Article 3 Amendment of the Regulated Activities OrderI1

for paragraph (2)(e), substitute—

“(e)

neither paragraph (7) nor paragraph (7A) (taken with paragraph (7B)) applies to the agreement.”;

after paragraph (7), insert—

“(7A)

This paragraph applies to agreements entered into on or after the regulatory commencement date which are not secured on land—

(a)

where—

(i)

the lender and the supplier are not the same person; and

(ii)

paragraph (7B) does not apply to the agreement; or

(b)

made in the following way—

(i)

a person (“the principal supplier”) offers to supply goods or services to a consumer (“the consumer”) financed by a credit agreement provided by another person (“the lender”);

(ii)

the lender, under a pre-existing arrangement with that principal supplier, purchases the goods or services from the principal supplier, for supply to the consumer; and

(iii)

the lender is, in relation to the credit agreement with the consumer mentioned in sub-paragraph (i), also the supplier of the goods or services to that consumer.

(7B)

This paragraph applies to—

(a)

agreements to finance premiums under contracts of insurance;

(b)

agreements where—

(i)

the borrowers are employees; and

(ii)

the agreements result from an arrangement between the lender or supplier and—

(aa)

the borrowers’ employer, or

(bb)

an undertaking which is a member of the same group as the borrowers’ employer;

(c)

agreements to finance the provision of goods or services offered by a registered social landlord (as defined by article 36FA(4)) to—

(i)

its tenants,

(ii)

its leaseholders, or

(iii)

persons with whom the registered social landlord has entered a shared ownership agreement within the meaning of section 83(3) of the Housing (Scotland) Act 2001^f3.

(7C)

In paragraph (7A), “regulatory commencement date” has the meaning given in article 1(3) of the Financial Services and Markets Act 2000 (Regulated Activities etc.) (Amendment) Order 2025.”.