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Explanatory note

Original text. Later amendments are not shown.

(This note is not part of the Regulations)

These Regulations replace references to Directive (EU) 2016/97 of the European Parliament and of the Council of 20 January 2016 on insurance distribution (recast) (“Insurance Distribution Directive”) for or in connection with the purpose of making the law clearer or more accessible. All the relevant concepts are contained in domestic legislation and so references to the Insurance Distribution Directive are no longer required.

These Regulations replace references, in three Acts and one Order, to the definition of “insurance intermediary” contained in the Insurance Distribution Directive with references to the same term in article 33B(4) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544) (“RAO”). References to “ancillary insurance intermediary” are removed without replacement.

These Regulations also amend article 72B of the RAO so that the denomination of amounts is changed from euros to sterling. The change in denomination, whilst intending to retain the status quo, may affect the scope of certain regulated activities, due to the fluctuation of currency exchange. Therefore, in the opinion of the Treasury, one of the effects of these Regulations is that an activity which is not a regulated activity (within the meaning of the Financial Services and Markets Act 2000 c. 8) will become a regulated activity.

These Regulations remove references to instruments made under the Insurance Distribution Directive from the Financial Services and Markets Act 2000 (Qualifying Provisions) Order 2013 (S.I. 2013/419). This amendment is consequential on the revocation of those instruments by section 1 of, and Schedule 1 to, the Financial Services and Markets Act 2023 (c. 29) (commenced on 5 April 2024 by regulation 4 of the Financial Services and Markets Act 2023 (Commencement No. 4 and Transitional and Saving Provisions) (Amendment) Regulations 2023 (S.I. 2023/1382 (C. 97)).

An Impact Assessment has not been prepared for this instrument, as no, or no significant, impact on the private, voluntary or public sector is foreseen.