2019 No. 632

Exiting The European Union

Financial Services

The Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019

Made22nd March 2019

Coming into force in accordance with regulation 1

M1 M2The Treasury are a government department designated for the purpose of section 2(2) of the European Communities Act 1972 in relation to financial services.

M3The Treasury make the following Regulations in exercise of the powers conferred by section 2(2) of the European Communities Act 1972, and section 8(1) of, paragraph 1 of Schedule 4 to, and paragraph 21 of Schedule 7 to, the European Union (Withdrawal) Act 2018 .

In accordance with paragraphs 1 and 12 of Schedule 7 to the European Union (Withdrawal) Act 2018, a draft of this instrument has been laid before, and approved by a resolution of, each House of Parliament.C3

Annotations:

Modifications etc. (not altering text)

Regulations: power to modify conferred (11.7.2023) by Financial Services and Markets Act 2023 (c. 29), ss. 3, 86(3), Sch. 1 Pt. 2; S.I. 2023/779, reg. 2(d)

Marginal Citations

S.I. 2012/1759.

1972 c.68. Section 2(2) was amended by section 27 of the Legislative and Regulatory Reform Act 2006 (c.51) and by section 3 of, and the Schedule to, the European Union (Amendment) Act 2008 (c.7). By virtue of the amendment of section 1(2) by section 1 of the European Economic Area Act 1993 (c.51), regulations may be made under section 2(2) of the European Communities Act 1972 to implement obligations of the United Kingdom created or arising by or under the Agreement on the European Economic Area signed at Oporto on 2nd May 1993 (Cm 2073) and the Protocol adjusting the Agreement signed in Brussels on 17th March 1993 (Cm 2183). Paragraph 1A was inserted into Schedule 2 by section 28 of the Legislative and Regulatory Reform Act 2006 (c.51). The European Communities Act 1972 is repealed with effect from exit day by section 1 of the European Union (Withdrawal) Act 2018.

2018 c.16.

PART 1Introductory

Citation, commencement and interpretationI11

1

These Regulations may be cited as the Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019.

2

This regulation, Part 7, Part 8 and the following regulations come into force on the day after the day on which these Regulations are made—

a

regulation 49(e);

b

regulation 85(3), (6), (8), (11) and (14);

c

regulation 87(b);

d

regulation 88(e);

e

regulation 130;

f

regulation 171;

g

regulation 179(3);

h

regulation 187(3), in so far as it inserts paragraph (3) in article 1 of the Financial Services and Markets Act 2000 (Qualifying EU Provisions) Order 2013 M4; and

i

regulation 190(3), in so far as it inserts paragraph (3) in article 1 of the Financial Services and Markets Act 2000 (Qualifying EU Provisions) (No. 2) Order 2013 M5.

3

The other provisions of these Regulations come into force on exit day.

4

In these Regulations, “the Act” means the Financial Services and Markets Act 2000 M6.

PART 2Amendments to the Act

CHAPTER 1Part 1A of the Act: the regulators

IntroductionI1952

Part 1A of the Act M7 (the regulators) is amended as follows.

Section 1A (the Financial Conduct Authority)I323

In section 1A (the Financial Conduct Authority), in subsection (6)(d) for “qualifying EU provision” substitute “ qualifying provision ”.

Section 1H (further interpretative provisions for sections 1B to 1G)I334

1

Section 1H M8 (further interpretative provisions) is amended as follows.

2

In subsection (2)(d), for “credit institutions” substitute “ qualifying credit institutions ”.

3

In subsection (8)—

a

omit the definition of “credit institution”M9;

b

in the definition of “relevant ancillary service”, for “Section B of Annex I to the markets in financial instruments directive” substitute “ Part 3A of Schedule 2 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 ”M10 .

Section 1L (supervision, monitoring and enforcement)I345

In section 1L M11 (supervision, monitoring and enforcement), in subsection (2)(b) for “qualifying EU provision” substitute “ qualifying provision ”.

Section 2AB (functions of the PRA)I356

In section 2AB M12 (functions of the PRA), in subsection (3)(d) M13 for “qualifying EU provision” substitute “ qualifying provision ”.

Section 3E (memorandum of understanding)I367

In section 3E M14 (memorandum of understanding between regulators) omit subsection (3)(a).

Section 3I (power of PRA to require FCA to refrain from specified action)I378

In section 3I M15 (power of PRA to require FCA to refrain from specified action), in subsection (8) omit “EU obligation or any other”.

Section 3J (power of PRA in relation to with-profits policies)I389

In section 3J M16 (power of PRA in relation to with-profits policies), in subsection (8) omit “EU obligation or any other”.

Section 3M (directions relating to consolidated supervision of groups)I3910

1

Section 3M M17 (directions relating to consolidated supervision of groups) is amended as follows.

2

In subsection (1) (which refers to supervision required in pursuance of any of the relevant directives), for “any of the relevant directives” substitute—

a
any implementing provision contained in subordinate legislation (within the meaning of the Interpretation Act 1978) made otherwise than by any of the following—
i
statutory instrument, and
ii
statutory rule for the purposes of the Statutory Rules (Northern Ireland) Order 1979 (S.I. 1979/1573 (N.I. 12)); or
b
any other implementing provision (as amended from time to time),

3

After subsection (2) insert—

2A
“Implementing provision” means an enactment that immediately before F7IP completion day implemented provisions of any of the relevant directives.

4

In subsection (10) omit “EU obligation or any other”.

CHAPTER 2Part 3 of the Act: authorisation and exemption

IntroductionI19611

Part 3 of the Act (authorisation and exemption) is amended as follows.

Section 39 (exemption of appointed representatives)I40 C212

1

Section 39 (exemption of appointed representatives) is amended as follows.

2

In subsection (1A) M19, in paragraph (a)—

a

for “credit institution” substitute “ qualifying credit institution ”;

b

for “a person mentioned in Article 3.1 (optional exemptions) of the markets in financial instruments directive” substitute “ a firm which has a Part 4A permission to carry on regulated activities as an exempt investment firm within the meaning of regulation 8 of the Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017 (S.I. 2017/701) ”.

3

In subsection (1AA) M20—

a

in paragraph (a), for “credit institution” substitute “ qualifying credit institution ”;

b

in paragraph (b) omit “as defined by Article 4.1.43 (definitions) of the markets in financial instruments directive”.

4

In subsection (1B) M21, for the words after “ “the applicable register” is” substitute “ the record maintained by the FCA by virtue of section 347(1)(ha) ”.

5

In subsection (1BA) M22, in paragraph (b)—

a

after “of a kind” insert “ that ”;

b

in sub-paragraph (i), before “specified” insert “ is ”;

c

for sub-paragraph (ii) substitute—

ii
relates to mortgage agreements entered into on or after 21st March 2016,

6

In subsection (4) M23, for “qualifying EU provision” substitute “ qualifying provision ”.

7

For subsection (7) M24 substitute—

7
A person carries on “investment services business” if, under the full and unconditional responsibility of only one investment firm on whose behalf the person acts, the person—
a
promotes investment services or ancillary services to the firm's clients or prospective clients,
b
receives and transmits instructions or orders from clients in respect of investment services or financial instruments,
c
places financial instruments, or
d
provides advice to clients or prospective clients in respect of investment services or financial instruments.

8

For subsection (8) M25 substitute—

8
In this section—
“ancillary services” means any of the services and activities listed in Part 3A of Schedule 2 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544);
“financial instruments” means those instruments specified in Part 1 of Schedule 2 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001;
“investment services” means any of the services and activities listed in Part 3 of Schedule 2 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, relating to any of the instruments listed in Part 1 of that Schedule;
“structured deposit” has the meaning given by Article 2.1.23 of the markets in financial instruments regulation.

Section 39A (certain tied agents operating outside United Kingdom)I4113

1

Section 39A M27 (certain tied agents operating outside United Kingdom) is amended as follows.

2

In subsection (1)(a), for the words after “who is” substitute “ established in the United Kingdom; and ”.

3

In subsection (4), for the words after “Condition B is that” substitute “ the FCA is satisfied that no such business is, or is likely to be, carried on by the agent in the United Kingdom. ”.

4

In subsection (6)(c) M28 omit sub-paragraph (ii).

5

In subsection (6)(d) M29 omit “or register”.

6

For subsection (8) M30 substitute—

8
Section 39(7) applies for the purposes of this section.

7

In subsection (9) omit the definition of “competent authority”M31.

8

The amendments made by paragraphs (2), (3) and (7) do not apply during the three-year transitional period in relation to contracts entered into before F8IP completion day.

9

In relation to such contracts, section 39A(6)(d) has effect during the three-year transitional period as if “or on the register of tied agents of an EEA State maintained pursuant to Article 29 of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments” were inserted after “entered on that record”.

10

In paragraphs (8) and (9) “the three-year transitional period” means the period that—

a

begins with F9IP completion day, and

b

ends at the end of the period of three years starting with the first day after F9IP completion day.

CHAPTER 3Part 4A of the Act: permission to carry on regulated activities

IntroductionI19714

Part 4A of the Act M32 (permission to carry on regulated activities) is amended as follows.

Section 55D (application for permission)I4215

1

Section 55D (firms based outside EEA) is amended as follows.

2

In the heading, for “EEA” substitute “ the United Kingdom ”.

3

For “non-EEA”, wherever occurring, substitute “ non-UK ”.

4

In subsection (1)(a) for “EEA” substitute “ United Kingdom ”.

Section 55J (variation and cancellation of Part 4A permission: general)I4316

1

Section 55J M33 (variation or cancellation on initiative of regulator) is amended as follows.

2

In subsection (6A)—

a

in paragraph (c)—

i

for the words from “provide” to “managers directive” substitute “ carry on the management of portfolios of investments in accordance with mandates given by investors on a discretionary, and client-by-client, basis ”;

ii

for “the capital requirements directive” substitute “ any enactment (as amended from time to time) that immediately before F10IP completion day implemented provisions of the capital requirements directive ”;

b

in paragraph (e)—

i

for sub-paragraph (i) substitute—

i
an AIFMD requirement;

ii

omit sub-paragraphs (ii) and (iii);

iii

for sub-paragraph (iv), including the “or” at the end, substitute—

iv
an ELTIF requirement; or

iv

for sub-paragraph (v) substitute—

v
an MMF requirement.

3

After subsection (6A), insert—

6AA
For the purposes of subsection (6A)(e)—
a
an AIFMD requirement is a provision of—
i
the Alternative Investment Fund Managers Regulations 2013,
ii
any EU regulation, originally made under the alternative investment fund managers directive, which is retained direct EU legislation,
iii
any provision made by or under this Act that immediately before F11IP completion day implemented provisions of the alternative investment fund managers directive (as that implementing provision is amended from time to time), or
iv
any subordinate legislation (within the meaning of the Interpretation Act 1978) which is made under a power substituted for a power of an EU entity to make a directly applicable regulation under the alternative investment fund managers directive by regulations made under section 8 of the European Union (Withdrawal) Act 2018;
b
an ELTIF requirement is a provision of—
i
Regulation (EU) No. 2015/760 of the European Parliament and of the Council of 29th April 2015 on European Long-term Investment Funds (“the ELTIF Regulation”),
ii
any EU regulation, originally made under the ELTIF Regulation, which is retained direct EU legislation, or
iii
any subordinate legislation (within the meaning of the Interpretation Act 1978) made under the ELTIF Regulation on or after F11IP completion day;
c
an MMF requirement is a provision of—
i
the MMF Regulation,
ii
any EU regulation, originally made under the MMF Regulation, which is retained direct EU legislation, or
iii
any subordinate legislation (within the meaning of the Interpretation Act 1978) made under the MMF Regulation on or after F11IP completion day.

4

In subsection (6B)—

a

in paragraph (c), omit “, in accordance with Chapter 11 of the mortgages directive,”;

b

in paragraph (d)—

i

for “implements” substitute “ sets ”;

ii

omit “set out in the mortgages directive”.

5

Omit subsection (7).

6

In subsection (7ZA)—

a

in the words before paragraph (a), after the words “managing a”, insert “ UK ”;

b

for paragraph (c) substitute—

c
an MMF requirement,

7

In subsection (7ZB), for the words after “requirement” substitute—

imposed by—
a
the market abuse regulation,
b
any EU regulation, originally made under the market abuse regulation, which is retained direct EU legislation, or
c
any subordinate legislation (within the meaning of the Interpretation Act 1978) made under the market abuse regulation on or after F12IP completion day.

8

After subsection (12), insert—

13
In this section “enactment” has the meaning given by section 3T.

Section 55K (variation and cancellation of Part 4A permission: investment firms)I4417

In section 55K (investment firms: particular conditions that enable cancellation), in subsection (1)—

a

in paragraph (c) omit the words from “pursuant”, in the first place it occurs, to “that Chapter,”;

b

in paragraph (d) for the words from “the operating conditions” to “that Chapter,” substitute “ any retained direct EU legislation, or any provision made by or under this Act, which sets the operating conditions ”.

Section 55KA (variation and cancellation of Part 4A permission: insurance undertakings etc.)I4518

In section 55KA M34 (insurance undertakings etc.), in subsection (1)(b)(i), for the words from “a finance scheme” to the end substitute “ , in accordance with requirements imposed by or under this Act, a finance scheme for restoring compliance with the appropriate capital requirement; ”.

Section 55PA (imposition and variation of requirements)I4619

Omit section 55PA M35 (assets requirements imposed on insurance undertakings or reinsurance undertakings).

Section 55Q (exercise of power in support of overseas regulator)I4720

1

Section 55Q M36 (exercise of power in support of overseas regulator) is amended as follows.

2

Omit subsection (4).

3

In subsection (5), in the words before paragraph (a), for the words from “do so” to “EU obligation, it” substitute “ exercise its own-initiative powers in response to a request, the UK regulator ”.

4

Omit subsection (7).

5

In subsection (8), for “subsection” substitute “ subsections (5) and ”.

Section 55R (connected persons)I4821

In section 55R (persons connected with an applicant), omit subsections (4) to (9) M37.

Section 55S (additional permissions)I4922

Omit section 55S (duty of FCA or PRA to consider other permissions).

Sections 55Z1 to 55Z2A (notification)I5023

Omit sections 55Z1 to 55Z2A M38 (notification of ESMA, EBA and European bodies).

CHAPTER 4Part 5 of the Act: performance of regulated activities

IntroductionI19824

Part 5 of the Act (performance of regulated activities) is amended as follows.

Section 59 (approval for particular arrangements)I5125

In section 59 (approval for particular arrangements) omit subsection (8) M39.

Section 63E (certification of employees by relevant authorised persons)I5226

In section 63E M40 (certification of employees by relevant authorised persons) omit subsection (7).

Section 66A (misconduct: action by the FCA)I5327

In section 66A (misconduct: action by the FCA) in subsection (4)(b) M41 for “qualifying EU provision” substitute “ qualifying provision ”.

Section 66B (misconduct: action by the PRA)I5428

In section 66B (misconduct: action by the PRA) in subsection (4)(b) M42 for “qualifying EU provision” substitute “ qualifying provision ”.

Section 71D (sections 71B and 71C: conditions)I5529

In section 71D (sections 71B and 71C: conditions) in subsection (2) for “any measure of a kind described in Article 27(1) of the recovery and resolution directive” substitute “ any measure defined as a “relevant measure” by article 107 of the Bank Recovery and Resolution (No. 2) Order 2014 (S.I. 2014/3348) ”.

Section 71I (sections 71B to 71H: interpretation)I5630

1

Section 71I M43 (sections 71B to 71H: interpretation) is amended as follows.

2

In subsection (2)(b) for “an EEA parent” substitute “ a UK parent ”.

3

In subsection (3)—

a

for “an EEA parent” substitute “ a UK parent ”;

b

for “any EEA state” substitute “ the United Kingdom ”.

4

In subsection (4) for “Article 2.1(2) and 2.1(3) of the recovery and resolution directive” substitute “ article 2(1) of the Bank Recovery and Resolution (No. 2) Order 2014 ”.

5

In subsection (5)—

a

in the definition of “consolidating supervisor”, for “an EEA parent” substitute “ a UK parent ”;

b

omit the definition of “the recovery and resolution directive”.

CHAPTER 5Part 7 of the Act: control of business transfers

IntroductionI19931

Part 7 of the Act (control of business transfers) is amended as follows.

Section 105 (insurance business transfer schemes)I5732

1

Section 105 (insurance business transfer schemes) is amended as follows.

2

In subsection (1)—

a

in paragraph (a) for “one of the conditions” substitute “ the condition ”;

b

in paragraph (b) for “an EEA State” substitute “ the United Kingdom F42or Gibraltar ”.

3

For subsection (2) M44 substitute—

2
The condition is that the whole or part of the business carried on in the United Kingdom by an authorised person who has permission to effect or carry out contracts of insurance (“the transferor concerned”) is to be transferred to another body (“the transferee”).

4

In subsection (3) M45—

a

omit Case 2;

b

in Case 3—

i

in paragraph (b) for “(none of which is an EEA State)” substitute “ outside the United Kingdom ”;

ii

in paragraph (b) for “an EEA State”, in the second place it occurs, substitute “ the United Kingdom ”;

iii

in paragraph (c) for “other than an EEA State” substitute “ outside the United Kingdom ”.

5

In subsection (4) M46 omit “2,”.

Further amendments to Part 7 of the ActI5833

1

In section 111 (sanction of the court for business transfer schemes) in subsection (2)(a) M47 for “certificates have” substitute “ certificate has ”.

2

In section 112 (effect of order sanctioning business transfer scheme) omit subsection (9) M48.

3

Omit sections 114 (rights of certain policyholders), 114A M49 (notice of transfer of reinsurance contracts) and 116 (effect of insurance business transfers authorised in other EEA States).

CHAPTER 6Part 9A of the Act: rules and guidance

IntroductionI20034

Part 9A of the Act (rules and guidance) is amended as follows.

Section 137J (rules about recovery plans: duty to consult)I5935

In section 137J M50 (rules about recovery plans: duty to consult), in subsection (6) M51—

a

for the definition of “institution” substitute—

“institution” means—
a
a credit institution, other than an entity mentioned in Article 2.5 of the capital requirements directive; or
b
an investment firm as defined in Article 4.1(2) of the capital requirements regulation that is subject to the initial capital requirement specified in rules made by a regulator for the purpose of implementing Article 28(2) of the capital requirements directive;

b

in the definition of “institution authorised in the UK”, for “an institution which is an authorised person and” substitute “ an authorised person who is ”.

Section 137N (recovery plans and resolution packs: restriction on duty of confidence)I6036

In section 137N (recovery plans and resolution packs: interpretation), in subsection (5) M52, in the definition of “qualifying parent undertaking” omit paragraph (b) and the “or” preceding it.

Section 137Q (price stabilising rules)I6137

1

Section 137Q (price stabilising rules) is amended as follows.

2

In subsection (3A)(b) M53 for “EEA” substitute “ United Kingdom ”.

3

For subsection (5) M54 substitute—

5
In this section references to Article 5 of the market abuse regulation include—
a
any technical standards originally adopted or made under that Article which are retained direct EU legislation, and
b
any technical standards made under that Article by the FCA.

Section 137R (financial promotion rules)I6238

1

Section 137R (financial promotion rules) is amended as follows.

2

In subsection (5)(b) M55, for the words from “requirements” to F2“(as defined in section 71I(5)),” substitute “ listed requirements ”.

3

In subsection (5)(c) M56, for “requirements mentioned in paragraph (b)” substitute “ listed requirements ”.

4

After subsection (5) insert—

5A
In subsection (5) “the listed requirements” means—
a
requirements under the law of any part of the United Kingdom that appear to the FCA to correspond to requirements of—
i
Articles 24 (general principles and information to clients) and 25 (assessment of suitability and appropriateness and reporting to clients) of the markets in financial instruments directive,
ii
Commission Delegated Directive (EU) 2017/593 of 7 April 2016, so far as adopted under those Articles,
iii
Article 77 of the UCITS directive,
iv
Articles 10 and 11 of the mortgages directive, F3...
v
Article 17 of the insurance distribution directive, F4or
F5vi
Article 44a of the recovery and resolution directive (as defined in paragraph (c)), and
b
requirements of any retained direct EU legislation originally made under Article 24(13) or 25(8) of the markets in financial instruments directive.
F6c
In paragraph (a)(vi), “recovery and resolution directive” means Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014 establishing a framework for the recovery and resolution of credit institutions and investment firms, as it had effect immediately before IP completion day.

Section 138K (consultation: mutual societies)I6339

In section 138K M58 omit subsections (5)(d) M59 and (6) (references to EEA mutual societies).

Section 139A (power of the FCA to give guidance)I6440

In section 139A (power of the FCA to give guidance), in subsection (4) M60 for “or a directly applicable regulation made under the market abuse regulation” substitute “ , any retained EU direct legislation originally made under the market abuse regulation or any subordinate legislation (within the meaning of the Interpretation Act 1978) made on or after F13IP completion day under the market abuse regulation ”.

Section 141A (power to make consequential amendments of references to rules etc)I6541

In section 141A (power to make consequential amendments of references to rules etc), after subsection (4) insert—

5
A regulator's power under Part 2 of the Powers Regulations to amend its rules is treated for the purposes of this section as a power under this Part; and for this purpose “the Powers Regulations” means the Financial Regulators' Powers (Technical Standards etc.) (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1115).

CHAPTER 7Part 11 of the Act: information gathering and investigations

IntroductionI20142

Part 11 of the Act (information gathering and investigations) is amended as follows.

Section 165A (PRA's power to require information: financial stability)I6643

1

Section 165A M61 (PRA's power to require information: financial stability) is amended as follows.

2

In subsection (8), in the definition of “management”, for “Annex II to the UCITS Directive” substitute “ Schedule 6 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 M62 ”.

3

In subsection (9)(b) M63, for the words from “meaning given” to the end substitute “ same meaning as in the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (see article 3(1) of that Order). ”.

Section 167 (appointment of persons to carry out general investigations)I6744

Omit section 167(3A) M64 (investigations of persons in other EEA States).

Section 168 (appointment of persons to carry out investigations in particular cases)I6845

In section 168 (appointment of investigators: particular cases), in subsection (4)—

a

in paragraph (jc)(ii) M65 for “a directly applicable EU regulation made” substitute “ any retained EU direct legislation originally made under the market abuse regulation or any subordinate legislation (within the meaning of the Interpretation Act 1978) made on or after F14IP completion day”;

b

in paragraph (k) M66 for “qualifying EU provision” substitute “ qualifying provision ”.

Section 169 (investigations etc. in support of overseas regulator)I6946

Omit section 169(3) M67 and (6) M68 (investigations in connection with EU obligations).

Section 169A (support of overseas regulator with respect to financial stability)I7047

In section 169A M69 (support of overseas regulator with respect to financial stability), in subsection (4)(b) for “169(3), (4)(a) and (d), (5) and (6)” substitute “ 169(4)(a) and (d) and (5) ”.

CHAPTER 8Part 12 of the Act: control over authorised persons

IntroductionI20248

Part 12 of the Act (control over authorised persons) is amended as follows.

Section 184 (disregarded holdings)I249

M70In section 184 (disregarded holdings)—

I27a

in subsection (4)—

i

in paragraph (a) M71, for the words from “article 4.1.7” to “directive” substitute “ article 2.1.6 of the markets in financial instruments regulation ”;

ii

for paragraph (b), substitute—

b
has a Part 4A permission to carry on one or more investment services and activities;

I27b

in subsection (5), for “credit institution” substitute “ qualifying credit institution ”;

I27c

in subsection (6)—

i

in the opening words and in paragraph (b)), for “credit institution” substitute “ qualifying credit institution ”;

ii

in paragraph (a)(ii), omit the words from “in accordance with” to the end;

I27d

in subsection (7) M72, for “Article 2.1(b) of the UCITS Directive” substitute “ section 237(2) ”;

I2e

in subsection (9A) M73, for the words from “Commission” to “financial instruments” substitute “ the market abuse regulation and the Commission Delegated Regulation (EU) No. 1052/2016 of 8 March 2016 supplementing Regulation (EU) No. 596/2014 of the European Parliament and the Council with regard to the regulatory technical standards for conditions applicable to buy-back programmes and stabilisation measures ”.

Section 186 (assessment criteria)I7150

In section 186 M74 (assessment criteria), in paragraph (f)(i), for the words from “within the” to “terrorist financing” substitute “ as defined in regulation 3(1) of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 ”M75 .

Section 188 (assessment: consultation with EC competent authorities)I7251

Omit section 188 (assessment: consultation with EC competent authorities) M76.

Section 189 (assessment: procedure)I7352

In section 189 M77 (assessment: procedure), in subsections (1A), (1ZB)(a) and (1ZB)(b), for “credit institution” substitute “ qualifying credit institution ”.

Section 190 (requests for further information)I7453

In section 190 (requests for further information) M78, in subsection (4)—

a

in paragraph (a) M79, for “European Union” substitute “ United Kingdom F43or Gibraltar ”;

b

for paragraph (b) M80, substitute—

b
is not subject to supervision under the laws of the United Kingdom (or any part of the United Kingdom) F44or of Gibraltar relied on immediately before F15IP completion day to implement—
i
the UCITS directive;
ii
the Solvency 2 Directive;
iii
the markets in financial instruments directive; or
iv
the capital requirements directive,
including rules made by the appropriate regulator under this Act, in force on F15IP completion day , and, as amended from to time, in all other cases.

Section 190A (assessment and resolution)I7554

In section 190A M81 (assessment and resolution), in subsections (1)(a), (1)(c) and (7), for “credit institution” substitute “ qualifying credit institution ”.

Section 191A (objection by the appropriate regulator)I7655

In section 191A (objection by the appropriate regulator), omit subsection (5) M82.

Section 191G (interpretation of Part 12)I7756

In section 191G M83 (interpretation), in subsection (1)—

a

omit the definition of “credit institution”M84;

b

in the definition of “UK authorised person”, in paragraph (b), after “Schedule 5” insert “ , or a person treated as having a Part 4A permission to carry on a regulated activity by virtue of regulation 71 of the Collective Investment Schemes (Amendment etc.) (EU Exit) Regulations 2019 ”M85 .

F45c

in the appropriate place, insert—

“qualifying credit institution” includes a credit institution which is authorised under the law of Gibraltar relied on immediately before IP completion day to implement the capital requirements directive.

CHAPTER 9Part 12A of the Act: powers exercisable in relation to parent undertakings

IntroductionI20357

Part 12A of the Act (powers exercisable in relation to parent undertakings) is amended as follows.

Section 192C (power to direct qualifying parent undertaking)I7858

1

Section 192C M86 (power to direct qualifying parent undertaking) is amended as follows.

2

In subsection (3)(a), for “in pursuance of any of the directives mentioned in section 3M(3)” substitute—

in pursuance of—
i
any implementing provision contained in subordinate legislation (within the meaning of the Interpretation Act 1978) made otherwise than by any of the following—
aa
statutory instrument, and
bb
statutory rule for the purposes of the Statutory Rules (Northern Ireland) Order 1979 (S.I. 1979/1573 (N.I. 12)); or
ii
any other implementing provision (as amended from time to time)

3

For subsection (4) substitute—

4
In subsection (3)(a)—
“consolidated supervision” includes supplemental supervision;
“implementing provision” has the same meaning as in section 3M.

Section 192JB (rules requiring parent undertakings to facilitate resolution)I7959

In section 192JB M87 (rules requiring parent undertakings to facilitate resolution), in subsection (4), for paragraph (b) substitute—

b
“group financial support agreement” means an agreement for the provision of financial support, by a member of the group of the parent undertaking, to an institution in the group which, at any time after the agreement is concluded, comes to need financial support;

Section 192K (power to impose penalty or issue censure)I8060

In section 192K M88 (power to impose penalty or issue censure), in subsection (1)(c) M89 for “qualifying EU provision” substitute “ qualifying provision ”.

CHAPTER 10Part 14 of the Act: disciplinary measures

Section 204A (meaning of “relevant requirement” etc.)I8161

In section 204A M90 (meaning of “relevant requirement” etc.), in subsection (2)(b) M91 for “qualifying EU provision” substitute “ qualifying provision ”.

CHAPTER 11Part 20 of the Act: provision of financial services by members of the professions

IntroductionI20462

Part 20 of the Act M92 (provision of financial services by members of the professions) is amended as follows.

Section 326 (designation of professional bodies)I8263

In section 326 (designation of professional bodies), omit subsection (5)(d).

Section 327 (exemption from the general prohibition)I8364

In section 327 (exemption from the general prohibition)—

a

in subsection (1)(aa), for “Section A of Annex 1 of the markets in financial instruments directive”, substitute “ Part 3 of Schedule 2 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 ”;

b

in subsection (7A)(a), omit “for the purposes of the markets in financial instruments directive”;

c

in subsection (7B), omit “for the purposes of the markets in financial instruments directive”;

d

in subsection (7C), for the words from “Article 4(a)” to the end, substitute “ paragraph 6(a) to (c) of Schedule 3 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 ”.

Section 328 (directions in relation to the general prohibition)I8465

In section 328 (directions in relation to the general prohibition), in subsection (6)—

a

omit “either”;

b

at the end of paragraph (a), omit “or”;

c

omit paragraph (b).

CHAPTER 12Part 22 of the Act: auditors and actuaries

IntroductionI20566

Part 22 of the Act (auditors and actuaries) is amended as follows.

Section 342 (information given by auditor or actuary to a regulator)I8567

In section 342 (information given by auditor or actuary to a regulator), in subsection (8) M93, for “ “credit institution” and “investment firm” have” substitute “ “investment firm” has”.

Section 343 (information given by auditor or actuary to a regulator: persons with close links)I8668

In section 343 M94 (information given by auditor or actuary to a regulator: persons with close links)—

a

omit subsection (9).

b

in subsection (10) M95, for “ “credit institution” and “investment firm” have” substitute “ “investment firm” has”.

CHAPTER 13Part 25 of the Act: injunctions and restitution

IntroductionI20669

Part 25 of the Act (injunctions and restitution) is amended as follows.

Section 380 (injunctions)I8770

1

Section 380 M96 (injunctions) is amended as follows.

2

In subsection (6)(a)(i) M97, for “qualifying EU provision” substitute “ qualifying provision ”.

3

In subsection (9) M98 for “qualifying EU provision” in both places substitute “ qualifying provision ”.

Section 382 (restitution orders)I8871

1

Section 382 M99 (restitution orders) is amended as follows.

2

In subsection (9)(a)(i) M100, for “qualifying EU provision” substitute “ qualifying provision ”.

3

In subsection (12) M101, for “qualifying EU provision” in both places substitute “ qualifying provision ”.

Section 384 (power of FCA or PRA to require restitution)I8972

1

Section 384 M102 (power of FCA or PRA to require restitution) is amended as follows.

2

In subsection (7)(a) M103, for “qualifying EU provision” substitute “ qualifying provision ”.

3

In subsection (10) M104 for “qualifying EU provision” in both places substitute “ qualifying provision ”.

CHAPTER 14Part 26 of the Act: notices

IntroductionI20773

Part 26 of the Act (notices) is amended as follows.

Section 391 (publication)I9074

1

Section 391 M105 (publication) is amended as follows.

2

Omit subsections (7A) M106 and (7B) M107.

3

In subsection (8A) M108, for “requirement imposed by the CSD regulation or any directly applicable regulation made under the CSD regulation” substitute “ CSD requirement ”.

4

After subsection (8A) insert—

8AA
A “CSD requirement” is a requirement imposed by—
a
the CSD regulation,
b
any EU regulation, originally made under the CSD regulation, which is retained direct EU legislation, or
c
any subordinate legislation (within the meaning of the Interpretation Act 1978) made under the CSD regulation on or after F16IP completion day.

5

In subsection (8B) M109, for “requirement imposed by the market abuse regulation or a directly applicable EU regulation made under the market abuse regulation” substitute “ market abuse requirement ”.

6

After subsection (8B) insert—

8BA
A “market abuse requirement” is a requirement imposed by—
a
the market abuse regulation,
b
any EU regulation, originally made under the market abuse regulation, which is retained direct EU legislation, or
c
any subordinate legislation (within the meaning of the Interpretation Act 1978) made under the market abuse regulation on or after F17IP completion day.

7

In subsection (8D) M110—

a

omit the “or” at the end of paragraph (a);

b

in paragraph (b)—

i

for “directly applicable regulation” substitute “ EU regulation, originally ”, and

ii

at the end insert “ which is retained direct EU legislation, ”;

c

after paragraph (b) insert—

or
c
any subordinate legislation (within the meaning of the Interpretation Act 1978) made under the PRIIPs regulation on or after F18IP completion day,

8

In subsection (8E) M111, for the words from “imposed by” to “this section” substitute—

imposed by—
a
the EU Benchmarks Regulation 2016,
b
any EU regulation, originally made under the EU Benchmarks Regulation 2016, which is retained direct EU legislation, or
c
any subordinate legislation (within the meaning of the Interpretation Act 1978) made under the EU Benchmarks Regulation on or after F19IP completion day,
this section

9

Omit subsection (8F) M112.

Section 391A (publication: special requirements relating to capital requirements directive)I9175

1

Section 391A M113 (publication: special requirements relating to capital requirements directive) is amended as follows.

2

In the heading, for “the capital requirements directive” substitute “ capital requirements ”.

3

In subsection (1) for “to which Article 68(1) of the capital requirements directive applies.” substitute —

for breach of—
a
a provision made in or under this Act for the purpose of implementing the capital requirements directive, or
b
a provision of the capital requirements regulation.

4

In subsection (6) M114—

a

at the end of paragraph (a) insert “ and ”; and

b

omit paragraph (c), and the “and” preceding it.

Section 391B (publication: special provisions relating to the transparency obligations directive)I9276

1

Section 391B M115 (publication: special provisions relating to the transparency obligations directive) is amended as follows.

2

In the heading, for “the transparency obligations directive” substitute “ transparency obligations ”.

3

In subsection (1) for “to which Article 29(1) of the transparency obligations directive applies” substitute “ for breach of a provision made in or under this Act for the purpose of implementing the transparency obligations directive ”.

Section 391C (publication: special provisions relating to the UCITS directive)I9377

1

Section 391C M116 (publication: special provisions relating to the UCITS directive) is amended as follows.

2

In the heading, for “the UCITS directive” substitute “ UCITS ”.

3

In subsection (1) for “to which Article 99 of the UCITS directive applies” substitute “ for breach of a provision made in or under this Act for the purpose of implementing the UCITS directive ”.

4

In subsection (7) M117, omit paragraph (b), and the “and” preceding it.

Section 391D (publication: special provisions relating to the markets in financial instruments directive)I9478

1

Section 391D M118 (publication: special provisions relating to the markets in financial instruments directive) is amended as follows.

2

In the heading, for “the markets in financial instruments directive” substitute “ markets in financial instruments ”.

3

In subsection (1), for “to which Article 71 of the markets in financial instruments directive applies.” substitute—

for breach of—
a
a provision made in or under this Act for the purpose of implementing the markets in financial instruments directive, or
b
a provision of the markets in financial instruments regulation.

4

In subsection (9) M119, omit paragraph (b), and the “and” preceding it.

Section 391E (publication: special provisions relating to the insurance distribution directive)I9579

1

Section 391E M120 (publication: special provisions relating to the insurance distribution directive) is amended as follows.

2

In the heading, for “the insurance distribution directive” substitute “ insurance distribution ”.

3

In subsection (1), for “to which Article 32 of the insurance distribution directive applies” substitute “ for breach of a provision made in or under this Act for the purpose of implementing the insurance distribution directive ”.

4

Omit subsection (5).

CHAPTER 15Part 27 of the Act: offences

Section 398 (misleading FCA or PRA: residual cases)I9680

1

Section 398 M121 (misleading FCA or PRA: residual cases) is amended as follows.

2

In subsection (1A) M122—

a

for paragraph (ea) substitute—

ea
any EU regulation, originally made under the markets in financial instruments directive, which is retained direct EU legislation;

b

for paragraph (eb) substitute—

eb
any of the following—
i
the markets in financial instruments regulation,
ii
any EU regulation, originally made under the markets in financial instruments regulation, which is retained direct EU legislation, and
iii
any subordinate legislation (within the meaning of the Interpretation Act 1978) made under the markets in financial instruments regulation on or after F20IP completion day;

CHAPTER 16Part 28 of the Act: miscellaneous

IntroductionI20881

Part 28 of the Act (miscellaneous) is amended as follows.

Section 404E (meaning of “consumers”)I9782

In section 404E M123 (meaning of “consumers”), in subsection (6) omit the definition of “credit institution”.

Section 410 (international obligations)I9883

In section 410 M124 (international obligations), in subsection (1) M125, for “EU obligations or any other” substitute “ any ”.

CHAPTER 17Part 29 of the Act: interpretation of the Act

IntroductionI20984

Part 29 of the Act (interpretation of the Act) is amended as follows.

Section 417 (definitions)I385

I281

In section 417 (definitions) subsection (1) is amended as set out in paragraphs (2) to (13).

I282

After “In this Act” insert “ and in any order or regulations made under this Act ”.

I33

In the definition of “capital requirements regulation”M126, at the end insert “ , as it has effect at the updating point (see subsection (1A)) ”.

I284

In the definition of “central securities depository”M127, for “has the meaning given by point (1) of” substitute “ means a CSD or third-country CSD as defined in ”.

I285

At the appropriate place insert—

“credit institution” means an undertaking the business of which is to take deposits or other repayable funds from the public and to grant credits for its own account;

I36

In the definition of “the CSD regulation”M128, at the end insert “ , as it has effect at the updating point (see subsection (1A)) ”.

I287

For the definition of “insurance undertaking”M129 substitute—

“insurance undertaking” means an undertaking which—
a
has its head office in the United Kingdom,
b
has a Part 4A permission to carry on one or more regulated activities, and
c
would require authorisation in accordance with Article 14 of the Solvency 2 Directive if the United Kingdom were a member State;

I38

In the definition of “market abuse regulation”M130, at the end insert “ , as it has effect at the updating point (see subsection (1A)) ”.

I289

At the appropriate place insert—

“qualifying credit institution” means a credit institution which—
a
is a person who—
i
has Part 4A permission to carry on the regulated activity of accepting deposits, or
ii
satisfies the conditions for being given permission under Part 4A to carry on that activity, or
iii
is a body corporate incorporated in the United Kingdom and would satisfy those conditions—
aa
were its head office in the United Kingdom, or
bb
if it has a registered office, were its registered office, or its registered office and its head office, in the United Kingdom,
b
is not a friendly society, and
c
is not a society registered as a credit union under—
i
the Co-operative and Community Benefit Societies Act 2014,
ii
the Credit Unions (Northern Ireland) Order 1985 (S.I. 1985/1205 (N.I. 12)), or
iii
the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969 (c. 24 (N.I.));

I2810

For the definition of “reinsurance undertaking”M131 substitute—

“reinsurance undertaking” means an undertaking which—
a
has its head office in the United Kingdom,
b
has a Part 4A permission to carry on one or more regulated activities,
c
effects or carries out contracts of insurance that are limited to reinsurance contracts, and
d
would require authorisation in accordance with Article 14 of the Solvency 2 Directive if the United Kingdom were a member State;

I3 I2811

In the definition of “short selling regulation”M132, at the end insert “ , as it has effect at the updating point (see subsection (1A)) ”.

I2812

In the definition of “third country insurance undertaking”M133, for the words after “received” substitute “ from the PRA or the FCA authorisation under any enactment (including an enactment contained in subordinate legislation within the meaning of the Interpretation Act 1978), or any rule made under this Act by the PRA or the FCA, that implemented Article 162 of the Solvency 2 Directive ”.

I2813

Omit the definitions of—

“EBA” M134,
“EIOPA” M135,
“mortgage creditor” M136,
“mortgage intermediary” M137, and
“tied mortgage intermediary” M138.

I314

After subsection (1) of section 417 insert—

1A
A reference in subsection (1) to an instrument as it has effect at the updating point is a reference to the instrument as it has effect at the beginning of the day on which the Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019 are made (but see regulation 2 of the European Union (Withdrawal) Act 2018 (Consequential Modifications and Repeals and Revocations) Regulations 2019 (S.I. 2019/628), which may further update the reference).

Section 418 (carrying on regulated activities in the United Kingdom)I9986

1

Section 418 M139 (carrying on regulated activities in the United Kingdom) is amended as follows.

2

In subsection (1) M140, for the words before “described” substitute “ In the cases ”.

3

Omit subsections (2) and (3) M141.

4

In subsection (5AA) M142—

a

in paragraph (b)(i) and (ii), for “an EEA State” substitute “ the United Kingdom ”;

b

in paragraph (d), for “the EEA” substitute “ the United Kingdom ”.

5

In subsection (6), for the words before “it is irrelevant” substitute “ For the purposes of the preceding subsections ”.

6

Omit subsection (7) M143.

7

For subsection (8) M144 substitute—

8
For the purposes of this section, an AIF is “marketed” when—
a
the person managing the AIF (“the AIFM”) makes a direct or indirect offering or placement of units or shares of the AIF to or with an investor domiciled or with a registered office in the United Kingdom, or
b
another person makes such an offering or placement at the initiative of, or on behalf of, the AIFM.

Section 420 (parent and subsidiary undertaking)I487

In section 420 (parent and subsidiary undertaking), in subsection (2)(b)—

I100a

omit “other than the United Kingdom”;

I4b

for “Seventh Company Law Directive” substitute “ Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC ”M145 .

Section 422A (disregarded holdings)I588

M146In section 422A (disregarded holdings)—

I29a

in subsection (4)—

i

in paragraph (a) M147, for the words from “article 4.1.7” to “directive” substitute “ article 2.1.6 of the markets in financial instruments regulation ”;

ii

for paragraph (b), substitute—

b
has a Part 4A permission to carry on one or more investment services and activities;

I29b

in subsection (5), for “credit institution” substitute “ qualifying credit institution ”;

I29c

in subsection (6)—

i

in the opening words and in paragraph (b), for “credit institution” substitute “ qualifying credit institution ”;

ii

in paragraph (a)(ii), omit the words from “in accordance with” to the end;

I29d

in subsection (7) M148, for “Article 2.1(b) of the UCITS Directive” substitute “ section 237(2) ”;

I5e

in subsection (9A) M149, for the words from “Commission” to “financial instruments” substitute “ the market abuse regulation and Commission Delegated Regulation (EU) No. 1052/2016 of 8 March 2016 supplementing Regulation (EU) No. 596/2014 of the European Parliament and the Council with regard to the regulatory technical standards for conditions applicable to buy-back programmes and stabilisation measures ”;

I29F46f

for subsection (10), substitute—

10
For the purposes of this section “qualifying credit institution” includes a credit institution which is authorised under the law of Gibraltar relied on immediately before IP completion day to implement the capital requirements directive.

Mortgage agreements etcI10189

After section 423 insert—

423AMortgage agreements etc
1
In this Act—
“mortgage agreement” means an agreement to which subsection (2) applies, but to which subsection (3) does not apply, under which a mortgage creditor grants or promises to grant, to a consumer, a credit in the form of a deferred payment, loan or other similar financial accommodation;
“mortgage creditor” means a person who grants or promises to grant—
a
in the course of the person's trade, business or profession, and
b
under an agreement to which subsection (2) applies but to which subsection (3) does not apply,
credit in the form of a deferred payment, loan or other similar financial accommodation;
“mortgage intermediary” means a person who, in the course of the person's trade, business or profession, and acting neither as a mortgage creditor or notary nor in an introductory capacity, does any of the following for any agreed form of financial consideration—
a
presenting or offering mortgage agreements to consumers;
b
assisting consumers by undertaking preparatory work or other pre-contractual administration in respect of mortgage agreements (otherwise than as referred to in paragraph (a));
c
concluding mortgage agreements with consumers on behalf of mortgage creditors;
“tied mortgage intermediary” means a mortgage intermediary who acts on behalf of and under the full and unconditional responsibility of—
a
only one mortgage creditor,
b
only one group of mortgage creditors, or
c
a number of mortgage creditors or groups of mortgage creditors which does not represent the majority of the market.
2
This subsection applies to the following agreements—
a
an agreement secured by a mortgage on, or (in Scotland) a heritable security over, residential immovable property, or by any other charge or right over or related to such property;
b
an agreement the purpose of which is to acquire or retain property rights in land or in an existing or projected building.
3
This subsection applies to the following agreements—
a
an agreement under which the creditor—
i
contributes a lump sum, periodic payments or other forms of credit disbursement in return for a sum deriving from the future sale of a residential immovable property or a right relating to residential immovable property, and
ii
will not seek repayment of the credit until the occurrence of one or more specified life events of the consumer, unless the consumer breaches contractual obligations so as to allow the creditor to terminate the agreement;
b
an agreement under which credit is granted by an employer to its employees as a secondary activity where the agreement is offered free of interest or at an annual rate lower than that prevailing on the market and not offered to the public generally;
c
an agreement under which credit is granted free of interest and without any other charges except those that recover costs directly related to the securing of the credit;
d
an agreement in the form of an overdraft facility under which the credit has to be repaid within one month;
e
an agreement which is the outcome of a settlement reached in or before a court or other statutory authority;
f
an agreement which—
i
relates to the deferred payment, free of charge, of an existing debt, and
ii
is not secured by a mortgage, by another comparable security commonly used in the United Kingdom on residential immovable property or by a right related to residential immovable property.
4
In this section—
“acting in an introductory capacity” means merely introducing (directly or indirectly) a consumer to a mortgage creditor or mortgage intermediary;
“annual rate” means the total cost to the borrower expressed as an annual percentage of the total amount of credit;
“consumer” means an individual who is acting for purposes outside those of any trade, business or profession carried on by the individual;
“group of mortgage creditors” means a group of mortgage creditors that are to be consolidated for the purposes of drawing up consolidated accounts in accordance with—
a
the requirements of Part 15 of the Companies Act 2006, if the parent undertaking (within the meaning of that Act) is a company, or
b
if it is not, the legal requirements that apply to the drawing up of consolidated accounts for the parent undertaking;
“specified” means specified in rules made by the FCA.
5
A reference in this section to any immovable property, land or building—
a
in relation to an agreement entered into before F21IP completion day, is a reference to any immovable property, land or building in the United Kingdom or within the territory of an EEA State;
b
in relation to an agreement entered into on or after F21IP completion day, is a reference to any immovable property, land or building in the United Kingdom.

Section 424A (meaning of “investment firm”)I10290

1

Section 424A M150 (meaning of “investment firm”) is amended as follows.

2

In subsection (1), for “Article 4.1.1 of the markets in financial instruments directive” substitute “ paragraph 2.1A of the markets in financial instruments regulation ”.

3

In subsection (2), for “subsections (3) to (5)” substitute “ subsection (5) ”.

4

Omit subsections (3) M151 and (4).

5

In subsection (5) M152, for paragraphs (a) and (b) substitute—

a
a person excluded from the definition of “investment firm” in Article 3(1) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544) by paragraph (a) or (b) of that definition; or
b
a firm which has a Part 4A permission to carry on regulated activities as an exempt investment firm within the meaning of regulation 8 of the Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017 (S.I. 2017/701).

Section 425A (consumers: regulated activities etc carried on by authorised persons)I10391

1

Section 425A M153 (consumers: regulated activities etc carried on by authorised persons) is amended as follows.

2

In subsection (3)(b), for “credit institutions” substitute “ qualifying credit institutions ”.

3

In subsection (7) M154—

a

omit the definition of “credit institution”M155;

b

Section 425C (“qualifying EU provision”)I10492

For section 425C M156 (“qualifying EU provision”) substitute—

425C“Qualifying provision”
In this Act “qualifying provision” means a provision of any of the following—
a
retained direct EU legislation;
b
technical standards made in accordance with Chapter 2A of Part 9A;
c
subordinate legislation (within the meaning of the Interpretation Act 1978) made by virtue of regulations made under section 8 of the European Union (Withdrawal) Act 2018.

CHAPTER 18Schedule 1ZA to the Act: the Financial Conduct Authority

Schedule 1ZA (the Financial Conduct Authority)I10593

In Schedule 1ZA M157 (the Financial Conduct Authority), in paragraph 23(2)(b) M158, for “qualifying EU provision” substitute “ qualifying provision ”.

CHAPTER 19Schedule 1ZB to the Act: the Prudential Regulation Authority

Schedule 1ZB (the Prudential Regulation Authority)I10694

In Schedule 1ZB to the Act M159 (the Prudential Regulation Authority), in paragraph 31(2)(b) M160, for “qualifying EU provision” substitute “ qualifying provision ”.

CHAPTER 20Schedule 2 to the Act: regulated activities

Schedule 2 (regulated activities)I10795

In Schedule 2 (regulated activities), in paragraph 13(2)(c) omit “or another member State”.

CHAPTER 21Schedule 6 to the Act: threshold conditions

IntroductionI21096

Schedule 6 M161 to the Act (threshold conditions) is amended as follows.

InterpretationI10897

1

Paragraph 1A(1) (interpretation of Schedule 6) is amended as follows.

2

After the definition of “functions”, insert—

“implementing provisions” has the same meaning as in section 3M;

3

After the definition of “relevant directives”, insert—

“relevant implementing provisions” means—
a
any implementing provision contained in subordinate legislation (within the meaning of the Interpretation Act 1978) made otherwise than by any of the following–
i
statutory instrument, and
ii
statutory rule for the purposes of the Statutory Rules (Northern Ireland) Order 1979 (S.I. 1979/1573 (N.I. 12)); or
b
any other implementing provision (as amended from time to time));

Paragraph 2C (effective supervision)I10998

In paragraph 2C(1) (effective supervision)—

a

in paragraph (e), for “of the relevant directives” substitute “ relevant implementing provisions ”;

b

in paragraph (f)(iii) for “territory which is not an EEA State” substitute “ country or territory outside the United Kingdom ”.

Paragraph 3B (effective supervision)I11099

In paragraph 3B(1) (effective supervision)—

a

in paragraph (e), for “of the relevant directives” substitute “ relevant implementing provisions ”;

b

in paragraph (f)(iii) for “territory which is not an EEA State” substitute “ country or territory outside the United Kingdom ”.

Paragraph 4A (introduction to Part 1D)I111100

In paragraph F474A—

a

for F48sub-paragraph (6)(a) substitute—

a
the persons are undertakings, whether incorporated or not, other than an existing insurance or reinsurance undertaking, which assume risks from insurance or reinsurance undertakings and which fully fund their exposure to such risks through the proceeds of a debt issuance or any other financing mechanism where the repayment rights of the providers of such debt or financing mechanism are subordinated to the reinsurance obligations of such an undertaking;

b

for F49sub-paragraph (6)(b) substitute—

b
the persons are not insurance undertakings;

F50c

after sub-paragraph (6), insert—

7
In paragraph (6)(a), references to undertakings which assume risks from insurance or reinsurance undertakings include references to undertakings which assume risks from third country insurance or reinsurance undertakings and Gibraltarian insurance or reinsurance undertakings; and for these purposes “third country insurance undertakings”, “third country reinsurance undertakings”, “Gibraltarian insurance undertakings” and “Gibraltarian reinsurance undertakings” have the same meaning as in the Solvency 2 Regulations 2015 (S.I. 2015/575), as amended under the European Union (Withdrawal) Act 2018 (see, in particular, regulation 2(1)).

Paragraph 4F (effective supervision)I112101

In paragraph 4F(2) (effective supervision)—

a

in paragraph (e), for “of the relevant directives” substitute “ relevant implementing provisions ”;

b

in paragraph (f)(iii) for “territory which is not an EEA State” substitute “ country or territory outside the United Kingdom ”.

Paragraph 5F (effective supervision)I113102

In paragraph 5F(2) (effective supervision)—

a

in paragraph (e), for “of the relevant directives” substitute “ relevant implementing provisions ”;

b

in paragraph (f)(iii) for “territory which is not an EEA State” substitute “ country or territory outside the United Kingdom ”.

Paragraph 8 (additional conditions)I114103

In paragraph 8(2)(a) (additional conditions), for “EEA” substitute “ United Kingdom ”.

CHAPTER 22Schedule 12 to the Act: transfer schemes: certificates

IntroductionI211104

Schedule 12 to the Act (transfer schemes: certificates) is amended as follows.

Paragraph 1 (insurance business transfer schemes)I115105

For paragraph 1 M162 (insurance business transfer schemes) substitute—

1
For the purposes of section 111(2) the appropriate certificate, in relation to an insurance business transfer scheme, is a certificate under paragraph 2.

Paragraph 2 (certificates as to margin of solvency)I116106

1

Paragraph 2 (certificates as to margin of solvency) is amended as follows.

F512

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

In sub-paragraph (6)—

a

omit paragraphs (a) and (aa) M163;

b

in paragraph (c) M164 omit “(a), (aa) or”;

c

in paragraph (c)(i) and (ii) M165 omit, in each place it occurs, “or with permission under Schedule 4”.

4

Omit sub-paragraphs (7A) and (9) M166.

Paragraphs 3 to 6 (further provisions on certificates)I117107

Omit paragraphs 3 to 6 M167 (further provisions on certificates).

Paragraph 7 (banking business transfer schemes)I118108

For paragraph 7 M168 (banking business transfer schemes) substitute—

7
For the purposes of section 111(2) the appropriate certificate, in relation to a banking business transfer scheme, is a certificate under paragraph 8.

Paragraph 8 (certificates as to financial resources)I119109

In paragraph 8 (certificates as to financial resources) in sub-paragraph (2) M169—

a

in sub-paragraphs (a) and (aa) omit “or with permission under Schedule 4”;

b

omit paragraph (b);

c

in paragraph (c) for “(a), (aa) or (b)” substitute “ (a) or (aa) ”.

Paragraph 9 (certificates as to consent of home state regulator)I120110

Omit paragraph 9 M170 (certificates as to consent of home state regulator).

Paragraph 9B (ring-fencing transfer schemes)I121111

For paragraph 9B M171 (ring-fencing transfer schemes) substitute—

9B
For the purposes of section 111(2) the appropriate certificates, in relation to a ring-fencing transfer scheme, are—
a
a certificate given by the PRA certifying its approval of the application, and
b
a certificate under paragraph 9C.

Paragraph 9C (certificate as to financial resources)I122112

In paragraph 9C (certificate as to financial resources) in sub-paragraph (2) M172—

a

in paragraph (a) omit “or with permission under Schedule 4”;

b

omit paragraph (b);

c

in paragraph (c) omit “or (b)”.

Paragraph 9D (certificate as to consent of home state regulator)I123113

Omit paragraph 9D M173 (certificate as to consent of home state regulator).

Paragraph 10 (insurance business transfers effected outside the United Kingdom)I124114

In paragraph 10 (insurance business transfers effected outside the United Kingdom)—

a

in sub-paragraph (1) for “any of the conditions in sub-paragraphs (2), (3) or (4)” substitute “ the condition in sub-paragraph (4) ”;

b

omit sub-paragraphs (2) and (3) M174;

c

in sub-paragraph (4) M175 for “a UK authorised person” to the end substitute “ a UK authorised person as defined in section 105(8) ”.

CHAPTER 23Schedule 17A to the Act: further provisions in relation to exercise of Part 18 functions by Bank of England

IntroductionI212115

Schedule 17A to the Act (further provision in relation to the exercise of Part 18 functions by Bank of England) M176 is amended as follows.

Paragraph 11 (information gathering and investigations)I125116

In paragraph 11 M177 (information gathering and investigations)—

a

in sub-paragraph (1)—

i

for paragraph (ab) substitute—

ab
a third country CSD, in relation to any services referred to in the Annex to the CSD regulation which the third country CSD provides in the United Kingdom;

ii

in paragraph (b), for “, a recognised CSD or an EEA CSD” substitute “ or a recognised CSD ”;

b

in sub-paragraph (2), for paragraph (d) substitute—

d
information or documents reasonably required in connection with the exercise by the Bank of its functions—
i
under—
aa
the EMIR regulation,
bb
the CSD regulation,
cc
any EU regulation originally made under the CSD Regulation which is retained direct EU legislation, or
dd
any subordinate legislation made under the CSD Regulation on or after F22IP completion day;
ii
in connection with Article 4 or 15 of the SFT regulation; or
iii
under any subordinate legislation made under the SFT regulation on or after F22IP completion day.

Paragraphs 22 and 23 (public record and disclosure of information)I126117

1

In paragraph 22 M178 (public record and disclosure of information), before “or a recognised CSD”, insert “ , a third country CSD ”.

2

In paragraph 23 M179 (public record and disclosure of information), in sub-paragraph (1), for the words from “or any directly applicable regulation” to the end substitute “ , any EU regulation originally made under the CSD regulation which is retained direct EU legislation, or any subordinate legislation made under the CSD regulation on or after F23IP completion day”.

Paragraph 30 (offences)I127118

In paragraph 30 M180 (offences)—

a

in sub-paragraph (a), for “, a recognised CSD or an EEA CSD” substitute “ or a recognised CSD ”;

b

in sub-paragraph (c), for “qualifying EU provision” substitute “ qualifying provision ”.

Paragraph 36 (fees)I128119

In paragraph 36 M181—

a

in sub-paragraph (1), omit “, EEA CSDs”;

b

in sub-paragraph (2)(b), for “qualifying EU provision”, substitute “ qualifying provision ”.

C1PART 3Amendments to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001

Annotations:

Modifications etc. (not altering text)

Pts. 3-6 modified in part (31.12.2020) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(2), 11(1)(4)(5) (with reg. 11(8)-(10)) (as amended by S.I. 2020/1301, regs. 1, 3, Sch. para. 40(f)); 2020 c. 1, Sch. 5 para. 1(1)

C1IntroductionI213 C1120

The Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 M182 is amended as follows.

C1Article 3 (interpretation)I129 C1121

1

In article 3 (interpretation) paragraph (1) is amended as set out in paragraphs (2) to (13).

2

Omit the definitions of—

F52...
F52...
“EEA AIFM” M183,
“credit institution” M184,
F52...
F52...
“investment services and activities” M185,
F52...
F52...
“UCITS” M186, and
“UK AIF” M187.

3

In the definition of “contract of insurance”M188, for paragraph (f) substitute—

f
contracts relating to the length of human life that are regulated by or under any enactment relating to social security, in so far as they are effected or carried out at their own risk by undertakings with permission to effect or carry out contracts of long-term insurance as principals;

4

In the definition of “financial instrument”M189, for “Section C of Annex I to the markets in financial instruments directive (the text of which is set out in Part 1 of Schedule 2)” substitute “ Part 1 of Schedule 2 ”.

5

Omit the definition of “home Member State”M190 and insert in the appropriate place—

“home State”—
a
in relation to a qualifying credit institution, means the State in which the institution has been granted authorisation;
b
in relation to a legal person (other than a qualifying credit institution) that has a registered office under the person's national law, means the State in which that office is located;
c
in relation to any other person, means the State in which the person's head office is located;

6

For the definition of “investment firm”M191 substitute—

“investment firm” means a person whose regular occupation or business is the provision or performance of investment services and activities on a professional basis, other than—
a
a person excluded by Schedule 3, read with the Commission Regulation and with Commission Delegated Regulation (EU) 2017/592 of 1 December 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council with regard to regulatory technical standards for the criteria to establish when an activity is considered to be ancillary to the main business;
b
a person whose home State is not the United Kingdom and who would be excluded by Schedule 3, read with the Commission Regulation and with Commission Delegated Regulation (EU) 2017/592, if the person's registered office (or head office, in the case of a person that is not a body corporate or a person that is a body corporate but has no registered office) was in the United Kingdom;

7

For the definition of “management company”M192 substitute—

“management company” has the meaning given by section 237(2) of the Act;

8

For the definition of “market operator”M193 substitute—

“market operator” means—
a
a person that manages or operates the business of a UK regulated market (including a person who does so as the UK regulated market itself), or
b
a person that would fall within paragraph (a) if the person had its registered office (or, if it does not have one, its head office) in the United Kingdom,
other than a person falling within paragraph (1A);

9

For the definition of “multilateral trading facility”M194 substitute—

“multilateral trading facility” or “MTF” means—
a
a UK multilateral trading facility (within the meaning of Article 2.1.14A of the markets in financial instruments regulation) operated by an investment firm, a qualifying credit institution or a market operator, or
b
a facility which—
i
is operated by an investment firm, qualifying credit institution or market operator whose home State is not the United Kingdom, and
ii
if its operator's home State was the United Kingdom, would be a UK multilateral trading facility (within the meaning of Article 2.1.14A of the markets in financial instruments regulation);

10

For the definition of “organised trading facility”M195 substitute—

“organised trading facility” or “OTF” means—
a
a UK organised trading facility (within the meaning of Article 2.1.15A of the markets in financial instruments regulation) operated by an investment firm, a qualifying credit institution or a market operator, or
b
a facility which—
i
is operated by an investment firm, qualifying credit institution or market operator whose home State is not the United Kingdom, and
ii
if its operator's home State was the United Kingdom, would be a UK organised trading facility (within the meaning of Article 2.1.15A of the markets in financial instruments regulation);

11

At the appropriate places insert—

“portfolio management” has the meaning given by Article 2.7 of the Commission Regulation;

“qualifying credit institution” means a credit institution which—
a
is a person who—
i
has Part 4A permission to carry on the regulated activity of accepting deposits, or
ii
satisfies the conditions for being given permission under Part 4A to carry on that activity, or
iii
is a body corporate incorporated in the United Kingdom and would satisfy those conditions—
aa
were its head office in the United Kingdom, or
bb
if it has a registered office, were its registered office, or its registered office and its head office, in the United Kingdom,
b
is not a friendly society,
c
is not a society registered as a credit union under—
i
i)the Co-operative and Community Benefit Societies Act 2014 M196,
ii
the Credit Unions (Northern Ireland) Order 1985 M197, or
iii
the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969 M198, and
d
is not a person excluded from the definition of “investment firm” by Schedule 3, read with the Commission Regulation and with Commission Delegated Regulation (EU) 2017/592 of 1 December 2016 supplementing Directive 2014/65/EU of the European Parliament and the Council with regard to regulatory technical standards for the criteria to establish when an activity is considered to be ancillary to the main business;

12

In the definition of “trade repository”M199, for “ESMA” in all four places substitute “ the FCA ”.

13

At the appropriate places insert—

“UK regulated market” has the meaning given by Article 2.1.13A of the markets in financial instruments regulation;

“UK UCITS” has the meaning given by section 237(3) of the Act;

14

After paragraph (1) of article 3 insert—

1A
A person falls within this paragraph if—
a
the person is excluded from the definition of “investment firm” by Schedule 3, read with the Commission Regulation and with Commission Delegated Regulation (EU) 2017/592 of 1 December 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council with regard to regulatory technical standards for the criteria to establish when an activity is considered to be ancillary to the main business, or
b
the person is one whose home State is not the United Kingdom and who would be excluded from that definition by Schedule 3, read with the Commission Regulation and with Commission Delegated Regulation (EU) 2017/592, if the person had its registered office (or, if it does not have one, its head office) in the United Kingdom.

15

After paragraph (3) of article 3 insert—

4
In this Order any reference to a sourcebook is to a sourcebook in the Handbook of Rules and Guidance published by the FCA containing rules made by the FCA under the Act, as the sourcebook has effect on F24IP completion day.

C1Article 4 (specified activities: general)I130 C1122

1

Article 4 (specified activities: general) is amended as follows.

2

In paragraph (4) M200, for “credit institution” (in both places) substitute “ qualifying credit institution ”.

3

In paragraph (4A) M201, in sub-paragraph (a), for “an EEA State” substitute “ the United Kingdom ”.

4

After that paragraph insert—

4AA
In its application to any activity relating to a contract of insurance entered into before F25IP completion day, paragraph (4A)(a) has effect as if “or an EEA State” were inserted after “the United Kingdom.

5

In paragraph (4B) M202, for “does not fall within Article 3(2) or (3) of the mortgages directive” substitute “ neither relates to an agreement to which section 423A(3) of the Act applies nor falls within the scope of any of the derogations set out in Article 3(3) of the mortgages directive (as it had effect immediately before F26IP completion day) ”.

6

In paragraph (5) M203—

a

in the definition of “ancillary insurance intermediary”, after “Schedule 4” insert “ , read with the modifications set out in paragraph 3 of Part 6 M204 of that Schedule ”;

b

in the definition of “insurance distribution”, after “respectively” insert “ , read with the modification set out in paragraph 4 of Part 6 of that Schedule ”;

c

in the definition of “reinsurance distribution”, after “respectively” insert “ , read with the modifications set out in paragraphs 2 and 4 of Part 6 of that Schedule ”.

C1Article 6 (sums paid by certain persons)I131 C1123

1

In article 6 (sums paid by certain persons) paragraph (1)(a) is amended as follows.

2

In paragraph (i) omit “, the central bank of an EEA State other than the United Kingdom, or the European Central Bank”.

3

Omit paragraph (x) M205.

C1Article 9B (issuing electronic money)I132 C1124

In article 9B M206 (issuing electronic money), in paragraph (a), for “credit institution” substitute “ qualifying credit institution ”.

C1Article 9C (persons certified as small issuers etc)I133 C1125

In article 9C M207 (persons certified as small issuers etc), in paragraph (2) omit “as defined in Article 4(1)(1) of the capital requirements regulation”.

Article 24A (bidding in emissions auctions)F53126

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Article 24B (miscellaneous exclusions)F54127

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

C1Article 33B (provision of information – contracts of insurance)I134 C1128

1

Article 33B M208 (provision of information – contracts of insurance) is amended as follows.

2

In paragraph (4)—

a

for the definition of “insurance intermediary” substitute—

“insurance intermediary” means a person other than—
a
an insurance or reinsurance undertaking or an employee of such an undertaking, or
b
an ancillary insurance intermediary,
who, for remuneration, takes up or pursues the activity of insurance distribution;

b

for the definition of “reinsurance intermediary” substitute—

“reinsurance intermediary” means a person other than—
a
a reinsurance undertaking, or
b
an employee of a reinsurance undertaking,
who, for remuneration, takes up or pursues the activity of reinsurance distribution;

3

After that paragraph insert—

5
In paragraph (4)—
“ancillary insurance intermediary”, “insurance distribution” and “reinsurance distribution” have the same meaning as in article 4;
“remuneration” means any commission, fee, charge or other payment, including an economic benefit of any kind or any other financial or non-financial advantage or incentive offered or given.

C1Article 35 (international securities self-regulating organisations)I135 C1129

1

In article 35 (international securities self-regulating organisations) paragraph (3) is amended as follows.

2

In sub-paragraph (ba) M209 omit “an EEA central counterparty (as defined in section 285(1)(c) of the Act) or”.

3

In sub-paragraph (bb) M210 omit “an EEA CSD (as defined in section 285(1)(f) of the Act) or”.

C1Article 35A (trade repositories)I22130

At the end of article 35A M211 (trade repositories), the existing text of which becomes paragraph (1), insert—

2
The reference in paragraph (1)(a) to Regulation (EU) 648/2012 is a reference to that instrument as it has effect at the beginning of the day on which the Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019 are made (but see regulation 2 of the European Union (Withdrawal) Act 2018 (Consequential Modifications and Repeals and Revocations) Regulations 2019 M212, which may further update the reference).

C1Article 42A (depositaries of UCITS and AIFs)I136 C1131

1

Article 42A M213 (depositaries of UCITS and AIFs) is amended as follows.

2

In the heading, for “UCITS” substitute “ UK UCITS ”.

3

In paragraph (a), for “a UCITS” substitute “ a UK UCITS ”.

C1Article 51ZA (managing a UCITS)I137 C1132

1

Article 51ZA M214 (managing a UCITS) is amended as set out in paragraphs (2) to (4).

2

In the heading and in paragraph (1), for “a UCITS” substitute “ a UK UCITS ”.

3

For paragraph (2) substitute—

2
A person manages a UK UCITS when the person carries on collective portfolio management of it.
2A
In paragraph (2) “collective portfolio management” includes investment management, administration and marketing; and “administration” here means—
a
legal and fund management accounting services;
b
customer inquiries;
c
valuation and pricing (including tax returns);
d
regulatory compliance monitoring;
e
maintenance of unit-holder register;
f
distribution of income;
g
unit issues and redemptions;
h
contract settlements (including certificate dispatch);
i
record keeping.”.

4

In paragraph (3), for “a UCITS” substitute “ a UK UCITS ”.

5

In consequence of the amendments made by paragraphs (2) to (4)—

a

in article 72H M215, in paragraph (2)(m), for “a UCITS” substitute “ a UK UCITS ”;

b

omit Schedule 6.

C1Article 51ZB (acting as trustee or depositary of a UCITS)I138 C1133

1

In article 51ZB M216 (acting as trustee or depositary of a UCITS), in the heading and in paragraph (1), for “a UCITS” substitute “ a UK UCITS ”.

2

In consequence of the amendments made by paragraph (1), in article 72H, in paragraph (2)(n), for “a UCITS” substitute “ a UK UCITS ”.

C1Article 51ZD (acting as trustee or depositary of an AIF)I139 C1134

1

Article 51ZD M217 (acting as trustee or depositary of an AIF) is amended as follows.

2

In paragraph (2) omit sub-paragraph (b) and the preceding “or”.

3

In paragraph (3), for sub-paragraph (a) substitute—

a
a person appointed as a depositary by the AIFM in compliance with a requirement imposed by rule 3.11.10, 3.11.12 or 3.11.33 of the Investment Funds sourcebook; or

C1Article 51ZG (operating a collective investment scheme in relation to a UCITS or an AIF)I140 C1135

1

Article 51ZG M218 (operating a collective investment scheme in relation to a UCITS or an AIF) is amended as follows.

2

In the heading and in paragraph (1)(a), for “a UCITS” substitute “ a UK UCITS ”.

3

In paragraph (2)(b) and (c), for “the UCITS or AIF” substitute “ the UK UCITS or the AIF ”.

C1Article 53DA (advising on regulated credit agreements for the acquisition of land)I141 C1136

In article 53DA M219 (advising on regulated credit agreements for the acquisition of land), for paragraph (2) substitute—

2
In this article—
a
a reference to any land or building—
i
in relation to an agreement entered into before F27IP completion day, is a reference to any land or building in the United Kingdom or within the territory of an EEA State;
ii
in relation to an agreement entered into on or after F27IP completion day, is a reference to any land or building in the United Kingdom;
b
“regulated credit agreement” has the meaning given by article 60B(3).

C1Article 54 (advice given in newspapers etc)I142 C1137

1

In article 54 (advice given in newspapers etc), in paragraph (1)(b)(va) M220, after “land” and after “building” insert “ in the United Kingdom ”.

2

The amendment made by paragraph (1) does not apply in relation to any advice published or given before F28IP completion day.

C1Article 60D (exempt agreements: exemption relating to the purchase of land for non-residential purposes)I143 C1138

In article 60D (exempt agreements: exemption relating to the purchase of land for non-residential purposes), for paragraph (4) M221 substitute—

4
This article does not apply to an agreement if—
a
the agreement is entered into on or after 21st March 2016,
b
under the agreement a mortgage creditor grants or promises to grant a credit in the form of a deferred payment, loan or other similar financial accommodation,
c
the credit is granted or promised to an individual who is acting for purposes outside those of any trade, business or profession carried on by the individual,
d
the purpose of the agreement is to acquire or retain property rights in land or in an existing or projected building, and
e
the agreement does not meet the conditions in paragraphs (i) to (iii) of article 61(3)(a) (regulated mortgage contracts).
5
A reference in paragraph (4)(d) to any land or building—
a
in relation to an agreement entered into before F29IP completion day, is a reference to any land or building in the United Kingdom or within the territory of an EEA State;
b
in relation to an agreement entered into on or after F29IP completion day, is a reference to any land or building in the United Kingdom.

C1Article 60E (exempt agreements: exemptions relating to the nature of the lender)I144 C1139

In Article 60E M222, in subsection (6)(a), for “credit institution” substitute “ qualifying credit institution ”.

C1Article 60G (exempt agreements: exemptions relating to the total charge for credit)I145 C1140

1

Article 60G M223 (exempt agreements: exemptions relating to the total charge for credit) is amended as follows.

2

In paragraph (2A)(a) M224, for “of a type described in Article 3(1) of the mortgages directive” substitute “ one to which subsection (2) of section 423A of the Act applies ”.

3

In paragraph (2A)(b)—

a

for “of such a type” substitute “ one to which that subsection applies ”;

b

in paragraph (i), for “of a kind to which the mortgages directive does not apply by virtue of Article 3(2) of that directive” substitute “ one to which subsection (3) of that section applies ”;

c

in paragraph (ii) omit “within the meaning of Article 4(23) of the mortgages directive”.

4

In paragraph (8) M225, for “of a type described in Article 3(1) of the mortgages directive” substitute “ to which subsection (2) of section 423A of the Act applies ”.

5

After that paragraph insert—

9
In this article “bridging loan” means a mortgage agreement that—
a
is of no fixed duration or is due to be repaid within 12 months, and
b
is used by a consumer, within the meaning given by section 423A(4) of the Act, as a temporary financing solution while transitioning to another financial arrangement for the immovable property concerned.

C1Article 60H (exempt agreements: exemptions relating to the nature of the borrower)I146 C1141

1

Article 60H M226 (exempt agreements: exemptions relating to the nature of the borrower) is amended as follows.

2

In paragraph (1)(b)(ii) M227 omit sub-paragraph (bb) and the preceding “or”.

3

Omit paragraph (2) M228.

C1Article 60HA (exempt agreements: exemptions not permitted under the mortgages directive)I147 C1142

1

Article 60HA M229 (exempt agreements: exemptions not permitted under the mortgages directive) is amended as follows.

2

In the heading, for “exemptions not permitted under the mortgages directive” substitute “ provision qualifying articles 60E, 60F and 60H ”.

3

In paragraph (1) M230, for the words after “article 60E(2) or (5)” substitute “ or 60F(4) if it is a mortgage agreement to which paragraph (2) does not apply ”.

4

In paragraph (2)—

a

after “This paragraph applies” insert “ to an agreement ”;

b

omit paragraph (a);

c

in paragraph (b), for “of Article 4(23) of the mortgages directive” substitute “ given by article 60G(9) ”.

C1Article 60JA (payment institutions)I148 C1143

1

Omit article 60JA M231 (payment institutions).

2

In relation to a person who has transitional authorisation by virtue of paragraph 14 of Schedule 3 to the Electronic Money, Payment Services and Payment Systems (Amendment and Transitional Provisions) (EU Exit) Regulations 2018 M232 (“the 2018 Regulations”), the amendment made by paragraph (1) does not apply during the transition period (within the meaning given by paragraph 22 of that Schedule).

F552A

In relation to a person who has a continued authorisation for a limited purpose in accordance with paragraph 26 of Schedule 3 to the 2018 Regulations or is exempt from the prohibition in regulation 138(1) of Payment Services Regulations 2017 by virtue of paragraph 36 of Schedule 3 to the 2018 Regulations, the amendment made by paragraph (1) does not apply during the extension period (within the meaning given by paragraph 31 of that Schedule) or the period of exemption (within the meaning given by paragraph 36 of that Schedule).

3

Despite the repeal of Schedule 5 to the Payment Services Regulations 2017 M233 by the 2018 Regulations, that Schedule has effect, with any necessary modifications, in relation to a case where the amendment made by paragraph (1) does not apply because of paragraph (2) F56or (2A).

C1Article 60JB (electronic money institutions)I149 C1144

1

Omit article 60JB M234 (electronic money institutions).

2

In relation to a person who has transitional authorisation by virtue of paragraph 2 of Schedule 3 to the Electronic Money, Payment Services and Payment Systems (Amendment and Transitional Provisions) (EU Exit) Regulations 2018 (“the 2018 Regulations”), the amendment made by paragraph (1) does not apply during the transition period (within the meaning given by paragraph 10 of that Schedule).

F572A

In relation to a person who has continued authorisation for limited purposes in accordance with paragraph 12B of Schedule 3 to the 2018 Regulations or is exempt from the prohibition in regulation 63(1) of Electronic Money Regulations 2011 by virtue of paragraph 12L of Schedule 3 to the 2018 Regulations, the amendment made by paragraph (1) does not apply during the extension period (within the meaning given by paragraph 12G of that Schedule) or the period of exemption (within the meaning given by paragraph 12L of that Schedule).

3

Despite the repeal of Schedule 2A to the Electronic Money Regulations 2011 M235 by the 2018 Regulations, that Schedule has effect, with any necessary modifications, in relation to a case where the amendment made by paragraph (1) does not apply because of paragraph (2) F58or (2A).

C1Article 61 (regulated mortgage contracts)I150 C1145

1

Article 61 (regulated mortgage contracts) is amended as follows.

2

In paragraph (3)(a)(ii) M236 omit “in the EEA”.

3

In paragraph (4), after sub-paragraph (a) insert—

aa
“land”—
i
in relation to a contract entered into before F30IP completion day, means land in the United Kingdom or within the territory of an EEA State;
ii
in relation to a contract entered into on or after F30IP completion day, means land in the United Kingdom.

C1Article 61A (mortgage contracts which are not regulated mortgage contracts)I151 C1146

1

In article 61A M237 (mortgage contracts which are not regulated mortgage contracts) paragraph (6) is amended as follows.

2

In the definition of “bridging loan”, for “Article 4(23) of the mortgages directive” substitute “ article 60G(9) ”.

3

In the definition of “exempt consumer buy-to-let mortgage contract”, in paragraph (a), for “of a kind to which the mortgages directive does not apply by virtue of Article 3(2) of that directive” substitute “ an agreement to which section 423A(3) of the Act applies ”.

4

In the definition of “exempt housing authority loan”M238, in paragraph (b)—

a

for sub-paragraph (i) substitute—

i
is an agreement to which section 423A(3) of the Act applies,”;

b

in sub-paragraph (iii), for “exemptions not permitted under the mortgages directive” substitute “ provision qualifying articles 60E, 60F and 60H ”.

C1Article 72 (overseas persons)I152 C1147

1

Article 72 (overseas persons) is amended as follows.

2

In paragraph (8) M239, for “credit institution” substitute “ qualifying credit institution ”.

3

In paragraphs (8)(b) and (10) M240 omit “Member”.

4

In paragraph (9A) M241—

a

in sub-paragraph (a) omit “23(2) or”;

b

omit sub-paragraph (b) and the preceding “or”.

5

After paragraph (10) insert—

10A
This article does not apply in the following two cases.

6

In paragraph (11) M242, for “This Article does not apply” substitute “ The first case is ”.

7

After paragraph (11) insert—

11A
The second case is where the overseas person is—
a
a third-country firm, as defined by Article 2.1.42 of the markets in financial instruments regulation;
b
established in a county that is the subject of F59an equivalence determination; and
c
carrying on an activity a third country firm established in that third country may carry on, by virtue of the F60equivalence determination, under—
i
Article 46.1 of the markets in financial instruments regulation, if it is registered by the FCA in the register of third country firms established in accordance with Article 48 of that regulation, or
ii
Article 46.5 of that regulation.

8

In paragraph (12) M243—

a

for “paragraph (11)” substitute “ paragraphs (11) and (11A) ”;

b

in sub-paragraph (a)—

i

after “by the Commission”, in both places, insert “ before F31IP completion day”;

ii

omit the “and” at the end;

c

after sub-paragraph (b) insert—

F61c
“equivalence determination” means a determination made by the Treasury—
i
in regulations under Article 47.1 of the markets in financial instruments regulation and not revoked; or
ii
by direction under regulation 2 of the Equivalence Determinations for Financial Services and Miscellaneous Provisions (Amendment etc) (EU Exit) Regulations 2019 and not revoked;
F62d
a country is the subject of an equivalence determination if a period of more than three years has elapsed since—
i
the date on which the equivalence determination came into force, or
ii
where two or more equivalence determinations have been made in succession in relation to the country concerned, the date on which the first equivalence determination came into force;
e
for the purposes of sub-paragraph (d), an equivalence determination is not made in succession to an earlier determination if the earlier determination ceased to have effect before the later determination came into force.

C1Article 72AA (managers of UCITS and AIFs)I153 C1148

1

In Article 72AA M244 (managers of UCITS and AIFs)—

a

in the heading, for “UCITS” substitute “ UK UCITS ”;

b

in paragraph (2), for “a UCITS” substitute “ a UK UCITS ”.

2

In consequence of the amendments made by paragraph (1), for “UCITS” substitute “ UK UCITS ” in the following provisions—

a

article 9AA M245;

b

article 12A M246;

c

article 20 M247;

d

article 24;

e

article 36(1), (2) and (3);

f

article 39;

g

article 39C M248;

h

article 44;

i

article 50;

j

article 51A M249;

k

article 52A M250;

l

article 55(1) and (2);

m

article 58A M251;

n

article 60A M252;

o

article 63A M253;

p

article 63E M254;

q

article 63I M255;

r

article 63M M256.

C1Article 72D (large risks contracts where risk situated outside the EEA)I154 C1149

1

Article 72D M257 (large risks contracts where risk situated outside the EEA) is amended as set out in paragraphs (2) to (4).

2

In the heading, for “the EEA” substitute “ the United Kingdom ”.

3

In paragraph (1), for “an EEA State” substitute “ the United Kingdom ”.

4

In paragraph (4) omit “(within the meaning of the Seventh Company Law Directive)”.

5

In consequence of the amendments made by paragraphs (2) and (3), for “outside the EEA” substitute “ outside the United Kingdom ” in the following provisions—

a

article 24 M258;

b

article 36(1) M259;

c

article 39C M260;

d

article 55(1) M261.

C1Article 72E (Business Angel-led Enterprise Capital Funds)I155 C1150

In article 72E M262 (Business Angel-led Enterprise Capital Funds), in paragraph (8)—

a

for “in accordance with the law of an EEA State” substitute “ under the law of any part of the United Kingdom ”;

b

for “within the territory of an EEA State” substitute “ in the United Kingdom ”.

C1Article 72G (local authorities)I156 C1151

1

Article 72G M263 (local authorities) is amended as follows.

2

In paragraph (3B)(b), for paragraph (i) substitute—

i
is an agreement to which section 423A(3) of the Act applies;

3

In paragraph (4)(a), in paragraph (ii), for the words after “a credit agreement” substitute “ falling within paragraph (6A) or within section 423A(2)(a) or (b) or (3)(b), (d), (e) or (f) of the Act; ”.

4

In paragraph (4)(b), for paragraph (i) substitute—

i
it is an agreement to which section 423A(3) of the Act applies;

5

After paragraph (4) insert—

4A
A reference in paragraph (4) to any land or building—
a
in relation to an agreement entered into before F32IP completion day, is a reference to any land or building in the United Kingdom or within the territory of an EEA State;
b
in relation to an agreement entered into on or after F32IP completion day, is a reference to any land or building in the United Kingdom.

6

After paragraph (6) insert—

6A
The following credit agreements fall within this paragraph—
a
an agreement involving a total amount of credit of less than 200 euro;
b
an agreement that involves a total amount of credit of more than 75,000 euro, other than an unsecured credit agreement the purpose of which is the renovation of a residential immovable property;
c
a hiring or leasing agreement under which an obligation to purchase the object of the agreement is not laid down either by the agreement itself or by any separate agreement;
d
an agreement under which the credit is granted free of interest and without any other charges;
e
an agreement under which the credit has to be repaid within three months and only insignificant charges are payable;
f
an agreement concluded with an investment firm or a credit institution for the purposes of allowing an investor to carry out a transaction relating to one or more of the instruments listed in Part 1 of Schedule 2, where the investment firm or credit institution granting the credit is involved in that transaction;
g
an agreement under which the consumer's liability is strictly limited to an item that the consumer is requested to deposit, upon the conclusion of the agreement, as security in the creditor's safe-keeping;
h
an agreement that relates to a restricted public loan.
6B
For the purposes of subsection (6A)(c), an obligation to purchase the object of the agreement is deemed to exist if the creditor decides that it does.

7

In paragraph (7)—

a

in the definition of “bridging loan”, for “Article 4(23) of the mortgages directive” substitute “ article 60G(9) ”;

b

at the appropriate place insert—

“consumer” means an individual who is acting for purposes outside those of any trade, business or profession carried on by the individual;

c

omit the definition of “consumer credit directive”.

C1Article 77A (alternative finance investment bonds)I157 C1152

1

Article 77A M264 (alternative finance investment bonds) is amended as follows.

2

In paragraph (2), for sub-paragraph (f) M265 substitute—

f
the arrangements are—
i
a security that is admitted to the official list in accordance with Part 6 of the Act,
ii
a security that is admitted to an official list in the EEA (in accordance with the provisions of Directive 2001/34/EC of the European Parliament and of the Council on the admission of securities to official stock exchange listing and on information to be published on those securities) and has been so admitted since before F33IP completion day,
iii
a security that is admitted to trading on a recognised investment exchange or a UK trading venue, or
iv
a security that is admitted to trading on an EU trading venue and has been so admitted since before F33IP completion day.

3

After paragraph (3) insert—

3A
In sub-paragraph (2)(f)—
“EU trading venue” has the meaning given by Article 2.1.16B of the markets in financial instruments regulation;
“UK trading venue” has the meaning given by Article 2.1.16A of that regulation.

C1Article 78 (government and public securities)I158 C1153

In article 78 (government and public securities), in paragraph (1)(g)(i) and (ii) omit “or another EEA State”.

Article 82A (greenhouse gas emissions allowances)F67154

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

C1Article 82B (emission allowances)I159 C1155

1

Article 82B M266 (emission allowances) is amended as follows.

F632

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

In paragraph (2), for sub-paragraphs (a) to (d) substitute—

a
an investment firm or qualifying credit institution is providing or performing investment services and activities on a professional basis,
b
a management company which has a Part 4A permission to do so is providing the investment service specified in paragraph 4 or 5 of Part 3 of Schedule 2 or the ancillary service specified in paragraph 1 of Part 3A of that Schedule,
c
a market operator is providing the investment service specified in paragraph 8 or 9 of Part 3 of that Schedule, or
d
a full-scope UK AIFM which has a Part 4A permission to do so is providing the investment service specified in paragraph 1, 4 or 5 of Part 3 of that Schedule or the ancillary service specified in paragraph 1 of Part 3A of that Schedule.

C1Article 83 (options)I160 C1156

1

Article 83 (options) is amended as follows.

2

In paragraph (1)(e) M267, for the words after “an option to which” substitute “ paragraph 5, 6, 7 or 10 of Part 1 of Schedule 2 (read with Articles 5, 6, 7, and 8 of the Commission Regulation) applies ”.

3

In paragraph (2)(d) M268—

a

in paragraph (i) omit “Section C of Annex I to the markets in financial instruments directive, the text of which is set out in”;

b

in paragraph (ii), for “Section C of Annex I to the markets in financial instruments directive” substitute “ Part 1 of that Schedule ”.

4

In paragraph (3)(c) M269, for “Section C of Annex I to the markets in financial instruments directive” substitute “ Part 1 of Schedule 2 ”.

5

In paragraph (4) M270, for sub-paragraphs (a) to (d) substitute—

a
an investment firm or qualifying credit institution is providing or performing investment services and activities on a professional basis,
b
a management company which has a Part 4A permission to do so is providing the investment service specified in paragraph 4 or 5 of Part 3 of Schedule 2 or the ancillary service specified in paragraph 1 of Part 3A of that Schedule,
c
a market operator is providing the investment service specified in paragraph 8 or 9 of Part 3 of that Schedule, or
d
a full-scope UK AIFM which has a Part 4A permission to do so is providing the investment service specified in paragraph 1, 4 or 5 of Part 3 of that Schedule or the ancillary service specified in paragraph 1 of Part 3A of that Schedule.

6

Omit paragraph (5) M271.

C1Article 84 (futures)I161 C1157

1

Article 84 (futures) is amended as follows.

2

In paragraph (1A)(d), (1B)(e) and (1C)(c) M272, for “Section C of Annex I to the markets in financial instruments directive” substitute “ Part 1 of Schedule 2 ”.

3

In paragraph (1CA) M273—

a

for “Section C of Annex I to the markets in financial instruments directive” substitute “ Part 1 of Schedule 2 ”;

b

for “the texts of which are set out in Parts 1 and 2 of Schedule 2” substitute “ the text of which is set out in Part 2 of Schedule 2 ”.

4

In paragraph (1D) M274, for sub-paragraphs (a) to (d) substitute—

a
an investment firm or qualifying credit institution is providing or performing investment services and activities on a professional basis,
b
a management company which has a Part 4A permission to do so is providing the investment service specified in paragraph 4 or 5 of Part 3 of Schedule 2 or the ancillary service specified in paragraph 1 of Part 3A of that Schedule,
c
a market operator is providing the investment service specified in paragraph 8 or 9 of Part 3 of that Schedule, or
d
a full-scope UK AIFM which has a Part 4A permission to do so is providing the investment service specified in paragraph 1, 4 or 5 of Part 3 of that Schedule or the ancillary service specified in paragraph 1 of Part 3A of that Schedule.

5

Omit paragraph (1E) M275.

C1Article 85 (contracts for differences etc)I162 C1158

1

Article 85 (contracts for differences etc) is amended as follows.

2

In paragraph (3)(b) M276, for “Section C of Annex I to the markets in financial instruments directive” substitute “ Part 1 of Schedule 2 ”.

3

In paragraphs (4) M277 and (4B) M278, for sub-paragraphs (a) to (d) substitute—

a
an investment firm or qualifying credit institution is providing or performing investment services and activities on a professional basis,
b
a management company which has a Part 4A permission to do so is providing the investment service specified in paragraph 4 or 5 of Part 3 of Schedule 2 or the ancillary service specified in paragraph 1 of Part 3A of that Schedule,
c
a market operator is providing the investment service specified in paragraph 8 or 9 of Part 3 of that Schedule,
d
a full-scope UK AIFM which has a Part 4A permission to do so is providing the investment service specified in paragraph 1, 4 or 5 of Part 3 of that Schedule or the ancillary service specified in paragraph 1 of Part 3A of that Schedule.

4

In paragraph (4A)(c) M279—

a

for “Section C of Annex I to the markets in financial instruments directive” substitute “ Part 1 of Schedule 2 ”;

b

for “the texts of which are set out in Parts 1 and 2 of Schedule 2” substitute “ the text of which is set out in Part 2 of Schedule 2 ”.

5

Omit paragraph (5) M280.

C1Article 95 (exclusion from record where not fit and proper to carry on insurance distribution)I163 C1159

In article 95 (exclusion from record where not fit and proper to carry on insurance distribution) omit paragraph (1A) M281.

C1Schedule 4 (relevant text of the insurance distribution directive)I164 C1160

In Schedule 4 M282 (relevant text of the insurance distribution directive), after Part 5 insert—

PART 6Modifications of Article 1.3, 2.1(2) and (4) and 2.2
1
This Part has effect for the purposes of article 4(5).
2
Article 2.1(2) of the insurance distribution directive has effect—
a
as if “within the meaning of the Financial Services and Markets Act 2000” were inserted after “a reinsurance undertaking”, and
b
as if “within the meaning given by article 33B(4) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001” were inserted after “a reinsurance intermediary”.
3
Article 2.1(4) of the insurance distribution directive has effect as if “within the meaning of the Financial Services and Markets Act 2000” were substituted for “as defined in points (1) and (2) of Article 4(1) of Regulation (EU) No 575/2013 of the European Parliament and of the Council”.
4
Article 2.2 of the insurance distribution directive has effect as if, as the end, there were inserted—
“In points (b), (c) and (d) “insurance undertaking” and “reinsurance undertaking” have the same meaning as in the Financial Services and Markets Act 2000.”

C1Schedule 8 (persons excluded from regulated activity of managing an AIF)I165 C1161

1

Schedule 8 M283 (persons excluded from regulated activity of managing an AIF) is amended as follows.

2

In paragraph 1, after “the alternative investment fund managers directive” insert “ , and not referred to in paragraph 1B, ”.

3

After paragraph 1 insert—

1A
For the purposes of paragraph 1, in Article 4(1)(o) of the alternative investment fund managers directive (definition of “holding company”) the reference to the Union is to be read as a reference to the United Kingdom.
1B
In this Schedule—
“parent undertaking” has the meaning given by section 1162 of the Companies Act 2006 M284 (read with Schedule 7 to that Act);
“subsidiary” has the meaning given to “subsidiary undertaking” by that section (read with that Schedule)

4

For paragraph 4 substitute—

4
The trustees and managers of an occupational pension scheme within the meaning of section 1(1) of the Pension Schemes Act 1993 M285.

5

In paragraph 5—

a

omit “The European Central Bank,”;

b

for “, any other” substitute “ or any other ”;

c

omit “or a European Development Finance Institution,”.

6

In paragraph 11 M286—

a

for “an EEA State” substitute “ the United Kingdom ”;

b

for the words after “in accordance with” substitute “ Part 3 of the Alternative Investment Fund Managers Regulations 2013 M287. ”.

C1PART 4Amendments to the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005

C1Introduction and transitional provisionI168 C1162

1

The Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 M288 is amended as set out in this Part.

2

Nothing in this Part causes a communication to constitute a breach of the prohibition in subsection (1) of section 21 of the Financial Services and Markets Act 2000 M289 (restrictions on financial promotion) if—

a

a contract entered into before F34IP completion day required the communication to be made, and

b

the communication would not have constituted a breach of the prohibition had it been made before F35IP completion day.

C1Article 2 (interpretation: general)I167 C1163

In article 2 (interpretation: general), in paragraph (1), in the definition of “international organisation”, in paragraphs (a) and (b) omit “or another EEA State”.

C1Article 6 (interpretation: communications)I169 C1164

In article 6 (interpretation: communications) omit paragraphs (g) and (h).

C1Article 8A (interpretation: outgoing electronic commerce communication)I170 C1165

Omit article 8A M290 (interpretation: outgoing electronic commerce communication).

C1Article 10 (application to qualifying contracts of insurance)I171 C1166

In article 10 (application to qualifying contracts of insurance), in paragraph 1—

a

omit sub-paragraph (c);

b

omit sub-paragraph (d).

C1Article 12 (communications to overseas recipients)I172 C1167

In article 12 (communications to overseas recipients) omit paragraph 7.

C1Article 18A (electronic commerce communications: mere conduits, caching and hosting)I173 C1168

1

Article 18A (electronic commerce communications: mere conduits, caching and hosting) is amended as follows.

2

In paragraph (a), for “paragraph 1 of Article 12, 13 or 14 of the electronic commerce directive” substitute “ regulation 17(1), 18 or 19 of the Electronic Commerce (EC Directive) Regulations 2002 M291 ”.

3

In paragraph (b), for “the conditions mentioned in the paragraph in question, to the extent” substitute “the conditions mentioned in—

i
regulation 17(1)(a) to (c) of those Regulations (where regulation 17 is the relevant regulation),
ii
regulation 18(b)(i) to (v) of those Regulations (where regulation 18 is the relevant regulation), or
iii
regulation 19(a)(i) and (ii) of those Regulations (where regulation 19 is the relevant regulation),
to the extent

C1Article 20B (incoming electronic commerce communications)I174 C1169

Omit article 20B (incoming electronic commerce communications).

C1Article 25 (relevant insurance activity: non-real time communications: reinsurance and large risks)I175 C1170

In article 25 (relevant insurance activity: non-real time communications: reinsurance and large risks), in paragraph (4) omit “(within the meaning of the Seventh Company Law Directive)”.

C1Article 29 (communications required or authorised by enactments)I6171

In article 29 (communications required or authorised by enactments), after paragraph (4) M292 insert—

4A
The reference in paragraph (4) to Regulation (EU) 345/2013 is a reference to that instrument as it has effect at the beginning of the day on which the Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019 are made (but see regulation 2 of the European Union (Withdrawal) Act 2018 (Consequential Modifications and Repeals and Revocations) Regulations 2019 M293, which may further update the reference).

C1Article 34 (governments, central banks etc)I176 C1172

In article 34 (governments, central banks etc) omit sub-paragraph (b)(v).

C1Article 36 (nationals of EEA States other than United Kingdom)I177 C1173

Omit article 36 (nationals of EEA States other than United Kingdom).

C1Article 59 (annual accounts and directors' report)I178 C1174

1

Article 59 (annual accounts and directors' report) is amended as follows.

2

In paragraph (1)(b)—

a

at the end of sub-paragraph (ai) M294 insert “ or ”;

b

at the end of sub-paragraph (i) M295 omit “or”;

c

omit sub-paragraph (iii) M296.

3

In paragraph (7) omit sub-paragraph (e).

4

The amendments made by this regulation do not apply in relation to any report for a financial year beginning before F36IP completion day.

Article 70 (promotions included in listing particulars etc)F1175

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

C1Schedule 1 (controlled activities and controlled investments)I179 C1176

1

In Schedule 1, Part 2 (controlled investments) is amended as follows.

2

In paragraph 14 (shares or stock)—

a

in sub-paragraph (2)(b) M297 omit “or in a body constituted under the law of another EEA State for purposes equivalent to those of such a body”;

b

omit sub-paragraph (3)(d).

3

In paragraph 15A M298 (alternative finance investment bonds), for sub-paragraph (f) M299 of paragraph (2) substitute—

f
the arrangements are—
i
a security that is admitted to the official list in accordance with Part 6 of the Act,
ii
a security that is admitted to an official list in the EEA (in accordance with the provisions of Directive 2001/34/EC of the European Parliament and of the Council on the admission of securities to official stock exchange listing and on information to be published on those securities) and has been so admitted since before F37IP completion day,
iii
a security that is admitted to trading on a recognised investment exchange or a UK trading venue, or
iv
a security that is admitted to trading on an EU trading venue and has been so admitted since before F37IP completion day.

4

In paragraph 21 M300 (options)—

a

in sub-paragraph (1)(e) M301, for the words after “an option to which” substitute “ paragraph 5, 6, 7 or 10 of Part 1 of Schedule 2 (read with Articles 5, 6, 7, and 8 of the Commission Regulation) applies ”;

b

in sub-paragraph (2)(d)(i) M302, for “Section C of Annex I to the markets in financial instruments directive” substitute “ Part 1 of Schedule 2 ”;

c

in sub-paragraph (2)(d)(ii), for “Section C of Annex I to the markets in financial instruments directive” substitute “ Part 1 of that Schedule ”;

d

in sub-paragraph (3)(c) M303, for “Section C of Annex I to the markets in financial instruments directive” substitute “ Part 1 of Schedule 2 ”;

e

in sub-paragraph (4), for sub-paragraphs (a) to (d) M304 substitute—

a
an investment firm or qualifying credit institution is providing or performing investment services and activities on a professional basis;
b
a management company which has a Part 4A permission to do so is providing the investment service specified in paragraph 4 or 5 of Part 3 of Schedule 2 or the ancillary service specified in paragraph 1 of Part 3A of that Schedule;
c
a market operator is providing the investment service specified in paragraph 8 or 9 of Part 3 of that Schedule;
d
a full-scope UK AIFM which has a Part 4A permission to do so is providing the investment service specified in paragraph 1, 4 or 5 of Part 3 of that Schedule or the ancillary service specified in paragraph 1 of Part 3A of that Schedule.

f

omit sub-paragraph (5) M305.

5

In paragraph 22 (futures)—

a

in sub-paragraph (1A)(d), (1B)(e) and (1C)(c) M306, for “Section C of Annex I to the markets in financial instruments directive” substitute “ Part 1 of Schedule 2 ”;

b

in sub-paragraph (1CA) M307, for “Section C of Annex I to the markets in financial instruments directive” substitute “ Part 1 of Schedule 2 ”;

c

in sub-paragraph (1D), for sub-paragraphs (a) to (d) M308 substitute—

a
an investment firm or qualifying credit institution is providing or performing investment services and activities on a professional basis;
b
a management company which has a Part 4A permission to do so is providing the investment service specified in paragraph 4 or 5 of Part 3 of Schedule 2 or the ancillary service specified in paragraph 1 of Part 3A of that Schedule;
c
a market operator is providing the investment service specified in paragraph 8 or 9 of Part 3 of that Schedule;
d
a full-scope UK AIFM which has a Part 4A permission to do so is providing the investment service specified in paragraph 1, 4 or 5 of Part 3 of that Schedule or the ancillary service specified in paragraph 1 of Part 3A of that Schedule.

d

omit sub-paragraph (1E) M309.

6

In paragraph 23 (contracts for differences etc)—

a

in sub-paragraphs (3)(b) M310 and (4A)(c) M311, for “Section C of Annex I to the markets in financial instruments directive” substitute “ Part 1 of Schedule 2 ”;

b

in sub-paragraphs (4) and (4B) M312, for paragraphs (a) to (d) substitute—

a
an investment firm or qualifying credit institution is providing or performing investment services and activities on a professional basis;
b
a management company which has a Part 4A permission to do so is providing the investment service specified in paragraph 4 or 5 of Part 3 of Schedule 2 or the ancillary service specified in paragraph 1 of Part 3A of that Schedule;
c
a market operator is providing the investment service specified in paragraph 8 or 9 of Part 3 of that Schedule;
d
a full-scope UK AIFM which has a Part 4A permission to do so is providing the investment service specified in paragraph 1, 4 or 5 of Part 3 of that Schedule or the ancillary service specified in paragraph 1 of Part 3A of that Schedule.

c

omit sub-paragraph (5) M313.

7

In paragraph 23A M314 (emission allowances)—

a

in sub-paragraph (1), after “compliance” insert “ (by an EEA State) ”;

b

in sub-paragraph (2), for paragraphs (a) to (d) substitute—

a
an investment firm or qualifying credit institution is providing or performing investment services and activities on a professional basis;
b
a management company which has a Part 4A permission to do so is providing the investment service specified in paragraph 4 or 5 of Part 3 of Schedule 2 or the ancillary service specified in paragraph 1 of Part 3A of that Schedule;
c
a market operator is providing the investment service specified in paragraph 8 or 9 of Part 3 of that Schedule;
d
a full-scope UK AIFM which has a Part 4A permission to do so is providing the investment service specified in paragraph 1, 4 or 5 of Part 3 of that Schedule or the ancillary service specified in paragraph 1 of Part 3A of that Schedule.

8

In paragraph 28 (interpretation) omit the definition of “credit institution” and insert at the appropriate places—

“EU trading venue” has the meaning given by Article 2.1.16B of the markets in financial instruments regulation;

“qualifying credit institution” has the meaning given in the Regulated Activities Order;

“UK trading venue” has the meaning given by Article 2.1.16 of the markets in financial instruments regulation.

C1PART 5Amendments to other secondary legislation

C1The Financial Services and Markets Act 2000 (Exemption) Order 2001I7 C1177

1

The Financial Services and Markets Act 2000 (Exemption) Order 2001 M315 is amended as follows.

2

In Part 1 of the Schedule M316 (persons exempt in respect of any regulated activity other than insurance business) omit paragraphs 2 to 6.

3

In Part 4 of the Schedule (persons exempt in respect of particular regulated activities), in paragraph 48 (social housing)—

a

in sub-paragraph (1A)(b)(i), for “the mortgages directive does not apply by virtue of Article 3(2) of that directive” substitute “ section 423A(3) of the Act applies ”;

b

in sub-paragraph (4), in the definition of “bridging loan”, for “Article 4(23) of the mortgages directive” substitute “ article 60G(9) of the Regulated Activities Order ”.

C1The Financial Services and Markets Act 2000 (Appointed Representatives) Regulations 2001I180 C1178

1

The Financial Services and Markets Act 2000 (Appointed Representatives) Regulations 2001 M317 are amended as follows.

2

In regulation 1 (citation, commencement and interpretation), in paragraph (2) M318 omit the definitions of “EEA credit institution” and “EEA investment firm”.

3

In regulation 2 (descriptions of business for which appointed representatives are exempt)—

F64a

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

b

in paragraph (1A) M319, for “a person who has a Part 4A permission for the purposes of the capital requirements directive or the markets in financial instruments directive, an EEA investment firm, or an EEA credit institution,” substitute “ a CRR firm, or a relevant investment firm or credit institution, ”;

c

for paragraph (1B) M320 substitute—

1B
In paragraph (1A)—
“clients” has the meaning given in Article 2.1.7 of the markets in financial instruments regulation;
“CRR firm” has the meaning given in Article 4.1.2A of the capital requirements regulation, except that it does not include an investment firm;
“financial instruments” has the meaning given in Article 2.1.9 of the markets in financial instruments regulation;
“relevant investment firm or credit institution” means a person falling within Article 1.2(a)(i) of the markets in financial instruments regulation.

4

In regulation 3 (requirements applying to contracts between authorised persons and appointed representatives)—

a

in paragraph (1) M321, for the words before “must” substitute “ It is a prescribed requirement for the purposes of section 39(1)(a)(ii) of the Act that a contract between a principal and a representative ”;

b

omit paragraph (1A) M322;

c

in paragraph (6) M323—

i

in the words before sub-paragraph (a) omit “, except where paragraph (1A) applies,”;

ii

in sub-paragraph (a), for “Article 4.1.29 (definitions) of the markets in financial directive” substitute “ Part 3 of Schedule 2 to the Regulated Activities Order M324 ”;

iii

in sub-paragraph (b), for “Article 4.1.43 of that directive” substitute “ Article 2.1.23 of the markets in financial instruments regulation ”.

C1The Financial Services and Markets Act 2000 (Professions) (Non-Exempt Activities) Order 2001179

I1811

The Financial Services and Markets Act 2000 (Professions) (Non-Exempt Activities) Order 2001 M325 is amended as follows.

F65 I1812

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

I233

In article 8 M326, for “(d)”, substitute “ (da) to (de) ”.

C1The Financial Services and Markets Act 2000 (Service of Notices) Regulations 2001I182 C1180

1

The Financial Services and Markets Act 2000 (Service of Notices) Regulations 2001 M327 are amended as follows.

2

In regulation 1(2) M328 (interpretation) omit the definition of “host state regulator”.

3

In regulation 6 M329 (deemed service), in paragraph (1), in the table for “in any EEA State (other than the United Kingdom)” substitute “ outside the United Kingdom ”.

4

Omit regulation 11 (day of service on a host state regulator).

C1The Financial Services and Markets Act 2000 (Variation of Threshold Conditions) Order 2001I183 C1181

1

The Financial Services and Markets Act 2000 (Variation of Threshold Conditions) Order 2001 M330 is amended as follows.

2

In article 2A (non-EEA insurers: specified regulator), in the heading, for “Non-EEA” substitute “ Non-UK ”.

3

In article 3 M331 (non-EEA insurers)—

a

in paragraph (1), for “non-EEA” substitute “ non-UK ”;

b

omit paragraph (2);

c

in the heading, for “Non-EEA” substitute “ Non-UK ”.

C1The Financial Services and Markets Act 2000 (Own-initiative Power) (Overseas Regulators) Regulations 2001I184 C1182

In the Financial Services and Markets Act 2000 (Own-initiative Power) (Overseas Regulators) Regulations 2001 M332, omit regulation 3 (Duty to consider EU obligation).

C1The Financial Services and Markets Act 2000 (Control of Business Transfers) (Requirements on Applicants) Regulations 2001I185 C1183

1

The Financial Services and Markets Act 2000 (Control of Business Transfers) (Requirements on Applicants) Regulations 2001 M333 are amended as follows.

2

In regulation 1(2) (citation, commencement and interpretation) omit the definitions of “State of the commitment” and “State in which the risk is situated”.

3

Omit regulation 2 (meaning of “commitment”).

4

For regulation 3(2)(a) (transfer of an insurance business) substitute—

a
published in—
i
the London, Edinburgh and Belfast Gazettes, and
ii
two national newspapers in the United Kingdom;

5

In regulation 4 (transfer of an insurance business)—

a

in paragraph (2) for “regulation 3(2)(a)(ii), (iii) and (iv), (b) and (c)” substitute “ regulation 3(2)(a)(ii), (b) and (c) ”;

b

omit paragraph 3.

C1The Financial Services and Markets Act 2000 (Control of Business Done at Lloyd's) Order 2001I186 C1184

1

The Financial Services and Markets Act 2000 (Control of Business Done at Lloyd's) Order 2001 M334 is amended as follows.

2

In article 3(a) for “114A” substitute “ 113 ”.

3

In article 4(a) for “an EEA State” substitute “ the United Kingdom F66or Gibraltar ”.

4

In article 5—

a

omit paragraph (2);

b

in paragraph (2A) for “Paragraphs 2, 3, 4 and 5 of Part 1 of Schedule 12” substitute “ Paragraph 2 of Part 1 of Schedule 12 ”.

C1The Financial Services and Markets Act 2000 (Controllers) (Exemption) Order 2009I187 C1185

In the Financial Services and Markets Act 2000 (Controllers) (Exemption) Order 2009 M335, in article 2 (interpretation), in the definition of “relevant UK authorised person”M336, for paragraphs (a) to (c) substitute—

a
a credit institution which has permission under Part 4A of the Act to carry on the regulated activity of accepting deposits;
b
an investment firm (as defined in section 424A of the Act);
c
a management company (as defined in section 237(2) of the Act);

C1The Financial Services and Markets Act 2000 (Prescribed Financial Institutions) Order 2013I188 C1186

1

The Financial Services and Markets Act 2000 (Prescribed Financial Institutions) Order 2013 M337 is amended as follows.

2

In article 1(2) M338 (interpretation)—

a

for the definition of “insurance holding company” substitute—

“insurance holding company” has the same meaning as in regulation 2(1) of the Solvency 2 Regulations 2015 M339;

b

for the definition of “mixed financial holding company” substitute—

“mixed financial holding company” has the meaning given in regulation 1(2) of the Financial Conglomerates and Other Financial Groups Regulations 2004 M340;

c

omit the following definitions—

i

“credit institution”;

ii

“insurance undertaking”;

iii

“reinsurance undertaking”;

iv

“third-country insurance undertaking”;

v

“third-country reinsurance undertaking”.

3

In article 2 M341 (prescribed financial institutions)—

a

in paragraph (4) M342 omit “(within the meaning given in Article 32.4 of the recovery and resolution directive)”; and

b

after paragraph (4) insert—

4A
For the purposes of paragraph (4) a company is failing or likely to fail where, if the company were a bank (within the meaning given in section 2 of the Banking Act 2009 M343), it would be failing or likely to fail by virtue of meeting any of the circumstances in section 7(5C)(b) to (e) of that Act.

C1The Financial Services and Markets Act 2000 (Qualifying EU Provisions) Order 2013I8187

I301

The Financial Services and Markets Act 2000 (Qualifying EU Provisions) Order 2013 M344 is amended as follows.

I302

In the title and in article 1(1) (citation) for “(Qualifying EU Provisions)” substitute “ (Qualifying Provisions) ”.

I263

In article 1, after paragraph (2) M345 (interpretation) insert—

3
In this Order a reference to a specific EU regulation is to be treated as a reference to that EU regulation as it has effect at the beginning of the day on which the Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019 are made (but see regulation 2 of the European Union (Withdrawal) Act 2018 (Consequential Modifications and Repeals and Revocations) Regulations 2019 M346, which may further update the reference).
4
In this Order a reference to any directly applicable regulation made under an EU directive (“the parent EU Directive”) is a reference to—
a
any EU regulation, originally made under the parent EU Directive, which is retained direct EU legislation,
b
any technical standards made in relation to the parent EU Directive in accordance with Chapter 2A of Part 9A of the Act M347, and
c
any subordinate legislation (within the meaning of the Interpretation Act 1978 M348) which is made under a power substituted for a power of an EU entity to make a directly applicable regulation under the parent EU Directive by regulations made under section 8 of the European Union (Withdrawal) Act 2018.
5
In this Order a reference to any directly applicable regulation (or EU regulation) made under an EU regulation (“the parent Regulation”) is a reference to—
a
any EU regulation, originally made under the parent Regulation, which is retained direct EU legislation;
b
technical standards made in relation to the parent Regulation in accordance with Chapter 2A of Part 9A of the Act, and
c
any subordinate legislation (within the meaning of the Interpretation Act 1978) which is made under a power substituted for a power of an EU entity to make a directly applicable regulation under the parent Regulation by regulations made under section 8 of the European Union (Withdrawal) Act 2018.
6
In this Order a reference to any directly applicable regulation made under Article 4(9) or 4(10) of the SFT Regulation M349 is a reference to—
a
any EU regulation, originally made under those Articles, which is retained direct EU legislation;
b
technical standards made in relation to those Articles in accordance with Chapter 2A of Part 9A of the Act, and
c
any subordinate legislation (within the meaning of the Interpretation Act 1978) which is made under a power substituted for a power of an EU entity to make a directly applicable regulation under those Articles by regulations made under section 8 of the European Union (Withdrawal) Act 2018.
7
In articles 2(2)(m), 3(2)(p) and (3)(n), 5(2)(p) and (5)(o) and 6(2)(r) the reference to any directly applicable decision made under an EU regulation is a reference to—
a
a decision made under that regulation which is retained direct EU legislation, and
b
any subordinate legislation (within the meaning of the Interpretation Act 1978) which is made under a power substituted for a power of an EU entity to make a directly applicable decision under that regulation by regulations made under section 8 of the European Union (Withdrawal) Act 2018.

I304

In the following provisions for “qualifying EU provisions” substitute “ qualifying provisions ”

a

in article 2 M350 (qualifying EU provisions: general), in that heading and in paragraphs (1), (3), (4A), (5), (7) and (9) to (11);

b

in article 3 M351 (qualifying EU provisions: disciplinary measures), in that heading and in paragraphs (1) and (3);

c

in article 4 M352 (qualifying EU provisions etc), in that heading and in paragraphs (4), (6), (8) and (10) to (12);

d

in article 5 M353 (qualifying EU provisions: injunctions and restitution), in that heading and in paragraphs (1), (3), (4A) and (6); and

e

in article 6 M354 (qualifying EU provisions: fees), in that heading and in paragraphs (1), (3) and (5).

I305

In article 2(12) M355 and (13) M356 for “qualifying EU provision” substitute “ qualifying provision ”.

I306

In article 5 at the end insert—

7
In paragraphs (2)(n) and (5)(m) the reference to any directly applicable measure of the EU Benchmarks Regulation 2016 is a reference to—
a
any measure, originally adopted under that regulation, which is retained direct EU legislation,
b
technical standards made under that regulation in accordance with Chapter 2A of Part 9A of the Act, and
c
any subordinate legislation (within the meaning of the Interpretation Act 1978) which is made under a power substituted for a power of an EU entity to adopt a measure under that regulation by regulations made under section 8 of the European Union (Withdrawal) Act 2018.

I307

In article 6—

a

in paragraph (1) after “Act” insert “and regulation 206(1)(a) of the Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019;

b

in paragraph (3) after “Act” insert “and regulation 206(1)(a) of the Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019;

c

in paragraph (5) after “Act” insert “and regulation 206(1)(a) of the Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019.

C1The Financial Services and Markets Act 2000 (Exercise of Powers under Part 4A) (Consultation with Home State Regulators) Regulations 2013I189 C1188

The Financial Services and Markets Act 2000 (Exercise of Powers under Part 4A) (Consultation with Home State Regulators) Regulations 2013 M357 are revoked.

C1The Financial Services and Markets Act 2000 (PRA-regulated Activities) Order 2013I190 C1189

1

Article 3 of the Financial Services and Markets Act 2000 (PRA-regulated Activities) Order 2013 M358 (dealing in investments as principal: designation by the PRA) is amended as follows.

2

In paragraph (2) M359—

a

at the end of sub-paragraph (a) insert “ or ”;

b

omit sub-paragraph (c) and the preceding “or”.

3

In paragraph (3) M360—

a

for sub-paragraph (a) M361 substitute—

a
is an investment firm that is required to have initial capital of 730,000 euro or would be required to do so if it had a Part 4A permission;

b

for sub-paragraph (c) substitute—

c
is established in a country other than the United Kingdom but would meet the requirement specified in sub-paragraph (a) if P were established in the United Kingdom and had obtained the necessary authorisation in the United Kingdom for its business.

C1The Financial Services and Markets Act 2000 (Qualifying EU Provisions) (No. 2) Order 2013190

I311

The Financial Services and Markets Act 2000 (Qualifying EU Provisions) (No. 2) Order 2013 M362 is amended as follows.

I312

In the title and in article 1(1) for “(Qualifying EU Provisions)” substitute “ (Qualifying Provisions) ”.

I24 I253

In article 1, after paragraph (2) insert—

3
In paragraph (2) the references to the CRA Regulation and the capital requirements regulation are to be treated as references to those regulations as they have effect at the beginning of the day on which the Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019 are made (but see regulation 2 of the European Union (Withdrawal) Act 2018 (Consequential Modifications and Repeals and Revocations) Regulations 2019 M363, which may further update the references).
4
In paragraph (2) in the definition of “the CRD4 instruments”—
a
the reference to any directly applicable regulation made under the capital requirements regulation is a reference to—
i
any EU regulation, originally made under the capital requirements regulation, which is retained direct EU legislation,
ii
any technical standards made in relation to the capital requirements regulation in accordance with Chapter 2A of Part 9A of the Act, and
iii
any subordinate legislation (within the meaning of the Interpretation Act 1978) which is made under a power substituted for a power of an EU entity to make a directly applicable regulation under the capital requirements regulation by regulations made under section 8 of the European Union (Withdrawal) Act 2018;
b
the reference to any directly applicable regulation made under the capital requirements directive is a reference to—
i
any EU regulation, originally made under the capital requirements directive, which is retained direct EU legislation,
ii
any technical standards made in relation to the capital requirements directive in accordance with Chapter 2A of Part 9A of the Act, and
iii
any subordinate legislation (within the meaning of the Interpretation Act 1978) which is made under a power substituted for a power of an EU entity to make a directly applicable regulation under the capital requirements directive by regulations made under section 8 of the European Union (Withdrawal) Act 2018.

I314

In articles 2 and 3 M364 (qualifying EU provisions) and in the heading of article 2 for “qualifying EU provisions” substitute “ qualifying provisions ”.

I315

In article 2 after “for the purposes of” insert “ regulation 206(1)(a) of the Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019 and ”.

I316

In article 3, after “for the purposes of” insert “ regulation 206(1)(a) of the Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019 and ”.

C1The Financial Services and Markets Act 2000 (Ring-fenced Bodies and Core Activities) Order 2014I191 C1191

1

The Financial Services and Markets Act 2000 (Ring-fenced Bodies and Core Activities) Order 2014 M365 is amended as follows.

2

In article 1 (interpretation), in paragraph (3), after the definition of “securities” insert—

“UK account” has the meaning given in article 2(3)(ba);
“UK account holder” means the holder of a UK account;

3

In article 2 (circumstances in which accepting a deposit is not a core activity)—

a

in paragraph (2), in the words before sub-paragraph (a), after “in” insert “ a UK account or ”;

b

in paragraph (3), after sub-paragraph (b) insert—

ba
an account is a UK account if it was opened at a branch of the UK deposit-taker located in the United Kingdom;

4

In article 10 (declaration of eligibility: determining assets held by individual), in paragraph (5)(b), for the words from “Article 4.1(44)” to the end substitute “ Article 2.1(24) of the markets in financial instruments regulation ”.

5

In article 14 (rules about information to be provided by a non ring-fenced body to individual account-holders), in paragraph (1)—

a

in sub-paragraph (a), after “open” insert “ a UK account or ”;

b

in sub-paragraph (b), at the beginning insert “ UK account holders or ”.

C1The Financial Services and Markets Act 2000 (Excluded Activities and Prohibitions) Order 2014I192 C1192

1

The Financial Services and Markets Act 2000 (Excluded Activities and Prohibitions) Order 2014 M366 is amended as follows.

2

In article 1(4) (interpretation)—

a

for the definition of “alternative investment fund” substitute—

“alternative investment fund” has the meaning given in regulation 3 of the Alternative Investment Fund Managers Regulations 2013 M367, but as if in paragraph (1)(b) of that regulation for “UK UCITS” there were substituted “UCITS;

b

for the definition of “alternative investment fund manager” substitute—

“alternative investment fund manager” means a legal person whose regular business is managing one or more alternative investment funds;

c

after the definition of “alternative investment fund manager” insert—

“Annex 1 activities” has the meaning given in article 4.1(26A) of the prudential requirements regulation;

d

for the definition of “derivative instrument” substitute—

“derivative instrument” includes any instruments within the meaning of article 2.1(29) of the markets in financial instruments regulation;

e

after the definition of “exposure” insert—

“financial conglomerate” means—
a
a financial conglomerate within the meaning of regulation 1(2) of the Financial Conglomerates and Other Financial Groups Regulations 2004 M368 (but disregarding any decision taken under Article 3(3) of the conglomerates directive M369 as applied and modified by those Regulations), or
b
a financial conglomerate within the meaning of Article 2.14 of Directive 2002/87/EC of the European Parliament and of the Council of 16 December 2002 on the supplementary supervision of credit institutions, insurance undertakings and investment firms in a financial conglomerate M370 (but disregarding any decision taken under Article 3(3) of that directive);

f

in the definition of “financial holding company”, for the words from “Annex I” to the end substitute “ the Annex 1 activities ”;

g

omit the definition of “insurance undertaking”;

h

in the definition of “liquid assets”, for the words from “delegated acts” to the end substitute “ Commission Delegated Regulation (EU) 2015/61 of 10 October 2014 to supplement Regulation (EU) No 575/2013 of the European Parliament and Council with regard to liquidity coverage requirement for Credit Institutions ”;

i

for the definition of “management company” substitute—

“management company” means—
a
an undertaking, within the meaning of section 1161 of the Companies Act 2006 M371, whose regular business is the management of UK UCITS, or
b
a company within the meaning of Article 2.1(b) of the UCITS directive;

j

in the definition of “mixed financial holding company”—

i

after “insurance undertaking” in each place it occurs insert “ a third country insurance undertaking whose head office is located in an EEA state ”,

ii

omit the words from “(within” to the end;

k

in the definition of “payment exposures”, in paragraph (d) omit—

i

“, an EEA central counterparty”,

ii

“, an EEA CSD”,

iii

“, EEA central counterparty”,

iv

“, EEA CSD”;

l

omit the definition of “reinsurance undertaking”;

m

omit the definition of “solvency II directive”;

n

in the definition of “third country insurance undertaking”, for the words from “Article” to the end substitute “ regulation 2(1) of the Solvency 2 Regulations 2015 M372 ”;

o

in the definition of “third country reinsurance undertaking”, for the words from “Article” to the end substitute “ regulation 2(1) of the Solvency 2 Regulations 2015 ”;

p

in the definition of “UCITS”, for the words from “Article” to the end substitute “ section 236A of the Act ”;

q

after the definition of “UK deposit-taker”, insert—

“UK UCITS” has the meaning given in section 237(3) of the Act;

3

In article 2 (relevant financial institution), in paragraph (3)—

a

in sub-paragraph (c)(ii), omit the words from “other” to the end;

b

in sub-paragraph (e), omit “, EEA central counterparties”;

c

in sub-paragraph (ea), omit “, EEA CSDs”;

d

in sub-paragraph (g), for “EEA firm” in each place it occurs substitute “ undertaking located in an EEA state ”.

4

In article 6 (excluded activities: general exceptions), in paragraph (4)—

a

in sub-paragraph (e)(iii), omit “, an EEA central counterparty”;

b

in sub-paragraph (f), omit “or an EEA central counterparty”.

5

In article 12 (derivatives: general conditions)—

a

in paragraph (1)(e), for paragraphs (i) and (ii) substitute—

i
a UK trading venue,
ii
a trading venue in the EEA, or
iii
a non-EEA trading venue.

b

in paragraph (2)—

i

in sub-paragraph (c), for the words from “Article 4.1(24)” to the end substitute “ Article 2.1(16) of the markets in financial instruments regulation ”,

ii

after sub-paragraph (c) insert—

ca
“non-EEA trading venue” means a trading venue—
i
which is not a UK trading venue or a trading venue in the EEA, and
ii
which satisfies paragraph 1(d) of Article 28 of the markets in financial instruments regulation;
cb
“UK trading venue” has the meaning given in Article 2.1(16A) of the markets in financial instruments regulation;

6

In article 19A M373 (financial institution exposures: financing of infrastructure projects), in paragraph (2)(b) after “within” insert “ the United Kingdom or ”.

7

In article 20 (prohibitions: non-EEA branches and subsidiaries)—

a

in the heading, for “Non-EEA” substitute “ Non-UK and non-EEA ”;

b

in paragraph (1)(a), after “not” insert “ the United Kingdom or ”;

c

in paragraph (1)(b)—

i

after “not” insert “ the United Kingdom or ”, and

ii

for “(a “non-EEA undertaking”)” substitute “ (a “non-UK and non-EEA undertaking”) ”;

d

in paragraph (2), after “interest in a” insert “ non-UK and ”.

C1The Financial Services and Markets Act 2000 (Relevant Authorised Persons) Order 2015I193 C1193

In article 2(2) and (3)(b) of the Financial Services and Markets Act 2000 (Relevant Authorised Persons) Order 2015 M374 (relevant authorised persons) omit, in both places it occurs, “or resulting from Schedule 3 or 4 to the Act”.

C1PART 6Minor and consequential amendments

C1Consumer Credit Act 1974I194 C1194

1

In consequence of the amendments made by regulation 89 and other provisions of these Regulations, section 8 of the Consumer Credit Act 1974 M375 (consumer credit agreements) is amended as follows.

2

In subsection (3)(b) M376, for the words after “an agreement” substitute “ the purpose of which is the acquisition or retention, by an individual acting for purposes outside those of any trade, business or profession carried on by the individual, of property rights in land or in an existing or projected building ”.

3

After subsection (3) insert—

3A
A reference in paragraph (3)(b) to any land or building—
a
in relation to an agreement entered into before F38IP completion day, is a reference to any land or building in the United Kingdom or within the territory of an EEA State;
b
in relation to an agreement entered into on or after F38IP completion day, is a reference to any land or building in the United Kingdom.

C1Electronic Money Regulations 2011I214 C1195

In consequence of the amendment made by regulation 144, in Schedule 2A M377 to the Electronic Money Regulations 2011 M378, in paragraph 1 omit sub-paragraph (13).

C1Payment Services Regulations 2017I166 C1196

In consequence of the amendment made by regulation 143, in Schedule 5 to the Payment Services Regulations 2017 M379, in paragraph 1 omit sub-paragraph (13).

PART 7Transitional Powers of the Financial Regulators

InterpretationI9197

1

In this Part—

“transitional direction” means a direction under regulation 198(1);
“relevant obligation” has the meaning given by regulation 199.

2

For the purposes of this Part, each of the following is a “regulator”—

a

the Bank of England;

b

the Prudential Regulation Authority;

c

the Financial Conduct Authority.

Power of the regulators to give transitional directionsI10198

1

A regulator may direct that a relevant obligation to which a person is subject—

a

is not to apply to the person, or

b

is to apply to the person with modifications specified in the direction.

2

Power under paragraph (1) is subject to regulation 200.

3

Power of a regulator under paragraph (1) is exercisable on the regulator's own initiative.

4

Power of a regulator under paragraph (1), so far as it relates to rules made by the regulator, is in addition to (and does not limit) power of the regulator under section 138A of the Act M380.

Meaning of “relevant obligation”I11199

1

An obligation is a “relevant obligation”, in relation to a regulator and a person, if—

a

the obligation is imposed by or under an enactment,

b

the obligation is not an excluded obligation,

c

the regulator has responsibility for supervising, or has other functions relating to, the person's compliance with the obligation, and

d

as a result of the operation of an exit instrument, the obligation—

i

begins to apply in the person's case, or

ii

applies in the person's case differently from how it would, but for the exit instrument, apply in the person's case.

2

In this regulation—

“enactment” means—
1. a
  an enactment contained in—
  1. i
    an Act, or
  2. ii
    subordinate legislation (within the meaning of the Interpretation Act 1978),
2. b
  an enactment which is retained direct EU legislation, or
3. c
  an enactment contained in, or in an instrument made under, Northern Ireland legislation;
“excluded obligation”, in relation to a regulator, means—
1. a
  an obligation to satisfy the threshold conditions in relation to a regulated activity, or
2. b
  an obligation imposed by or under rules made under section 64A or 137O of the Act M381;
“exit instrument” means—
1. a
  regulations under section 8 of the European Union (Withdrawal) Act 2018, or
2. b
  an instrument under regulation 3 of the Financial Regulators' Powers (Technical Standards etc.) (Amendment etc.) (EU Exit) Regulations 2018 M382;
“regulated activity” and “threshold conditions” have the same meaning as in the Act (see, in particular, sections 22 and 55B) M383.

Giving, and effect, of transitional directionsI12200

1

A transitional direction—

a

may not be given more than 2 years after F39IP completion dayF68, subject to paragraph (1B),

b

may specify the period in relation to which it has effect, subject to F69paragraphs (2) and (2A),

c

may be given subject to conditions, and

d

may be given to a particular person or particular persons, or to persons of a description specified in the direction.

F701A

This paragraph applies to a transitional direction which may be given by the Financial Conduct Authority in accordance with this Part in respect of—

a

a relevant obligation relating to share trading imposed by or under Article 23(1) of Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments (the Markets in Financial Instruments Regulation), including the transitional direction entitled “FCA Transitional Direction for the Share Trading Obligation” dated 22nd December 2020;

b

a relevant obligation relating to derivatives trading imposed by or under Article 28 of the Markets in Financial Instruments Regulation, including the transitional direction entitled “FCA Transitional Direction for the Derivatives Trading Obligation” dated 30th December 2020.

1B

A transitional direction to which paragraph (1A) applies may not be given more than four years after IP completion day.

2

A transitional direction—

a

is of no effect in relation to times before it is given,

b

is of no effect in relation to times before F40IP completion day, and

c

F71subject to paragraph (2A), is of no effect in relation to times more than 2 years after F41IP completion day (without prejudice to any continuing effect in relation to earlier times).

F722A

A transitional direction to which paragraph (1A) applies is of no effect in relation to times more than four years after IP completion day (without prejudice to any continuing effect in relation to earlier times).

3

A regulator may not give a transitional direction, or a set of two or more transitional directions, to any person or persons unless the regulator is satisfied that the direction, or the directions viewed collectively, will prevent or mitigate disruption that could reasonably be expected to arise—

a

for the person, or

b

(as the case may be) for the persons viewed collectively,

from compliance with the unmodified obligation, or with the unmodified obligations viewed collectively, at times in relation to which the direction is, or the directions are, to have effect.

4

The Financial Conduct Authority may not give a transitional direction, or a set of two or more transitional directions, unless the Authority is satisfied that doing so would not adversely affect the advancement of its key objectives viewed collectively; and here the reference to the Authority's key objectives is to its objectives set out in section 1B of the Act, read with section 1IA of the Act M384.

5

The Prudential Regulation Authority may not give a transitional direction, or a set of two or more transitional directions, unless the Authority is satisfied that doing so would not adversely affect the advancement of its objectives under the Act M385.

6

The Bank of England may not give a transitional direction, or a set of two or more transitional directions, unless the Bank is satisfied that doing so would not adversely affect the advancement of the Bank's financial stability objective set out in section 2A(1) of the Bank of England Act 1998 M386.

7

For the purposes of this regulation, two or more transitional directions given by a regulator are a “set” if the regulator declares them to be a set.

Variation of transitional directionsI13201

1

A regulator's power under regulation 198(1) includes power to give a direction varying (or further varying) a transitional direction already given by that regulator, subject to paragraph (2).

2

The way in which the power to vary is exercised must be such that the resulting—

a

varied direction, or

b

where the earlier direction was part of a set of transitional directions, set of directions as varied,

could be given by revoking existing, and giving new, transitional directions.

3

Where a transitional direction has been given to two or more particular persons, or to persons of a description specified in the direction, the power to vary it may be exercised in relation to all, some or any one of those persons.

4

Regulation 200(7) (meaning of “set”) applies also for the purposes of paragraph (2).

ConsultationI14202

1

A regulator, before it gives a transitional direction in which another regulator has an interest, must consult that other regulator.

2

For the purposes of paragraph (1)—

a

the Prudential Regulation Authority has an interest in a transitional direction if the direction—

i

might affect the Authority's discharge of functions conferred on it by or under—

aa

the Act, or

bb

retained EU law, or

ii

would apply to a PRA-authorised person, or to a person connected with a PRA-authorised person;

b

the Financial Conduct Authority has an interest in all transitional directions;

c

the Bank of England has an interest in a transitional direction if the direction—

i

might affect the Bank's discharge of functions conferred on it by or under—

aa

the Act,

bb

the Banking Act 2009 M387, or

cc

retained EU law, or

ii

would apply to—

aa

a central counterparty or a central securities depository, or

bb

a financial counterparty, or a non-financial counterparty, within the meaning of the EMIR regulation.

3

A regulator, before it gives a transitional direction, must consult the Treasury on a draft of the proposed direction.

4

Paragraphs (1) and (3) do not apply in the case of a transitional direction if the regulator assesses that the urgency of the situation is such that the direction should be given before the required consultation is begun or completed, but in that event the regulator must (as the case may be)—

a

begin the consultation required by those paragraphs in the case of the direction as soon as the direction is given, or

b

complete the consultation.

5

In paragraph (2)—

“central counterparty”, and “the EMIR regulation”, have the same meaning as in Part 18 of the Act (see section 313(1) of the Act M388);
“central securities depository” has the same meaning as in the Act (see section 417(1) of the Act M389);
“PRA-authorised person” has the same meaning as in the Act (see section 2B(5) of the Act M390).

6

For the purposes of paragraph (2), a person is connected with another person if the first person is connected with the other person for the purposes of section 165 of the Act (see subsection (11) of that section M391).

Notification and publication of transitional directionsI15203

1

Where a transitional direction is given by a regulator, the regulator—

a

must prepare—

i

an explanation of the purpose of the direction,

ii

such guidance in connection with the direction as the regulator considers appropriate, and

iii

a statement to the effect that the regulator is satisfied as required by paragraph (4), or (as the case may be) paragraph (5) or (6), of regulation 200, and

b

must publish the direction and the matters listed in sub-paragraph (a).

2

Paragraph (1)(b) does not apply if the regulator is satisfied that it is inappropriate to publish the direction.

3

Where a transitional direction is given by a regulator and the direction is not published on the regulator's website, the regulator must take the steps appearing to the regulator to be best calculated to bring the direction, and the matters listed in paragraph (1)(a), to the attention of—

a

in the case of a direction given to a particular person or particular persons, that person or those persons, or

b

in the case of a direction given to persons of a description specified in the direction, any persons who are likely to be affected by the direction.

4

Where a regulator gives a transitional direction, the regulator must without delay provide the Treasury with a copy of the direction.

5

Section 139A(5) of the Act M392 (consultation) does not apply to guidance under paragraph (1)(a)(ii).

Revocation of transitional directionsI16204

1

A regulator may revoke a transitional direction given by the regulator, either wholly or in relation to one or some of the persons to whom it was given.

2

Power of a regulator to revoke a transitional direction is exercisable on the regulator's own initiative.

3

Where a regulator revokes a transitional direction in relation to a particular person or particular persons, the regulator must provide the person, or each of the persons, with a copy of the revocation.

4

Where a regulator revokes a transitional direction in relation to persons of a description specified in the revocation, the regulator must take the steps appearing to the regulator to be best calculated to bring the revocation to the attention of any persons likely to be affected by it.

5

Where a regulator revokes a transitional direction, the regulator must without delay provide the Treasury with a copy of the revocation.

Annual reports and complaintsI17205

1

Power to give a transitional direction is treated as a “relevant sub-delegated power” for the purposes of paragraph 32 of Schedule 7 to the European Union (Withdrawal) Act 2018.

2

Functions under this Part are to be treated as not being “relevant functions” for the purposes of section 84 of the Financial Services Act 2012 (arrangements for the investigation of complaints relating to exercise of relevant functions of regulators).

PART 8Regulators' fees

Meaning of “qualifying functions” in this PartI18206

1

For the purposes of this Part, the “qualifying functions” of the Bank of England, or of the Financial Conduct Authority or the Prudential Regulation Authority, are—

a

its functions under or as a result of a qualifying provision that is specified, or of a description specified, for the purposes of this paragraph by the Treasury by order, and

b

its functions under or as a result of regulations made under section 8 of the European Union (Withdrawal) Act 2018.

2

In paragraph (1)(a) “qualifying provision” has the meaning given by section 425C of the Act (as substituted by these Regulations).

3

An order under paragraph (1) may—

a

contain such incidental, supplemental, consequential and transitional provision as the person making it considers appropriate, and

b

make different provision for different cases.

4

Power to make an order under paragraph (1) is exercisable by statutory instrument.

5

A statutory instrument containing an order under paragraph (1) is subject to annulment in pursuance of a resolution of either House of Parliament.

Fees: Bank of EnglandI19207

1

The Bank of England may, in connection with the discharge of any of its qualifying functions, require recognised clearing houses, third country central counterparties, recognised CSDs or settlement internalisers to pay fees to the Bank.

2

The power of the Bank to set fees includes power to set fees for the purpose of meeting expenses incurred by it or the Financial Conduct Authority—

a

in preparation for the exercise by the Bank of its qualifying functions, or

b

for the purpose of facilitating the exercise by the Bank of those functions or otherwise in connection with their exercise by it.

3

It is irrelevant when the expenses were incurred.

4

Any fee which is owed to the Bank under this regulation may be recovered as a debt due to the Bank.

5

In this regulation—

“CSD regulation” has the meaning given by section 417 of the Act,
“recognised clearing house”, “recognised CSD” and “third country central counterparty” have the meaning given by section 285 of the Act, and
“settlement internaliser” has the meaning given by Article 2(1)(11) of the CSD regulation.

Fees: Financial Conduct AuthorityI20208

1

The Financial Conduct Authority (“the FCA”) may make rules providing for the payment to it of such fees, in connection with the discharge of any of its qualifying functions, as it considers will (taking account of its expected income from fees and charges provided for by any provision of the Act other than sections 137SA, 137SB and 333T M393) enable it—

a

to meet expenses incurred in carrying out the functions conferred on it by or under the Act M394, other than its excepted functions, or for any incidental purpose,

b

to repay the principal of, and pay any interest on, any relevant borrowing and to meet relevant commencement expenses, and

c

to maintain adequate reserves.

2

It is irrelevant when the expenses mentioned in paragraph (1)(a) were incurred.

3

The “excepted functions” of the FCA are—

a

its functions under sections 137SA and 137SB of the Act, and

b

its functions under section 333T of the Act so far as relating to the collection of payments.

4

In paragraph (1)(b) “relevant borrowing” and “relevant commencement expenses” have the meaning given by paragraph 23(3) and (5) of Schedule 1ZA to the Act M395.

5

In fixing the amount of any fee which is to be payable to the FCA, no account is to be taken of any sums which the FCA receives, or expects to receive, by way of penalties imposed by it under the Act.

6

Any fee which is owed to the FCA under any provision made under this regulation may be recovered as a debt due to the FCA.

7

Chapter 2 of Part 9A of the Act M396 (rules: procedural provisions etc) applies in relation to rules under this regulation as it applies in relation to rules under paragraph 23 of Schedule 1ZA to the Act.

8

The requirements of sections 138I and 138K of the Act M397 in so far as they apply to a proposal to make rules under this regulation may be satisfied by things done (wholly or in part) before the date on which this regulation comes into force.

Fees: Prudential Regulation AuthorityI21209

1

The Prudential Regulation Authority (“the PRA”) may make rules providing for the payment to it of such fees, in connection with the discharge of any of its qualifying functions, as it considers will (taking account of its expected income from fees and charges provided for by any provision of the Act) enable it—

a

to meet expenses incurred in carrying out the functions conferred on it by or under the Act M398 or for any incidental purpose,

b

to repay the principal of, and pay any interest on, any relevant borrowing and to meet relevant commencement expenses, and

c

to maintain adequate reserves.

2

It is irrelevant when the expenses mentioned in paragraph (1)(a) were incurred.

3

In paragraph (1)(b) “relevant borrowing” and “relevant commencement expenses” have the meaning given by paragraph 31(3) and (5) of Schedule 1ZB to the Act M399.

4

In fixing the amount of any fee which is to be payable to the PRA, no account is to be taken of any sums which the PRA receives, or expects to receive, by way of penalties imposed by it under the Act.

5

Any fee which is owed to the PRA under any provision made under this regulation may be recovered as a debt due to the PRA.

6

Chapter 2 of Part 9A of the Act (rules: procedural provisions etc) applies in relation to rules under this regulation as it applies in relation to rules under paragraph 31 of Schedule 1ZB to the Act.

7

The requirements of sections 138J and 138K of the Act M400 in so far as they apply to a proposal to make rules under this regulation may be satisfied by things done (wholly or in part) before the date on which this regulation comes into force.

Mike FreerRebecca Harris Two of the Lords Commissioners of Her Majesty's Treasury

(This note is not part of the Regulations)

Except for the regulations referred to in the next paragraph, these Regulations are made in exercise of the powers in section 8 of the European Union (Withdrawal) Act 2018 (c.16) in order to address failures of retained EU law to operate effectively and other deficiencies arising from the withdrawal of the United Kingdom from the European Union (and in particular, the deficiencies under paragraphs (a), (d), (e) and (g) of section 8(2)).

The regulations commenced by regulation 1(2) amend the Financial Services and Markets Act 2000 (“the Act”) (c.8) and secondary legislation made under the Act in exercise of powers under the European Communities Act 1972 (c.68). These amendments ensure that the references to EU instruments in the Act and the secondary legislation are up to date at exit day, in accordance with the United Kingdom's EU obligations prior to exit day.

Part 2 of the Regulations amends the Act, including section 417 (definitions) and makes transitional provision in relation to some of the amendments. There are terms defined in section 417 that are no longer used in the Act, but which continue to be used undefined in legislation made under it. This is an unusual situation and it is unclear whether section 11 of the Interpretation Act 1978 (c.30) can be relied on, which is the reason for the amendment at the beginning of section 417(1). Part 3 amends the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544) and makes transitional provision in relation to some of the amendments. Part 4 amends the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (S.I. 2005/1529) and makes transitional provision in relation to some of the amendments. Part 5 amends other secondary legislation made under the Act. Part 6 contains minor and consequential amendments.

Part 7 provides for a new power for the regulators (the Financial Conduct Authority, Prudential Regulation Authority and the Bank of England) to make transitional directions to waive or modify obligations imposed on UK-supervised firms by enactments where the nature of the obligation has been altered by the exercise of section 8 of the European Union (Withdrawal) Act 2018. A regulator can only make a transitional direction where it is satisfied that it will prevent or mitigate disruptions for firms, and where the direction will not adversely affect the regulator's statutory objectives. All transitional directions must cease to have effect two years after exit day.

Part 8 makes further provision for the Financial Conduct Authority, Prudential Regulation Authority and Bank of England to charge fees in connection with the discharge of their functions under or as a result of:

— regulations made under section 8 of the European Union (Withdrawal) Act 2018;
— retained direct EU legislation;
— technical standards made in accordance with Chapter 2A of Part 9A of the Act;
— subordinate legislation made by virtue of regulations made under section 8 of the European Union (Withdrawal) Act 2018.

These Regulations refer to sourcebooks made by the Financial Conduct Authority under the Act. Sourcebooks made by the Financial Conduct Authority are available on https://www.handbook.fca.org.uk/handbook and copies of the rules referred to can be obtained from the Financial Conduct Authority, 12 Endeavour Square, London E20 1JN, where it is also available for inspection.

An impact assessment of the effect that this instrument, and other instruments made by HM Treasury under the European Union (Withdrawal) Act 2018 at or about the same time, will have on the costs of business, the voluntary sector and the public sector will be available from HM Treasury, 1 Horse Guards Road, London SW1A 2HQ and will be published alongside this instrument at www.legislation.gov.uk.

The Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019

PART 1Introductory

Citation, commencement and interpretationI11

1

2

a

b

c

d

e

f

g

h

i

3

4

PART 2Amendments to the Act

CHAPTER 1Part 1A of the Act: the regulators

IntroductionI1952

Section 1A (the Financial Conduct Authority)I323

Section 1H (further interpretative provisions for sections 1B to 1G)I334

1

2

3

a

b

Section 1L (supervision, monitoring and enforcement)I345

Section 2AB (functions of the PRA)I356

Section 3E (memorandum of understanding)I367

Section 3I (power of PRA to require FCA to refrain from specified action)I378

Section 3J (power of PRA in relation to with-profits policies)I389

Section 3M (directions relating to consolidated supervision of groups)I3910

1

2

a

i

ii

b

3

2A

4

CHAPTER 2Part 3 of the Act: authorisation and exemption

IntroductionI19611

Section 39 (exemption of appointed representatives)I40C212

1

2

a

b

3

a

b

4

5

a

b

c

ii

6

7

7

a

b

c

d

8

8

Section 39A (certain tied agents operating outside United Kingdom)I4113

1

2

3

4

5

6

8

7

8

9

10

a

b

Section 39 (exemption of appointed representatives)I40 C212