PART 3Amendments of primary legislation

The Financial Services and Markets Act 20005

1

In Schedule 6 to the Financial Services and Markets Act 2000 (threshold conditions)37, Part 1B (Part 4A permission: authorised persons who are not PRA-authorised persons)38 is amended as follows.

2

For paragraph 2C(1A) (effective supervision), substitute—

1A

Paragraphs (a), (b) and (e) of sub-paragraph (1) do not apply where the only regulated activities that the person carries on, or seeks to carry on, are—

a

relevant credit activities, and

b

if any, activities to which, by virtue of section 39(1D), sections 20(1) and (1A) and 23(1A) do not apply when carried on by the person.

3

For paragraph 2D(3A) (appropriate resources), substitute—

3A

Where the only regulated activities that A carries on or seeks to carry on are—

a

relevant credit activities, and

b

if any, activities to which, by virtue of section 39(1D), sections 20(1) and (1A) and 23(1A) do not apply when carried on by A,

A has adequate financial resources if A is capable of meeting A’s debts as they fall due.

4

For paragraph 2F(3) (business model), substitute—

3

This paragraph does not apply where the only regulated activities that the person carries on, or seeks to carry on, are—

a

relevant credit activities, and

b

if any, activities to which, by virtue of section 39(1D), sections 20(1) and (1A) and 23(1A) do not apply when carried on by the person.

5

In paragraph 2G (interpretation)—

a

in sub-paragraph (1)—

i

for paragraph (b)(ii) substitute—

ii

by a person in connection with an activity of the kind specified by paragraph (d) or (e) which the person also carries on,

ii

for paragraph (c)(ii) substitute—

ii

by a person in connection with an activity of the kind specified by paragraph (d) or (e) which the person also carries on,

iii

after paragraph (d), insert—

da

an activity of the kind specified by article 60B of that Order (regulated credit agreements) if carried on by a local authority,

iv

in paragraph (f), for “who also carries on an activity of the kind specified by any of paragraphs (a) to (e)” substitute “in connection with an activity of the kind specified by any of paragraphs (a) to (e) which the person also carries on”;

b

in sub-paragraph (2)—

i

for “But” substitute “Except where the activity is carried on by a not-for-profit body,”;

ii

in the closing words of the sub-paragraph, after “to repay” insert “or the hirer to pay”;

c

in sub-paragraph (6), after the definition of “hire-purchase agreement”, insert—

  • “local authority” means—

    1. a

      in England and Wales, a local authority within the meaning of the Local Government Act 197239, the Greater London Authority, the Common Council of the City of London or the Council of the Isles of Scilly;

    2. b

      in Scotland, a local authority within the meaning of the Local Government (Scotland) Act 197340; and

    3. c

      in Northern Ireland, a district council within the meaning of the Local Government Act (Northern Ireland) 197241;