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Statutory Instrument 2006 No. 2383The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2006(The document as of February, 2008) STATUTORY INSTRUMENTS2006 No. 2383FINANCIAL SERVICES AND MARKETSThe Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2006
In the opinion of the Treasury, one of the effects of the following Order is that an activity which is not a regulated activity (within the meaning of the Financial Services and Markets Act 2000[1]) will become a regulated activity; The Treasury make the following Order in exercise of the powers conferred on them by sections 22(1) and (5), 426, 427 and 428(3) of, and paragraph 25 of Schedule 2 to, that Act: Citation and commencement 1.—(1) This Order may be cited as the Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2006. (2) This Order comes into force—
(ii) the Authority's approval under section 59 of the Financial Services and Markets Act 2000 in relation to any of those activities, on 6th November 2006; and Amendments of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 2.The Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 is amended as follows. Definitions 3.—(1) In article 3(1)[3] (interpretation)—
(ii) for "and 61" substitute ", 53B, 53C, 61, 63B and 63F"; (c) after the definition of "personal pension scheme"[4] insert—
(2) In article 3(2) after "article 25(1)" insert ", 25A(1), 25B(1) or 25C(1)".
25B.—(1) Making arrangements—
(b) for another person to vary the terms of a regulated home reversion plan, entered into on or after 6th April 2007 by him as reversion seller or as plan provider, in such a way as to vary his obligations under that plan, is a specified kind of activity.
(b) for another person to vary the terms of a regulated home purchase plan, entered into on or after 6th April 2007 by him as home purchaser, in such a way as to vary his obligations under that plan, is a specified kind of activity. Exclusion of arrangements not causing a deal
(ii) for "contract", in both places it occurs, substitute "contract or plan"; (b) in paragraph (2)—
(ii) after "contracts" insert "or plans". Exclusion of arrangements where transaction is with or through an authorised person
(b) in sub-paragraph (b) for "investor or (as the case may be) a borrower under a regulated mortgage contract" substitute "investor, borrower, reversion seller, plan provider or (as the case may be) home purchaser". Exclusion made in the course of administration by an authorised person
(b) after paragraph (1) insert—
(b) anything A does in connection with the administration of a regulated home reversion plan in circumstances falling within article 63C(b). (3) A person who is not an authorised person ("A") does not carry on an activity of the kind specified by article 25C(1)(b) as a result of—
(b) anything A does in connection with the administration of a regulated home purchase plan in circumstances falling within article 63G(b).". Exclusion of arrangements which consist of introduction to an authorised person etc. for independent advice
(b) in paragraph (b)(iii)—
(ii) for "and 53A" substitute ", 53A, 53B and 53C". Exclusion of certain other arrangements consisting of an introduction to an authorised person etc.
(ii) an appointed representative who may carry on a regulated activity of the kind specified by either of articles 25B and 53B without contravening the general prohibition, or (iii) an overseas person who carries on activities specified by any of articles 25B, 53B and 63B(1); and (b) the conditions mentioned in paragraph (2) are satisfied. (1B) There are excluded from article 25C(2) arrangements where—
(ii) an appointed representative who may carry on a regulated activity of the kind specified by either of articles 25C and 53C without contravening the general prohibition, or (iii) an overseas person who carries on activities specified by any of articles 25C, 53C and 63F(1); and (b) the conditions mentioned in paragraph (2) are satisfied."; (b) for paragraph (4) substitute—
(b) for the purposes of paragraph (1A), a reversion seller, a plan provider or a person who is or may be contemplating entering into a regulated home reversion plan as a reversion seller or as a plan provider; (c) for the purposes of paragraph (1B), a home purchaser or a person who is or may be contemplating entering into a regulated home purchase plan as a home purchaser.". Other exclusions: arranging
53B.Advising a person is a specified kind of activity if the advice—
(ii) a plan provider or potential plan provider; and (b) is advice on the merits of his doing either of the following—
(ii) varying the terms of a regulated home reversion plan, entered into on or after 6th April 2007 by him, in such a way as to vary his obligations under that plan. Advising on regulated home purchase plans
(b) is advice on the merits of his doing either of the following—
(ii) varying the terms of a regulated home purchase plan, entered into on or after 6th April 2007 by him, in such a way as to vary his obligations under that plan.". Exclusion of advice given in newspapers etc.
(ii) in sub-paragraph (a) for "or (as the case may be) article 53A" substitute ", 53A, 53B or 53C, as the case may be"; (iii) after sub-paragraph (b)(ii) insert—
(iii) to enter as reversion seller or plan provider into regulated home reversion plans, or vary the terms of regulated home reversion plans entered into by them as reversion seller or plan provider, (iv) to enter as home purchaser into regulated home purchase plans, or vary the terms of regulated home purchase plans entered into by them as home purchaser"; (b) in paragraph (2) for "article 53 and article 53A" substitute "articles 53, 53A, 53B and 53C". Exclusion of advice given in the course of administration by authorised person
(b) after paragraph (1) insert—
(b) anything A does in connection with the administration of a regulated home reversion plan in circumstances falling within article 63C(b). (3) A person who is not an authorised person ("A") does not carry on an activity of the kind specified by article 53C by reason of—
(b) anything A does in connection with the administration of a regulated home purchase plan in circumstances falling within article 63G(b).". Other exclusions: advising
Entering into and administering regulated home reversion plans and regulated home purchase plans Entering into and administering regulated home reversion plans 63B.—(1) Entering into a regulated home reversion plan as plan provider is a specified kind of activity. (2) Administering a regulated home reversion plan is also a specified kind of activity where the plan was entered into on or after 6th April 2007. (3) In this Chapter—
(ii) the reversion seller (if he is an individual) or an individual who is a beneficiary of the trust (if the reversion seller is a trustee), or a related person, is entitled under the arrangement to occupy at least 40% of the land in question as or in connection with a dwelling, and intends to do so; and (iii) the arrangement specifies one or more qualifying termination events, on the occurrence of which that entitlement will end; (b) "administering" a regulated home reversion plan means any of—
(ii) taking any necessary steps for the purposes of making payments to the reversion seller under the plan; and (iii) taking any necessary steps for the purposes of collecting or recovering payments due under the plan from the reversion seller, but a person is not to be treated as administering a regulated home reversion plan merely because he has, or exercises, a right to take action for the purposes of enforcing the plan (or to require that such action is or is not taken). (4) For the purposes of paragraph (3)—
(ii) in relation to land in Scotland, is to the interest of an owner in land or the tenant's right over or interest in a property subject to a lease; (iii) in relation to land in Northern Ireland, is to any freehold estate or any leasehold estate, whether subsisting at law or in equity; (b) "timeshare accommodation" has the meaning given by section 1 of the Timeshare Act 1992[5];
(ii) a person (whether or not of the opposite sex) whose relationship with that person has the characteristics of the relationship between husband and wife; or (iii) that person's parent, brother, sister, child, grandparent or grandchild; and (d) "qualifying termination event", in relation to a person's entitlement to occupy land, means—
(ii) the person dies; (iii) the end of a specified period of at least twenty years beginning with the day on which the reversion seller entered into the arrangement. (5) For the purposes of paragraph (3)(a)(ii), the area of any land which comprises a building or other structure containing two or more storeys is to be taken to be the aggregate of the floor areas of each of those storeys.
(b) in relation to Scotland, means accommodation provided by a "care home" within the meaning of section 2(3)of the Regulation of Care (Scotland) Act 2001[7]; (c) in relation to Northern Ireland, means—
(ii) a nursing home within the meaning of article 11 of that Order. (7) In this Order—
(b) in relation to a person who acquires any such obligations or rights, an activity is a specified kind of activity for the purposes of articles 25B(1)(b) and 53B(b)(ii) and paragraph (2) only if the plan was entered into by the plan provider (rather than the obligations or rights acquired) on or after 6th April 2007. (8) Accordingly, references in this Order to a plan provider, other than in paragraph (7), include a person who acquires any such obligations or rights. Arranging administration by authorised person 63C.A person who is not an authorised person does not carry on an activity of the kind specified by article 63B(2) in relation to a regulated home reversion plan where he—
(b) administers the plan himself during a period of not more than one month beginning with the day on which any such arrangement comes to an end. Administration pursuant to agreement with authorised person Entering into and administering regulated home purchase plans 63F.—(1) Entering into a regulated home purchase plan as home purchase provider is a specified kind of activity. (2) Administering a regulated home purchase plan is also a specified kind of activity where the plan was entered into by way of business on or after 6th April 2007. (3) In this Chapter—
(ii) where an undivided share of a qualifying interest in land is bought, the interest is held on trust for the home purchase provider and the individual or trustees mentioned in paragraph (iii) as beneficial tenants in common; (iii) the arrangement provides for the obligation of an individual or trustees (the "home purchaser") to buy the interest bought by the home purchase provider over the course of or at the end of a specified period; and (iv) the home purchaser (if he is an individual) or an individual who is a beneficiary of the trust (if the home purchaser is a trustee), or a related person, is entitled under the arrangement to occupy at least 40% of the land in question as or in connection with a dwelling during that period, and intends to do so; (b) "administering" a regulated home purchase plan means either or both of—
(ii) taking any necessary steps for the purposes of collecting or recovering payments due under the plan from the home purchaser; but a person is not to be treated as administering a regulated home purchase plan merely because he has, or exercises, a right to take action for the purposes of enforcing the plan or to require that such action is or is not taken. (4) Article 63B(4)(a) to (c) applies for the purposes of paragraph (3)(a) with references to the "reversion seller" being read as references to the "home purchaser". Arranging administration by authorised person 63G.A person who is not an authorised person does not carry on an activity of the kind specified by article 63F(2) in relation to a regulated home purchase plan where he—
(b) administers the plan himself during a period of not more than one month beginning with the day on which any such arrangement comes to an end. Administration pursuant to agreement with authorised person Exclusion of trustees, nominees and personal representatives
(b) in paragraph (6) for "and 53A" substitute ", 53A, 53B and 53C"; (c) after paragraph (6A) insert—
(6C) Subject to paragraph (7), a person acting as trustee or personal representative does not carry on an activity of the kind specified by article 63F(1) or (2) where the home purchaser under the regulated home purchase plan in question is a beneficiary under the trust, will or intestacy.";
Exclusion of activities carried on in the course of a profession or non-investment business
(b) for "and 53A" substitute ", 53A, 53B and 53C". Overseas persons
(5B) There are excluded from articles 25A(1)(b), 25B(1)(b) and 25C(1)(b) arrangements made by an overseas person to vary the terms of a qualifying agreement. (5C) There are excluded from articles 25A(2), 25B(2) and 25C(2), arrangements made by an overseas person which are made solely with a view to non-resident persons who participate in those arrangements entering, in the relevant capacity, into the relevant type of agreement. (5D) An overseas person does not carry on an activity of the kind specified in article 61(1), 63B(1) or 63F(1) by entering into a qualifying agreement. (5E) An overseas person does not carry on an activity of the kind specified in article 61(2), 63B(2) or 63F(2) where he administers a qualifying agreement. (5F) In paragraphs (5A) to (5E)—
(b) "qualifying agreement" means—
(ii) in relation to articles 25B and 63B, a regulated home reversion plan where the reversion seller (or each reversion seller) is non-resident when he enters into it; (iii) in relation to articles 25C and 63F, a regulated home purchase plan where the home purchaser (or each home purchaser) is non-resident when he enters into it; (c) "the relevant capacity" means—
(ii) in the case of a regulated home reversion plan, as reversion seller or plan provider; (iii) in the case of a regulated home purchase plan, as home purchaser; (d) "the relevant type of agreement" means—
(ii) in relation to article 25B, a regulated home reversion plan; (iii) in relation to article 25C, a regulated home purchase plan.". Business Angel-led Enterprise Capital Funds: interpretation
88A.Rights under a regulated home reversion plan. Regulated home purchase plans 88B.Rights under a regulated home purchase plan.". Rights to or interests in investments Amendments of the Consumer Credit Act 1974 25.—(1) The Consumer Credit Act 1974[10] is amended as follows. (2) In section 16 (exempt agreements)—
(b) it is or forms part of a regulated home purchase plan and entering into the agreement as home purchase provider is a regulated activity for the purposes of that Act."; (b) in subsection (6D) for "subsection (6C)" substitute "subsection (6C)(a)". (3) In section 53 (duty to display information) for "section 16(6C)" substitute "section 16(6C)(a)".
(b) in subsection (5D)—
(b) is or forms part of a regulated home purchase plan, but only if entering into the agreement as lender or home purchase provider (as the case may be) is a regulated activity for the purposes of the 2000 Act.;";
Amendments of the Companies Act 1985
(ab) article 25C (arranging regulated home purchase plans),"; (b) at the end of paragraph (c) delete "or" and insert—
(cb) article 53C (advising on regulated home purchase plans), or". Amendments of the Law of Property (Miscellaneous Provisions) Act 1989
(b) in subsection (6) after ""regulated mortgage contract"" insert ", "regulated home reversion plan" and "regulated home purchase plan"". Amendment of the Financial Services and Markets Act 2000 Amendments of the Financial Services and Markets Act 2000 (Carrying on Regulated Activities by Way of Business) Order 2001 29.In the Financial Services and Markets Act 2000 (Carrying on Regulated Activities by Way of Business) Order 2001[14] after article 3A (arranging and advising on regulated mortgage contracts) insert—
3B.A person is not to be regarded as carrying on by way of business an activity specified by—
(b) article 53B of that Order (advising on regulated home reversion plans); or (c) article 64 of that Order (agreeing), so far as relevant to either of the articles mentioned in sub-paragraphs (a) and (b), unless he carries on the business of engaging in that activity.
(b) article 53C of that Order (advising on regulated home purchase plans); or (c) article 64 of that Order (agreeing), so far as relevant to either of the articles mentioned in sub-paragraphs (a) and (b), unless he carries on the business of engaging in that activity.". Amendments of the Financial Services and Markets Act 2000 (Exemption) Order 2001
(ii) after sub-paragraph (b) insert—
(c) article 25B, 53B or 63B of that Order (arranging, advising on, entering into or administering a regulated home reversion plan); or (d) article 25C, 53C or 63F of that Order (arranging, advising on, entering into or administering a regulated home purchase plan)"; (b) in paragraph 48(1) (social housing)—
(ii) after paragraph (b) insert—
(c) article 25B, 53B or 63B of that Order (arranging, advising on, entering into or administering a regulated home reversion plan); or (d) article 25C, 53C or 63F of that Order (arranging, advising on, entering into or administering a regulated home purchase plan)". Amendments of the Financial Services and Markets Act 2000 (Appointed Representatives) Regulations 2001
(3) In regulation 2(1) (descriptions of business for which appointed representatives are exempt)—
(abb) an activity of the kind specified by article 25C of that Order (arranging regulated home purchase plans);"; (b) at the end of sub-paragraph (ca) delete "or";
(cc) an activity of the kind specified by article 53C of that Order (advising on regulated home purchase plans); or"; (d) in sub-paragraph (d) for "(b), (c) or (ca)" substitute "(aba), (abb), (b), (c), (ca), (cb) or (cc)". (4) After regulation 3(3) (requirements applying to contracts between authorised persons and appointed representatives) insert—
(ii) for a person to vary a regulated home reversion plan entered into on or after 6th April 2007 by him as reversion seller or plan provider with other counterparties; or (b) gives advice (in circumstances constituting the carrying on of an activity of the kind specified by article 53B of that Order) on the merits of—
(ii) a person varying a regulated home reversion plan entered into on or after 6th April 2007 by him as reversion seller or plan provider with other counterparties. (3B) A representative is also to be treated as representing other counterparties for the purposes of paragraph (1) where he—
(ii) for a person to vary a regulated home purchase plan entered into on or after 6th April 2007 by a person as home purchaser with other counterparties; or (b) gives advice (in circumstances constituting the carrying on of an activity of the kind specified by article 53C of that Order) on the merits of—
(ii) a person varying a regulated home purchase plan entered into on or after 6th April 2007 by him as home purchaser with other counterparties.". Amendments of the Financial Services and Markets Act 2000 (Professions) (Non-Exempt Activities) Order 2001
(3) After article 6B (activities to which exemption from the general prohibition does not apply: regulated mortgage contracts) insert—
(2) Subject to paragraph (3), advice falls within this paragraph in so far as—
(b) in entering into a regulated home reversion plan that person would be carrying on an activity of the kind specified by article 63B(1) of the Regulated Activities Order (regulated home reversion plans). (3) Advice does not fall within paragraph (2) if it endorses a corresponding recommendation given to the individual by an authorised person with permission to carry on an activity of the kind specified by article 53B of the Regulated Activities Order or a person who is an exempt person in relation to an activity of that kind.
(b) in entering into a regulated home purchase plan that person would be carrying on an activity of the kind specified by article 63F(1) of the Regulated Activities Order (regulated home purchase plans). (3) Advice does not fall within paragraph (2) if it endorses a corresponding recommendation given to the individual by an authorised person with permission to carry on an activity of the kind specified by article 53C of the Regulated Activities Order or a person who is an exempt person in relation to an activity of that kind. Amendment of the Money Laundering Regulations 2003
(b) a regulated home purchase plan within the meaning of article 63F of that Order.". Amendments of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005
(b) after sub-paragraph (c) insert—
(d) a regulated home reversion plan; or (e) a regulated home purchase plan". (5) In Schedule 1 Part 1 (controlled activities)—
10C.Entering into a regulated home reversion plan as plan provider is a controlled activity. Arranging a regulated home reversion plan 10D.Making arrangements—
(b) for a reversion seller or a plan provider under a regulated home reversion plan, entered into on or after 6th April 2007 by him, to vary the terms of that plan in such a way as to vary his obligations under that plan, is a controlled activity.
(b) advice on the merits of his doing either of the following—
(ii) varying the terms of a regulated home reversion plan, entered into on or after 6th April 2007 by him, in such a way as to vary his obligations under that plan. Providing a regulated home purchase plan
(b) for a home purchaser under a regulated home purchase plan, entered into on or after 6th April 2007 by him, to vary the terms of that plan in such a way as to vary his obligations under that plan, is a controlled activity.
(b) advice on the merits of his doing either of the following—
(ii) varying the terms of a regulated home purchase plan, entered into on or after 6th April 2007 by him, in such a way as to vary his obligations under that plan.". (6) In Schedule 1 Part 2 (controlled investments)—
26A.Rights under a regulated home reversion plan. Regulated home purchase plans 26B.Rights under a regulated home purchase plan."
(c) in paragraph 28 (interpretation)—
Interpretation 36.In this Part—
Interim permission
(ii) article 25C (arranging regulated home purchase plans); (iii) article 53B (advising on regulated home reversion plans); (iv) article 53C (advising on regulated home purchase plans); (v) article 63B (entering into and administering regulated home reversion plans); (vi) article 63F (entering into and administering regulated home purchase plans); or (vii) article 64 (agreeing to carry on specified kinds of activity), so far as relevant to any of the above activities; (b) the applicant had carried on such activity before 6th November 2006; (2) The applicant is to be treated as having on commencement the permission to which the application relates.
(b) where the application relates to an activity of the kind specified by article 25B, 25C, 53B or 53C of the Regulated Activities Order or article 64 of that Order, so far as relevant to any such activity—
(ii) at the beginning of 6th April 2008, whichever is the earlier. (5) In this article, "finally decided" means—
(b) when the Authority grants permission under section 42 of the Act (giving permission) to carry on the activity in question; (c) when the Authority varies a permission under section 44 of the Act (variation etc. at request of authorised person) to add the activity in question; (d) where the Authority has refused an application and the matter is not referred to the Tribunal, when the time for referring the matter to the Tribunal has expired; (e) where the Authority has refused an application and the matter is referred to the Tribunal, when—
(ii) on an appeal from a determination by the Tribunal on a point of law, the Court itself determines the application in accordance with section 137 of the Act. (6) An applicant who is treated as having an interim permission may not withdraw the application without first obtaining the consent of the Authority.
(b) as a result of the variation there are no longer any regulated activities for which the authorised person has permission, the Authority must, once it is satisfied that it is no longer necessary to keep the interim permission in force, cancel it.
(b) the application has not been finally decided before commencement. (2) The person in respect of whom the application is made is to be treated as having on commencement the approval of the Authority for the purposes of section 59 of the Act (approval for particular arrangements) in relation to the functions to which the application relates.
(b) where the application relates to an activity of the kind specified by article 25B, 25C, 53B or 53C of the Regulated Activities Order or article 64 of that Order, so far as relevant to any such activity—
(ii) at the beginning of 6th April 2008, whichever is the earlier. (5) In this article, "finally decided" means—
(b) when the Authority grants the application for approval under section 62 of the Act (applications for approval: procedure and right to refer to Tribunal); (c) where the Authority has refused an application and the matter is not referred to the Tribunal, when the time for referring the matter to the Tribunal has expired; (d) where the Authority has refused an application and the matter is referred to the Tribunal, when—
(ii) on an appeal from a determination by the Tribunal on a point of law, the Court itself determines the application in accordance with section 137 of the Act. Application of the Authority's rules etc. to persons with an interim permission or an interim approval 1.Paragraphs 2 and 3 apply to every person with an interim permission. 2.For the purposes of section 20 (authorised persons acting without permission), a person's interim permission is treated as having been given to him under Part 4 of the Act. 3.A person's interim permission is to be disregarded for the purposes of—
(b) section 40(2) (application for permission); (c) subject to paragraph 7, section 42 (giving permission); (d) section 43 (imposition of requirements); and (e) section 44(1), (4) and (5) (variation etc at request of authorised person). 4.Paragraphs 5(1) and 6 to 10 apply to a person who falls within section 31(1) (authorised persons) by virtue only of having an interim permission.
(b) an appointed representative of such person. 9.In article 29 of the Regulated Activities Order (arranging deals with or through authorised persons), with the exception of the first reference, the references to an "authorised person" do not include a person with an interim permission. (This note is not part of the Order) This Order amends the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (the "principal Order") so as to specify as regulated activities for the purposes of the Financial Services and Markets Act 2000 (c. 8) ("FSMA") the activities of entering into, administering, arranging and advising on regulated home reversion plans and regulated home purchase plans. The matters with respect to which regulated activities may be specified include finance arrangements in connection with the acquisition or disposal of land (paragraph 23A of Schedule 2 to FSMA, inserted by the Regulation of Financial Services (Land Transactions) Act 2005 (c. 24)). The Order also clarifies an existing provision relating to high net worth companies. Article 3 inserts new definitions and makes a consequential amendment to the definition of "overseas person" in the principal Order. Article 4 inserts new articles into the principal Order which specify the new regulated activities of arranging regulated home reversion plans ("home reversion arranging") and arranging regulated home purchase plans ("home purchase arranging"). Articles 5 to 11 amend articles 26 to 33A of the principal Order, so as to apply the exclusions specified in those articles to home reversion arranging and home purchase arranging. Those exclusions relate, for example, to arrangements not causing a deal, the provision of the means of communication between the parties to a transaction, arrangements to which the arranger is a party and arrangements where the transaction is with or through an authorised person. Article 13 inserts new articles into the principal Order which specify the new regulated activities of advising on regulated home reversion plans ("home reversion advising") and advising on regulated home purchase plans ("home purchase advising"). Articles 14 and 15 amend respectively articles 54 and 54A of the principal Order so as to apply the exclusion specified in those articles to home reversion advising and home purchase advising. Those exclusions relate to advice given in the media and advice given in the course of administration by an authorised person. Article 17 amends article 61 of the principal Order to provide that products which have the features of both a regulated home purchase plan and a regulated mortgage contract will not be considered a regulated mortgage contract. Article 18 inserts new articles into the principal Order which specify the new regulated activities of entering into and administering regulated home reversion plans ("home reversion entry") and entering into and administering regulated home purchase plans ("home purchase entry") and apply exclusions relating to arranging administration by an authorised person and administration pursuant to an agreement with an authorised person. Articles 19, 20 and 21 amend respectively articles 66, 67 and 72 of the principal Order so as to extend certain other exclusions to home reversion and home purchase entry, home reversion and home purchase arranging and home reversion and home purchase advising. Article 22 amends the definition of "high net worth company" in article 72F of the principal Order to clarify that in order to be a high net worth company and benefit from the exception for business angel-led enterprise capital funds, a company must execute the specified document in a manner which binds it. Articles 23 and 24 insert new articles into the principal Order which specify rights under regulated home reversion plans and rights under regulated home purchase plans as specified investments and exclude such rights from the scope of article 89 of the principal Order. Articles 25 to 28 make consequential amendments to the Consumer Credit Act 1974 (c. 39), the Companies Act 1985 (c. 6), the Law of Property (Miscellaneous Provisions) Act 1989 (c. 34) and FSMA. Articles 29 to 35 make consequential amendments to other secondary legislation including other instruments made under FSMA. Article 37 confers an interim permission on certain applicants who have applied for permission under Part 4 of FSMA to enter into, administer, arrange or advise on regulated home reversion plans or regulated home purchase plans and whose application is pending on the date (6th April 2007) when those activities become regulated activities. Article 38 confers interim approval, in similar terms to those in article 36, on people who are working for a person who has applied for a Part IV permission and who would need approval under Part 5 of FSMA. Article 39 enables the Financial Services Authority to modify, amongst other things, its rules in their application to persons with an interim permission or interim approval. Article 40 and the Schedule provide for the application of provisions in FSMA and the principal Order to persons with an interim permission or interim approval, indicating where such provisions are to be treated as including or not including such persons. A Regulatory Impact Assessment of the effect of this instrument on the costs of business has been prepared and may be obtained from the Payments and Inclusion Team, HM Treasury, 1 Horse Guards Road, London SW1A 2HQ. It is also available on HM Treasury's website (www.hm-treasury.gov.uk). Notes: [1]2000 c.8. A relevant amendment was made by the Regulation of Financial Services (Land Transactions) Act 2005 (c.24) which inserts paragraph 23A of Schedule 2 to the 2000 Act.back [2]S.I. 2001/544, amended by S.I. 2003/1475; there are other amending instruments but none is relevant.back [3]The definition of "relevant investment" was inserted by S.I. 2003/1476.back [4]The definition of "personal pension scheme" was inserted by S.I. 2006/1969.back [5]1992 c. 35.back [6]2000 c.14.back [7]2001 asp8.back [8]S.I. 2003/431 (N.I.9).back [9]Article 72F was inserted by S.I. 2005/1518.back [10]1974 c. 39; sections 16 and 53 were amended by S.I. 2001/544; section 146 was amended by S.I. 2003/1475 and S.I. 2005/2967; there are other amending instruments but none is relevant.back [11]1985 c. 6; the definition of "regulated activity" was inserted by S.I. 2005/2280.back [12]1989 c. 34; section 2 was amended by S.I. 2001/3649.back [13]2000 c. 8; section 49(2A) was inserted by S.I. 2001/544 as amended by S.I. 2004/1610.back [14]S.I. 2001/1177; article 3A was inserted by S.I. 2003/1475.back [15]S.I. 2001/1201; paragraphs 47 and 48 of the Schedule were substituted by S.I. 2003/1675.back [16]S.I. 2001/1217; amended by S.I. 2003/1475 and S.I. 2003/1476.back [17]The definition of "contract of long-term insurance" was inserted by S.I. 2004/453.back [18]S.I. 2001/1227; amended by S.I. 2001/3650 and S.I. 2003/1475; there are other amending instruments but none is relevant.back [19]S.I. 2003/3075.back [20]S.I. 2004/1484.back [21]S.I. 2005/1529.back [22]2000 c. 8.back ISBN0 11 075223 6 -- Back --
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