Explanatory note

Article 2 of this Order amends the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544) (“the Principal Order”) by substituting new articles for article 52 (establishing etc. a stakeholder pension scheme) and article 82 (rights under a stakeholder pension scheme). Under article 52 as substituted, establishing, operating or winding up a personal pension scheme (as well as establishing etc. a stakeholder pension scheme) is a regulated activity for the purposes of the Financial Services and Markets Act 2000 (c. 8) (“the Act”). Under article 82 as substituted, rights under a personal pension scheme become investments falling within the scope of regulation under the Act.

Article 3 contains transitional arrangements for authorised persons with existing permissions under Part 4 of the Act. Where an existing permission allows the authorised person to establish etc. a stakeholder pension scheme, the authorised person is treated as having permission also for the activity of establishing etc. a personal pension scheme from the date this Order comes into force (6th April 2007). Where the authorised person has permission to carry on activities listed in article 3(3) in relation to the specified investment of rights under a stakeholder pension scheme, he is to be treated as having permission to carry on those activities in relation to the new specified investment of rights under a personal pension scheme from the date this Order comes into force.

Article 4 confers an interim permission on certain applicants who have applied to the Financial Services Authority (“the Authority”) for permission under Part 4 of the Act which relate to the activity of establishing, operating or winding up a personal pension scheme or which relate to the specified investment of rights under a personal pension scheme and whose application is pending on the date (6th April 2007) when those activities become regulated within the meaning of section 22 of the Act.

Article 5 confers interim approval in similar terms to those in article 4 on people working for a person who benefits from an interim permission and who would need approval under Part 5 of the Act.

Article 6 allows the Authority to modify, amongst other things, its rules in their application to persons with an interim permission or an interim approval.

Article 7 and the Schedule provide for the application of provisions in, or made under, the Act to persons with an interim permission or an interim approval, indicating where such provisions are to be treated as including or not including such persons.

Articles 8 – 12 make consequential amendments to secondary legislation made under the Act.