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The Financial Services (Distance Marketing) (Amendment and Savings Provisions) (EU Exit) Regulations 2019

Draft. This instrument was laid in draft and may differ from the one made. Look for the made version under its title.

Draft 2019, ISBN 9780111179406

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

Draft Regulations laid before Parliament under paragraph 1(1) of Schedule 7 to the European Union (Withdrawal) Act 2018, for approval by resolution of each House of Parliament.

Exiting The European Union

Financial Services And Markets

Made 2019

Coming into force in accordance with regulation 1

The Treasury are a government department designatedf1 for the purposes of section 2(2) of the European Communities Act 1972f2 in relation to financial services.

The Treasury make these Regulations in exercise of the powers conferred by section 2(2) of the European Communities Act 1972 and section 8(1) of, and paragraph 21(a)(ii) and (b) of Schedule 7 to, the European Union (Withdrawal) Act 2018f3.

In accordance with paragraph 1(1) of Schedule 7 to the European Withdrawal Act 2018, a draft of this instrument has been laid before and approved by a resolution of each House of Parliament.

Annotations to the whole text

Footnotes

f1

S.I. 2012/1759.

f2

1972 c. 68.

f3

2018 c. 16.

Contents

  1. Part 1: Introduction
  2. 1Citation and commencement
  3. 2Interpretation
  4. Part 2: European Communities Act 1972: amendment of the 2004 Regulations
  5. 3Amendment of the 2004 Regulations
  6. Part 3: European Union (Withdrawal) Act 2018: amendment of the 2004 Regulations
  7. 4Amendment of the 2004 Regulations
  8. 5Amendment of regulation 2
  9. 6Amendment of regulation 4
  10. 7Amendment of regulation 7
  11. 8Amendment of regulation 8
  12. 9Amendment of regulation 16
  13. 10Amendment of Schedule 1
  14. Part 4: Savings
  15. 11Savings
  16. Signature
  17. Explanatory note

1Citation and commencement

(1)

These Regulations may be cited as the Financial Services (Distance Marketing) (Amendment and Savings Provisions) (EU Exit) Regulations 2019.

(2)

This Part and Part 2 come into force on the day after the day on which these Regulations are made.

(3)

Otherwise, these Regulations come into force on exit day.

2Interpretation

In these Regulations, “the 2004 Regulations” means the Financial Services (Distance Marketing) Regulations 2004f1.

3Amendment of the 2004 Regulations

In regulation 2(1) of the 2004 Regulations for the definition of “the Directive” substitute—

4Amendment of the 2004 Regulations

The 2004 Regulations are amended as follows.

5Amendment of regulation 2

In regulation 2(1) (interpretation)—

(a)

omit the definition of “the European Consumer Credit Information form”f1;

(b)

after the definition of “means of distance communication”, insert—

  • ““the Pre-Contract Credit Information (Overdrafts) form” means the form set out in Schedule 3 to the Disclosure of Information Regulations;”.

6Amendment of regulation 4

In regulation 4 (scope)—

(a)

for paragraph (1) substitute—

“(1)

Regulations 7 to 11 do not apply in relation to any contract made between an EEA supplier contracting from an establishment in an EEA State and a consumer in the United Kingdom unless the EEA supplier is—

(a)

a payments supplier,

(b)

a relevant EEA AIFM, or

(c)

the operator, trustee or depositary of a relevant recognised scheme.

(1A)

Regulations 12 and 13 do not apply in relation to any contract made between an EEA supplier contracting from an establishment in an EEA State and a consumer in the United Kingdom unless the EEA supplier is—

(a)

an authorised person, or

(b)

a payments supplier.

(1B)

Regulation 15 does not apply in relation to any supply of financial services by an EEA supplier from an establishment in an EEA State to a consumer in the United Kingdom unless the EEA supplier is—

(a)

a payments supplier,

(b)

a relevant EEA AIFM, or

(c)

the operator, trustee or depositary of a relevant recognised scheme

(1C)

For the purposes of paragraphs (1) to (1B)—

  • “payments supplier” means an EEA supplier to whom paragraph 2 or 14 of Schedule 3 to the Electronic Money, Payment Services and Payment Systems (Amendment and Transitional Provisions) (EU Exit) Regulations 2018 applies;

  • “relevant EEA AIFM” means an EEA AIFM (within the meaning given in regulation 78A(1)(b) of the Alternative Investment Fund Managers Regulations 2013) to whom regulation 78B of those Regulations applies.”f1.

(b)

in paragraph (6), for “paragraph (5)” substitute “paragraphs (1), (1B) and (5)”.

7Amendment of regulation 7

In regulation 7 (information required prior to the conclusion of the contract)—

(a)

in paragraph (1A)f1, omit “, 17”;

(b)

in paragraph (7)(a) for “European Consumer Credit Information form” substitute “Pre-contract Credit Information (Overdrafts) form”.

8Amendment of regulation 8

In regulation 8 (written and additional information)—

(a)

in paragraph (1A)f1, omit “, 17”;

(b)

in paragraph (1C)(a)(i)f2, for “European Consumer Credit Information form” substitute “Pre-contract Credit Information (Overdrafts) form”.

9Amendment of regulation 16

In regulation 16 (prevention of contracting-out), for paragraph (3) substitute—

“(3)

These Regulations apply despite any contract term which applies or purports to apply the law of a country other than the United Kingdom, if the contract or supply has a close connection with the United Kingdom or any part of the United Kingdom.”.

10Amendment of Schedule 1

In Schedule 1 (information required prior to the conclusion of the contract)—

(a)

in paragraph 2, for “consumer’s State of residence” substitute “United Kingdom”;

(b)

omit paragraph 17;

(c)

in paragraph 21, for “except to” to the end substitute “as applicable to the contract”.

11Savings

(1)

Despite the amendments made to regulation 4(1) of the 2004 Regulations (by regulation 6 of these Regulations)—

(a)

regulations 7 to 13 of the 2004 Regulations do not apply in relation to any contract made before exit day between an EEA supplier contracting from an establishment in an EEA state and a consumer in the United Kingdom;

(b)

regulation 15 of the 2004 Regulations does not apply to any supply of financial services before exit day by an EEA supplier from an establishment in an EEA state to a consumer in the United Kingdom.

(2)

In this regulation, “consumer” and “EEA supplier” have the meanings given in the 2004 Regulations (see regulation 2 of those Regulations).

Signature

name

name

Two of the Lords Commissioners of Her Majesty’s Treasury

Date

Explanatory note

(This note is not part of the Regulations)

These Regulations amend the Financial Services (Distance Marketing) Regulations 2004 (S.I. 2004/2095) (“the 2004 Regulations”).

Part 2 of these Regulations is made in exercise of the powers in section 2(2) of the European Communities Act 1972, and corrects a cross-reference in regulation 2 of the 2004 Regulations.

Part 3 of these Regulations is made in exercise of the powers conferred by section 8(1) of the European Union (Withdrawal) Act 2018 (c.16) in order to address failures of retained EU law to operate effectively and other deficiencies (in particular under paragraphs (c) and (g) of section 8(2) of the Act) arising from the withdrawal of the United Kingdom from the European Union. The deficiencies addressed arise in relation to distance contracts for financial services made by suppliers established in the EEA and consumers in the United Kingdom and in relation to financial services supplied by such suppliers to consumers in the United Kingdom. Part 3 also makes various consequential amendments to the 2004 Regulations.

Part 4 of these Regulations makes saving provisions.

An impact assessment of the effect that this instrument, and certain other instruments made by HM Treasury under the European Union (Withdrawal) Act 2018, will have on the costs of business, the voluntary sector and the public sector is available from HM Treasury, 1 Horse Guards Road, London SW1A 2HQ and is published alongside this instrument at www.legislation.gov.uk.