# The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2022, Note: Explanatory note (This note is not part of the Order) The Order makes amendments to the regulatory framework for funeral plan contracts in consequence of the Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2021 (S.I. 2021/90) (“the Regulated Activities Amendment Order 2021”) which has made it a regulated activity for funeral plan providers to enter into or carry out insurance or trust backed funeral plan contracts. The Order makes certain amendments to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544) (“the Regulated Activities Order”), the Financial Services and Markets Act 2000 (Collective Investment Schemes) Order 2001 (S.I. 2001/1062) (“the Collective Investment Schemes Order”), the Financial Services and Markets Act 2000 (Exemption) Order 2001 (S.I. 2001/1201) (“the Exemption Order”), the Regulated Activities Amendment Order 2021 and the Financial Services and Markets Act 2000 (“the Act”) (c. 8). Part 2 makes amendments to certain secondary legislation made under the Act. Article 2 makes amendments to the Regulated Activities Order. It amends article 59 to provide that, if certain conditions are met, a funeral plan provider who has agreed to give an undertaking to a customer, which would replace another provider’s undertaking to that same customer under an existing funeral plan contract, is to be treated for the purposes of the regulated activity specified in article 59(1A) as if they were carrying out that existing contract as provider. It also amends article 72H to exclude the specified activity of carrying out of a funeral plan contract under article 59(1A) from the prohibition on carrying out a regulated activity under section 19 of the Act, when carried on by a person acting as an insolvency practitioner, and inserts a new article 60AA as a consequence of the amendment to article 72H. Article 3 makes a minor amendment to paragraph 18 of Schedule 1 to the Collective Investment Schemes Order, which prescribes arrangements that do not amount to collective investment schemes for the purposes of section 235(5) of the Act. Article 4 amends paragraph 52 of the Schedule to the Exemption Order to exclude the specified activity of carrying out of a funeral plan contract under article 59(1A) of the Regulated Activities Order from the prohibition on carrying out a regulated activity under section 19 of the Act, when carried on by a person acting as official receiver and liquidator. Article 5 inserts a new article 1A in the Regulated Activities Amendment Order 2021 to provide that article 2(4)(a) of that Order, which inserts a new article 59(1A) in the Regulated Activities Order, does not apply until 31 October 2022 in relation to firms that meet certain conditions relating to the status of their application for authorisation to the Financial Conduct Authority (“the FCA”) as at the date on which article 2(4)(a) otherwise comes into force under article 1(3). Article 5 also makes minor consequential amendments to the Regulated Activities Amendment Order 2021. Part 3 of the Order makes consequential amendments to Part 11 of the Act concerning regulators’ powers to require information; and to Part 15 of the Act, which establishes the Financial Services Compensation Scheme (“the FSCS”), to provide the FCA with certain rule-making powers in relation to the FSCS. Article 6 provides the FCA with the power to make rules allowing the FSCS to secure continuity of cover for holders of funeral plan contracts where a funeral plan provider fails, as an alternative to paying compensation, and to seek recoveries from a person other than the funeral plan provider in circumstances where the funeral plan provider is unable, or likely to be unable, to satisfy claims against it. Article 6 also makes provision requiring certain insolvency practitioners to provide any assistance identified by the FSCS as being necessary to enable to FSCS to administer the compensation scheme or to secure continuity of cover of funeral plan contracts and gives the FCA the power to make rules allowing the FSCS to meet reasonable expenses incurred by insolvency practitioners in connection with that requirement. Article 6 also makes certain other consequential amendments to the Act to ensure that the FCA’s information-gathering powers extend to persons involved in the provision of funeral plan contracts other than the authorised funeral plan provider. Part 4 of the Order relates to rules and guidance made by the FCA, to allow the FCA to take steps to prepare rules and guidance before the date given in article 1(3)(a). Part 5 of the Order requires the Treasury to carry out a review of this Order at least every five years. 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 alongside the Order on www.legislation.gov.uk. --- Source: https://www.legislation.gov.uk/uksi/2022/466/note (the official version) Page: https://openlegislation.uk/financial-services-and-markets-act-2000-regulated-activities-amendment-order-2022/note Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.