UNITED KINGDOM STATUTORY INSTRUMENT
2001 No. 1201
FINANCIAL SERVICES AND MARKETS
The Financial Services and Markets Act 2000 (Exemption) Order 2001
Made 26th March 2001
Coming into force
Whereas this Order is the first Order to be made, or to contain provisions made, under section 38 of the Financial Services and Markets Act 2000;
And whereas a draft of this Order has been approved by a resolution of each House of Parliament pursuant to section 429(3) and (5) of that Act;
Now, therefore, the Treasury, in exercise of the powers conferred on them by sections 38 and 428(3) of that Act, hereby make the following Order:
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Citation and commencementCitation and commencement
1. This Order may be cited as the Financial Services and Markets Act 2000 (Exemption) Order 2001 and comes into force on the day on which section 19 of the Act comes into force.
Interpretation
2. In this Order—
“the Act” means the Financial Services and Markets Act 2000;
“charity”—
(a) in relation to Scotland, means a recognised body within the meaning of section 1(7) of the Law Reform (Miscellaneous Provisions) (Scotland) Act 1990; and
(b) otherwise, has the meaning given by section 96(1) of the Charities Act 1993or by section 35 of the Charities Act (Northern Ireland) 1964;
“deposit” has the meaning given by the Regulated Activities Order;
“industrial and provident society” has the meaning given by section 417(1) of the Act but does not include a credit union within the meaning of the Credit Unions Act 1979or the Credit Unions (Northern Ireland) Order 1985;
“local authority” means—
(a) in England and Wales, a local authority within the meaning of the Local Government Act 1972, the Greater London Authority, the Common Council of the City of London or the Council of the Isles of Scilly;
(b) in Scotland, a local authority within the meaning of the Local Government (Scotland) Act 1973; and
(c) in Northern Ireland, a district council within the meaning of the Local Government Act (Northern Ireland) 1972;
“the Regulated Activities Order” means the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001.
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Persons exempt in respect of any regulated activity other than insurance businessPersons exempt in respect of any regulated activity other than insurance business
3. Each of the persons listed in Part I of the Schedule is exempt from the general prohibition in respect of any regulated activity other than an activity of the kind specified by article 10 of the Regulated Activities Order (effecting and carrying out contracts of insurance).
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Persons exempt in respect of accepting depositsPersons exempt in respect of accepting deposits
4. Subject to the limitations, if any, expressed in relation to him, each of the persons listed in Part II of the Schedule is exempt from the general prohibition in respect of any regulated activity of the kind specified by article 5 of the Regulated Activities Order (accepting deposits).
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Persons exempt in respect of particular regulated activitiesPersons exempt in respect of particular regulated activities
5.—(1) Subject to the limitation, if any, expressed in relation to him, each of the persons listed in Part III of the Schedule is exempt from the general prohibition in respect of any regulated activity of the kind specified by any of the following provisions of the Regulated Activities Order, or article 64 of that Order (agreeing to carry on specified kinds of activity) so far as relevant to any such activity—
(a)
(a) article 14 (dealing in investments as principal);
(b)
(b) article 21 (dealing in investments as agent);
(c)
(c) article 25 (arranging deals in investments);
(d)
(d) article 37 (managing investments);
(e)
(e) article 40 (safeguarding and administering investments);
(f)
(f) article 45 (sending dematerialised instructions);
(g)
(g) article 51 (establishing etc. a collective investment scheme);
(h)
(h) article 52 (establishing etc. a stakeholder pension scheme);
(i)
(i) article 53 (advising on investments).
(2) Subject to the limitation, if any, expressed in relation to him, each of the persons listed in Part IV of the Schedule is exempt from the general prohibition in respect of any regulated activity of the kind referred to in relation to him, or an activity of the kind specified by article 64 of the Regulated Activities Order so far as relevant to any such activity.
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Transitional exemption for credit unionsTransitional exemption for credit unions
6. A credit union, within the meaning of the Credit Unions Act 1979 or the Credit Unions (Northern Ireland) Order 1985, is exempt from the general prohibition in respect of any regulated activity of the kind specified by article 5 of the Regulated Activities Order, but only until 1st July 2002.
Jim Dowd
Greg Pope
Two of the Lords Commissioners of Her Majesty’s Treasury
26th March 2001
SCHEDULE
Articles 3 to 5
SCHEDULE
1
PERSONS EXEMPT IN RESPECT OF ANY REGULATED ACTIVITY OTHER THAN INSURANCE BUSINESSPART I
PERSONS EXEMPT IN RESPECT OF ANY REGULATED ACTIVITY OTHER THAN INSURANCE BUSINESS
2. The central bank of an EEA State other than the United Kingdom.
3. The European Central Bank.
4. The European Community.
5. The European Atomic Energy Community.
6. The European Coal and Steel Community.
7. The European Investment Bank.
8. The International Bank for Reconstruction and Development.
9. The International Finance Corporation.
10. The International Monetary Fund.
11. The African Development Bank.
12. The Asian Development Bank.
13. The Caribbean Development Bank.
14. The Inter-American Development Bank.
15. The European Bank for Reconstruction and Development.
2
PERSONS EXEMPT IN RESPECT OF ACCEPTING DEPOSITSPART II
PERSONS EXEMPT IN RESPECT OF ACCEPTING DEPOSITS
16. A municipal bank, that is to say a company which was, immediately before the coming into force of this Order, exempted from the prohibition in section 3 of the Banking Act 1987by virtue of section 4(1) of, and paragraph 4 of Schedule 2 to, that Act.
17.—(1) Keesler Federal Credit Union, in so far as it accepts deposits from members, or dependants of members, of a visiting force of the United States of America, or from members, or dependants of members, of a civilian component of such a force.
(2) In sub-paragraph (1), “member”, “dependent” and “visiting force” have the meanings given by section 12 of the Visiting Forces Act 1952and “member of a civilian component” has the meaning given by section 10 of that Act.
18. A body of persons certified as a school bank by the National Savings Bank or by an authorised person who has permission to accept deposits.
20.—(1) Any body which by virtue of any enactment has power to issue a precept to a local authority in England or Wales or a requisition to a local authority in Scotland, or to the expenses of which, by virtue of any enactment, a local authority in the United Kingdom is or can be required to contribute.
(2) In sub-paragraph (1), “enactment” includes an enactment comprised in, or in an instrument made under, an Act of the Scottish Parliament.
21. The Council of Europe Resettlement Bank.
22. A charity, in so far as it accepts deposits—
(a) from another charity; or
(b) in respect of which no interest or premium is payable.
23. The National Children’s Charities Fund in so far as—
(a) it accepts deposits in respect of which no interest or premium is payable; and
(b) the total value of the deposits made by any one person does not exceed £10,000.
24. An industrial and provident society, in so far as it accepts deposits in the form of withdrawable share capital.
25.—(1) The Student Loans Company Limited, in so far as it accepts deposits from the Secretary of State or the Scottish Ministers in connection with, or for the purposes of, enabling eligible students to receive loans.
(2) In sub-paragraph (1), “eligible student” means—
(a)
(a) any person who is an eligible student pursuant to regulations made under Part II of the Teaching and Higher Education Act 1998;
(b)
(b) any person to whom, or in respect of whom, loans may be paid under section 73(f) of the Education (Scotland) Act 1980;
(c)
(c) any person who is an eligible student pursuant to regulations made under article 3 of the Education (Student Support) (Northern Ireland) Order 1998; or
(d)
(d) any person who is in receipt of or who is eligible to receive a loan of the kind mentioned in article 3(1) of the Teaching and Higher Education Act 1998 (Commencement No. 2 and Transitional Provisions) Order 1998or article 3(1) of the Education (Student Support) (Northern Ireland) Order 1998 (Commencement and Transitional Provisions) Order (Northern Ireland) 1998.
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PERSONS EXEMPT IN RESPECT OF ANY REGULATED ACTIVITY MENTIONED IN ARTICLE 5(1)PART III
PERSONS EXEMPT IN RESPECT OF ANY REGULATED ACTIVITY MENTIONED IN ARTICLE 5(1)
26. The National Debt Commissioners.
28. The International Development Association.
29. The English Tourist Board.
30. The Wales Tourist Board.
31. The Scottish Tourist Board.
32. The Northern Ireland Tourist Board.
34. The Multilateral Investment Guarantee Agency.
35. A person acting as an official receiver within the meaning of section 399 of the Insolvency Act 1986or article 2 of the Insolvency (Northern Ireland) Order 1989.
36.—(1) A person who provides the trading facilities which constitute a regulated market, in so far as he carries on a regulated activity in connection with, or for the purposes of, the provision of those trading facilities.
(2) In sub-paragraph (1), “regulated market” means a market which—
(a)
(a)...
