Appointed representatives
10Appointed representatives
(1)Section 39 of FSMA 2000 (appointed representatives) is amended as follows.
(2)After subsection (1B) insert—
“(1C)Subsection (1D) applies where an authorised person (“A”)—
(a)has permission under Part 4A, or permission resulting from any other provision of this Act, only in relation to one or more qualifying activities,
(b)is a party to a contract with another authorised person (A's “principal”) which—
(i)permits or requires A to carry on business of a prescribed description (“the relevant business”), and
(ii)complies with such requirements as may be prescribed, and
(c)is someone for whose activities in carrying on the whole or part of the relevant business A's principal has accepted responsibility in writing.
(1D)Sections 20(1) and (1A) and 23(1A) do not apply in relation to the carrying on by A of a relevant additional activity.
(1E)In subsections (1C) and (1D)—
(a)“qualifying activity” means a regulated activity which is of a prescribed kind and relates—
(i)to rights under a contract of the kind mentioned in paragraph 23 of Schedule 2, other than one under which the obligation of the borrower to repay is secured on land, or
(ii)to rights under a contract of the kind mentioned in paragraph 23B of that Schedule;
(b)“relevant additional activity” means a regulated activity which—
(i)is not one to which A's permission relates, and
(ii)is comprised in the carrying on of the business for which A's principal has accepted responsibility.”
(3)For subsection (2) substitute—
“(2)In this Act “appointed representative” means—
(a)a person who is exempt as a result of subsection (1), or
(b)a person carrying on a regulated activity in circumstances where, as a result of subsection (1D), sections 20(1) and (1A) and 23(1A) do not apply.”