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The Financial Services and Markets Act 2000 (Professions) (Non-Exempt Activities) Order 2001

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2001 No. 1227

FINANCIAL SERVICES AND MARKETS

The Financial Services and Markets Act 2000 (Professions) (Non-Exempt Activities) Order 2001

Made27th March 2001
Coming into force in accordance with article 1(2) and (3)

Whereas:

1 This Order contains the first provision to be made in exercise of the power conferred by section 327(6) of the Financial Services and Markets Act 20001;
2 In accordance with section 429(6) and (7) of that Act, a draft of this Order has been laid before, and approved by a resolution of, each House of Parliament;

Now, therefore, the Treasury, in exercise of the powers conferred on them by sections 327(6) and 428(3) of that Act, hereby make the following Order:-

1 Citation and commencement

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 article 4(h), nine months after the day on which section 19 of the Act comes into force.

2 Interpretation

1 In this Order—
  • “the Act” means the Financial Services and Markets Act 2000;
  • “contractually based investment” has the meaning given by article 3(1) of the Regulated Activities Order;
  • “occupational pension scheme” and “personal pension scheme” have the meaning given by section 1 of the Pension Schemes Act 19932;
  • “the Regulated Activities Order” means the Financial Services and Markets Act 2000 (Regulated Activities) Order 20013;
  • “relevant investment” means a security or a contractually based investment;
  • “security” has the meaning given by article 3(1) of the Regulated Activities Order;
  • “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

3 The activities in articles 4 to 8 are specified for the purposes of section 327(6) of the Act.
4 An activity of the kind specified by any of the following provisions of the Regulated Activities Order—
a article 5 (accepting deposits);
b article 10 (effecting and carrying out contracts of insurance);
c article 14 (dealing in investments as principal);
d article 51 (establishing etc. a collective investment scheme);
e article 52 (establishing etc. a stakeholder pension scheme);
f article 57 (managing the underwriting capacity of a Lloyd’s syndicate);
g article 59 (funeral plan contracts);
h article 61 (regulated mortgage contracts).
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 relevant investment.
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.
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 either paragraph (2) or (3).
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 relevant investment; 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 relevant investment, 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 a relevant investment 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.
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.
8 Agreeing to carry on any of the activities mentioned in articles 4 to 7 other than the activities mentioned in article 4(a), (b), (d) and (e).

Footnotes

  1. 1
    2000 c. 8.
  2. 2
    1993 c. 48. The definition of “personal pension scheme” in section 1 was amended by the Welfare Reform and Pensions Act 1999 (c. 30), Schedule 2, para. 3(1)(a).
  3. 3
    S.I. 2001/544.