The Financial Services and Markets Act 2000 (Consequential and Transitional Provisions) (Miscellaneous) Order 2001

Explanatory Note

(This note is not part of the Order)

This Order makes consequential and transitional provisions for the purposes of the Financial Services and Markets Act 2000 (“the Act”) and in consequence of the Financial Services and Markets Act 2000 (Commencement No. 3) Order (S.I. 2001/1820) which brought into force the provisions of the Act relating to the constitution and rule making powers of the Financial Services Authority (“the Authority”) and of the scheme operator of the Ombudsman scheme.

Article 2 disapplies certain provisions of Schedule 7 to the Financial Services Act 1986 which are superseded by Schedule 1 to the Act. It also provides that any person who held office as the chair or member of the governing body of the Authority immediately before this Order comes into force is to be treated as having been appointed by the Treasury under Schedule 1 to the Act.

Article 3 extends the definition of “consumer” in sections 138 (the Authority’s rule-making power), 5 (protection of consumers), 10 (the Consumer Panel), 14 (cases in which the Treasury may arrange independent inquiries), 186 (objection to acquisition of control) and 391 (publication of notices) to include those who before commencement of section 19 of the Act, (the general prohibition) used the services provided by the regulated persons in carrying on relevant activities (as defined in article 3).

Article 4 disapplies paragraph 9(3) of Schedule 17 (which relates to the requirements of the budget of the scheme operator of the Ombudsman scheme) for the first year of the operation of the scheme operator.