” substitute “
paragraph 5, 6, 7 or 10 of Part 1 of Schedule 2 (read with Articles 5, 6, 7, and 8 of the Commission Regulation) applies
”
.
3
In paragraph (2)(d) M87—
a
in paragraph (i) omit “Section C of Annex I to the markets in financial instruments directive, the text of which is set out in”;
b
in paragraph (ii), for “Section C of Annex I to the markets in financial instruments directive” substitute “
Part 1 of that Schedule
”
.
4
In paragraph (3)(c) M88, for “Section C of Annex I to the markets in financial instruments directive” substitute “
Part 1 of Schedule 2
”
.
5
In paragraph (4) M89, for sub-paragraphs (a) to (d) substitute—
a
an investment firm or qualifying credit institution is providing or performing investment services and activities on a professional basis,
b
a management company which has a Part 4A permission to do so is providing the investment service specified in paragraph 4 or 5 of Part 3 of Schedule 2 or the ancillary service specified in paragraph 1 of Part 3A of that Schedule,
c
a market operator is providing the investment service specified in paragraph 8 or 9 of Part 3 of that Schedule, or
d
a full-scope UK AIFM which has a Part 4A permission to do so is providing the investment service specified in paragraph 1, 4 or 5 of Part 3 of that Schedule or the ancillary service specified in paragraph 1 of Part 3A of that Schedule.
6
Omit paragraph (5) M90.
C1Article 84 (futures)I34C1157
1
Article 84 (futures) is amended as follows.
2
In paragraph (1A)(d), (1B)(e) and (1C)(c) M91, for “Section C of Annex I to the markets in financial instruments directive” substitute “
Part 1 of Schedule 2
”
.
3
In paragraph (1CA) M92—
a
for “Section C of Annex I to the markets in financial instruments directive” substitute “
Part 1 of Schedule 2
”
;
b
for “the texts of which are set out in Parts 1 and 2 of Schedule 2” substitute “
the text of which is set out in Part 2 of Schedule 2
”
.
4
In paragraph (1D) M93, for sub-paragraphs (a) to (d) substitute—
a
an investment firm or qualifying credit institution is providing or performing investment services and activities on a professional basis,
b
a management company which has a Part 4A permission to do so is providing the investment service specified in paragraph 4 or 5 of Part 3 of Schedule 2 or the ancillary service specified in paragraph 1 of Part 3A of that Schedule,
c
a market operator is providing the investment service specified in paragraph 8 or 9 of Part 3 of that Schedule, or
d
a full-scope UK AIFM which has a Part 4A permission to do so is providing the investment service specified in paragraph 1, 4 or 5 of Part 3 of that Schedule or the ancillary service specified in paragraph 1 of Part 3A of that Schedule.
5
Omit paragraph (1E) M94.
C1Article 85 (contracts for differences etc)I35C1158
1
Article 85 (contracts for differences etc) is amended as follows.
2
In paragraph (3)(b) M95, for “Section C of Annex I to the markets in financial instruments directive” substitute “
Part 1 of Schedule 2
”
.
3
In paragraphs (4) M96 and (4B) M97, for sub-paragraphs (a) to (d) substitute—
a
an investment firm or qualifying credit institution is providing or performing investment services and activities on a professional basis,
b
a management company which has a Part 4A permission to do so is providing the investment service specified in paragraph 4 or 5 of Part 3 of Schedule 2 or the ancillary service specified in paragraph 1 of Part 3A of that Schedule,
c
a market operator is providing the investment service specified in paragraph 8 or 9 of Part 3 of that Schedule,
d
a full-scope UK AIFM which has a Part 4A permission to do so is providing the investment service specified in paragraph 1, 4 or 5 of Part 3 of that Schedule or the ancillary service specified in paragraph 1 of Part 3A of that Schedule.
4
In paragraph (4A)(c) M98—
a
for “Section C of Annex I to the markets in financial instruments directive” substitute “
Part 1 of Schedule 2
”
;
b
for “the texts of which are set out in Parts 1 and 2 of Schedule 2” substitute “
the text of which is set out in Part 2 of Schedule 2
”
.
5
Omit paragraph (5) M99.
C1Article 95 (exclusion from record where not fit and proper to carry on insurance distribution)I36C1159
In article 95 (exclusion from record where not fit and proper to carry on insurance distribution) omit paragraph (1A) M100.
C1Schedule 4 (relevant text of the insurance distribution directive)I37C1160
In Schedule 4 M101 (relevant text of the insurance distribution directive), after Part 5 insert—
PART 6Modifications of Article 1.3, 2.1(2) and (4) and 2.2
1
This Part has effect for the purposes of article 4(5).
2
Article 2.1(2) of the insurance distribution directive has effect—
a
as if “within the meaning of the Financial Services and Markets Act 2000” were inserted after “a reinsurance undertaking”, and
b
as if “within the meaning given by article 33B(4) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001” were inserted after “a reinsurance intermediary”.
3
Article 2.1(4) of the insurance distribution directive has effect as if “within the meaning of the Financial Services and Markets Act 2000” were substituted for “as defined in points (1) and (2) of Article 4(1) of Regulation (EU) No 575/2013 of the European Parliament and of the Council”.
4
Article 2.2 of the insurance distribution directive has effect as if, as the end, there were inserted—
“In points (b), (c) and (d) “insurance undertaking” and “reinsurance undertaking” have the same meaning as in the Financial Services and Markets Act 2000.”
C1Schedule 8 (persons excluded from regulated activity of managing an AIF)I38C1161
1
Schedule 8 M102 (persons excluded from regulated activity of managing an AIF) is amended as follows.
2
In paragraph 1, after “the alternative investment fund managers directive” insert “
, and not referred to in paragraph 1B,
”
.
3
After paragraph 1 insert—
1A
For the purposes of paragraph 1, in Article 4(1)(o) of the alternative investment fund managers directive (definition of “holding company”) the reference to the Union is to be read as a reference to the United Kingdom.
1B
In this Schedule—
“parent undertaking” has the meaning given by section 1162 of the Companies Act 2006 M103 (read with Schedule 7 to that Act);
“subsidiary” has the meaning given to “subsidiary undertaking” by that section (read with that Schedule)
4
For paragraph 4 substitute—
4
The trustees and managers of an occupational pension scheme within the meaning of section 1(1) of the Pension Schemes Act 1993 M104.
5
In paragraph 5—
a
omit “The European Central Bank,”;
b
for “, any other” substitute “
or any other
”
;
c
omit “or a European Development Finance Institution,”.
Pts. 3-6 modified in part (31.12.2020) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(2), 11(1)(4)(5) (with reg. 11(8)-(10)) (as amended by S.I. 2020/1301, regs. 1, 3, Sch. para. 40(f)); 2020 c. 1, Sch. 5 para. 1(1)