PART 2Amendments to the Act

CHAPTER 2Part 3 of the Act: authorisation and exemption

Section 39 (exemption of appointed representatives)12

1

Section 39 (exemption of appointed representatives) is amended as follows.

2

In subsection (1A)19, in paragraph (a)—

a

for “credit institution” substitute “qualifying credit institution”;

b

for “a person mentioned in Article 3.1 (optional exemptions) of the markets in financial instruments directive” substitute “a firm which has a Part 4A permission to carry on regulated activities as an exempt investment firm within the meaning of regulation 8 of the Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017 (S.I. 2017/701)”.

3

In subsection (1AA)20—

a

in paragraph (a), for “credit institution” substitute “qualifying credit institution”;

b

in paragraph (b) omit “as defined by Article 4.1.43 (definitions) of the markets in financial instruments directive”.

4

In subsection (1B)21, for the words after ““the applicable register” is” substitute “the record maintained by the FCA by virtue of section 347(1)(ha)”.

5

In subsection (1BA)22, in paragraph (b)—

a

after “of a kind” insert “that”;

b

in sub-paragraph (i), before “specified” insert “is”;

c

for sub-paragraph (ii) substitute—

ii

relates to mortgage agreements entered into on or after 21st March 2016,

6

In subsection (4)23, for “qualifying EU provision” substitute “qualifying provision”.

7

For subsection (7)24 substitute—

7

A person carries on “investment services business” if, under the full and unconditional responsibility of only one investment firm on whose behalf the person acts, the person—

a

promotes investment services or ancillary services to the firm’s clients or prospective clients,

b

receives and transmits instructions or orders from clients in respect of investment services or financial instruments,

c

places financial instruments, or

d

provides advice to clients or prospective clients in respect of investment services or financial instruments.

8

For subsection (8)25 substitute—

8

In this section—

  • “ancillary services” means any of the services and activities listed in Part 3A of Schedule 2 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544);

  • “financial instruments” means those instruments specified in Part 1 of Schedule 2 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001;

  • “investment services” means any of the services and activities listed in Part 3 of Schedule 2 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, relating to any of the instruments listed in Part 1 of that Schedule;

  • “structured deposit” has the meaning given by Article 2.1.23 of the markets in financial instruments regulation.