Explanatory note

This Order amends the Financial Services and Markets Act 2000 (Regulated Activities etc.) (Amendment) Order 2025 (S.I. 2025/859) (“the 2025 Order”), which provides for certain deferred payment credit agreements, also referred to as “buy-now-pay-later” agreements, to become regulated credit agreements within the meaning of article 60B(3) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544) (“RAO”).

Article 2(2) of this Order provides that domestic premises suppliers are excluded from article 36A (credit broking) of the RAO when carrying on activities in relation to a regulated deferred payment credit agreement, under article 36FB of the RAO inserted by the 2025 Order. The effect is that all credit broking activities carried on in relation to a regulated deferred payment credit agreement are now excluded from article 36A of the RAO.

Article 2(4) of this Order makes amendments relating to the transition to the new regime to regulate deferred payment credit agreements. It provides that when a person has a Part 4A permission immediately before the regulatory commencement date, 15th July 2026, to carry on an activity specified by article 60B (regulated credit agreements) of the RAO or article 64 (agreeing to carry on specified kinds of activity) of the RAO, that permission is to be treated as permission to carry on an activity of a kind specified by that article as it has effect following the amendments made by this Order.

A full impact assessment of the effect that the 2025 Order will have on the costs of business, the voluntary sector and the public sector is available from His Majesty’s Treasury, 1 Horse Guards Road, London SW1A 2HQ or on www.gov.uk and is published alongside the 2025 Order on www.legislation.gov.uk.

A de minimis impact assessment of the effect of this instrument is available from HM Treasury, 1 Horse Guards Road, London, SW1A 2HQ and is published alongside this instrument on www.legislation.gov.uk.