The Financial Services and Markets Act 2000 (Consumer Credit) (Miscellaneous Provisions) (No. 2) Order 2014
| Jurisdiction | UK Non-devolved |
| Citation | SI 2014/506 |
| Year | 2014 |
2014No. 506
FINANCIAL SERVICES AND MARKETS
The Financial Services and Markets Act 2000 (Consumer Credit) (Miscellaneous Provisions) (No. 2) Order 2014
5thMarch2014
7thMarch2014
The Treasury are a government department designated for the purpose of section 2(2) of the European Communities Act 1972( 1) in relation to financial services( 2).
The Treasury make the following Order in exercise of the powers conferred by section 2(2) of the European Communities Act 1972 and sections 38 and 426(1) of the Financial Services and Markets Act 2000( 3):
Citation and commencement
1. (1) This Order may be cited as the Financial Services and Markets Act 2000 (Consumer Credit) (Miscellaneous Provisions) (No. 2) Order 2014.
(2) This article and articles 5 and 6 come into force on 30th March 2014.
(3) Articles 3, 4, and 7 come into force on 1st April 2014.
(4) Article 2 comes into force on 1st April 2014 immediately after article 14(4) of the Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013( 4) comes into force in accordance with article 1(6) of that Order, to the extent that it is not already in force.
The Financial Services and Markets Act 2000 (Exemption) Order 2001
2. (1) Part 4 (persons exempt in respect of particular regulated activities) of the Schedule to the Financial Services and Markets Act 2000 (Exemption) Order 2001( 5) is amended as follows.
(2) In paragraph 44 (charities)( 6), insert before sub-paragraph (1)-
"(A1) A charity is exempt from the general prohibition in respect of any regulated activity of the kind specified by article 36H of the Regulated Activities Order (operating an electronic system in relation to lending)( 7) which it carries on in relation to an article 36H agreement (within the meaning given in article 36H(4) of the Regulated Activities Order) under or in connection with which the only amount payable to the lender is the amount of credit provided.".(3) After paragraph 54( 8), insert-
"Persons exercising, or having the right to exercise, the rights of the person who provided credit under a regulated credit agreement
55.
(1) A person within the description in sub-paragraph (3) ("P") is exempt from the general prohibition in respect of any activity of the kind specified by article 60B(2) of the Regulated Activities Order (regulated credit agreements)( 9) carried on in relation to a qualifying agreement provided that the conditions in sub-paragraphs (4) and (5) are satisfied in respect of the agreement.
(2) Where P is exempt from the general prohibition in respect of any activity of the kind specified by article 60B(2) of the Regulated Activities Order by virtue of sub-paragraph (1), P is also exempt from the general prohibition in respect of any activity of the kind specified by article 39E(1) (debt-counselling) or 39F(1) (debt-collecting) of the Regulated Activities Order carried on in relation to the qualifying agreement in an exempt period.(3) P is within the description in this sub-paragraph if P-(a) is not the original lender;(b) does not grant, is not required to grant, and does not promise to grant credit under the qualifying agreement or any other regulated credit agreement; and(c) does not undertake any activity of the kind specified in article 39D(1) (debt adjusting), 39E(1) or 39F(1) of the Regulated Activities Order, or which would be so specified but for article 39H(1) of that Order, except in an exempt period.(4) The condition in this sub-paragraph is that-(a) P has entered into a servicing arrangement in relation to the qualifying agreement; or(b) an exempt period has not expired.(5) The condition in this sub-paragraph is that-(a) P has arranged for the servicer to comply with the provisions listed in sub-paragraph (6); and(b) where P (and not the servicer acting on behalf of P) varies the qualifying agreement, P complies with the provisions listed in sub-paragraph (6).(6) The provisions are-(a) any provision of, or made under, the Act applicable to authorised persons that relates to the exercise of the right of the lender under a regulated credit agreement to vary terms and conditions of the agreement (including, in particular, the right to vary the rate of interest, charges, or other amount due to the lender under the agreement); and(b) the requirements of, or made under, section 82 of the Consumer Credit Act 1974 (variation of agreements)( 10) (7) For the purposes of this paragraph, there are excluded from articles 39E(1) and 39F(1) of the Regulated Activities Order activities carried on by P under or for the purposes of a servicing arrangement.(8) In this paragraph-"an exempt period" is the period of thirty days beginning on the day after the day on which a servicing arrangement came to an end;
"the original lender" means the person who provided credit under the qualifying agreement;
"a qualifying agreement" means a regulated credit agreement under which P exercises, or has the right to exercise, the rights of the original lender;
"regulated credit agreement" has the meaning given in article 60B of the Regulated Activities Order;
"the servicer" means the person with whom P enters into a servicing arrangement, where that person is an authorised person( 11) with permission to carry on an activity of the kind specified in article 39F, 39G (debt administration) or 60B of the Regulated Activities Order;
"a servicing arrangement" means an arrangement between P and the servicer for the servicer to exercise on P's behalf P's rights under a qualifying agreement other than the right to transfer, assign or otherwise dispose of those rights.
Persons exercising, or having the right to exercise, the rights of the person who provided credit under a regulated consumer hire agreement
56.
(1) A person within the description in sub-paragraph (3) ("P") is exempt from the general prohibition in respect of any activity of the kind specified by article 60N(2) of the Regulated Activities Order (regulated consumer hire agreements) carried on in relation to a qualifying agreement provided that the conditions in sub-paragraphs (4) and (5) are satisfied in respect of each such agreement.(2) Where P is exempt from the general prohibition in respect of any activity of the kind specified by article 60N(2) of the Regulated Activities Order by virtue of sub-paragraph (1), P is also exempt from the general prohibition in respect of any activity of the kind specified by article 39E(2) (debt-counselling) or 39F(2) (debt-collecting) of the Regulated Activities Order carried on in relation to the qualifying agreement in an exempt period.(3) P is within the description in this sub-paragraph if P-(a) is not the original owner;...To continue reading
Request your trial