- Statutory Instrument 2001 No. 1217
The Financial Services and Markets Act 2000 (Appointed Representatives) Regulations 2001
© Crown Copyright 2001
Statutory Instruments printed from this website are printed under the superintendence and authority of the Controller of HMSO being the Queen's Printer of Acts of Parliament.
The legislation contained on this web site is subject to Crown Copyright protection. It may be reproduced free of charge provided that it is reproduced accurately and that the source and copyright status of the material is made evident to users.
It should be noted that the right to reproduce the text of Statutory Instruments does not extend to the Queen's Printer imprints which should be removed from any copies of the Statutory Instrument which are issued or made available to the public. This includes reproduction of the Statutory Instrument on the Internet and on intranet sites. The Royal Arms may be reproduced only where they are an integral part of the original document.
The text of this Internet version of the Statutory Instrument which is published by the Queen's Printer of Acts of Parliament has been prepared to reflect the text as it was Made. A print version is also available and is published by The Stationery Office Limited as the The Financial Services and Markets Act 2000 (Appointed Representatives) Regulations 2001, ISBN 0 11 029439 4. The print version may be purchased by clicking here. Braille copies of this Statutory Instrument can also be purchased at the same price as the print edition by contacting TSO Customer Services on 0870 600 5522 or e-mail:customer.services@tso.co.uk.
Further information about the publication of legislation on this website can be found by referring to the Frequently Asked Questions.
To ensure fast access over slow connections, large documents have been segmented into "chunks". Where you see a "continue" button at the bottom of the page of text, this indicates that there is another chunk of text available.
| Made | 28th March 2001 | ||
| Laid before Parliament | 28th March 2001 | ||
| Coming into force in accordance with article 1(1) |
The Treasury, in exercise of the powers conferred on them by sections 39(1) and 417(1)[1] of the Financial Services and Markets Act 2000[2] ("the Act"), hereby make the following Regulations:
Citation, commencement and interpretation
1. - (1) These Regulations may be cited as the Financial Services and Markets Act 2000 (Appointed Representatives) Regulations 2001, and come into force on the day on which section 19 of the Act comes into force.
(2) In these Regulations -
-
"buy", "sell", "security" and "contractually based investment" have the same meaning as in the Regulated Activities Order;
-
"other counterparties" means persons other than the principal;
-
"the principal", in relation to a contract, means the party who is an authorised person, and "the representative" means the other party;
-
"the Regulated Activities Order" means the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001[3].
Descriptions of business for which appointed representatives are exempt
2.
Any business which comprises -
-
(a) an activity of the kind specified by article 25 of the Regulated Activities Order (arranging deals in investments), where the arrangements are for or with a view to transactions relating to securities or contractually based investments;
(b) an activity of the kind specified by article 40 of that Order (safeguarding and administering investments), where the activity consists of arranging for one or more other persons to safeguard and administer assets;
(c) an activity of the kind specified by article 53 of that Order (advising on investments); or
(d) an activity of the kind specified by article 64 of that Order (agreeing to carry on activities), so far as relevant to an activity falling within paragraph (a), (b) or (c);
is prescribed for the purposes of subsection (1)(a)(i) of section 39 of the Act (exemption of appointed representatives).
Requirements applying to contracts between authorised persons and appointed representatives
3.
- (1) For the purposes of subsection (1)(a)(ii) of that section, it is a prescribed requirement that the contract between the principal and the representative must (unless it prohibits the representative from representing other counterparties) contain a provision enabling the principal to -
-
(a) impose such a prohibition; or
(b) impose restrictions as to the other counterparties which the representative may represent, or as to the types of investment in relation to which the representative may represent other counterparties.
(2) For the purposes of paragraph (1) a representative is to be treated as representing other counterparties where he -
-
(a) makes arrangements (in circumstances constituting the carrying on of an activity of the kind specified by article 25 of the Regulated Activities Order) for persons to enter (or with a view to persons entering) into investment transactions with other counterparties;
(b) arranges (in circumstances constituting the carrying on of an activity of the kind specified by article 40 of that Order) for other counterparties to safeguard and administer assets; or
(c) gives advice (in circumstances constituting the carrying on of an activity of the kind specified by article 53 of that Order) on the merits of entering into investment transactions with other counterparties;
where an "investment transaction" means a transaction to buy, sell, subscribe for or underwrite an investment which is a security or a contractually based investment.
Greg Pope
Clive Betts
Two of the Lords Commissioners of Her Majesty's Treasury
28th March 2001
(This note is not part of the Regulations)
These Regulations prescribe the descriptions of business which appointed representatives of authorised persons may carry on without themselves requiring authorisation under the Financial Services and Markets Act 2000 ("the Act"). Regulation 2 prescribes, for this purpose, any business comprising the regulated activity of arranging deals in certain investments, arranging for the safeguarding and administration of assets, or advising on investments (or agreeing to do any of those things).
The Regulations also prescribe the requirements with which a contract between an authorised person and his representative must comply if the representative is to benefit from exemption as an appointed representative under the Act. Under regulation 3, those requirements are that, if the contract does not prohibit the representative from acting for persons other than his principal, it must contain provision allowing the principal to prohibit him from doing so, or to restrict the extent to which he can do so.
Notes:
[1] See definition of "prescribed".back
ISBN 0 11 029439 4