Amendment to the Appointed Representatives Regulations
14.—(1) The Financial Services and Markets Act 2000 (Appointed Representatives) Regulations 2001(1) are amended as follows.
(2) In regulation 1(2) (interpretation), for “and “contractually based investment””, substitute, “,“contract of insurance”, “contract of general insurance” and “relevant investment””.
(3) In regulation 2(1) (descriptions of business for which appointed representatives are exempt)—
(a)before sub-paragraph (a), insert—
“(aa)an activity of the kind specified by article 21 of the Regulated Activities Order (dealing in investments as agent), where the transaction relates to a contract of general insurance;”;
(b)in sub-paragraph (a)—
(i)for “the Regulated Activities Order”, substitute “that Order”; and
(ii)for “contractually based investments”, substitute “relevant investments”;
(c)after sub-paragraph (ab)(2), insert—
“(ac)an activity of the kind specified by article 39A of that Order (assisting in the administration and performance of a contract of insurance), where the activity relates to a contract of general insurance;”; and
(d)in sub-paragraph (d), for “paragraph (a), (ab),”, substitute “sub-paragraph (aa), (a), (ab), (ac)”.
(4) In regulation 3 (requirements applying to contracts between authorised persons and appointed representatives)—
(a)in paragraph (2)—
(i)before sub-paragraph (a), insert—
“(aa)he enters into investment transactions as agent (in circumstances constituting the carrying on of an activity of the kind specified by article 21 of the Regulated Activities Order) for other counterparties;”;
(ii)in sub-paragraph (a), for “the Regulated Activities Order”, substitute “that Order”;
(iii)after sub-paragraph (a), insert—
“(ab)he assists in the administration and performance of a contract of insurance (in circumstances constituting the carrying on of an activity of the kind specified by article 39A of that Order) for other counterparties;”; and
(iv)for “contractually based investment”, substitute “relevant investment”; and
(b)after paragraph (3)(c), insert—
“(4) Where the contract between the principal and the representative permits or requires the representative to carry on business which includes an activity—
(a)of the kind specified by article 21, 25, 39A or 53 of the Regulated Activities Order or an activity of the kind specified by article 64 of that Order, so far as relevant to any of those articles, and
(b)which relates to a contract of insurance,
paragraph (5) applies.
(5) Where this paragraph applies, it is also a prescribed requirement for the purposes of subsection (1)(a)(ii) of section 39 of the Act that the contract between the principal and the representative contain a provision providing that the representative is not permitted or required to carry on business, so far as it comprises an activity of the kind specified by paragraph (4), unless he is included in the record maintained by the Authority under section 347 of the Act by virtue of article 93 of the Regulated Activities Order (recorded insurance intermediaries).”.
S.I. 2001/1217; amended by S.I. 2001/2508 and S.I. 2003/1475.
Inserted by S.I. 2003/1475.