Statutory Instruments
2017 No. 500
Financial Services And Markets
The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2017
Made
29th March 2017
Laid before Parliament
30th March 2017
Coming into force
3rd January 2018
The Treasury make the following Order in exercise of the powers conferred by sections 22(1) and (5) and 428(3) of, and paragraph 25 of Schedule 2 to, the Financial Services and Markets Act 2000( 1 ):
Citation, commencement and interpretation
1. —(1) This Order may be cited as the Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2017 and comes into force on 3rd January 2018.
(2) In this Order “the Order” means the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 ( 2 ).
Amendment of article 53 of the Order
2. —(1) Article 53 of the Order( 3 ) (advising on investments) is amended as follows.
(2) In paragraph (1)(b)(i), after “for”, insert “, exchanging, redeeming, holding”.
(3) In paragraph (1)(b)(ii)–
(a) after “exercising” insert “or not exercising”; and
(b) for “or underwrite” substitute “, exchange or redeem”.
(4) After paragraph (1) insert–
“ (1A) Paragraph (1) does not apply to a person who is appropriately authorised except to the extent that they are providing a personal recommendation.
(1B) A person is appropriately authorised when they are authorised for the purposes of the Act to carry on an activity of a kind specified by a provision of this Order which is not the activity specified by paragraph (1) and is not the activity of agreeing to carry on the activity specified by paragraph (1).
(1C) Subject to paragraph (1D), a personal recommendation is a recommendation–
made to a person in their capacity as an investor or potential investor, or in their capacity as agent for an investor or a potential investor;
which constitutes a recommendation to them to do any of the following (whether as principal or agent)–
buy, sell, subscribe for, exchange, redeem, hold or underwrite a particular investment which is a security or a relevant investment; or
exercise or not exercise any right conferred by such an investment to buy, sell, subscribe for, exchange or redeem such an investment; and
that is–
presented as suitable for the person to whom it is made; or
based on a consideration of the circumstances of that person.
(1D) A recommendation is not a personal recommendation if it is issued exclusively to the public. ” .
Amendment of article 54 of the Order
3. —(1) Article 54 of the Order( 4 ) (advice given in newspapers) is amended as follows.
(2) After paragraph (2) insert–
“ (2A) Paragraphs (1) and (2) do not apply to advice which is a personal recommendation falling within article 53(1A). ”
David Evennett
Andrew Griffiths
Two of the Lords Commissioners of Her Majesty’s Treasury
29th March 2017
2000 c.8 . Paragraph 25 of Schedule 2 was amended by section 8 of the Financial Services Act 2012 (c.21) .
Article 53 was amended by S.I. 2003/1476 and 2016/392 .
Article 54 was amended by S.I. 2003/1475 , S.I. 2006/2383 , S.I. 2009/1342 , S.I. 2013/472 , S.I. 2015/731 , S.I. 2015/910 and S.I 2016/392 .
The Commission Delegated Regulation has been adopted but has not yet been published in the Official Journal of the European Union. A copy is available at https://ec.europa.eu/transparency/regdoc/rep/3/2016/EN/3-2016-2398-EN-F1-1.PDF .