Office of Public Sector Information

EXPLANATORY NOTE

(This note is not part of the Order)

This Order amends article 72B(1)(d)(ii) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (“the Regulated Activities Order”) to limit the exemption from regulation in respect of the activities specified in articles 21, 25(1) and (2), 39A, 53 and 64 of the Regulated Activities Order for travel insurance to circumstances where a contract of insurance is linked to (a) travel to an event organised by the travel provider where the person seeking insurance is not an individual or a business with a group annual turnover of less than £1,000,000; or (b) the hire of a vehicle.

Article 4 confers an interim permission on certain applicants who have applied for permission under Part 4 of the Financial Services and Markets Act 2000 (“FSMA”) to carry on activities specified in article 21, 25(1), 25 (2), 39A, 53 or 64 of the Regulated Activities Order in relation to the sale of travel insurance and whose application is pending on the commencement of Part 2 of this Order (1st January 2009).

Article 5 confers interim approval, in similar terms to those in article 4, on people who are the subject of an application for approval under Part 5 of FSMA which is pending on 1st January 2009.

Article 6 enables the Financial Services Authority to modify, amongst other things, its rules in their application to persons with an interim permission or approval.

Articles 7 and 8 provide for the application of provisions in FSMA to persons with an interim permission, indicating where such provisions are to be treated as including or not including such persons.

Article 9 provides for the application of provisions in FSMA to persons with an interim approval.

A Regulatory Impact Assessment of the effect of this instrument on the costs of business has been prepared and may be obtained from the Financial Stability and Risk Team, HM Treasury, 1 Horse Guards Road, London SW1A 2HQ. It is also available on HM Treasury’s website (www.hm-treasury.gov.uk). A copy has been placed in the library of both Houses of Parliament.