Citation, commencement, extent and interpretation

1.—(1) This Order may be cited as the Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2025.

(2) This article and article 2(d) come into force on 10th December 2025.

(3) The remaining provisions of this Order come into force on 1st January 2027.

(4) This Order extends to England and Wales, Scotland and Northern Ireland.

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

Amendment of the Regulated Activities Order relating to the definition of “investment firm”

2. In the Regulated Activities Order, in Part 1 of Schedule 3 (exemptions from the definition of “investment firm”)(3)—

(a)in paragraph 1(k), for the words from “, considered both individually” to the end, substitute “satisfies either condition in paragraph 1A and paragraph 2 applies”;

(b)after paragraph 1, insert—

“1A. The conditions are that—

(a)the activity, considered both individually and on an aggregate basis, is an ancillary activity to P's main business when considered on a group basis as determined in accordance with rules made under paragraph 2A(a), or

(b)the activity, when considered individually, is below an annual threshold as determined in accordance with rules made under paragraph 2A(b).”;

(c)in paragraph 2—

(i)in the opening words of sub-paragraph (a), after “P’s main business” insert “, when considered on a group basis,”;

(ii)in sub-paragraph (a)(i), after “investment services” insert “, unless the ​activity​ referred to in​ paragraph 1(k)(i) or (ii)​​ is below an annual threshold as determined in accordance with rules made under paragraph 2A”;

(iii)in sub-paragraph (c), after “P’s main business” insert “, when considered on a group basis, or below an annual threshold as determined in accordance with rules made under paragraph 2A”;

(d)after paragraph 2, insert—

“2A. ​The FCA may make rules(4) specifying the following for the purposes of determining whether P is excluded from the definition of “investment firm” under paragraph 1(k)—

(a)the criteria for establishing when an activity is ancillary to P’s main business on a group basis under paragraph 1A(a), and

(b)the annual threshold referred to in paragraph 1A(b) and the criteria for establishing when an activity is below that threshold.”.

Consequential amendment to the Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017

3. In regulation 47 of the Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017 (reports and applications)(5), in paragraph (1), for sub-paragraph (b) substitute—

“(b)report to the FCA the basis on which a person considers an activity—

(i)to be ancillary to that person's main business in accordance with the criteria established under paragraph 2A(a) in Part 1 of Schedule 3 to the Regulated Activities Order; or

(ii)to be below the annual threshold specified by the FCA as determined in accordance with the criteria established under paragraph 2A(b) in Part 1 of Schedule 3 to the Regulated Activities Order;”.

Consequential amendments relating to the revocation of Commission Delegated Regulation (EU) 2017/592

4.—(1) Article 3 of the Regulated Activities Order is amended as follows.

(2) In paragraph (1)—

(a)in the definition “investment firm”(6)—

(i)in paragraph (a), omit the words from “and with Commission Delegated ”(Regulation (EU) 2017/5927) to the end;

(ii)in paragraph (b), omit “and with Commission Delegated ”;Regulation (EU) 2017/592

(b)in the definition “qualifying credit institution”(8), in paragraph (d), omit the words “and with Commission Delegated ” to the end.Regulation (EU) 2017/592

(3) In paragraph (1A)(9)—

(a)in paragraph (a), omit the words from “and with Commission Delegated ” to “business”;Regulation (EU) 2017/592

(b)in paragraph (b), omit “and with Commission Delegated ”.Regulation (EU) 2017/592