(4) In this article, “relevant article 36H agreement” means an article 36H agreement (within the meaning of article 36H) which has been entered into with the facilitation of an authorised person with permission to carry on a regulated activity of the kind specified by that article. after the definition of “designated judge” insert—. 1-3) Article 1 Citation Amended by section 5 of the Consumer Credit Act 2006 and S.I. (c)it does not provide for or permit an increase in the rate or amount of any item which is included in the total charge for credit, (d)the total charge for credit under the agreement is not more than the sum of one per cent and the highest of the base rates published by the banks specified in paragraph (7) on the date 28 days before the date on which the charge is imposed, and, (5) This paragraph applies to an agreement if—, (a)the total amount to be repaid by the borrower to discharge the borrower’s indebtedness may vary according to a formula which is specified in the agreement and which has effect by reference to movements in the level of any index or other factor, or, (ii)is not offered by a lender who is an employer to a borrower as an incident of employment with the lender, and. 39G.—(1) Subject to paragraph (3), taking steps—, (a)to perform duties under a credit agreement or relevant article 36H agreement on behalf of the lender, or. (2) For the purposes of the definition of “restricted-use credit agreement”—, (a)a credit agreement does not fall within the definition if the credit is in fact provided in such a way as to leave the borrower free to use it as the borrower chooses, even though certain uses would contravene that or any other agreement; and. negotiating with the lender, on behalf of the borrower, terms for the discharge of a debt; taking over, in return for payments by the borrower, that person’s obligation to discharge a debt; any similar activity concerned with the liquidation of a debt. that visit is made by A for the purpose of making such oral representations. Giving advice to a hirer about the liquidation of a debt due under a consumer hire agreement is a specified kind of activity. (c) “net assets” shall not include: (b)any modifications being made to the relevant instrument or part, (c)the date on which the designation is to come into effect, and. 2010/1010. (2) It is a specified kind of activity for the owner or another person to exercise, or to have the right to exercise, the owner’s rights and duties under a regulated consumer hire agreement. (8) Subsection (3)(a) of section 213 (compensation scheme)(236) does not apply to a person who is a relevant person (within the meaning of that section) only by virtue of having an interim permission. A person (“A”) who is not an authorised person does not carry on an activity of the kind specified by article 60B(2) in relation to a regulated credit agreement where A—, (a)arranges for another person, who is an authorised person with permission to carry on an activity of that kind, to exercise or to have the right to exercise the lender’s rights and duties under the agreement, or. the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (SI 2001/544).5 Sections 51A and 51B were inserted by section 15 of the Financial Services Act 2010. “consumer hire agreement” means an agreement between a person (“the owner”) and an individual or relevant recipient of credit (“the hirer”) for the bailment or, in Scotland, the hiring, of goods to the hirer which—. Paragraphs 24B and 24C were inserted by section 7 of the Financial Services Act 2012. Amended by S.I. The persons to whom this paragraph applies are—. (2) Anything done by or in relation to the OFT under regulation 27 (applications for registration) or regulation 34 (applications for and cancellation of registration in a register maintained under regulation 32)(280) is, to the extent necessary for the effective operation of the Regulations, to be treated as having been done by or in relation to the FCA. Amended by S.I. (b)does not carry on any other regulated activities. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area. (2) For the purposes of paragraph (1), if an agreement includes a declaration which—, (b)provides that the agreement is entered into by the hirer wholly or predominantly for the purposes of a business carried on, or intended to be carried on, by the hirer, and. 4. Section 150 was repealed by Schedule 4 to the Consumer Credit Act 2006. Paragraphs (5) and (6) also apply for the purposes of paragraph (4) but with the omission of the words “or predominantly”. 2007 c.29. An employer who provides or makes available to their employees a cycle or cyclist’s safety equipment up to the value of £1,000 under a relevant employee benefit scheme is exempt from the general prohibition in respect of any regulated activity of the kind specified by article 60N of the Regulated Activities Order (regulated consumer hire agreements). 2006/3414. in the case of an agreement secured on land, there is no charge forming part of the total charge for credit under the agreement other than interest at a rate not exceeding the rate of interest from time to time payable under the agreement mentioned at sub-paragraph (b). (2) There are excluded from paragraph (1) activities carried on in the course of a business which does not primarily consist of activities of the kind specified by paragraph (1). In paragraph 11 of Schedule 6 to the Universal Credit, Personal Independence Payment, Jobseeker’s Allowance and Employment and Support Allowance (Claims and Payments) Regulations 2013 (deductions from benefit and direct payment to third parties)(297)—. (a)the OFT had given a notice under section 27 of the 1974 Act (determination of applications)(200) to a person (“A”) that it is minded to refuse A’s application to renew A’s standard licence, (b)the OFT had not determined to refuse to renew A’s licence, and, (2) Paragraphs (3) and (4) apply if, before 1st April 2014—. it provides that the only charge included in the total charge for credit is interest, interest under the agreement may not at any time be more than the sum of one per cent and the highest of the base rates published by the banks specified in paragraph (7) on the date 28 days before the date on which the interest is charged, and. In this paragraph, “relevant person” means—, after paragraph 5 (managing investments), insert—, The following activities are, when carried on in relation to debts due under a relevant credit agreement, controlled activities—. (b)the lender is the lender under a credit agreement secured by a legal mortgage on land. In September 2016 HM Treasury published a consultation setting out the Government’s proposal to amend the definition of regulated advice under Article 53 of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (RAO), to bring it in line with the EU definition set out in MiFID. Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (RAO) [SI 2001 No. (4) For the purposes of Part 3 of Schedule 1ZA to the Act (penalties and fees)(213)—. and secured by a legal mortgage on that land, a borrower-lender agreement secured by a legal mortgage on land, or, a borrower-lender-supplier agreement financing a transaction which is a linked transaction in relation to—, an agreement falling within sub-paragraph (a), or, an agreement falling within sub-paragraph (b) financing—. Exempt agreements: exemptions relating to number of repayments to be made. (a)in paragraph (3), in the definition of “credit intermediary”, for “section 160A” substitute “section 61A”; (b)in paragraph (3), for the definition of “the Total Charge for Credit Regulations” substitute—, (4) In regulation 2 (agreements to which these regulations apply), for paragraph (6) substitute—. Article 60H, The Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 Practical Law Primary Source 6-568-3089 (Approx. In section 22(9) of the Teaching and Higher Education Act 1998 (new arrangements for giving financial support to students)(251), in so far as that provision remains in force, for the words from “for the purposes of any exemption” to the end of the subsection, substitute “by article 60G(3)(d) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001”. (b)for the electronic transfer of funds from a current account held with an authorised person with permission to accept deposits (within the meaning given by article 3). (65) In Schedule 2 (examples of use of new terminology)—. 2001/3649, S.I. Inserted by Schedule 2 to the Consumer Credit Act 2006. Sections 33A to 33E inserted by sections 38 to 41 of the Consumer Credit Act 2006 and amended by section 107 of the Financial Services Act 2012. (a)negotiating with the lender, on behalf of the borrower, terms for the discharge of a debt; (b)taking over, in return for payments by the borrower, that person’s obligation to discharge a debt; (c)any similar activity concerned with the liquidation of a debt. the terms on which the credit is provided are more favourable to the borrower than those prevailing on the market, either because the rate of interest is lower than that prevailing on the market, or because the rate of interest is no higher than that prevailing on the market but the other terms on which credit is provided are more favourable to the borrower. In this article, “borrower”, “hirer” “lender” and “owner” have the meanings given by the Regulated Activities Order. the agreement is a borrower-lender-supplier agreement for fixed-sum credit. Sections 178 to 191G were substituted by S.I. (2) The financial promotion restriction does not apply to a communication which relates to a controlled activity falling within paragraph 10BA of Schedule 1 and which—, (a)indicates clearly (by express words or otherwise) that a person is willing to enter into a relevant credit agreement as lender for the purposes of another person’s business, and. (iii)B’s parent, brother, sister, child, grandparent or grandchild. (a)in paragraph (1) for “the Consumer Credit (Total Charge for Credit) Regulations 1980” substitute “rules made by the Financial Conduct Authority under article 60M of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 for the purposes of Chapter 14A of Part 2 of that Order”; (b)in paragraph (2), for “for the purposes of any exemption conferred by virtue of section 16(5)(b) of the Consumer Credit Act 1974” substitute “by article 60G(3)(d) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001”. A person who is not an authorised person does not carry on an activity of the kind specified by article 60B(2) in relation to regulated credit agreement if that person exercises or has the right to exercise the lender’s rights and duties under the agreement pursuant to an agreement with an authorised person who has permission to carry on an activity of the kind specified by article 60B(2). means any of the following regulated activities as specified in the Regulated Activities Order which are carried on in relation to a contract of insurance or rights to or interests in a life policy: dealing in investments as agent (article 21) arranging (bringing about) deals in investments (article 25(1)) ‘Credit agreement’ is defined in Article 60B of the Financial Services and Markets Act 2000 (Regulated Activities) Order (a)in sub-paragraph (1), for “regulated person” substitute “person who is carrying on a regulated activity”; (18) In Schedule 3 (EEA passport rights)—. The following subordinate instruments, or the provisions of subordinate instruments, are revoked—. presenting or offering paragraph 4C agreements to B and C with a view to B becoming the lender under the paragraph 4C agreement and C becoming the borrower under the paragraph 4C agreement, enter into, as the lender, a paragraph 4C agreement with Y, or. The same defi nition appears in article 60L of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (SI 2001/544). “contentious business” means business done in or for the purposes of proceedings begun before a court or before an arbitrator, not being non-contentious or common form probate business (within the meaning of section 128 of the Senior Courts Act 1981, Article 36A is also subject to the exclusion in article 72A (information society services), OPERATING AN ELECTRONIC SYSTEM IN RELATION TO LENDING, Operating an electronic system in relation to lending. (b)an unincorporated body of persons which does not consist entirely of bodies corporate and is not a partnership. (4) After paragraph 51 of the Schedule (policyholder advocates)(64) insert—, (b)an official receiver within the meaning of section 399 of the Insolvency Act 1986(65) or article 2 of the Insolvency (Northern Ireland) Order 1989(66), or. after “paragraph” insert “4B, 4C, 5A, 5B,”; The financial promotion restriction does not apply to a communication which relates to a controlled activity falling within paragraph 4C of Schedule 1 and which—, indicates clearly (by express words or otherwise) that a person is willing to facilitate another person (“B”) becoming the borrower under a paragraph 4C agreement for the purposes of B’s business, and. (a)who before 1st April 2014 used a relevant credit service, (b)who have rights or interests which are derived from, or are otherwise attributable to, the use of any such services by other persons, or. 2010/1010. (b)a person to whom the rights and duties of a person falling within sub-paragraph (a) have been passed by assignment or operation of law. (ii)the reference to the OFT in paragraph (b) is to be treated as a reference to the FCA. They aim to make the Draft Statutory Instrument accessible to readers who are not legally qualified and accompany any Statutory Instrument or Draft Statutory Instrument laid before Parliament from June 2004 onwards. 2009/1342. 2001/544. the OFT received an application under section 30(1) of the 1974 Act (variation by request)(. 2007/3300. had been made to the OFT under the 1974 Act, and, it is immaterial whether the notice complies with section 388(1)(b) to (e) of the Act (decision notices)(, that section applies as if, for subsections (3) and (4), there were substituted—. S.S.I. is capable of subsisting for more than three months; “exempt agreement” means a consumer hire agreement which is an exempt agreement under articles 60O to 60Q; the person who bails or, in Scotland, hires, goods under a regulated consumer hire agreement, or. (3) In regulation 1 (citation, commencement interpretation)(189)—. any person who has acted on behalf of the owner (or, if there is more than one owner, any of the owners), in connection with the entering into of the agreement. Article 60C, The Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 Practical Law Primary Source 4-568-2948 (Approx. Article 33B of the Regulated Activities Order (RAO) covers this exemption. the applicant (“A”) had not withdrawn the application, the OFT had not determined whether to vary the licence in accordance with the application, and. The following Financial Services Q&A provides comprehensive and up to date legal information covering: Under article 60F(2) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, payments must be made within twelve months. (62) In section 190 (financial provisions)(139), subsection (2) is omitted. the borrower or the relative of the borrower enters into the transaction to induce the lender to enter into the principal agreement or for another purpose related to the principal agreement or to a transaction financed or to be financed by the principal agreement. Arrangements fall within this paragraph if they are—, for the making, in circumstances specified in the credit agreement, of payments to the supplier by the lender (“L”) and L indicates that L is willing to make, in such circumstances, payments of the kind to suppliers generally, or. 39E.—(1) Giving advice to a borrower about the liquidation of a debt due under a credit agreement is a specified kind of activity. Inserted by section 14 of the Financial Services Act 2010. After article 36 (other exclusions in relation to arranging deals in investments), insert—, 36A.—(1) Each of the following is a specified kind of activity—. presenting or offering article 36H agreements to B and C with a view to B becoming the lender under the article 36H agreement and C becoming the borrower under the article 36H agreement, furnishing information relevant to the financial standing of a person (“Y”) with a view to assisting in the determination as to whether another person should—, enter into, as the lender, an article 36H agreement with Y, or. (a)omit regulation 26 (carrying on of Consumer Credit Act business by EEA authorised payment institutions); (b)in regulation 52 (disapplication of certain regulations in the case of consumer credit agreements), omit paragraph (a). (b)it is an agreement of a kind offered to a particular class of individual or relevant recipient of credit and not offered to the public generally. an activity of the kind specified by article 60N of that Order (regulated consumer hire agreements), an activity of the kind specified by article 89A of that Order (providing credit information services) where carried on by a person who also carries on an activity of the kind specified by any of paragraphs (a) to (e), or. a person to whom the rights and duties of a person falling within sub-paragraph (a) have been passed by assignment or operation of law. (iii)immediately before 1st April 2014, P did not also carry on an activity which, if carried on after that date, would be an activity of the kind specified by article 39G of that Order (debt administration). (a)omit paragraphs 5 to 7 and the headings immediately before each of those paragraphs; (b)omit paragraph 11 and the heading immediately before it; (c)omit paragraphs 44, 45 and 46 and the headings immediately before each of those paragraphs. (8) The case specified in this paragraph is where activity relates to a consumer hire agreement where the good being hired is a vehicle. (2) Section 1B(4) of the Act (competition duty) does not apply to the extent that—, (a)the rules are the same as, or substantially the same as, or have the same, or substantially the same, effect as any of the Consumer Credit Act provisions, or. of copies), omit “(except section 35)”. For the purposes of paragraph (1), if an agreement includes a declaration which—, provides that the agreement is entered into by the hirer wholly or predominantly for the purposes of a business carried on, or intended to be carried on, by the hirer, and. contain or be accompanied by such other information as the FCA may reasonably require. “(d)a person with permission under Part 4A of the Financial Services and Markets Act 2000 to enter into, or to exercise or have the right to exercise rights and duties under, a contract of the kind mentioned in paragraph 23 or paragraph 23B of Schedule 2 to that Act (credit agreements and contracts for hire of goods);”; “(1A) Subsection (1)(d) must be read with—. (15) In regulation 49(1) (obligations on public authorities), omit sub-paragraph (h). (d)in the case of an agreement secured on land, there is no charge forming part of the total charge for credit under the agreement other than interest at a rate not exceeding the rate of interest from time to time payable under the agreement mentioned at sub-paragraph (b), (e)in the case of an agreement which is not secured on land, the credit is provided without interest or other charges, and. a regulated credit agreement, entering into etc. (i)omit the definitions of “advertiser”, “appeal period”(129), “exempt agreement”(130), “group licence”, “licence”(131), “licensed”, “licensee”, “quotation”, “register”(132), “specified fee”, “standard licence” and “unlicensed”; (ii)in the definition of “credit information services”(133), for “has the meaning given by” substitute “is to be read in accordance with”; (iii)in the definition of “credit reference agency”, for “has the meaning given by” substitute “is to be read in accordance with”; (iv)in the definition of “deposit”(134), omit “(except in section 16(10) and 25(1B)”; (v)after the definition of “redemption period” insert—. It is your responsibility to establish whether your firm’s proposed business requires you to apply for authorisation to carry on regulated activities. (2) A credit agreement is an exempt agreement if—. (6) If a lender is an associate of the supplier’s, the credit agreement is to be treated as entered into under pre-existing arrangements between the lender and the supplier unless the lender can show that this is not the case. section 38(2) of the Act (exemption orders)(. 2006/333. “cycle” has the meaning given by section 192(1) of the Road Traffic Act 1988, “relevant employee benefit scheme” means a scheme operated by an employer which is designed to allow employees to take advantage of section 244 of the Income Tax (Earnings and Pensions) Act 2003. (3) For the purposes of this article, it is the effect of the group licence that matters, not how the activities for which a licence is given are described. is to be treated as having been made to the FCA, unless paragraph (2) applies. (2) Advising a hirer about the liquidation of a debt due under a consumer hire agreement is a controlled activity.”; (c)after paragraph 10B (advising on qualifying credit etc. (10) In Schedule 3 (European Consumer Credit Information), in table 5, for “Office of Fair Trading” substitute “Financial Conduct Authority”. (43) In section 155 (right to recover brokerage fees)(115)—. 3. not sold for cash) is omitted. (5) A designating instrument may contain provision other than that required by paragraph (1). in the knowledge that the credit is to be used to finance a transaction between the borrower and the supplier; “borrower-lender-supplier agreement” means—. 2007/3494. 1985 c.6. (e)paragraph (5) does not apply to the agreement. any amounts received by the FCA by virtue of this article are to be treated as amounts received by way of penalties imposed under the Act; any expenses incurred by the FCA in connection with the recovery of penalties due to it by virtue of this article are to be treated as incurred in connection with the recovery of penalties imposed under the Act. There are other amending instruments but none is relevant to this Order. Amendments of the Regulated Activities Order Amendments of the Regulated Activities Order 2. (2) Giving advice to an individual or relevant recipient of credit in relation to the taking of any of the steps specified in paragraph (3) is a specified kind of activity. (b)the agreement is entered into by the borrower wholly or predominantly for the purposes of a business carried on, or intended to be carried on, by the borrower. of the kind mentioned in paragraph 24B (providing credit reference services) or 24C (providing credit information services) of that Schedule. (c)is not exempt from the general prohibition in relation to the carrying on of that activity by virtue of section 327(1) of the Act (exemption from the general prohibition for members of a designated professional body). Exempt agreements: exemptions relating to supply of essential services, the owner is a body corporate which is authorised by or under an enactment to supply gas, electricity or water, and. (2) A relevant credit agreement relating to the purchase of land is an exempt agreement if the lender is—, (a)specified, or of a description specified, in rules made by the FCA under paragraph (3), or, (3) The FCA may make rules specifying any of the following for the purpose of paragraph (2)—. (10) In regulation 40(1)(b) (failure to comply with information requirement), for “OFT” substitute “Authority”. (5) The case specified in this sub-paragraph is where the activity relates to a consumer hire agreement where the goods being hired is a vehicle. S.I. 60N.—(1) Entering into a regulated consumer hire agreement as owner is a specified kind of activity. In Schedule 15D to the Companies Act 1985 (disclosures)(243)—, (b)in paragraph 28, after paragraph (a), insert—. in paragraph (1), for “a credit reference agency which is registered under Part III of the Consumer Credit Act 1974 (by virtue of section 147 of that Act)” substitute “a person who has permission under the Financial Services and Markets Act 2000 to furnish persons with information relevant to the financial standing of other persons”; in paragraph (1), for “a credit reference agency registered under Part III of the Consumer Credit Act 1974 (by virtue of section 147 of that Act)” substitute “a person who has permission under the Financial Services and Markets Act 2000 to furnish persons with information relevant to the financial standing of other persons”; in paragraph (1) for “the Consumer Credit (Total Charge for Credit) Regulations 1980” substitute “rules made by the Financial Conduct Authority under article 60M of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 for the purposes of Chapter 14A of Part 2 of that Order”; in paragraph (2), for “for the purposes of any exemption conferred by virtue of section 16(5)(b) of the Consumer Credit Act 1974” substitute “by article 60G(3)(d) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001”. 2004/453, S.I. (f)the number of payments to be made by the borrower is not more than twelve. In this article, “relevant person” means—. 9. 1977/2163, S.I. for subsection (8) of section 28A substitute—. S.I. after “Unless the OFT has” insert “before 1st April 2014”; after “applies to the agreement” insert “or the FCA has given a notice under section 28A of the Financial Services and Markets Act 2000 by virtue of subsection (1B)”; Sections 28A and 28B of the Financial Services and Markets Act 2000, apply to a regulated agreement which is not enforceable by virtue of subsection (1A) with the following modifications—. and 66 (information sharing) come into force on the day after the day on which this Order is made. (a)effecting an introduction of an individual or relevant recipient of credit to a person who enters into as lender relevant credit agreements by way of business; (b)effecting an introduction of an individual or relevant recipient of credit to a person who enters into as lender regulated consumer hire agreements by way of business; (c)effecting an introduction of an individual or relevant recipient of credit to a person who carries on an activity of the kind specified in paragraph (a) or (b) by way of business; (d)presenting or offering an agreement which would (if entered into) be a relevant credit agreement to an individual or relevant recipient of credit; (e)assisting an individual or relevant recipient of credit by undertaking preparatory work in respect of a relevant credit agreement; (f)entering into a relevant credit agreement on behalf of a lender. (4) In this article, “specified period” has the same meaning as in the 1974 Act. The FCA may make rules specifying how the total charge for credit to the borrower under a credit agreement is to be determined for the purposes of this Chapter. 1989/1128. (6) Section 210 of the Act (statement of policy) does not apply to a penalty imposed by the FCA by virtue of this article. the statement of policy prepared by the OFT under section 39C of the 1974 Act as most recently published at the time the conduct occurred. There are amending instruments but none is relevant to this Order. 1988 c.52. the lender is the lender under a credit agreement secured by a legal mortgage on that land. is not exempt from the general prohibition in relation to the carrying on of that activity by virtue of section 327(1) of the Act (exemption from the general prohibition for members of a designated professional body). (3) For the purposes of section 21(2) of the Act (restrictions on financial promotions), if A does not have permission other than an interim permission, A may only approve the content of a communication if the communication invites or induces a person to—, (a)enter into (or offer to enter into) an agreement the making or performance of which constitutes a controlled activity which corresponds to a regulated activity for which A has interim permission; or. (13) In section 353 (removal of other restrictions on disclosure)(46), in subsection (1), omit paragraph (c). ““total charge for credit” has the meaning given by section 20;”; (b)in subsection (1A)(135), omit “36E(3),”; (c)in subsection (2A)(136), for the words from “subsections (2) to (5)” to the end, substitute “article 60C(5) and (6) of the Regulated Activities Order applies”; (d)in subsection (5)(137), omit “or the OFT” in the first place and “or the OFT (as the case may be)”. (e)in the case of an agreement secured on land, there is no charge forming part of the total charge for credit under the agreement other than interest at a rate not exceeding the rate of interest from time to time payable under the agreement mentioned at sub-paragraph (c), (f)in the case of an agreement which is not secured on land, the credit is provided without interest or other charges, and. (b)of the kind mentioned in paragraph 24B (providing credit reference services) or 24C (providing credit information services) of that Schedule. (a)in table 3, omit “regulation 6(g) of”; (b)in table 5, for “Office of Fair Trading” substitute “Financial Conduct Authority”. (a)any amounts received by the FCA by virtue of this article are to be treated as amounts received by way of penalties imposed under the Act; (b)any expenses incurred by the FCA in connection with the recovery of penalties due to it by virtue of this article are to be treated as incurred in connection with the recovery of penalties imposed under the Act. ““regulated agreement” means a consumer credit agreement which is a regulated agreement (within the meaning of section 8(3)) or a consumer hire agreement which is a regulated agreement (within the meaning of section 15(2));”; (vii)for the definition of “total charge for credit” substitute—. (10) Part 3 (sections 21 to 41ZB) (licensing of credit and hire business)(91) is omitted(92).