Article 2 Amendment of article 53 of the Order

Article 53 of the Order^f1 (advising on investments) is amended as follows.

In paragraph (1)(b)(i), after “for”, insert “, exchanging, redeeming, holding”.

In paragraph (1)(b)(ii)–

After paragraph (1) insert–

• “(1A) Paragraph (1) does not apply to a person who is appropriately authorised except to the extent that they are providing a personal recommendation.

• (1B) A person is appropriately authorised when they are authorised for the purposes of the Act to carry on an activity of a kind specified by a provision of this Order which is not the activity specified by paragraph (1) and is not the activity of agreeing to carry on the activity specified by paragraph (1).

• (1C) Subject to paragraph (1D), a personal recommendation is a recommendation–

  1. (a)

     made to a person in their capacity as an investor or potential investor, or in their capacity as agent for an investor or a potential investor;

  2. (b)

     which constitutes a recommendation to them to do any of the following (whether as principal or agent)–

     1. (i)

        buy, sell, subscribe for, exchange, redeem, hold or underwrite a particular investment which is a security or a relevant investment; or

     2. (ii)

        exercise or not exercise any right conferred by such an investment to buy, sell, subscribe for, exchange or redeem such an investment; and

  3. (c)

     that is–

     1. (i)

        presented as suitable for the person to whom it is made; or

     2. (ii)

        based on a consideration of the circumstances of that person.

• (1D) A recommendation is not a personal recommendation if it is issued exclusively to the public.”.