Legalize / United Kingdom / Statutory-Instrument

The Financial Services and Markets Act 2000 (Financial Promotion) Order 2005

Type Statutory-Instrument

Publication 2005-06-08

Last updated 2026-02-25

State In force

Department King's Printer of Acts of Parliament

Source legislation.gov.uk

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articles Not indexed

Reform history JSON API

[^key-557934cc4727d29aab04073a21680f64]: Words in art. 68(1)(c) substituted (30.1.2024 for specified purposes, 19.1.2026 in so far as not already in force) by The Public Offers and Admissions to Trading Regulations 2024 (S.I. 2024/105), reg. 2(2)(3), Sch. 3 para. 29 (with regs. 48-50); S.I. 2025/1078, reg. 5(b) (with reg. 12)

[^key-d7c279ab4e738c75074db56aca62edcf]: Words in art. 71(2)(a) substituted (30.1.2024 for specified purposes, 19.1.2026 in so far as not already in force) by The Public Offers and Admissions to Trading Regulations 2024 (S.I. 2024/105), reg. 2(2)(3), Sch. 3 para. 31(a) (with regs. 48-50); S.I. 2025/1078, reg. 5(b) (with reg. 12)

[^key-7157630b40fcedf1ab821d8ceb277f98]: Words in art. 71(2)(b) substituted (30.1.2024 for specified purposes, 19.1.2026 in so far as not already in force) by The Public Offers and Admissions to Trading Regulations 2024 (S.I. 2024/105), reg. 2(2)(3), Sch. 3 para. 31(b) (with regs. 48-50); S.I. 2025/1078, reg. 5(b) (with reg. 12)

[^key-0ed6591f9f5cfc47ace988d47b081aa0]: Sch. 1 paras. 7A-7C inserted (25.2.2026 for specified purposes, otherwise prosp.) by The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 (S.I. 2026/102), regs. 1(2)(3), 42(5)(a)(iii) (with regs. 53-56)

[^key-1aed98aa3bac04e430332cac21633104]: Words in art. 2 substituted (25.2.2026 for specified purposes, otherwise prosp.) by The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 (S.I. 2026/102), regs. 1(2)(3), 42(2) (with regs. 53-56)

[^key-ed91d272ac47946a21aae09aaf8abd37]: Art. 70(1)(e) inserted (25.2.2026 for specified purposes, otherwise prosp.) by The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 (S.I. 2026/102), regs. 1(2)(3), 42(3) (with regs. 53-56)

[^key-d5c2933bb5f20e4c780b5779363f2280]: Art. 73ZA omitted (25.2.2026 for specified purposes, otherwise prosp.) by virtue of The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 (S.I. 2026/102), regs. 1(2)(3), 42(4) (with regs. 53-56)

[^key-42e700dab3e331b5c3739c1d0bc3fcbd]: Sch. 1 para. 4(4) inserted (25.2.2026 for specified purposes, otherwise prosp.) by The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 (S.I. 2026/102), regs. 1(2)(3), 42(5)(a)(i) (with regs. 53-56)

[^key-37183b6632ed09977c721d21ca1f9788]: Sch. 1 para. 6(5) inserted (25.2.2026 for specified purposes, otherwise prosp.) by The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 (S.I. 2026/102), regs. 1(2)(3), 42(5)(a)(ii) (with regs. 53-56)

[^key-259c065a96c89afdc3c6ed27a776ef40]: Sch. 1 para. 26F substituted (25.2.2026 for specified purposes, otherwise prosp.) by The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 (S.I. 2026/102), regs. 1(2)(3), 42(5)(b) (with regs. 53-56)

Providing a regulated home reversion plan

10C

Entering into a regulated home reversion plan as plan provider is a controlled activity.

Arranging a regulated home reversion plan

10D

Making arrangements—

(a) for another person to enter as reversion seller or plan provider into a regulated home reversion plan; or

(b) for a reversion seller or a plan provider under a regulated home reversion plan, entered into on or after 6th April 2007 by him, to vary the terms of that plan in such a way as to vary his obligations under that plan,

is a controlled activity.

Advising on a regulated home reversion plan

10E

Advising a person is a controlled activity if the advice is—

(a) given to the person in his capacity as reversion seller, potential reversion seller, plan provider or potential plan provider; and

(b) advice on the merits of his doing either of the following—

(i) entering into a regulated home reversion plan, or

(ii) varying the terms of a regulated home reversion plan, entered into on or after 6th April 2007 by him, in such a way as to vary his obligations under that plan.

Providing a regulated home purchase plan

10F

Entering into a regulated home purchase plan as home purchase provider is a controlled activity.

Arranging a regulated home purchase plan

10G

Making arrangements—

(a) for another person to enter as home purchaser into a regulated home purchase plan; or

(b) for a home purchaser under a regulated home purchase plan, entered into on or after 6th April 2007 by him, to vary the terms of that plan in such a way as to vary his obligations under that plan,

is a controlled activity.

Advising on a regulated home purchase plan

10H

Advising a person is a controlled activity if the advice is—

(a) given to the person in his capacity as home purchaser or potential home purchaser; and

(b) advice on the merits of his doing either of the following—

(i) entering into a regulated home purchase plan, or

(ii) varying the terms of a regulated home purchase plan, entered into on or after 6th April 2007 by him, in such a way as to vary his obligations under that plan.

Agreeing to carry on specified kinds of activity

Regulated home reversion plans

26A

Rights under a regulated home reversion plan.

Regulated home purchase plans

26B

Rights under a regulated home purchase plan.

Rights to or interests in investments

Interpretation

Operating a multilateral trading facility

4A

Operating a multilateral trading facility on which MiFID instruments are traded is a controlled activity.

Managing investments

Safeguarding and administering investments

Advising on investments

Advising on syndicate participation at Lloyd's

Providing funeral plan contracts

Providing qualifying credit

Arranging qualifying credit etc.

Advising on qualifying credit etc.

Providing a regulated home reversion plan

Arranging a regulated home reversion plan

Advising on a regulated home reversion plan

Providing a regulated home purchase plan

Arranging a regulated home purchase plan

Advising on a regulated home purchase plan

Agreeing to carry on specified kinds of activity

Real time communications: introductions...

Rights under a pension scheme

Part 2 — Certain Investment Exchanges Operating Relevant EEA Markets

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Providing a regulated sale and rent back agreement

10I

Entering into a regulated sale and rent back agreement as agreement provider is a controlled activity.

Arranging a regulated sale and rent back agreement

10J

Making arrangements—

(a) for another person to enter as agreement seller or agreement provider into a regulated sale and rent back agreement; or

(b) for an agreement seller or an agreement provider under a regulated sale and rent back agreement, entered into on or after 1st July 2009, to vary the terms of that plan in such a way as to vary the obligations of the agreement seller or the agreement provider under that plan,

is a controlled activity.

Advising on a regulated sale and rent back agreement

10K

Advising a person (“A”) is a controlled activity if the advice is—

(a) given to A in A’s capacity as agreement seller, potential agreement seller, agreement provider or potential agreement provider; and

(b) advice on the merits of A doing either of the following—

(i) entering into a regulated sale and rent back agreement, or

(ii) varying the terms of a regulated sale and rent back agreement, entered into on or after 1st July 2009 by A, in such a way as to vary A’s obligations under that agreement.

Agreeing to carry on specified kinds of activity

Regulated sale and rent back agreement

26C

Rights under a regulated sale and rent back agreement.

Rights to or interests in investments

Interpretation

Alternative finance investment bonds

15A

(1) Rights under an alternative finance investment bond, to the extent that they do not fall within paragraph 15 or 16.

(2) For the purposes of this paragraph, arrangements constitute an alternative finance investment bond if—

(a) the arrangements provide for a person (“the bond-holder”) to pay a sum of money (“the capital”) to another (“the bond-issuer”);

(b) the arrangements identify assets, or a class of assets, which the bond-issuer will acquire for the purpose of generating income or gains directly or indirectly (“the bond assets”);

(d) the bond-issuer undertakes under the arrangements—

(i) to make a repayment in respect of the capital (“the redemption payment”) to the bond-holder during or at the end of the bond term (whether or not in instalments); and

(ii) to pay to the bond-holder other payments on one or more occasions during or at the end of the bond term (“the additional payments”);

(e) the amount of the additional payments does not exceed an amount which would, at the time at which the bond is issued, be a reasonable commercial return on a loan of the capital; and

(f) the arrangements are—

(i) a security that is admitted to the official list in accordance with Part 6 of the Act,

(ii) a security that is admitted to an official list in the EEA (in accordance with the provisions of Directive 2001/34/EC of the European Parliament and of the Council on the admission of securities to official stock exchange listing and on information to be published on those securities) and has been so admitted since before IP completion day,

(iii) a security that is admitted to trading on a recognised investment exchange or a UK trading venue, or

(iv) a security that is admitted to trading on an EU trading venue and has been so admitted since before IP completion day.

(3) For the purposes of sub-paragraph (2)—

(a) the bond-issuer may acquire the bond assets before or after the arrangements take effect;

(b) the bond assets may be property of any kind, including rights in relation to property owned by someone other than the bond-issuer;

(c) the identification of the bond assets mentioned in sub-paragraph (2)(b) and the undertakings mentioned in sub-paragraph (2)(d) may (but need not) be described as, or accompanied by a document described as, a declaration of trust;

(d) the reference to a period in sub-paragraph (2)(c) includes any period specified to end upon the redemption of the bond by the bond-issuer;

(e) the bond-holder may (but need not) be entitled under the arrangements to terminate them, or participate in terminating them, before the end of the bond term;

(f) the amount of the additional payments may be—

(i) fixed at the beginning of the bond term;

(ii) determined wholly or partly by reference to the value of or income generated by the bond assets; or

(iii) determined in some other way;

(g) if the amount of the additional payments is not fixed at the beginning of the bond term, the reference in sub-paragraph (2)(e) to the amount of the additional payments is a reference to the maximum amount of the additional payments;

(h) the amount of the redemption payment may (but need not) be subject to reduction in the event of a fall in the value of the bond assets or in the rate of income generated by them; and

(i) entitlement to the redemption payment may (but need not) be capable of being satisfied (whether or not at the option of the bond-issuer or the bond-holder) by the issue or transfer of shares or other securities.

(4) An instrument excluded from sub-paragraph (1) of paragraph 16 by sub-paragraph (2)(b) of that paragraph is not thereby taken to fall within sub-paragraph (1) of this paragraph.

Government and public securities

Instruments giving entitlements to investments

Certificates representing certain securities

Units in a collective investment scheme

Rights under a pension scheme

Options

Futures

Contracts for differences etc.

Lloyd's syndicate capacity and syndicate membership

Funeral plan contracts

Agreements for qualifying credit

Regulated home reversion plans

Regulated home purchase plans

Regulated sale and rent back agreement

Rights to or interests in investments

Interpretation

Pension product offers communicated to employees by third parties

72A

(1) If the requirements of paragraph (2) are met, the financial promotion restriction does not apply to any communication which is made to an employee by or on behalf of a person (“A”) in relation to a group personal pension scheme or a stakeholder pension scheme.

(2) The requirements of this paragraph are that—

(a) the employer and A have entered into a written contract specifying the terms on which the communication may be made;

(b) in the case of a communication made by a person (“B”) on behalf of A, A and B have also entered into a written contract specifying the terms on which the communication may be made;

(c) the employer has not received, and will not receive, any direct financial benefit as a result of the communication being made;

(d) the employer will make a contribution to the scheme in the event of the employee becoming a member of the scheme and the communication contains a statement informing the employee of this;

(e) in the case of a non-real time communication, the communication contains, or is accompanied by, a statement informing the employee of their right to seek advice from an authorised person or an appointed representative; and

(f) the employer or A notifies the employee in writing prior to the employee becoming a member of the scheme of—

(i) the amount of the contribution that the employer will make to the scheme in respect of that employee, or the basis on which the contribution will be calculated; and

(ii) any remuneration A or B has received, or will receive, as a consequence of the employee becoming a member of the scheme, or the basis on which any such remuneration will be calculated.

(3) In this article “group personal pension scheme” and “stakeholder pension scheme” have the meaning given by article 72(4).

Insurance product offers communicated to employees by employers

72B

(1) If the requirements of paragraph (2) are met, the financial promotion restriction does not apply to any communication which is made by an employer to an employee in relation to work-related insurance.

(2) The requirements of this paragraph are that—

(a) where the provider of the insurance is not the employer, the employer has not received, and will not receive, any direct financial benefit as a result of making the communication; and

(b) in the case of a non-real time communication, the communication contains, or is accompanied by, a statement informing the employee of their right to seek advice from an authorised person or an appointed representative.

(3) In this article “work-related insurance” includes—

(a) life assurance;

(b) long term disability insurance (also known as permanent health insurance); and

Insurance product offers communicated to employees by employers

72C

(1) If the requirements of paragraph (2) are met, the financial promotion restriction does not apply to any communication which is made to an employee by or on behalf of a person (“A”) in relation to work-related insurance.

(2) The requirements of this paragraph are that—

(a) the employer and A have entered into a written contract specifying the terms on which the communication may be made;

(b) in the case of a communication made by a person (“B”) on behalf of A, A and B have also entered into a written contract specifying the terms on which the communication may be made;

(c) the employer has not received, and will not receive, any direct financial benefit as a result of the communication being made;

(d) in the case of a non-real time communication, the communication contains, or is accompanied by, a statement informing the employee of their right to seek advice from an authorised person or an appointed representative; and

(e) the employer or A notifies the employee in writing prior to the employee entering into a contract for the work-related insurance of any remuneration A or B has received, or will receive, as a consequence of the employee entering into the contract, or the basis on which any such remuneration will be calculated.

(3) In this article “work-related insurance” has the meaning given by article 72B(3).

Staff mortgage offers communicated to employees by employers

72D

(1) If the requirements of paragraph (2) are met, the financial promotion restriction does not apply to any communication which is made by an employer to an employee in relation to a staff mortgage.

(2) The requirements of this paragraph are that—

(a) where the provider of the staff mortgage is an undertaking in the same group as the employer, the employer has not received, and will not receive, any direct financial benefit as a result of making the communication; and

(b) in the case of a non-real time communication, the communication contains or is accompanied by a statement informing the employee of their right to seek advice from an authorised person or an appointed representative.

(3) In this article, “staff mortgage” means a regulated mortgage contract between the employer, or an undertaking in the same group as the employer, as lender and the employee (alone or with another person) as borrower to defray money applied for any of the following purposes—

(a) acquiring any residential land which was intended, at the time of the acquisition, for occupation by the employee as their home;

(b) carrying out repairs or improvements to any residential land which was intended, at the time of taking out the loan, for occupation by the employee as their home; or

(4) In this article, “borrower”, “lender” and “regulated mortgage contract” have the meaning given by article 61(3)(a) (regulated mortgage contracts) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001.

Staff mortgage offers communicated to employees by employers

72E

(1) If the requirements of paragraph (2) are met, the financial promotion restriction does not apply to any communication which is made to an employee by or on behalf of a person (“A”) in relation to a staff mortgage.

(2) The requirements of this paragraph are that—

(a) the employer and A have entered into a written contract specifying the terms on which the communication may be made;

(b) in the case of a communication made by a person (“B”) on behalf of A, A and B have also entered into a written contract specifying the terms on which the communication may be made;

(c) where the provider of the staff mortgage is an undertaking in the same group as the employer, the employer has not received, and will not receive, any direct financial benefit as a result of the communication being made;

(d) in the case of a non-real time communication, the communication contains, or is accompanied by, a statement informing the employee of their right to seek advice from an authorised person or an appointed representative; and

(e) the employer or A notifies the employee in writing prior to the employee entering into the staff mortgage of any remuneration A or B has received, or will receive, as a consequence of the employee entering into the staff mortgage, or the basis on which any such remuneration will be calculated.

(3) In this article “staff mortgage” has the same meaning as in article 72D(3).

Advice centres

Revocation

Promotions of credit etc. for business purposes

46A

(1) The financial promotion restriction does not apply to a communication which relates to a controlled activity falling within paragraph 4C of Schedule 1 and which—

(a) indicates clearly (by express words or otherwise) that a person is willing to facilitate another person (“B”) becoming the borrower under a paragraph 4C agreement for the purposes of B’s business, and

(b) does not indicate (by express words or otherwise) that the person is willing to facilitate B becoming the borrower under such an agreement for any other purpose.

(2) The financial promotion restriction does not apply to a communication which relates to a controlled activity falling within paragraph 10BA of Schedule 1 and which—

(a) indicates clearly (by express words or otherwise) that a person is willing to enter into a relevant credit agreement as lender for the purposes of another person’s business, and

(b) does not indicate (by express words or otherwise) that the person is willing to enter into a relevant credit agreement as lender for any other purpose.

(3) The financial promotion restriction does not apply to a communication which relates to a controlled activity falling within paragraph 10BB of Schedule 1 and which—

(a) indicates clearly (by express words or otherwise) that a person is willing to enter into a regulated consumer hire agreement as owner for the purposes of another person’s business, and

(b) does not indicate (by express words or otherwise) that the person is willing to enter into a regulated consumer hire agreement as owner for any other purpose.

(4) In this article—

(a) references to a “business” do not include a business carried on by—

(i) the person communicating the promotion, or

(ii) a person carrying on an activity of the kind specified by article 36A of the Regulated Activities Order (credit broking) in relation to the relevant credit agreement, paragraph 4C agreement or regulated consumer hire agreement to which the promotion relates;

(b) “paragraph 4C agreement” has the meaning given in paragraph 4C of Schedule 1;

Persons in the business of disseminating information

Certified high net worth individuals

High net worth companies, unincorporated associations etc.

Sophisticated investors

Self-certified sophisticated investors

Associations of high net worth or sophisticated investors

Common interest group of a company

Settlors, trustees and personal representatives

Beneficiaries of trust, will or intestacy

Communications by members of professions

Non-real time communication by members of professions

Remedy following report by Parliamentary Commissioner for Administration

Persons placing promotional material in particular publications

Acquisition of interest in premises run by management companies

Annual accounts and directors' report

Sale of goods and supply of services

Sale of body corporate

Takeovers of relevant unlisted companies: warrants etc.

Promotions required or permitted by market rules

Promotions in connection with admission to certain EEA markets

Promotions of securities already admitted to certain markets

Promotions included in listing particulars etc.

Material relating to prospectus for public offer of unlisted securities

Pension products offered by employers

Pension product offers communicated to employees by third parties

Insurance product offers communicated to employees by employers

Staff mortgage offers communicated to employees by employers

Advice centres

Revocation

Credit broking

4B

(1) Each of the following is a controlled activity—

(a) effecting an introduction of an individual or relevant recipient of credit to a person who enters into as lender relevant credit agreements (other than credit agreements which are exempt agreements under the relevant provisions) by way of business;

(b) effecting an introduction of an individual or relevant recipient of credit to a person who, by way of business, enters into as owner regulated consumer hire agreements or agreements which would be regulated consumer hire agreements but for article 60O (exempt agreements: exemptions relating to nature of agreement) or article 60Q (exempt agreements: exemptions relating to the nature of the hirer) of the Regulated Activities Order;

(c) effecting an introduction of an individual or relevant recipient of credit to a person who carries on an activity of the kind specified in paragraph (a) or (b) by way of business;

(d) presenting or offering an agreement which would (if entered into) be a relevant credit agreement (other than a credit agreement which is an exempt agreement under the relevant provisions) to an individual or relevant recipient of credit;

(e) assisting an individual or relevant recipient of credit by undertaking preparatory work in respect of a relevant credit agreement (other than a credit agreement which is an exempt agreement under the relevant provisions);

(f) entering into a relevant credit agreement (other than a credit agreement which is an exempt agreement under the relevant provisions) on behalf of a lender.

(1A) But an activity is not a controlled activity falling within sub-paragraph (1) to the extent that it is a controlled activity falling within paragraph 10A (arranging qualifying credit etc.).

(2) For the purposes of paragraph (1)—

(a) “relevant provisions” are article 60E(5) (exempt agreements: exemptions relating to the nature of the lender) and article 60F(exempt agreements: exemptions relating to number of repayments to be made) of the Regulated Activities Order;

(b) it is immaterial whether the relevant credit agreement or the consumer hire agreement is subject to the law of a country other than the United Kingdom.

Operating an electronic system in relation to lending

4C

(1) Where the conditions in sub-paragraphs (2), (2A) and (2C) are satisfied, operating an electronic system which enables the operator (“A”) to facilitate persons (“B” and “C”) becoming the lender and borrower under a paragraph 4C agreement is a controlled activity.

(2) The condition in this sub-paragraph is that the system operated by A is capable of determining which agreements should be made available to each of B and C (whether in accordance with general instructions provided to A by B or C or otherwise).

(2A) The condition in this sub-paragraph is that A, or another person (“X”) acting under an arrangement with A or at A’s direction, undertakes to—

(a) receive payments in respect of either interest or capital or both due under the agreement from C, and

(b) make payments in respect of either interest or capital or both due under the agreement to B.

(2B) For the purposes of sub-paragraph (2A)—

(a) an agreement by A to appoint X to perform the activities in that paragraph is to be treated as an undertaking by A within the meaning of that sub-paragraph;

(b) it is immaterial that—

(i) payments may be subject to conditions;

(ii) A, or X, may be entitled to retain a portion or the entirety of any payment received from C.

(2C) The condition in this sub-paragraph is that A, or another person (“X”) acting under an arrangement with A or at A’s direction, undertakes to perform, or A undertakes to appoint or direct another person to perform, either or both of the following—

(a) to take steps to procure the payment of a debt under the agreement;

(b) to exercise or enforce rights under the agreement on behalf of B.

(2D) Where A carries on the activity specified by sub-paragraph (1), it is a controlled activity for A to operate an electronic system where—

(a) that system enables A to facilitate a person (“B”) assuming the rights of the lender under a paragraph 4C agreement by assignment or operation of law, and

(b) the conditions in sub-paragraphs (2), (2A) and (2C) are satisfied where C is the borrower under the agreement in paragraph (a).

(3) The following are controlled activities if carried on by A in the course of, or in connection with, the carrying on by A of the activity specified by sub-paragraph (1) or (2D)—

(a) presenting or offering paragraph 4C agreements to either B or C with a view to B becoming the lender under the paragraph 4C agreement or C becoming the borrower under the paragraph 4C agreement,

(b) furnishing information relevant to the financial standing of a person (“Y”) with a view to assisting in the determination as to whether another person should—

(i) enter into, as the lender, a paragraph 4C agreement with Y, or

(ii) assume the rights of the lender under a paragraph 4C agreement under which Y is the borrower,

(d) taking steps to perform duties, or exercise or enforce rights under a paragraph 4C agreement on behalf of the lender,

(e) taking steps with a view to ascertaining whether a credit information agency (within the meaning given by article 89A(6)) holds information relevant to the financial standing of an individual or relevant person,

(f) taking steps with a view to ascertaining the contents of such information,

(g) taking steps with a view to securing the correction of, the omission of anything from, or the making of any other kind of modification of, such information, ...

(h) taking steps with a view to securing that a credit information agency which holds such information—

(i) stops holding the information, or

(ii) does not provide it to any other person, or

(i) giving advice in relation to the taking of any of the steps in sub-paragraphs (e) to (h)

(4) A “paragraph 4C agreement” is an agreement by which one person provides another person with credit and in relation to which—

(a) the condition in sub-paragraph (4A) is satisfied, and

(b) the condition in either sub-paragraph (5) or (6) is satisfied, or was satisfied at the time the agreement was entered into.

(4A) The condition in this sub-paragraph is that A does not provide credit, assume the rights (by assignment or operation of law) of a person who provided credit, or receive credit under the agreement.

(5) The condition in this sub-paragraph is thatthe lender is an individual or relevant person.

(6) The condition in this sub-paragraph is that the borrower is an individual or relevant person and—

(a) the lender provides the borrower with credit less than or equal to £25,000, or

(b) the agreement is not entered into by the borrower wholly or predominantly for the purposes of a business carried on, or intended to be carried on, by the borrower.

(7) Paragraphs (5) and (6) of article 60C of the Regulated Activities Order (exempt agreements: exemptions relating to nature of agreement) apply for the purposes of paragraph (6)(b).

(8) It is immaterial for the purposes of this paragraph whether the lender is carrying on a regulated activity.

(9) In this paragraph—

“assignment”, in relation to Scotland, means assignation;

“borrower” means a person who receives credit under a paragraph 4C agreement or a person to whom the rights and duties of a borrower under such an agreement have passed by assignment or operation of law;

“credit” has the meaning given by article 60L of the Regulated Activities Order;

“lender” means—a person providing credit under a paragraph 4C agreement, ora person who by assignment or operation of law has assumed the rights of a person who provided credit under such an agreement;

“relevant person” means—a partnership consisting of two or three persons not all of whom are bodies corporate, oran unincorporated body of persons which does not consist entirely of bodies corporate and is not a partnership.

(10) For the purposes of the application of section 21(9) and (10) of the Act (restrictions on financial promotion) to an activity of a kind specified by this paragraph, paragraph 26D of this Schedule (relevant credit agreements), and article 4 (definition of controlled activities and controlled investments) in so far as it relates to that paragraph, have effect as if the reference to a relevant credit agreement in paragraph 26D includes a reference to a paragraph 4C agreement.

Managing investments

Debt adjusting

5A

(1) The following activities are, when carried on in relation to debts due under a relevant credit agreement, controlled activities—

(a) negotiating with the lender, on behalf of the borrower, terms for the discharge of a debt;

(b) taking over, in return for payments by the borrower, that person’s obligation to discharge a debt;

(2) The following activities are, when carried on in relation to debts due under a consumer hire agreement, controlled activities—

(a) negotiating with the owner, on behalf of the hirer, terms for the discharge of a debt;

(b) taking over, in return for payments by the hirer, that person’s obligation to discharge a debt;

Debt-counselling

5B

(1) Advising a borrower about the liquidation of a debt due under a relevant credit agreement is a controlled activity.

(2) Advising a hirer about the liquidation of a debt due under a consumer hire agreement is a controlled activity.

Safeguarding and administering investments

Advising on investments

Advising on syndicate participation at Lloyd's

Providing funeral plan contracts

Providing qualifying credit

Arranging qualifying credit etc.

Advising on qualifying credit etc.

Providing relevant consumer credit

10BA

Entering into a relevant credit agreement, other than an agreement under which qualifying credit within the meaning of paragraph 10 is provided, as lender, or exercising or having the rights to exercise the rights of the lender under such an agreement, is a controlled activity.

Providing consumer hire

10BB

Entering into a regulated consumer hire agreement, or an agreement that would be such an agreement but for article 60O (exempt agreements: exemptions relating to nature of agreement) or 60Q (exempt agreements: exemptions relating to nature of hirer) of the Regulated Activities Order, as owner or exercising or having the right to exercise the rights of the owner under such an agreement is a controlled activity.

Providing a regulated home reversion plan

Arranging a regulated home reversion plan

Advising on a regulated home reversion plan

Providing a regulated home purchase plan

Arranging a regulated home purchase plan

Advising on a regulated home purchase plan

Providing a regulated sale and rent back agreement

Arranging a regulated sale and rent back agreement

Advising on a regulated sale and rent back agreement

Agreeing to carry on specified kinds of activity

Relevant credit agreements

26D

Rights under a relevant credit agreement

Consumer hire agreements

26E

Rights under a consumer hire agreement

Rights to or interests in investments

Interpretation

Credit agreements offered to employees by employers

72F

(1) The financial promotion restriction does not apply to any communication which is made to an employee by or on behalf of a person in relation to an exempt staff loan.

(2) In this article, “an exempt staff loan” means a credit agreement within the meaning of article 60B (regulated credit agreements) of the Regulated Activities Order which is—

(a) offered by a lender to a borrower as an incident of employment with the lender, or with an undertaking in the same group as the lender; and

(b) an exempt agreement for the purposes of Chapter 14A (regulated credit agreements) of the Regulated Activities Order by virtue of a provision of article 60G (exempt agreements: exemptions relating to the total charge for credit) of that Order other than paragraph (2) of that article.

Advice centres

Revocation

Insolvency practitioners

55B

The financial promotion restriction does not apply to any non-real time communication or solicited real time communication by a person acting as an insolvency practitioner (within the meaning of the Regulated Activities Order) in the course of carrying on an activity which would be a regulated activity but for article 72H of the Regulated Activities Order (insolvency practitioners).

Remedy following report by Parliamentary Commissioner for Administration

Persons placing promotional material in particular publications

Acquisition of interest in premises run by management companies

Annual accounts and directors' report

Sale of goods and supply of services

Sale of body corporate

Takeovers of relevant unlisted companies: application forms

Promotions required or permitted by market rules

Promotions in connection with admission to certain UK and EEA markets

Promotions of securities already admitted to certain markets

Promotions included in listing particulars etc.

Material relating to prospectus for public offer of unlisted securities

Pension products offered by employers

Pension product offers communicated to employees by third parties

Insurance product offers communicated to employees by third parties

Staff mortgage offers communicated to employees by third parties

Credit agreements offered to employees by employers

Advice centres

Revocation

Registered societies

Advising on certain relevant consumer credit relating to land

10BAA

Advising a person is a controlled activity if the advice—

(a) is given to the person in the person's capacity as a recipient of credit, or potential recipient of credit; and

(b) consists of the provision of personal recommendations to the person in respect of one or more transactions relating to a relevant credit agreement where the person intends to use the credit to acquire or retain property rights in land or in an existing or projected building, other than an agreement under which qualifying credit within the meaning of paragraph 10 is provided.

Providing consumer hire

Providing a regulated home reversion plan

Arranging a regulated home reversion plan

Advising on a regulated home reversion plan

Providing a regulated home purchase plan

Arranging a regulated home purchase plan

Advising on a regulated home purchase plan

Providing a regulated sale and rent back agreement

Arranging a regulated sale and rent back agreement

Advising on a regulated sale and rent back agreement

Agreeing to carry on specified kinds of activity

Operating an organised trading facility

4AA

Operating an organised trading facility on which non-equity MiFID instruments are traded is a controlled activity.

Credit broking

Operating an electronic system in relation to lending

Managing investments

Debt adjusting

Debt-counselling

Safeguarding and administering investments

Advising on investments

Advising on syndicate participation at Lloyd's

Providing funeral plan contracts

Providing qualifying credit

Arranging qualifying credit etc.

Advising on qualifying credit etc.

Providing relevant consumer credit

Advising on certain relevant consumer credit relating to land

Providing consumer hire

Providing a regulated home reversion plan

Arranging a regulated home reversion plan

Advising on a regulated home reversion plan

Providing a regulated home purchase plan

Arranging a regulated home purchase plan

Advising on a regulated home purchase plan

Providing a regulated sale and rent back agreement

Arranging a regulated sale and rent back agreement

Advising on a regulated sale and rent back agreement

Agreeing to carry on specified kinds of activity

Emission allowances

23A

(1) Subject to sub-paragraph (2)—

(a) emission allowances consisting of any units recognised for compliance (by an EEA State) with the requirements of the emission allowance trading directive; and

(b) allowances created under article 18 of the Greenhouse Gas Emissions Trading Scheme Order 2020 and transferable in accordance with that order.

(2) Sub-paragraph (1) only applies to emission allowances in relation to which—

(a) an investment firm or qualifying credit institution is providing or performing investment services and activities on a professional basis;

(b) a management company which has a Part 4A permission to do so is providing the investment service specified in paragraph 4 or 5 of Part 3 of Schedule 2 or the ancillary service specified in paragraph 1 of Part 3A of that Schedule;

(d) a full-scope UK AIFM which has a Part 4A permission to do so is providing the investment service specified in paragraph 1, 4 or 5 of Part 3 of that Schedule or the ancillary service specified in paragraph 1 of Part 3A of that Schedule.

Lloyd's syndicate capacity and syndicate membership

Funeral plan contracts

Agreements for qualifying credit

Regulated home reversion plans

Regulated home purchase plans

Regulated sale and rent back agreement

Relevant credit agreements

Consumer hire agreements

Rights to or interests in investments

Interpretation

Communications required by the PRIIPs regulation: key information document

20C

The financial promotion restriction does not apply to any communication required by Article 13 of Regulation (EU) No 1286/2014 of the European Parliament and of the Council of 26 November 2014 on key information documents for packaged retail and insurance-based investment products.

Definition of controlled activities, controlled claims management activities and controlled investments

PART 6A — EXEMPT COMMUNICATIONS: CONTROLLED CLAIMS MANAGEMENT ACTIVITIES

Application of exemptions in this Part

73A

The exemptions in this Part apply to any communication which relates to a controlled claims management activity of a kind specified in paragraph 11A of Schedule 1.

Communications made by legal professionals

73B

(1) The financial promotion restriction does not apply to any communication which relates to a controlled claims management activity when that communication is made in England and Wales by—

(a) a legal practitioner;

(b) a firm, organisation or body corporate that carries on the controlled claims management activity through a legal practitioner; or

(c) an individual who carries on the controlled claims management activity at the direction of, and under the supervision of, a legal practitioner who is—

(i) that individual’s employer or fellow employee; or

(ii) a director of a company, or a member of a limited liability partnership, that provides the service and is that individual’s employer.

(2) In paragraph (1) “legal practitioner” means—

(a) a solicitor or barrister of any part of England and Wales or Northern Ireland;

(b) a Fellow of the Chartered Institute of Legal Executives;

(c) a European lawyer, as defined in the European Communities (Services of Lawyers) Order 1978 or the European Communities (Lawyer’s Practice) Regulations 2000;

(d) a registered foreign lawyer, as defined in section 89(9) of the Courts and Legal Services Act 1990;

(e) any other member of a legal profession, of a jurisdiction other than England and Wales, that is recognised by the Law Society of England and Wales or the General Council of the Bar as a regulated legal profession.

(3) The financial promotion restriction does not apply to a communication which relates to a controlled claims management activity when that communication is made in Scotland by—

(a) a legal practitioner;

(b) a firm, organisation or body corporate that carries on the controlled claims management activity through or under the supervision of a legal practitioner where that firm, organisation or body corporate is—

(i) a firm of solicitors;

(ii) an incorporated practice; or

(iii) a licensed legal services provider and the activity is a legal service as defined within section 3 of the Legal Services (Scotland) Act 2010.

(4) In paragraph (3) “legal practitioner” means—

(a) a person who is qualified to practise as a solicitor under section 4 of the Solicitors (Scotland) Act 1980;

(b) an advocate who is a member of the Faculty of Advocates;

(c) a European lawyer as defined in the European Communities (Services of Lawyers) Order 1978 or the European Communities (Lawyer’s Practice) (Scotland) Regulations 2000; or

(d) a registered foreign lawyer within the meaning of section 65 of the Solicitors (Scotland) Act 1980.

(5) A communication mentioned in paragraph (1) or (3) is only excluded from the financial promotion restriction if the legal practitioner concerned carries on the controlled claims management activity in the ordinary course of legal practice pursuant to the professional rules to which that legal practitioner is subject.

Communications made by a charity or not-for-profit agency

73C

(1) The financial promotion restriction does not apply to any communication which relates to a controlled claims management activity when that communication is made by a charity or not-for-profit agency.

(2) In this article “charity” means—

(a) a charity as defined by section 1(1) of the Charities Act 2011 or the Charities and Trustee Investment (Scotland) Act 2005; or

(b) a body registered in the Scottish Charity Register.

(3) In this article “not-for-profit agency” means a body that by or under its constitution–

(a) is required to apply the whole of its net income, and any expendable capital, after payment of outgoings for charitable or public purposes; and

(b) is prohibited from distributing, directly or indirectly, any part of its net income by way of profits or its assets among any of its members.

(4) But a body is not prevented from being a not-for-profit agency for the purposes of paragraph (3) if its constitution permits—

(a) the payment, out of the body’s funds, of reasonable and proper remuneration for goods or services supplied to the body by a member; or

(b) in the case of a not-for-profit body that is a charity, the payment to a member to which the member is eligible because that member is a beneficiary of the charity; or

Communications made by a person appointed by a statutory or other public body

73D

The financial promotion restriction does not apply to any communication which relates to a controlled claims management activity when that communication is made by—

(a) any person established or appointed by virtue of an enactment;

(b) an Independent Complaints Reviewer; or

when the communication is made in the course of carrying out that individual’s duties.

Communications made by the Motor Insurers’ Bureau

73E

The financial promotion restriction does not apply to any communication which relates to a controlled claims management activity when that communication is made by the Motor Insurers’ Bureau in the course of carrying its functions (being the company limited by guarantee mentioned in section 95(2) (notification of refusal of insurance on grounds of health) of the Road Traffic Act 1988).

Communications made by a medical defence union

73F

The financial promotion restriction does not apply to any communication which relates to a controlled claims management activity when that communication is made by—

(a) the Medical Protection Society Limited for its members;

(b) the Medical Defence Union Limited for its members; or

Communications made by an independent trade union

73G

(1) The financial promotion restriction does not apply to any communication which relates to a controlled claims management activity when that communication is made by an independent trade union for —

(a) a member (including a retired member or a student member) of an independent trade union;

(b) a member of the family of a member referred to in sub-paragraph (a); or

(c) a former member of the trade union to whom the trade union may, under its rules, provide claims management services, or a member of the family of such a former member.

(2) In paragraph (1) “independent trade union” has the same meaning as in the Trade Union and Labour Relations (Consolidation) Act 1992.

(3) For the purposes of paragraph (1)—

(a) subject to sub-paragraph (b), whether a person is or has been a member (including a retired member or a student member) of a trade union is to be decided in accordance with the rules of that trade union;

(b) “member” of a trade union does not include a person who, under those rules, is a member only for the purpose of pursuing a claim or claims; and

(c) whether a person is a member of the family of a member of a trade union is to be decided in accordance with the rules of that trade union.

(4) An exemption of a trade union under this article is subject to compliance by the trade union with the condition that the trade union, in making a communication which relates to a controlled claims management activity, must act in accordance with the code of practice for the provision of regulated claims management activities by trade unions issued by the Treasury.

Communications made by a students’ union

73H

(1) The financial promotion restriction does not apply to any communication which relates to a controlled claims management activity when that communication is made by a students’ union for a member of that students’ union or a member of a constituent or affiliated association or body.

(2) In this article “students’ union” has the meaning given by section 20 (meaning of “students’ union”) of the Education Act 1994.

Communications made by an insurance intermediary

73I

The financial promotion restriction does not apply to any communication which relates to a controlled claims management activity when that communication is made by a person who has permission to carry out a regulated activity of the kind specified in article 21, 25, 39A, 53 or 64 of the Regulated Activities Order in relation to a contract of insurance.

Communications made by certain providers of referrals

73J

(1) The financial promotion restriction does not apply to any communication which relates to the controlled claims management activity falling within paragraph 11A(2) of Schedule 1 of referring the details of a potential claim or potential claimant to another person if –

(a) the person who refers those details (“the introducer”) carries on no other regulated claims management service;

(b) the activity is incidental to the introducer’s main business;

(c) the details are only referred to authorised persons, legal practitioners, or a firm, organisation or body corporate that provides the service through legal practitioners;

(d) of the claims that the introducer refers to such persons, that introducer is paid, in money or money’s worth, for no more than 25 claims per calendar quarter; and

(e) the introducer, in obtaining and referring those details has complied with the provisions of the Data Protection Act 2018, the Privacy and Electronic Communications (EC Directive) Regulations 2003, the General Data Protection Regulation (EU) of the European Parliament and of the Council 2016/679 and Chapter 1 of Part 4 of the Digital Markets, Competition and Consumers Act 2024.

(2) Paragraph 1(e) does not apply in the case of a referral to a legal practitioner or firm, organisation or body corporate that carries on the activity through legal practitioners.

(3) In this article “legal practitioner” has the meaning given by article 73B(2) or (4).

PART 7 — REVOCATIONS

Revocation

PART 1A — CONTROLLED CLAIMS MANAGEMENT ACTIVITY

11A

(1) A claims management activity carried out in Great Britain is a controlled claims management activity.

(2) For the purposes of this paragraph, a claims management activity is one of the following activities:

(a) seeking out persons who may have a claim, referring details of a claim or potential claim or a claimant or potential claimant to another person (including a person having the right to conduct litigation), or identifying a claim or potential claim or a claimant or potential claimant in respect of—

(i) a personal injury claim;

(ii) a financial services or financial product claim;

(iii) a housing disrepair claim;

(iv) a claim for a specified benefit;

(v) a criminal injury claim; or

(vi) an employment related claim.

(b) advising a claimant or potential claimant, investigating a claim or representing a claimant in respect of a personal injury claim;

(c) advising a claimant or potential claimant, investigating a claim or representing a claimant in respect of a financial services or financial product claim;

(d) advising a claimant or potential claimant, investigating a claim or representing a claimant in respect of a housing disrepair claim;

(e) advising a claimant or potential claimant, investigating a claim or representing a claimant in respect of a claim for a specified benefit;

(f) advising a claimant or potential claimant, investigating a claim or representing a claimant in respect of a criminal injury claim; or

(g) advising a claimant or potential claimant, investigating a claim or representing a claimant in respect of an employment related claim.

(3) In this paragraph—

(a) “claimant” includes, in civil proceedings in Scotland, a pursuer;

(b) “defendant” includes, in civil proceedings in Scotland, a defender;

(c) “personal injury claim” means a claim for personal injury within the meaning of the Civil Procedure Rules 1998 in England and Wales and an action for damages for, or arising from, personal injuries within the meaning set out in section 8(7) of the Civil Litigation (Expenses and Group Proceedings) (Scotland) Act 2018 in Scotland;

(d) “financial services or financial product claim” includes a claim made under section 75 of the Consumer Credit Act 1974;

(e) “housing disrepair claim” means a claim under section 11 of the Landlord and Tenant Act 1985 or section 4 of the Defective Premises Act 1972 in England and Wales or an application in respect of the repairing standard under section 22 of the Housing (Scotland) Act 2006, or claims in relation to the disrepair of premises under a term of a tenancy agreement or lease or under the common law relating to nuisance or negligence but does not include claims for statutory nuisance under section 82 of the Environmental Protection Act 1990;

(f) “a claim for a specified benefit” means a claim for one of the following benefits—

(i) industrial injuries benefit, within the meaning given by section 94 of the Social Security Contributions and Benefits Act 1992;

(ii) any supplement or additional allowance, or increase of benefit or allowance to which a recipient of an industrial injuries benefit may be entitled under that Act or any other Act;

(iii) a benefit under a scheme referred to in paragraph 2 or 4 of Schedule 8 to that Act; or

(iv) a benefit under the Pneumoconiosis etc. (Workers’ Compensation) Act 1979.

(g) “criminal injury claim” means a claim under the Criminal Injuries Compensation Scheme established under the Criminal Injuries Compensation Act 1995;

(h) “employment related claim” includes a claim in relation to wages and salaries and other employment related payments and claims in relation to wrongful or unfair dismissal, redundancy, discrimination and harassment;

(i) “investigating” means carrying out an investigation into, or commissioning the investigation of, the circumstances, merits or foundation of a claim; and

(j) “representing” means representation in writing or orally, regardless of the tribunal, body or person before which or to whom the representation is made.

(4) In this paragraph, a person is to be treated as carrying on a controlled claims management activity in Great Britain when the activity is carried on—

(a) by a person who is—

(i) an individual who is ordinarily resident in Great Britain; or

(ii) a person, other than an individual, who is constituted under the law of England and Wales or Scotland; or

(b) in respect of a claimant or potential claimant who is—

(i) an individual who is ordinarily resident in Great Britain; or

(ii) a person, other than an individual, who is constituted under the law of England and Wales or Scotland.

(5) For the purposes of sub-paragraph (4) a person is “ordinarily resident” in Great Britain if that person satisfies the requirements of the Statutory Residence Test as set out in Schedule 45 to the Finance Act 2013 either—

(a) at the time of the facts giving rise to the claim or potential claim; or

(b) at the time when the controlled claims management activity is carried out in respect of that claimant or potential claimant.

PARTA1 — Criteria for Relevant UK Markets

The criteria for a “relevant UK market” are—

(a) the head office of the market must be situated in the United Kingdom; and

(b) the market must satisfy any requirements of the law of the United Kingdom as to—

(i) the manner in which it operates;

(ii) the means by which access may be had to the facilities it provides;

(iii) the conditions to be satisfied before an investment may be traded or dealt in by means of its facilities; and

(iii) the reporting and publication of transactions effected by means of its facilities.

Certain promotions of qualifying cryptoassets

73ZA

(1) The financial promotion restriction does not apply to any communication which relates only to one or more qualifying cryptoassets and which is communicated—

(a) by a registered person; or

(b) on behalf of a registered person provided that—

(i) the communication is a non-real time communication; and

(ii) the registered person prepared the content of the communication.

(2) Subsection (1) does not apply where a registered person makes or directs the communication, or causes it to be made or directed, in breach of—

(a) a requirement imposed by the FCA under section 55L (imposition of requirements by FCA) of the Act; or

(b) a direction given under section 137S (financial promotion rules: directions given by FCA) of the Act, as those provisions have been applied and modified by the Schedule to the Financial Services and Markets Act 2000 (Financial Promotion) (Amendment) Order 2023.

(3) In this article, a “registered person” means a person who is—

(a) a cryptoasset exchange provider or a custodian wallet provider as defined in regulation 14A (cryptoasset exchange providers and custodian wallet providers) of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017;

(b) included on the register maintained by the FCA pursuant to regulation 54(1A) (duty to maintain registers of certain relevant persons) of those Regulations; and

Dealing in securities , qualifying cryptoassets and contractually based investments

Qualifying cryptoasset

26F

(1) Subject to sub-paragraph (3), a “qualifying cryptoasset” is any cryptoasset which is—

(a) fungible; and

(b) transferable.

(2) For the purposes of sub-paragraph (1)(b), the circumstances in which a cryptoasset is to be treated as “transferable” include where—

(a) it confers transferable rights; or

(b) a communication made in relation to the cryptoasset describes it as being transferable or conferring transferable rights.

(3) A cryptoasset does not fall within sub-paragraph (1) if it is—

(a) a controlled investment falling within any of paragraphs 12 to 26E or, so far as relevant to any such investment, paragraph 27;

(b) electronic money;

(d) digitally issued fiat currency; or

(e) a cryptoasset that—

(i) cannot be transferred or sold in exchange for money or other cryptoassets, except by way of redemption with the issuer; and

(ii) can only be used in a limited way and meets one of the following conditions—

(aa) it allows the holder to acquire goods or services only from the issuer;

(ab) it is issued by a professional issuer and allows the holder to acquire goods or services only within a limited network of service providers which have direct commercial agreements with the issuer; or

(ac) it may be used only to acquire a very limited range of goods or services.

(4) In this paragraph—

“cryptoasset” means any cryptographically secured digital representation of value or contractual rights that—can be transferred, stored or traded electronically, anduses technology supporting the recording or storage of data (which may include distributed ledger technology);

“digitally issued fiat currency” means fiat currency issued in digital form;

“electronic money” has the meaning given by regulation 2(1) (interpretation) of the Electronic Money Regulations 2011.

Rights to or interests in investments

Interpretation

... High net worth individuals

Berne Financial Services Agreement suppliers

73ZB

(1) The financial promotion restriction does not apply to any communication which is communicated—

(a) by a registered Swiss supplier in relation to registered services,

(b) to persons whom the registered Swiss supplier reasonably believes are relevant clients, and

where the registered services, relevant clients and relevant financial instruments are all included in the entry for that registered Swiss supplier in the register.

(2) In this article—

“the register” is the register maintained by the FCA in accordance with regulation 8 of the Swiss Regulations;

“registered service” has the same meaning as in Part 1 of the Financial Services and Markets Act 2023 (Mutual Recognition Agreement) (Switzerland) Regulations 2025 (“the Swiss Regulations”);

“registered Swiss supplier” has the same meaning as in Part 1 of the Swiss Regulations;

“relevant client” has the same meaning as in regulation 7 of the Swiss Regulations;

“relevant financial instrument” means any of the financial instruments listed in Annex 5 Section VI paragraphs A(a), (b) and (d) of the Agreement between the United Kingdom of Great Britain and Northern Ireland and the Swiss Confederation on Mutual Recognition in Financial Services concluded on 21st December 2023 at Berne.

Safeguarding of qualifying cryptoassets and relevant specified investment cryptoassets

7A

(1) The following are controlled activities—

(a) the safeguarding of a qualifying cryptoasset or a relevant specified investment cryptoasset (“the cryptoasset”) on behalf of another person (“A”);

(b) arranging for a person to carry on that activity.

(2) For the purposes of sub-paragraph (1)(a)—

(a) a person (“C”) is to be regarded as safeguarding the cryptoasset if C has control of the cryptoasset through any means that would enable C to bring about a transfer of the benefit of the cryptoasset to another person, including to C;

(b) “on behalf of another” includes where that other person, A, has—

(i) both legal and beneficial title to the cryptoasset;

(ii) the beneficial title only to the cryptoasset;

(iii) subject to sub-paragraph (c), a right against C for the return of the cryptoasset;

(c) subject to paragraph (d), paragraph (b)(iii) does not apply where A’s right against C for the cryptoasset arises in the following circumstances—

(i) C received the cryptoasset from A under a title transfer cryptoasset collateral arrangement, or

(ii) C acquired the cryptoasset from A under an agreement pursuant to which A contracted to buy back the cryptoasset from C;

(d) paragraph (c) does not apply where A is—

(i) a consumer, or

(ii) specified, or of a description specified, in rules made by the FCA.

(3) Rules made by virtue of sub-paragraph (2)(d)(ii) may—

(a) specify a particular person or class of persons;

(b) be limited so as to apply only to agreements or arrangements, or classes of agreements or arrangements, specified by the rules.

(4) For the purposes of sub-paragraph (2)(a), the means by which C may have control of the cryptoasset include—

(a) holding or storing of the means of access, or part of the means of access, to the cryptoasset;

(b) appointing a person to hold or store the means of access, or part of the means of access, to the cryptoasset under an arrangement operated by C.

(5) There are excluded from sub-paragraph (1)(a) activities which a person (“P”) carries on pursuant to arrangements—

(a) which are operated by an authorised cryptoasset custodian (“C”), who is connected with P, in the course of carrying on the activity in sub-paragraph (1)(a), and

(b) under which C undertakes to the person on whose behalf the cryptoasset is being safeguarded a responsibility in respect of that cryptoasset which is no less onerous than C would have undertaken if C were safeguarding the cryptoasset.

(6) There are excluded from sub-paragraph (1)(b) arrangements pursuant to which introductions are made by a person (“P”) to an authorised cryptoasset custodian (“C”), with a view to C providing in the United Kingdom a service comprising an activity of the kind specified by sub-paragraph (1)(a), provided that—

(a) C is not connected with P, and

(b) P is not remunerated by C.

(7) There are excluded from sub-paragraph (1) arrangements whereby a qualifying cryptoasset or a relevant specified investment cryptoasset is held temporarily to facilitate the settlement of a transaction.

(8) A person (“P”) does not carry on the activity specified by sub-paragraph (1)(a) on behalf of another person (“A”), if A appoints P as their agent for the purposes of giving instructions to a third person (“C”), where C has undertaken directly to A the responsibility to safeguard the cryptoasset.

(9) A person (“P”) does not carry on the activity specified by sub-paragraph (1)(a) on behalf of another person (“A”) unless P holds itself out as engaging in the business of providing a service in relation to the cryptoasset to A, or to a person acting on behalf of A.

(10) There is excluded from sub-paragraph (1) any activity where the cryptoasset is, or is to be, safeguarded by a person (“A”), or a member of the same group as A, for the purpose of enabling or facilitating transactions by A, or a member of the same group as A, that would be within article 9T (dealing in qualifying cryptoassets as principal) of the Regulated Activities Order but for the operation of article 9V(2)(c).

(11) For the purposes of this paragraph—

(a) “authorised cryptoasset custodian” means an authorised person who has a Part 4A permission to carry on the regulated activity specified by article 9N(1)(a) (safeguarding of qualifying cryptoassets and relevant specified investment cryptoassets);

(b) “consumer” means an individual who is acting for a purpose other than for any trade, business or profession carried on by that individual;

(c) “relevant specified investment cryptoasset” has the meaning given by article 9N(5)(b) of the Regulated Activities Order (safeguarding of qualifying cryptoassets and relevant specified investment cryptoassets);

(d) “title transfer cryptoasset collateral arrangement” means an agreement or arrangement between C and the person who would otherwise be regarded as safeguarding the cryptoasset on behalf of another person (“A”), where—

(i) the purpose of the agreement or arrangement with A is to secure or otherwise guarantee financial obligations owed by A to C, and

(ii) A transfers legal and beneficial ownership of the cryptoasset to C on terms that C must transfer legal and beneficial ownership of the cryptoasset, or its equivalent, to A when the financial obligations referred to in sub-paragraph (i) are discharged;

(e) references to a cryptoasset, qualifying cryptoasset or a relevant specified investment cryptoasset include the means of access to that cryptoasset;

(f) references to the “means of access” to a cryptoasset include a private cryptographic key to that cryptoasset;

(g) an authorised cryptoasset custodian is connected with a person if they are a member of the same group as that person.

Operating a qualifying cryptoasset trading platform

7B

(1) The operation of a qualifying cryptoasset trading platform is a controlled activity.

(2) In this paragraph, “qualifying cryptoasset trading platform” has the meaning given by article 3 (interpretation) of the Regulated Activities Order.

Qualifying cryptoasset staking

7C

(1) Making arrangements on behalf of another person (whether as principal or agent) for qualifying cryptoasset staking is a controlled activity.

(2) There is excluded from sub-paragraph (1) the provision of services solely for the purpose of introducing a person to an authorised person with a Part 4A permission to carry on the regulated activity specified by article 9Z6.

(3) A person does not carry on the activity specified by sub-paragraph (1) merely by providing means by which one party to an arrangement, or potential arrangement, is able to communicate with other such parties.

(4) There is excluded from sub-paragraph (1) a technical service provided by a person (“P”) where—

(a) the service allows another person to participate in qualifying cryptoasset staking, as defined by article 9Z6, including by the operation of a validator node for that staking, and

(b) P does not hold itself out as offering qualifying cryptoasset staking to the public.

(5) In this paragraph—

“blockchain validation” means the validation of transactions on—a blockchain, ora network that uses distributed ledger technology or other similar technology,and includes proof of stake distributed ledger technology consensus mechanisms;

“qualifying cryptoasset staking” means the use of a qualifying cryptoasset in blockchain validation.

Advising on syndicate participation at Lloyd's

Providing funeral plan contracts

Providing qualifying credit

Arranging qualifying credit etc.

Advising on qualifying credit etc.

Providing relevant consumer credit

Advising on certain relevant consumer credit relating to land

Providing consumer hire

Providing a regulated home reversion plan

Arranging a regulated home reversion plan

Advising on a regulated home reversion plan

Providing a regulated home purchase plan

Arranging a regulated home purchase plan

Advising on a regulated home purchase plan

Providing a regulated sale and rent back agreement

Arranging a regulated sale and rent back agreement

Advising on a regulated sale and rent back agreement

Agreeing to carry on specified kinds of activity

Qualifying cryptoassetQualifying cryptoassets

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