Part III

Authorisation and Exemption

Exemption

Certain tied agents operating outside United Kingdom
39A
1
This section applies to an authorised person whose relevant office is in the United Kingdom if—
a
he is a party to a contract with a person (other than an authorised person) who is
established in the United Kingdom; and
b
the contract is a relevant contract.
2
A contract is a “relevant contract” if it satisfies conditions A to C.
3
Condition A is that the contract permits or requires the person mentioned in subsection (1)(a) (the “agent”) to carry on investment services business.
4
Condition B is that
the FCA is satisfied that no such business is, or is likely to be, carried on by the agent in the United Kingdom.
5
Condition C is that the business is of a description that, if carried on in the United Kingdom, would be prescribed for the purposes of section 39(1)(a)(i).
6
An authorised person to whom this section applies who—
a
enters into or continues to perform a relevant contract with an agent which does not comply with the applicable requirements,
b
enters into or continues to perform a relevant contract without accepting or having accepted responsibility in writing for the agent's activities in carrying on investment services business,
c
enters into a relevant contract with an agent who is not entered on—
i
the record maintained by the FCA by virtue of section 347(1)(ha), or
ii. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
d
continues to perform a relevant contract with an agent when he knows or ought to know that the agent is not entered on that record ... ,
is to be taken for the purposes of this Act to have contravened a requirement imposed on him by or under this Act.
7
The “applicable requirements” are the requirements prescribed for the purposes of subsection (1)(a)(ii) of section 39 which have effect in the case of a person to whom subsection (1A) of that section applies.
8
Section 39(7) applies for the purposes of this section.
9
In this section—
...
- “
relevant office
” means—
  1. in relation to a body corporate, its registered office or, if it has no registered office, its head office, and
  2. in relation to a person other than a body corporate, the person's head office.
S. 39A inserted (1.4.2007 for certain purposes, otherwise 1.11.2007) by The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2007 (S.I. 2007/126), regs. 1(2), 3(5), Sch. 5 para. 3
Words in s. 39A(6)(d) omitted (31.12.2020) by virtue of The Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/632), regs. 1(3), 13(5) (with reg. 13(9)(10)) (as amended by S.I. 2020/1301, regs. 1, 3, Sch. para. 33(b)); 2020 c. 1, Sch. 5 para. 1(1)
Words in s. 39A(1)(a) substituted (31.12.2020) by The Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/632), regs. 1(3), 13(2); 2020 c. 1, Sch. 5 para. 1(1)
Words in s. 39A(4) substituted (31.12.2020) by The Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/632), regs. 1(3), 13(3) (with reg. 13(8)(10)) (as amended by S.I. 2020/1301, regs. 1, 3, Sch. para. 33(b)); 2020 c. 1, Sch. 5 para. 1(1)
Words in s. 39A(9) omitted (31.12.2020) by virtue of The Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/632), regs. 1(3), 13(7) (with reg. 13(8)(10)) (as amended by S.I. 2020/1301, regs. 1, 3, Sch. para. 33(b)); 2020 c. 1, Sch. 5 para. 1(1)
S. 39A(6)(c) substituted (29.6.2017 for specified purposes, 3.7.2017 for specified purposes, 31.7.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017 (S.I. 2017/701), reg. 1(2)(3)(4)(6), Sch. 2 para. 3(2)(a) (with reg. 7)
S. 39A(8) substituted (31.12.2020) by The Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/632), regs. 1(3), 13(6); 2020 c. 1, Sch. 5 para. 1(1)
S. 39A(6)(c)(ii) omitted (31.12.2020) by virtue of The Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/632), regs. 1(3), 13(4) (with reg. 13(8)(10)) (as amended by S.I. 2020/1301, regs. 1, 3, Sch. para. 33(b)); 2020 c. 1, Sch. 5 para. 1(1)