Explanatory note

This Order makes amendments to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544) (“the Order”).

The Financial Guidance and Claims Act 2018 (c. 10) established a single financial guidance body with a number of functions including a pensions guidance function. This body is named by the Financial Guidance and Claims Act 2018 (Naming and Consequential Amendments) Regulations 2019 (S.I. 2019/383) as the Money and Pensions Service. Paragraphs (2) to (6) of article 2 of this instrument make amendments to allow the Money and Pensions Service to be exempt from carrying on certain regulated activities when providing pensions guidance in specified circumstances. These paragraphs also make amendments to take account of the repealing of provisions in the Financial Services and Markets Act 2000 (c. 8) as a result of the establishment of the Money and Pensions Service.

Article 60H of the Order creates an exemption from regulation for credit agreements where the borrower meets certain requirements. Paragraph (7) of article 2 of this instrument amends article 60H of the Order so that, where an agreement is exempt under article 60H(1) and the borrower is UK resident or treated as present in the UK, the credit agreement is exempt from regulation where the credit agreement is to acquire or retain property rights in land or in an existing or projected building. Paragraph (8) of article 2 of this instrument amends the heading of article 60HA of the Order to clarify that it does not qualify article 60H of the Order.

A de minimis impact assessment of the effect this Order will have on business and the voluntary sector is available from HM Treasury, 1 Horse Guards Road, London, SW1A 2HQ or on www.gov.uk and is published with the Explanatory Memorandum alongside this instrument on www.legislation.gov.uk.