Citation and commencement_I1

1.—(1) This Order may be cited as the Financial Services and Markets Act 2000 (Professions) (Non-Exempt Activities) Order 2001.

(2) Subject to paragraph (3), this Order comes into force on the day on which section 19 of the Act comes into force.

(3) This Order comes into force—

(a)for the purposes of article 4(g), on 1st January 2002; and

(b)for the purposes of [^F1article 6A^F1] , [^F2on such a day as the Treasury may specify^F2] .

[^F3 (4) Any day specified under paragraph (3)(b) must be caused to be notified in the London, Edinburgh and Belfast Gazettes published not later than one week before that day.^F3]

Interpretation_I2

2.—(1) In this Order—

“the Act” means the Financial Services and Markets Act 2000 ;

[^F4 “agreement provider” has the meaning given by paragraph (3) of article 63J of the Regulated Activities Order, read with paragraphs (6) and (7) of that article; ^F4]

[^F4 “agreement seller” has the meaning given by article 63J(3) of the Regulated Activities Order; ^F4]

[^F5 “contract of insurance” has the meaning given by article 3(1) of the Regulated Activities Order; ^F5]

“contractually based investment” has the meaning given by article 3(1) of the Regulated Activities Order;

[^F6 “home purchase provider” has the meaning given by article 63F(3) of the Regulated Activities Order ; ^F6]

[^F6 “home purchaser” has the meaning given by article 63F(3) of the Regulated Activities Order ; ^F6]

“occupational pension scheme” and “personal pension scheme” have the meaning given by section 1 of the Pension Schemes Act 1993 ( 2 );

[^F7 “plan provider” has the meaning given by paragraph (3) of article 63B of the Regulated Activities Order , read with paragraphs (7) and (8) of that article; ^F7]

[^F8 “record of insurance intermediaries” means the record maintained by the [^F9 FCA ^F9] under section 347 of the Act (the public record) by virtue of article 93 of the Regulated Activities Order (recorded insurance intermediaries); ^F8]

“the Regulated Activities Order” means the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 ( 3 );

[^F10 “regulated home purchase plan” has the meaning given by article 63F(3) of the Regulated Activities Order ; ^F10]

[^F10 “regulated home reversion plan” has the meaning given by article 63B(3) of the Regulated Activities Order ; ^F10]

[^F10 “regulated mortgage contract” has the meaning given by article 61 of the Regulated Activities Order ; ^F10]

[^F11 “regulated sale and rent back agreement” has the meaning given by article 63J(3) of the Regulated Activities Order; ^F11]

[^F12 “relevant investment” has the meaning given by article 3(1) of the Regulated Activities Order; ^F12]

[^F13 “reversion seller” has the meaning given by article 63B(3) of the Regulated Activities Order ; ^F13]

“security” has the meaning given by article 3(1) of the Regulated Activities Order;

[^F14 “structured deposit” has the meaning given by article 3(1) of the Regulated Activities Order; ^F14]

“syndicate” has the meaning given by article 3(1) of the Regulated Activities Order.

(2) For the purposes of this Order, a person is a member of a personal pension scheme if he is a person to or in respect of whom benefits are or may become payable under the scheme.

Activities to which exemption from the general prohibition does not apply_I3

3. The activities in articles 4 to 8 are specified for the purposes of section 327(6) of the Act.

_I4,I5

4. An activity of the kind specified by any of the following provisions of the Regulated Activities Order—

(a)article 5 (accepting deposits);

[^F15 (aa)article 9B (issuing electronic money);^F15]

[^F16 (ab)article 9M (issuing qualifying stablecoin);

(ac)article 9T (dealing in qualifying cryptoassets as principal);

(ad)article 9Z6 (qualifying cryptoasset staking);^F16]

(b)article 10 (effecting and carrying out contracts of insurance);

(c)article 14 (dealing in investments as principal);

[^F17 (ca)article 24A (bidding in emissions auctions);^F17]

[^F18 (cb)article 25DB (operating an electronic system for public offers of relevant securities);^F18]

[^F19 (da)article 51ZA (managing a UCITS);

(db)article 51ZB (acting as a trustee or depositary of a UCITS);

(dc)article 51ZC (managing an AIF);

(dd)article 51ZD (acting as a trustee or depositary of an AIF);

(de)article 51ZE (establishing etc. a collective investment scheme);^F19]

(e)^F20article 52 (establishing etc. a ... pension scheme);

[^F21 (ea)article 52B (providing basic advice on stakeholder products);^F21]

(f)article 57 (managing the underwriting capacity of a Lloyd’s syndicate);

(g)article 59 (funeral plan contracts);

^F22(h). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[^F23 (i)article 63S (administering a benchmark).^F23]

[^F24 4A. An activity of the kind specified by article 21 or 25 of the Regulated Activities Order (dealing in investments as agent or arranging deals in investments) in so far as it—

(a) relates to a transaction for the sale or purchase of rights under a contract of insurance; and

(b) is carried on by a person who is not included in the record of insurance intermediaries.^F24]

_I6

5.—(1) An activity of the kind specified by article 37 of the Regulated Activities Order (managing investments) in so far as it consists of buying or subscribing for a [^F25security, contractually based investment or structured deposit^F25] .

(2) Paragraph (1) does not apply—

(a)if all routine or day to day decisions, so far as relating to that activity, are taken by an authorised person with permission to carry on that activity or by a person who is an exempt person in relation to such an activity; or

(b)to an activity undertaken in accordance with the advice of an authorised person with permission to give advice in relation to such an activity or a person who is an exempt person in relation to the giving of such advice.

[^F26 5A. An activity of the kind specified by article 39A of the Regulated Activities Order (assisting in the administration and performance of a contract of insurance) if it is carried on by a person who is not included in the record of insurance intermediaries.^F26]

_I7

6.—(1) An activity of the kind specified by article 53 of the Regulated Activities Order (advising on investments) where the advice in question falls within [^F27paragraph (2), (3) or (5)^F27] .

(2) Subject to paragraph (4), advice falls within this paragraph in so far as—

(a)it is given to an individual (or his agent) other than where the individual acts—

(i)in connection with the carrying on of a business of any kind by himself or by an undertaking of which he is, or would become as a result of the transaction to which the advice relates, a controller; or

(ii)in his capacity as a trustee of an occupational pension scheme;

(b)it consists of a recommendation to buy or subscribe for a particular [^F28security, contractually based investment or structured deposit^F28] ; and

(c)the transaction to which the advice relates would be made—

(i)with a person acting in the course of carrying on the business of buying, selling, subscribing for or underwriting the [^F28security, contractually based investment or structured deposit^F28] , whether as principal or agent;

(ii)on an investment exchange or any other market to which that investment is admitted for dealing; or

(iii)in response to an invitation to subscribe for [^F29such an investment^F29] which is, or is to be, admitted for dealing on an investment exchange or any other market.

(3) Subject to paragraph (4), advice falls within this paragraph in so far as it consists of a recommendation to a member of a personal pension scheme (or his agent) to dispose of any rights or interests which the member has in or under the scheme.

(4) Advice does not fall within paragraph (2) or (3) if it endorses a corresponding recommendation given to the individual (or, as the case may be, the member) by an authorised person with permission to give advice in relation to the proposed transaction or a person who is an exempt person in relation to the giving of such advice.

[^F30 (5) Advice falls within this paragraph in so far as—

(a)it relates to a transaction for the sale or purchase of rights under a contract of insurance; and

(b)it is given by a person who is not included in the record of insurance intermediaries.^F30]

[^F31 6A.—(1) An activity of the kind specified by article 53A of the Regulated Activities Order (advising on regulated mortgage contracts) where the advice in question falls within paragraph (2).

(2) Subject to paragraph (3), advice falls within this paragraph in so far as—

(a) it consists of a recommendation, given to an individual, to enter as borrower into a regulated mortgage contract with a particular person; and

(b) in entering into a regulated mortgage contract that person would be carrying on an activity of the kind specified by article 61(1) of the Regulated Activities Order (regulated mortgage contracts).

(3) Advice does not fall within paragraph (2) if it endorses a corresponding recommendation given to the individual by an authorised person with permission to carry on an activity of the kind specified by article 53A of the Regulated Activities Order or a person who is an exempt person in relation to an activity of that kind.^F31]

[[^F32,F33 6B.^F33] —(1) An activity of the kind specified by article 61(1) or (2) of the Regulated Activities Order (regulated mortgage contracts).

(2) Paragraph (1) does not apply to an activity carried on by a person in his capacity as a trustee or personal representative where the borrower under the regulated mortgage contract in question is a beneficiary under the trust, will or intestacy.^F32]

[^F34 6C.—(1) An activity of the kind specified by article 53B of the Regulated Activities Order (advising on regulated home reversion plans) where the advice in question falls within paragraph (2).

(2) Subject to paragraph (3), advice falls within this paragraph in so far as—

(a) it consists of a recommendation, given to an individual to enter as reversion seller or plan provider into a regulated home reversion plan with a particular person; and

(b) in entering into a regulated home reversion plan that person would be carrying on an activity of the kind specified by article 63B(1) of the Regulated Activities Order (regulated home reversion plans).

(3) Advice does not fall within paragraph (2) if it endorses a corresponding recommendation given to the individual by an authorised person with permission to carry on an activity of the kind specified by article 53B of the Regulated Activities Order or a person who is an exempt person in relation to an activity of that kind.^F34]

[^F34 6D.—(1) An activity of the kind specified by article 63B(1) or (2) of the Regulated Activities Order (regulated home reversion plans).

(2) Paragraph (1) does not apply to an activity carried on by a person in his capacity as a trustee or personal representative where the reversion seller under the regulated home reversion plan in question is a beneficiary under the trust, will or intestacy.^F34]

[^F34 6E.—(1) An activity of the kind specified by article 53C of the Regulated Activities Order (advising on regulated home purchase plans) where the advice in question falls within paragraph (2).

(2) Subject to paragraph (3), advice falls within this paragraph in so far as—

(a) it consists of a recommendation, given to an individual to enter as home purchaser into a regulated home purchase plan with a particular person; and

(b) in entering into a regulated home purchase plan that person would be carrying on an activity of the kind specified by article 63F(1) of the Regulated Activities Order (regulated home purchase plans).

(3) Advice does not fall within paragraph (2) if it endorses a corresponding recommendation given to the individual by an authorised person with permission to carry on an activity of the kind specified by article 53C of the Regulated Activities Order or a person who is an exempt person in relation to an activity of that kind.^F34]

[^F34 6F.—(1) An activity of the kind specified by article 63F(1) or (2) of the Regulated Activities Order (regulated home purchase plans).

(2) Paragraph (1) does not apply to an activity carried on by a person in his capacity as a trustee or personal representative where the home purchaser under the regulated home purchase plan in question is a beneficiary under the trust, will or intestacy.^F34]

[^F35 6G.—(1) An activity of the kind specified by article 53D of the Regulated Activities Order (advising on regulated sale and rent back agreements) where the advice in question falls within paragraph (2).

(2) Subject to paragraph (3), advice falls within this paragraph in so far as—

(a) it consists of a recommendation, given to an individual to enter as agreement seller or agreement provider into a regulated sale and rent back agreement with a particular person; and

(b) in entering into a regulated sale and rent back agreement that person would be carrying on an activity of the kind specified by article 63J(1) of the Regulated Activities Order (regulated sale and rent back agreements).

(3) Advice does not fall within paragraph (2) if it endorses a corresponding recommendation given to the individual by an authorised person with permission to carry on an activity of the kind specified by article 53D of the Regulated Activities Order or a person who is an exempt person in relation to an activity of that kind.^F35]

[^F35 6H.—(1) An activity of the kind specified by article 63J(1) or (2) of the Regulated Activities Order (regulated sale and rent back agreements).

(2) Paragraph (1) does not apply to an activity carried on by a person in his capacity as a trustee or personal representative where the agreement seller under the regulated sale and rent back agreement in question is a beneficiary under the trust, will or intestacy.^F35]

_I8

7.—(1) Advising a person to become a member of a particular Lloyd’s syndicate.

(2) Paragraph (1) does not apply to advice which endorses that of an authorised person with permission to give such advice or a person who is an exempt person in relation to the giving of such advice.

_I9

8. Agreeing to carry on any of the activities mentioned in articles 4 to 7 other than the activities mentioned in article 4(a), [^F36(aa),^F36] (b), [^F37(da) to (de)^F37] and (e).