Citation and commencement

1. This Order may be cited as the Financial Services and Markets Act 2000 (Financial Promotion) (Amendment) Order 2003, and comes into force on 31st October 2004.

Interpretation

2. In this Order, “the Financial Promotion Order” means the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001( 2 ).

Exempt communications: real time communications effecting an introduction

3. After article 28A( 3 ) of the Financial Promotion Order insert—

“ Real time communications: introductions in connection with qualifying credit

28B. —(1) If the requirements of paragraph (2) are met, the financial promotion restriction does not apply to any real time communication which—

(a) relates to a controlled activity falling within paragraph 10, 10A or 10B of Schedule 1; and

(b) is made for the purpose of, or with a view to, introducing the recipient to a person (`N') who is—

(i) an authorised person who carries on the controlled activity to which the communication relates,

(ii) an appointed representative, where the controlled activity to which the communication relates is also a regulated activity in respect of which he is exempt from the general prohibition, or

(iii) an overseas person who carries on the controlled activity to which the communication relates.

(2) The requirements of this paragraph are that the maker of the communication (`M')—

(a) does not receive any money, other than money payable to M on his own account, paid by the recipient for or in connection with any transaction which the recipient enters into with or through N as a result of the introduction; and

(b) before making the introduction, discloses to the recipient such of the information mentioned in paragraph (3) as applies to M.

(3) That information is—

(a) that M is a member of the same group as N;

(b) details of any payment which M will receive from N, by way of fee or commission, for introducing the recipient to N;

(c) an indication of any other reward or advantage received or to be received by M that arises out of his making introductions to N.

(4) In this article, “overseas person” means a person who carries on controlled activities which fall within paragraph 10, 10A or 10B of Schedule 1, but who does not carry on any such activity, or offer to do so, from a permanent place of business maintained by him in the United Kingdom. ” .

Exempt communications: miscellaneous amendments

4. —(1) Part VI of the Financial Promotion Order (exempt communications: certain controlled activities) is amended as follows.

(2) In paragraph (2) of article 29 (communications required or authorised by enactments), for “paragraph 10” substitute “paragraph 10, 10A or 10B”.

(3) In paragraph (2) of article 30 (overseas communicators: solicited real time communications), in the definition of “relevant investment activities”, after “paragraphs 3 to 7” insert “or 10 to 10B”.

(4) In article 46 (qualifying credit to bodies corporate), for “paragraph 10” substitute “paragraph 10, 10A or 10B”.

Controlled activities: arranging and advising on qualifying credit

5. —(1) In Part I of Schedule 1 to the Financial Promotion Order (controlled activities), after paragraph 10 (providing qualifying credit) insert—

“ Arranging qualifying credit etc.

10A. Making arrangements—

(a) for another person to enter as borrower into an agreement for the provision of qualifying credit; or

(b) for a borrower under a regulated mortgage contract, within the meaning of article 61(3) of the Regulated Activities Order entered into after the coming into force of that article, to vary the terms of that contract in such a way as to vary his obligations under that contract,

is a controlled activity. ” .

(2) In paragraph 11 (agreeing to carry on specified kinds of activity), for “paragraphs 3 to 10” substitute “paragraphs 3 to 10B”.