Explanatory note

This Order makes various supplemental and transitional provisions in consequence of provisions made by the Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013 (S.I. 2013/1881) (“the RAO Amendment No. 2 Order”).

Article 2 amends the RAO Amendment No. 2 Order. Part 20 of the Financial Services and Markets Act 2000 (“the Act”) provides an exemption from the need for authorisation for members of professional bodies who carry on regulated activity which is merely incidental to the provision of professional services; such regulated activity must be the only regulated activity the member firm undertakes. By virtue of the RAO Amendment No. 2 Order, various consumer credit-related activities become regulated activities for the purposes of the Act on 1 April 2014; and that Order makes provision for persons with licences issued under the Consumer Credit Act 1974 to obtain interim permission to carry on that activity. The amendments in article 2 preserve the effect of the exemption in Part 20 of the Act where a member firm has an interim permission.

A full impact assessment of the effect that the reform of the Consumer Credit Regulatory Framework will have on the costs of business and the voluntary sector is available from Her Majesty’s Treasury, 1 Horse Guards Road, London SW1A 2HQ or on www.gov.uk and is published alongside the Order on www.legislation.gov.uk. This Order does not affect the costs as set out in that impact assessment.