The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013

• (a) in sub-paragraph (1), for “regulated person” substitute “ person who is carrying on a regulated activity ”;

• (b) omit sub-paragraph (2).

• (18) In Schedule 3 (EEA passport rights)—

• (a) in paragraph 15 , omit sub-paragraphs (3) and (4);

• (b) omit paragraph 23 .

• (19) In Schedule 6 (threshold conditions) —

• (a) in paragraph 2C, after sub-paragraph (1), insert—

(1A) Paragraphs (a), (b) and (e) of sub-paragraph (1) do not apply where the only regulated activities that the person concerned carries on, or seeks to carry on, are relevant credit activities.

• (b) in paragraph 2D—

• (i) in sub-paragraph (3), for “The matters” substitute “ Except in a case within sub-paragraph (3A), the matters ”;

• (ii) after sub-paragraph (3) insert—

(3A) Where the only regulated activities that A carries on, or seeks to carry on, are relevant credit activities, A has adequate financial resources if A is capable of meeting A's debts as they fall due.

• (c) in paragraph 2F, after sub-paragraph (2) insert—

(3) This paragraph does not apply where the only regulated activities that the person concerned carries on, or seeks to carry on, are relevant credit activities.

• (d) after paragraph 2F insert—

(2G) (1) In this Part of this Schedule, each of the following is a “relevant credit activity”— (a) an activity of the kind specified by article 36A of the Regulated Activities Order (credit broking) when carried on in the case specified in sub-paragraph (3), (4) or (5), (b) an activity of the kind specified by article 39D of that Order (debt adjusting) when carried on— (i) in the case specified in sub-paragraph (3), by a person who also carries on an activity of the kind specified by paragraph (a), (ii) by a person who also carries on an activity of the kind specified by paragraph (d) or (e), or (iii) by a not-for-profit body, (c) an activity of the kind specified by article 39E of that Order (debt-counselling) when carried on— (i) in the case specified in sub-paragraph (3), by a person who also carries on an activity of the kind specified by paragraph (a), (ii) by a person who also carries on an activity of the kind specified by paragraph (d) or (e), or (iii) by a not-for-profit body, (d) an activity of the kind specified by article 60B of that Order (regulated credit agreements) if— (i) it is carried on by a supplier, (ii) no charge (by way of interest or otherwise) is payable by the borrower in connection with the provision of credit under the regulated credit agreement, and (iii) the regulated credit agreement is not a hire-purchase agreement or a conditional sale agreement, (e) an activity of the kind specified by article 60N of that Order (regulated consumer hire agreements), (f) an activity of the kind specified by article 89A of that Order (providing credit information services) where carried on by a person who also carries on an activity of the kind specified by any of paragraphs (a) to (e), or (g) an activity of the kind specified by article 64 of that Order (agreeing to carry on specified kinds of activity) so far as relevant to any of the activities specified in paragraphs (a) to (f). (2) But an activity is not a relevant credit activity for the purposes of— (a) paragraph (a) to (e) of sub-paragraph (1), and (b) paragraph (g) of that sub-paragraph so far at it relates to activities of the kind specified by any of those paragraphs, if it relates to an agreement under which the obligation of the borrower to repay is secured, or is to be secured, by a legal mortgage on land. (3) The case specified in this sub-paragraph is where a supplier (other than a domestic premises supplier) carries on the activity for the purposes of, or in connection with, the sale of goods or supply of services by the supplier to a customer (who need not be the borrower under the credit agreement or the hirer under the consumer hire agreement). (4) The case specified in this sub-paragraph is where the activity relates to a green deal plan. (5) The case specified in this sub-paragraph is where the activity relates to a consumer hire agreement where the goods being hired is a vehicle. (6) For the purposes of this paragraph— - “borrower” includes— 1. any person providing a guarantee or indemnity under an agreement, and 2. a person to whom the rights and duties of the borrower under an agreement or a person falling within paragraph (a) have passed by assignment or operation of law; - “conditional sale agreement” has the meaning given by article 60L of the Regulated Activities Order; - “customer” means a person to whom a supplier sells goods or supplies services or agrees to do so; - “domestic premises supplier” means a supplier who sells goods or supplies services to customers who are individuals while physically present in the dwelling of the customer or in consequence of an agreement concluded whilst the supplier was physically present in the dwelling of the customer (though a supplier who does so on an occasional basis is not to be treated as a “domestic premises supplier”); - “green deal plan” has the meaning given by section 1 of the Energy Act 2011 ; - “hire-purchase agreement” has the meaning given by the Regulated Activities Order; - “not-for-profit body” means a body which, by virtue of its constitution or any enactment— 1. is required (after payment of outgoings) to apply the whole of its income and any capital it expends for charitable or public purposes, and 2. is prohibited from directly or indirectly distributing amongst its members any part of its assets (otherwise than for charitable or public purposes); - “Regulated Activities Order” means the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001; - “regulated credit agreement” has the meaning given by the Regulated Activities Order; - “supplier” means a person whose main business is to sell goods or supply services and not to carry on a regulated activity, other than an activity of the kind specified by article 60N of the Regulated Activities Order (regulated consumer hire agreements).

• (20) Schedule 16 (prohibitions and restrictions imposed by the Office of Fair Trading) is omitted.

• (21) In Schedule 17 (the ombudsman scheme) —

• (a) in paragraph 3(4), omit “, the function of making consumer credit rules, the function of making determinations under section 234A(1)”;

• (b) in paragraph 7(2), omit “, functions in relation to its consumer credit jurisdiction”;

• (c) in paragraph 9(3), omit “, consumer credit”;

• (d) in paragraph 10(1), omit “or to the consumer credit jurisdiction”;

• (e) in paragraph 11, omit “or to the consumer credit jurisdiction”;

• (f) omit Part 3A.

Transitional and savings provisions related to article 10

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• (1) This article makes provision in connection with the amendments to the Act made by article 10.

• (2) The amendments to sections 1H and 404E do not apply in so far as those provisions relate to, or apply for the purposes of, anything done under the Act concerning things done (or not done) before 1st April 2014.

• (3) The repeal of section 194(2) to (4) does not affect the continued validity of any requirement imposed under section 194(3).

• (4) The repeal of sections 203 and 204 and Schedule 16 does not affect the continued validity of any prohibition or restriction imposed; and in relation to such a prohibition or restriction, sections 203(6) and (7) and 204(3) and Schedule 16 continue to apply as if each reference to the OFT were a reference to the FCA.

• (5) A complaint made under the ombudsman scheme before 1st April 2014 and being dealt with under section 226A (consumer credit jurisdiction) is to be dealt with under section 226 (compulsory jurisdiction)

• (6) It is immaterial for the purposes of paragraph (5) that the conditions mentioned in section 226(2) are not satisfied.

• (7) A complaint made under the ombudsman scheme on or after 1st April 2014—

• (a) which relates to an act or omission which took place before 1st April 2014,

• (b) which could have been dealt with under the ombudsman scheme under section 226A (disregarding the effect of section 226A(2)(a) and (b)) but for the repeal of that section, and

• (c) in relation to which the condition mentioned in section 226(2)(a) is satisfied,

is to be dealt with under the ombudsman scheme under section 226 (compulsory jurisdiction).

• (8) It is immaterial for the purposes of paragraph (7) that the conditions mentioned in section 226(2)(b) and (c) are not satisfied.

• (9) Contributions received by the scheme operator under section 234A (funding by consumer credit licensees etc.) may be used by the scheme operator for the purpose of funding its operation in relation to complaints of the kind referred to in paragraph (5) or (7) and other complaints dealt with under the ombudsman scheme by virtue of section 226.

• (10) The repeal of paragraph 23 of Schedule 3 does not affect the continued validity of anything done under section 55L or 55M.

Obligations of certain credit brokers who are not authorised persons

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• (1) This article applies to a person (“P”) who is within the description in paragraph (1A) or the description in paragraph (1B).

• (1A) A person is within the description in this paragraph if the person—

• (a) is not an authorised person,

• (b) carries on an activity of the kind specified by article 36A(1)(d) to (f) of the Regulated Activities Order (credit broking), and

• (c) is not exempt from the general prohibition in relation to the carrying on of that activity by virtue of section 327(1) of the Act (exemption from the general prohibition for members of a designated professional body).

• (1B) A person is within the description in this paragraph if the person would be carrying on an activity of the kind specified by article 36A(1)(d) to (f) (credit broking) of the Regulated Activities Order but for article 36B(1)(a) (introducing by individuals in the course of canvassing off trade premises), 36F (activities carried on by members of the legal profession etc) or 72G (local authorities) of that Order.

• (2) P must indicate in advertising and documentation intended for borrowers or those who may become a borrower the extent of P's powers, in particular whether P works exclusively for one or more lenders or does not work for any lender.

• (3) P must disclose to the borrower or any person who may become a borrower the fee, if any, payable by the borrower to P for P's services.

• (4) Any fee to be paid by the borrower to P must be agreed between the borrower and P and that agreement must be recorded in writing or other durable medium before the credit agreement is entered into.

• (5) P must disclose to the lender the fee, if any, payable by the borrower to P for P's services for the purpose of enabling the lender to calculate the annual percentage rate of charge in relation to the credit agreement.

• (6) In this article, “borrower” and “lender” have the meanings given by Article 60L of the Regulated Activities Order.

• (7) A contravention by P of a provision of this article is actionable at the suit of a private person who suffers loss as a result of the contravention, subject to the defences and other incidents applying to actions for breach of statutory duties.

• (8) “Private person” has the meaning prescribed for the purposes of section 138D of the Act (action for damages) .

• (9) Sections 165 (regulator's power to require information: authorised persons etc.) and 167 (appointment of persons to carry out general investigations) apply as if each reference to an authorised person (except in section 165(11) and 167(2)) included a reference to a person who falls within paragraph (1).

• (10) Part 14 of the Act (disciplinary measures) applies to the requirements imposed by this article as if each reference to an authorised person included a reference to a person who, at the time of the contravention of the requirement, fell within paragraph (1).

PART 4 — Amendments of secondary legislation made under the Act

The Financial Services and Markets Act 2000 (Carrying on Regulated Activities By Way of Business) Order 2001

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In the Financial Services and Markets Act 2000 (Carrying on Regulated Activities By Way of Business) Order 2001 , after article 3D (arranging and advising on regulated sale and rent back agreements), insert—

(3E) (1) A not-for-profit body which carries on an activity of the kind specified by article 39D (debt adjusting), 39E (debt-counselling) or 89A (providing credit information services) of the Regulated Activities Order or article 64 of that Order (agreeing to carry on specified kinds of activity) so far as relevant to any of those activities is to be regarded as carrying on that activity by way of business if the activities being carried on by that body consist of, or relate to, that activity. (2) Paragraph (1) does not apply if the body carries on that activity only on an occasional basis. (3) It is immaterial for the purposes of paragraph (1) if the activities being carried on by the body also consist of, or relates to, other activities. (4) In this article, a “not-for-profit body” means a body which, by virtue of its constitution or any enactment— (a) is required (after payment of outgoings) to apply the whole of its income and any capital it expends for charitable or public purposes, and (b) is prohibited from directly or indirectly distributing amongst its members any part of its assets (otherwise than for charitable or public purposes).

The Financial Services and Markets Act 2000 (Exemption) Order 2001

14

• (1) The Financial Services and Markets Act 2000 (Exemption) Order 2001 is amended as follows.

• (2) In paragraph 40(1) of the Schedule (enterprise schemes) , for “article 25 of the Regulated Activities Order (arranging deals in investments)” substitute “ articles 25, 36A, 39D, 39E and 89A of the Regulated Activities Order (arranging deals in investments, credit broking, debt adjusting, debt-counselling and providing credit information services) ”.

• (3) In paragraph 47 of the Schedule (local authorities) —

• (a) at the end of paragraph (d), omit “or”;

• (b) at the end of paragraph (e), insert—

(f) article 36A or 60B of that Order (credit broking or entering into a regulated credit agreement) in so far as the credit agreement (within the meaning of that Order) is secured on land; or (g) article 39D, 39E, 39F, 39G, 60N or 89A of that Order (activities in relation to debt, regulated consumer hire agreements and providing credit information services).

• (4) After paragraph 51 of the Schedule (policyholder advocates) insert—

(52) is exempt from the general prohibition in respect of any regulated activity of the kind specified by any of articles 39D to 39G (activities in relation to debt) or 89A (providing credit information services) of the Regulated Activities Order. (1) A person acting as— (a) an insolvency practitioner, (b) an official receiver within the meaning of section 399 of the Insolvency Act 1986 or article 2 of the Insolvency (Northern Ireland) Order 1989 , or (c) a judicial factor, (2) A person acting in reasonable contemplation of appointment as an insolvency practitioner is exempt from the general prohibition in respect of any regulated activity of the kind specified by article 39D (debt adjusting), 39E (debt-counselling) or 89A (providing credit information services) of that Order. (3) In this paragraph, “acting as an insolvency practitioner” is to be read with section 388 of the Insolvency Act 1986 or article 3 of the Insolvency (Northern Ireland) Order 1989. (53) (1) An employer who provides or makes available to their employees a cycle or cyclist's safety equipment up to the value of £1,000 under a relevant employee benefit scheme is exempt from the general prohibition in respect of any regulated activity of the kind specified by article 60N of the Regulated Activities Order (regulated consumer hire agreements). (2) For the purposes of this paragraph— - “cycle” has the meaning given by section 192(1) of the Road Traffic Act 1988 (general interpretation); - “relevant employee benefit scheme” means a scheme operated by an employer which is designed to allow employees to take advantage of section 244 of the Income Tax (Earnings and Pensions) Act 2003 (no liability to income tax in relation to cycles and cyclist's safety equipment) and under which cycles or cyclist's safety equipment are made available in the manner described in any guidance issued by the Secretary of State. (54) (1) A person who takes steps to ascertain the identity or location (or the means of ascertaining the identity or location) of a borrower or hirer is exempt from the general prohibition in respect of any regulated activity of the kind specified by article 39F of the Regulated Activities Order (debt-collecting) so long as the person is not the lender under the agreement concerned or the owner under the consumer hire agreement concerned and takes no other steps to procure the payment of debts due under the agreement. (2) In this article, “borrower”, “hirer” “lender” and “owner” have the meanings given by the Regulated Activities Order.

The Financial Services and Markets Act 2000 (Appointed Representatives) Regulations 2001

15

• (1) The Financial Services and Markets Act 2000 (Appointed Representatives) Regulations 2001 are amended as follows.

• (2) In regulation 2(1) (descriptions of business for which appointed representatives are exempt) —

• (a) after sub-paragraph (abb) insert—

(abc) an activity of the kind specified by article 36A of that Order (credit broking);

• (b) after sub-paragraph (ac) insert—

(ad) an activity of the kind specified by article 39D of that Order (debt adjusting); (ae) an activity of the kind specified by article 39E of that Order (debt-counselling); (af) an activity of the kind specified by article 39F of that Order (debt-collecting); (ag) an activity of the kind specified by article 39G of that Order (debt administration);

• (c) at the end of sub-paragraph (cc), omit “or” and insert—

(cd) an activity of the kind specified by article 60B of that Order (regulated credit agreements) when carried on in relation to a credit agreement (within the meaning of that Order) under which the credit is provided free of interest and without any other charges; (ce) an activity of the kind specified by article 60N of that Order (regulated consumer hire agreements);

• (d) in paragraph (d)—

• (i) after “(abb),”, insert “ (abc), ”;

• (ii) after “(ac),” insert “ (ad), (ae), (af), (ag), ”;

• (iii) for “or (cc)” substitute “ , (cc), (cd) or (ce) ”;

• (e) at the end of sub-paragraph (d) insert—

or (e) an activity of the kind specified by article 89A of that Order (providing credit information services);

• (3) In regulation 3 (requirements applying to contracts between authorised persons and appointed representatives) , after paragraph (3B) insert—

(3C) A representative is also to be treated as representing other counterparties for the purposes of paragraph (1) where the representative effects introductions (in circumstances constituting the carrying on of an activity of the kind specified by article 36A of that Order) of individuals or relevant recipients of credit (within the meaning of that Order) to other counterparties. (3D) A representative is also to be treated as representing other counterparties for the purposes of paragraph (1) where the representative takes steps (in circumstances constituting the carrying on of an activity of the kind specified by article 39D of that Order) on behalf of other counterparties. (3E) A representative is also to be treated as representing other counterparties for the purposes of paragraph (1) where the representative gives advice to a borrower (in circumstances constituting the carrying on of an activity of the kind specified by article 39E or 89A of that Order) about the liquidation of a debt due under a credit agreement or consumer hire agreement (in each case, within the meaning of that Order) on behalf of other counterparties. (3F) A representative is also to be treated as representing other counterparties for the purposes of paragraph (1) where the representative takes steps (in circumstances constituting the carrying on of an activity of the kind specified by article 39F of that Order) to procure the payment of debts on behalf of other counterparties. (3G) A representative is also to be treated as representing other counterparties for the purposes of paragraph (1) where the representative performs duties (in circumstances constituting the carrying on of an activity of the kind specified by article 39G of that Order) under, or exercises or enforces rights under, an agreement on behalf of other counterparties. (3H) A representative is also to be treated as representing other counterparties for the purposes of paragraph (1) where the representative enters into regulated credit agreements or exercises or has the right to exercise the lender's rights and duties under such agreements (in circumstances constituting the carrying on of an activity of the kind specified by article 60B of that Order) on behalf of other counterparties (3I) A representative is also to be treated as representing other counterparties for the purposes of paragraph (1) where the representative enters into regulated consumer hire agreements or exercises or has the right to exercise the owner's rights and duties under such agreements (in circumstances constituting the carrying on of an activity of the kind specified by article 60N of that Order) on behalf of other counterparties.

The Financial Services and Markets Act 2000 (Rights of Action) Regulations 2001

16

In regulation 3(1) of the Financial Services and Markets Act 2000 (Rights of Action) Regulations 2001 (private person) —

• (a) at the end of sub-paragraph (a), omit “and”;

• (b) at the end of sub-paragraph (b) insert—

(c) a relevant recipient of credit (within the meaning of the Regulated Activities Order) who is not an individual and who has suffered the loss in question in connection with an activity of the kind specified by article 36A, 39D, 39E, 39F, 39G, 60B, 60N, 89A or 89B of that Order or article 64 of that Order so far as relevant to any of those activities, and (d) a person who is, by virtue of article 36J of that Order, to be regarded as a person who uses, may use, has or may have used or has or may have contemplated using, services provided by authorised persons in carrying on a regulated activity of the kind specified by article 36H of that Order or article 64 of that Order so far as relevant to that activity,

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

17

• (1) The Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 is amended as follows.

• (2) In article 28B (real time communications: introductions) , in paragraph (1)(a)—

• (a) after “paragraph” insert “ 4B, 4C, 5A, 5B, ”;

• (b) after “10B,”, insert “ 10BA, 10BB, ”.

• (3) In article 30(2) (overseas communications: solicited real time communications), in the definition of “relevant investment activities”, after “10 to 10B” insert “ , 10BA or 10BB ”.

• (4) In article 46 (qualifying credit to bodies corporate), for “or 10B” substitute “ 10B, 10BA or 10BB ”.

• (5) After article 46, insert—

(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; (c) “relevant credit agreement” has the meaning given in paragraph 28 of Schedule 1.

• (6) In Schedule 1 (controlled activities and controlled investments)—

• (a) after paragraph 4A (operating a multilateral trading facility) , insert—

(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 by way of business; (b) effecting an introduction of an individual or relevant recipient of credit to a person who enters into as lender regulated consumer hire agreements by way of business; (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 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; (f) entering into a relevant credit agreement on behalf of a lender. (2) For the purposes of paragraph (1) it is immaterial whether the relevant credit agreement or regulated consumer hire agreement is subject to the law of a country outside the United Kingdom. (4C) (1) Where the condition in paragraph (2) is 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 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). (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 paragraph (1)— (a) presenting or offering paragraph 4C agreements to B and C with a view to B becoming the lender under the paragraph 4C agreement and 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, (c) taking steps to procure the payment of a debt due under a paragraph 4C agreement, (d) performing duties, or exercising or enforcing rights under a paragraph 4C agreement on behalf of the lender, (e) 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) ascertaining the contents of such information, (g) securing the correction of, the omission of anything from, or the making of any other kind of modification of, such information, or (h) 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. (4) A “paragraph 4C agreement” is an agreement between one person (“the borrower”) and another person (“the lender”) by which the lender provides the borrower with credit and in relation to which either the condition in paragraph (5) or (6) is satisfied. (5) The condition in this paragraph is that the lender is an individual or relevant person. (6) The condition in this 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, “relevant person” means— (a) a partnership consisting of two or three persons not all of whom are bodies corporate, or (b) an unincorporated body of persons which does not consist entirely of bodies corporate and is not a partnership.

• (b) after paragraph 5 (managing investments), insert—

(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; (c) any similar activity concerned with the liquidation of 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; (c) any similar activity concerned with the liquidation of a debt. (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.

• (c) after paragraph 10B (advising on qualifying credit etc.) , insert—

(10BA) Entering into a relevant credit agreement as lender, or exercising or having the rights to exercise the rights of the lender under such an agreement, is a controlled activity. (10BB) Entering into a regulated consumer hire agreement as owner or exercising or having the right to exercise the rights of the owner under such an agreement is a controlled activity.

• (d) after paragraph 26C , insert—

(26D) Rights under a relevant credit agreement (26E) Rights under a consumer hire agreement

• (e) in paragraph 28 (interpretation) , insert in the appropriate place the following definitions—

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

• “consumer hire agreement” has the meaning given by article 60N of the Regulated Activities Order;

• “hirer” has the meaning given by article 60N of the Regulated Activities Order;

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

• “regulated consumer hire agreement” has the meaning given by article 60N of the Regulated Activities Order;

• “relevant credit agreement” means a credit agreement (within the meaning given by article 60B of the Regulated Activities Order) other than a regulated mortgage contract (within the meaning of that Order);

• “regulated credit agreement” has the meaning given by article 60B of the Regulated Activities Order;

• “relevant recipient of credit” has the meaning given by article 60L of the Regulated Activities Order.

The Financial Services and Markets Act 2000 (Ombudsman Scheme) (Consumer Credit Jurisdiction) Order 2007

18

The Financial Services and Markets Act 2000 (Ombudsman Scheme) (Consumer Credit Jurisdiction) Order 2007 is revoked.

The Financial Services and Markets Act 2000 (Controllers) (Exemption) Order 2009

19

In the Financial Services and Markets Act 2000 (Controllers) (Exemption) Order 2009 , after article 6 (specific exemptions in respect of friendly societies), insert—

(6A) (1) This article provides exemptions from the obligations in sections 178 and 191D of the Act in relation to a person (“A”) who decides to acquire, increase, reduce or cease to have control over a UK authorised person (“B”) who— (a) carries on regulated activities which are relevant credit activities, and (b) does not carry on any other regulated activities. (2) Where A decides to acquire or increase control over B, A is exempt from the obligation imposed by section 178 unless giving effect to the decision would result in A beginning to be in the position of holding— (a) 33% or more of the shares in B or in a parent undertaking of B (“P”), (b) 33% or more of the voting power in B or P, or (c) shares or voting power in B or P as a result of which A is able to exercise significant influence over the management of B. (3) Where A decides to reduce or cease to have control over B, A is exempt from the obligation imposed by section 191D unless giving effect to the decision would result in A ceasing to be in the position of holding— (a) 33% or more of the shares in B or in a parent undertaking of B (“P”), (b) 33% or more of the voting power in B or P, or (c) shares or voting power in B or P as a result of which A is able to exercise significant influence over the management of B. (4) For the purposes of this article, each of the following is a “relevant credit activity”— (a) an activity of the kind specified by article 36A of the Regulated Activities Order (credit broking) when carried on in the case specified in paragraph (6), (7) or (8), (b) an activity of the kind specified by article 39D of that Order (debt adjusting) when carried on— (i) in the case specified in paragraph (6), by a person who also carries on an activity of the kind specified by sub-paragraph (a), (ii) by a person who also carries on an activity of the kind specified by sub-paragraph (d) or (e), or (iii) by a not-for-profit body, (c) an activity of the kind specified by article 39E of that Order (debt-counselling) when carried on— (i) in the case specified in paragraph (6), by a person who also carries on an activity of the kind specified by sub-paragraph (a), (ii) by a person who also carries on an activity of the kind specified by sub-paragraph (d) or (e), or (iii) by a not-for-profit body, (d) an activity of the kind specified by article 60B of that Order (regulated credit agreements) if— (i) it is carried on by a supplier, (ii) no charge (by way of interest or otherwise) is payable by the borrower in connection with the provision of credit under the regulated credit agreement, and (iii) the regulated credit agreement is not a hire-purchase agreement or a conditional sale agreement, (e) an activity of the kind specified by article 60N of that Order (regulated consumer hire agreements), (f) an activity of the kind specified by article 89A of that Order (providing credit information services) where carried on by a person who also carries on an activity of the kind specified by any of sub-paragraphs (a) to (e), or (g) an activity of the kind specified by article 64 of that Order (agreeing to carry on specified activities) so far as relevant to any activity of the kind specified by sub-paragraphs (a) to (f). (5) But an activity is not a relevant credit activity for the purposes of— (a) sub-paragraphs (a) to (e) of paragraph (4), and (b) sub-paragraph (g) of that paragraph so far at it relates to activities of the kind specified by any of those sub-paragraphs, if it relates to an agreement under which the obligation of the borrower to repay is secured, or is to be secured, by a legal mortgage on land. (6) The case specified in this paragraph is where a supplier (other than a domestic premises supplier) carries on the activity for the purposes of, or in connection with, the sale of goods or supply of services by the supplier to a customer (who need not be the borrower under the credit agreement or the hirer under the consumer hire agreement). (7) The case specified in this paragraph is where the activity relates to a green deal plan. (8) The case specified in this paragraph is where activity relates to a consumer hire agreement where the good being hired is a vehicle. (9) For the purposes of this regulation— - “borrower” includes— 1. any person providing a guarantee or indemnity under an agreement, and 2. a person to whom the rights and duties of the borrower under an agreement or a person falling within sub-paragraph (a) have passed by assignment or operation of law; - “conditional sale agreement” has the meaning given by article 60L of the Regulated Activities Order; - “customer” means a person to whom a supplier sells goods or supplies services or agrees to do so; - “domestic premises supplier” means a supplier who sells goods or supplies services to customers who are individuals while physically present in the dwelling of the customer or in consequence of an agreement concluded whilst the supplier was physically present in the dwelling of the customer (though a supplier who does so on an occasional basis is not to be treated as a “domestic premises supplier”); - “green deal plan” has the meaning given by section 1 of the Energy Act 2011 ; - “hire-purchase agreement” has the meaning given by the Regulated Activities Order; - “not-for-profit body” means a body which, by virtue of its constitution or any enactment— 1. is required (after payment of outgoings) to apply the whole of its income and any capital it expends for charitable or public purposes, and 2. is prohibited from directly or indirectly distributing amongst its members any part of its assets (otherwise than for charitable or public purposes); - “Regulated Activities Order” means the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001; - “regulated credit agreement” has the meaning given by the Regulated Activities Order; - “supplier” means a person whose main business is to sell goods or supply services and not to carry on a regulated activity, other than an activity of the kind specified by article 60N of the Regulated Activities Order (regulated consumer hire agreements).

PART 5 — Amendments of the Consumer Credit Act 1974 etc.

Amendments of the 1974 Act

20

• (1) The 1974 Act is amended as follows.

• (2) Part 1 (sections 1 to 7) (Office of Fair Trading) is omitted.

• (3) In section 8 (consumer credit agreements) , for subsection (3) substitute—

(3) A consumer credit agreement is a regulated agreement within the meaning of this Act if it is a regulated credit agreement for the purposes of Chapter 14A of Part 2 of the Regulated Activities Order.

• (4) In section 15 (consumer hire agreements) for subsection (2) substitute—

(2) A consumer hire agreement is a regulated agreement with the meaning of this Act if it is a regulated consumer hire agreement for the purposes of Chapter 14B of Part 2 of the Regulated Activities Order.

• (5) Section 16 (exempt agreements) is omitted.

• (6) Section 16A (exemption relating to high net worth debtors and hirers) is omitted.

• (7) Section 16B (exemption relating to businesses) is omitted.

• (8) Section 16C (exemption relating to investment properties) is omitted.

• (9) For section 20 (total charge for credit), substitute—

(20) In this Act, “the total charge for credit” has the meaning given by the Regulated Activities Order for the purposes of Chapter 14A of Part 2 of that Order.

• (10) Part 3 (sections 21 to 41ZB) (licensing of credit and hire business) is omitted .

• (11) Section 43 (advertisements to which Part IV applies) and the heading immediately before it are omitted.

• (12) Section 44 (form and content of advertisements) is omitted.

• (13) Section 45 (prohibition of advertisement where goods etc. not sold for cash) is omitted.

• (14) Section 47 (advertising infringements) is omitted.

• (15) Section 51 (prohibition of unsolicited credit-tokens) is omitted.

• (16) Section 51A (restrictions on provision of credit card cheques) is omitted.

• (17) Section 51B (section 51A: exemption for business) is omitted.

• (18) Section 52 (quotations) and the heading immediately before it are omitted.

• (19) Section 53 (duty to display information) is omitted.

• (20) Section 54 (conduct of business regulations) is omitted.

• (21) Section 55A (pre-contractual explanations etc.) is omitted.

• (22) Section 55B (assessment of creditworthiness) is omitted.

• (23) In section 55C (copy of draft consumer credit agreement), for subsection (5) substitute—

(5) Article 60C(5) and (6) of the Regulated Activities Order applies for the purposes of subsection (4)(d).

• (24) In section 60 (form and content of agreements) , for subsection (6) substitute—

(6) Article 60C(5) and (6) of the Regulated Activities Order applies for the purposes of subsection (5)(d).

• (25) In section 61A (duty to supply copy of executed consumer credit agreement) , for subsection (7) substitute—

(7) Article 60C(5) and (6) of the Regulated Activities Order applies for the purposes of subsection (6)(b)(iii). (8) In this section, “credit intermediary” means a person who in the course of business— (a) carries on any of the activities specified in article 36A(1)(d) to (f) of the Regulated Activities Order for a consideration that is or includes a financial consideration, and (b) does not do so as a creditor.

• (26) In section 74 (exclusion of certain agreements from Part V) —

• (a) in subsection (1B), omit paragraph (a);

• (b) in subsection (1C), omit paragraph (b);

• (c) in subsection (1D), omit paragraphs (b) and (c);

• (d) in subsection (1F), omit paragraphs (b) and (c).

• (27) Part 5A (sections 74A to 74B) (current account overdrafts) is omitted.

• (28) In section 75A (further provision for liability of creditor for breaches by supplier) , for subsection (7) substitute—

(7) Article 60C(5) and (6) of the Regulated Activities Order applies for the purposes of subsection (6)(c).

• (29) In section 77B (fixed-sum credit agreement: statement of account to be provided on request) , for subsection (10) substitute—

(10) Article 60C(5) and (6) of the Regulated Activities Order applies for the purposes of subsection (9)(d).

• (30) Section 81 (appropriation of payments) is omitted.

• (31) In section 82 (variation of agreements) —

• (a) in subsection (2A), omit “as a result of section 16(6C) or 16C”;

• (b) in subsection (3)(b), omit “as a result of section 16(6C) or 16C”;

• (c) in subsection (5A), omit “as a result of section 16(6C) or 16C”;

• (d) after subsection (7) insert—

(8) In this section, an “exempt agreement” means an agreement which is an exempt agreement for the purposes of Chapter 14A of Part 2 of the Regulated Activities Order by virtue of article 60C(2) (regulated mortgage contracts and regulated home purchase plans) or article 60D (exemption relating to the purchase of land for non-residential purposes) of that Order.

• (32) Section 82A (assignment of rights) is omitted.

• (33) In section 93 (interest not to be increased on default), in paragraph (b) for “section 20(2)” substitute “ rules made by the FCA under paragraph (2)(d) of article 60M of the Regulated Activities Order ”.

• (34) Section 112 (realisation of securities) is omitted.

• (35) In section 113 (Act not to be evaded by use of security) , in subsection (3)(c), for “40(2), 65(1), 124(1) or 149(2)” substitute “ 65(1) or 124(1) or a notice under section 28A of the Financial Services and Markets Act 2000 ”.

• (36) In section 114(3) (pawn-receipts) , for “115” substitute “ 117 ”.

• (37) Section 115 (penalty for failure to supply copies of pledge agreement, etc.) is omitted.

• (38) For section 126 (enforcement of land mortgages) substitute—

(1) A land mortgage securing an agreement of one the following types is enforceable (so far as is provided in relation to the agreement) on an order of the court only— (a) a regulated agreement; (b) a regulated mortgage contract; (c) a consumer credit agreement which would, but for article 60D of the Regulated Activities Order (exempt agreements: exemption relating to the purchase of land for non-residential purposes), be a regulated agreement. (2) Subject to section 140A(5) (unfair relationships between creditors and debtors), a regulated mortgage contract which would, but for article 60C(2) of the Regulated Activities Order (exempt agreements: exemption relating to the nature of the agreement), be a regulated agreement is to be treated for the purposes of Part 9 (judicial control) as if it were a regulated agreement. (3) In this section, “regulated mortgage contract” has the meaning given by article 61(3) of the Regulated Activities Order (regulated mortgage contracts)).

• (39) In section 140A(5) (unfair relationships between creditors and debtors) , for “by virtue of section 16(6C)” substitute “ for the purposes of Chapter 14A of Part 2 of the Regulated Activities Order by virtue of article 60C(2) of that Order (regulated mortgage contracts and regulated home purchase plans) ”.

• (40) Section 140D (advice and information) is omitted.

• (41) In section 145 (types of ancillary credit business) —

• (a) for subsections (2) to (4) substitute—

(2) “Credit brokerage” means the carrying on of an activity of the kind specified by article 36A(1)(a) to (c) of the Regulated Activities Order (credit broking), disregarding the effect of paragraph (2) of that article.

• (b) for subsection (5), substitute—

(5) “Debt adjusting” means the carrying on of an activity of the kind specified by article 39D of that Order (debt adjusting).

• (c) for subsection (6), substitute—

(6) “Debt-counselling” means the carrying on of an activity of the kind specified by article 39E of that Order (debt-counselling).

• (d) for subsection (7), substitute—

(7) “Debt-collecting” means the carrying on of an activity of the kind specified by article 39F of that Order (debt-collecting).

• (e) for subsection (7A), substitute—

(7A) “Debt administration” means the carrying on of an activity of the kind specified by article 39G of that Order (debt administration), disregarding the effect of paragraph (3) of that article.

• (f) for subsections (7B) to (7D) substitute—

(7B) A person (“P”) provides credit information services if P carries on, by way of business, an activity of the kind specified by article 89A(1) or (2) of that Order (providing credit information services).

• (g) for subsection (8) substitute—

(8) A person (“P”) operates a credit reference agency if P carries on, by way of business, an activity of the kind specified by article 89B of that Order (providing credit references).

• (42) Sections 146 to 152 (including the heading immediately before section 147) are omitted.

• (43) In section 155 (right to recover brokerage fees) —

• (a) in subsection (2)—

• (i) in paragraph (b), for “such as is referred to in section 145(2)(a)(ii)” substitute “ desiring to obtain credit to finance the acquisition or provision of a dwelling occupied or to be occupied by that individual or a relative of that individual ”;

• (ii) for paragraph (c) and the “or” before it, substitute—

(c) a credit agreement which is an exempt agreement for the purposes of Chapter 14A of Part 2 of the Regulated Activities Order, or (d) an agreement which is not a regulated credit agreement or a regulated consumer hire agreement but which would be such an agreement if the law applicable to the agreement were the law of a part of the United Kingdom.

• (b) in subsection (2A)(a), for “section 146(5A)” substitute “ article 36E of the Regulated Activities Order (activities in relation to certain agreements relating to land) ”.

• (44) Section 156 (entry into agreements) and the heading immediately before it are omitted.

• (45) In section 159(5) (correction of wrong information) , for “the specified fee” substitute “ the prescribed fee ”.

• (46) In section 160(4)(c) (alternative procedure for business consumers) , for “the specified fee” substitute “ the prescribed fee ”.

• (47) Section 160A (credit intermediaries) is omitted.

• (48) In section 161 (enforcement authorities) —

• (a) paragraph (a) of subsection (1) is omitted;

• (b) after subsection (1), insert—

(1A) Subsection (1) does not limit any function of the FCA in relation to the enforcement of this Act or regulations made under it.

• (49) In section 162 (powers of entry and inspection) , subsections (5) and (8) are omitted.

• (50) In section 165 (obstruction of authorised officers) , subsection (1A) is omitted.

• (51) In section 167 (penalties), subsection (2) is omitted.

• (52) In section 171 (onus of proof in various proceedings), subsection (3) is omitted.

• (53) In section 173(3) (contracting-out forbidden) , for “OFT” substitute “ FCA ”.

• (54) In section 174A (powers to require provision of information or documents etc) , for subsection (5) substitute—

(5) In this section, “relevant authority” means an enforcement authority or an officer of an enforcement authority.

• (55) In section 180(2) (power to prescribe form etc. of copies), omit “(except section 35)”.

• (56) In section 181 (power to alter monetary limits etc) —

• (a) in subsection (1), omit “16B(1),”, “39A(3),” and “118(1)(b), 120(1)(a),”;

• (b) in subsection (2), omit “16B(1),” and “39A(3),”.

• (57) In section 182 (regulations and orders) , in subsection (1), omit “2(1)(a),”.

• (58) In section 183 (determinations etc. by OFT) , omit subsection (2).

• (59) In section 185 (agreement with more than one debtor or hirer) , omit subsection (1A).

• (60) In section 189 (definitions)—

• (a) in subsection (1)—

• (i) omit the definitions of “advertiser”, “appeal period”, “exempt agreement”, “group licence”, “licence”, “licensed”, “licensee”, “quotation”, “register”, “specified fee”, “standard licence” and “unlicensed”;

• (ii) in the definition of “credit information services”, for “has the meaning given by” substitute “ is to be read in accordance with ”;

• (iii) in the definition of “credit reference agency”, for “has the meaning given by” substitute “ is to be read in accordance with ”;

• (iv) in the definition of “deposit”, omit “(except in section 16(10) and 25(1B)”;

• (v) after the definition of “redemption period” insert—

“Regulated Activities Order” means the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001;

• (vi) for the definition of “regulated agreement” substitute—

“regulated agreement” means a consumer credit agreement which is a regulated agreement (within the meaning of section 8(3)) or a consumer hire agreement which is a regulated agreement (within the meaning of section 15(2));

• (vii) for the definition of “total charge for credit” substitute—

“total charge for credit” has the meaning given by section 20;

• (b) in subsection (1A) , omit “36E(3),”;

• (c) in subsection (2A) , for the words from “subsections (2) to (5)” to the end, substitute “ article 60C(5) and (6) of the Regulated Activities Order applies ”;

• (d) in subsection (5) , omit “or the OFT” in the first place and “or the OFT (as the case may be)”.

• (61) Section 189A (meaning of “consumer credit EEA firm”) is omitted.

• (62) In section 190 (financial provisions) , subsection (2) is omitted.

• (63) In section 191 (special provisions as to Northern Ireland) , subsections (1) and (2) are omitted.

• (64) In Schedule 1 (prosecution and punishment of offences) , in the table, omit the entries for sections 7, 39(1), 39(2), 39(3), 45, 47(1), 51(1), 51A(1), 115, 160A, 167(2) and 174(5).

• (65) In Schedule 2 (examples of use of new terminology)—

• (a) in Part 1, omit the entry for “advertiser”;

• (b) in example 5, for “, according to regulations made under section 20(1), constitutes the total charge for credit” substitute “ constitutes the total charge for credit (within the meaning given by section 20) ”.

• (66) In Schedule 3 (transitional and commencement provisions) —

• (a) omit paragraphs 5 to 7 and the headings immediately before each of those paragraphs;

• (b) omit paragraph 11 and the heading immediately before it;

• (c) omit paragraphs 44, 45 and 46 and the headings immediately before each of those paragraphs.

PART 6 — Amendments to secondary legislation made under the 1974 Act

Revocation of secondary legislation made under the 1974 Act

21

The following subordinate instruments, or the provisions of subordinate instruments, are revoked—

• (a) the Consumer Credit Licensing (Representations) Order 1976 ;

• (b) the Consumer Credit (Termination of Licences) Regulations 1976 ;

• (c) the Consumer Credit (Conduct of Business) (Credit References) Regulations 1977 ;

• (d) the Consumer Credit (Total Charge for Credit) Regulations 1980 ;

• (e) the Consumer Credit (Termination of Licences) (Amendment) Regulations 1981 ;

• (f) the Consumer Credit (Conduct of Business) (Pawn Records) Regulations 1983 ;

• (g) the Consumer Credit (Exempt Advertisements) Order 1985 ;

• (h) the Consumer Credit (Total Charge for Credit and Rebate on Early Settlement) (Amendment) Regulations 1989 ;

• (i) the Consumer Credit (Exempt Agreements) Order 1989 ;

• (j) the Consumer Credit (Exempt Agreements) (Amendment) Order 1989 ;

• (k) the Consumer Credit (Exempt Agreements) (Amendment) (No. 2) Order 1989 ;

• (l) the Consumer Credit (Exempt Agreements) (Amendment) Order 1991 ;

• (m) the Consumer Credit (Exempt Agreements) (Amendment) (No. 2) Order 1991 ;

• (n) the Consumer Credit (Exempt Agreements) (Amendment) (No. 3) Order 1991 ;

• (o) the lLink>Consumer Credit (Exempt Agreements) (Amendment) Order 1993 ;

• (p) the Consumer Credit (Exempt Agreements) (Amendment) (No. 2) Order 1993 ;

• (q) the Consumer Credit (Exempt Agreements) (Amendment) Order 1994 ;

• (r) the Consumer Credit (Exempt Agreements) (Amendment) (No. 2) Order 1995 ;

• (s) the Consumer Credit (Exempt Agreements) (Amendment) Order 1996 ;

• (t) the Consumer Credit (Exempt Agreements) (Amendment) (No. 2) Order 1996 ;

• (u) the Consumer Credit (Quotations) (Revocation) Regulations 1997 ;

• (v) the Consumer Credit (Exempt Agreements) (Amendment) Order 1998 ;

• (w) the Consumer Credit (Exempt Agreements) (Amendment) Order 1999 ;

• (x) the Consumer Credit (Content of Quotations) and Consumer Credit (Advertisements) (Amendment) Regulations 1999 ;

• (y) regulations 3 and 5 of the Consumer Credit (Total Charge for Credit, Agreements and Advertisements) (Amendment) Regulations 1999 ;

• (z) the Consumer Credit (Conduct of Business) (Credit References) (Amendment) Regulations 2000 ;

• (aa) the Consumer Credit (Advertisements and Content of Quotations) (Amendment) Regulations 2000 ;

• (bb) the Consumer Credit (Advertisements) Regulations 2004 ;

• (cc) the Consumer Credit (Exempt Agreements) (Amendment) Order 2006 ;

• (dd) the Consumer Credit (Advertisements) (Amendment) Regulations 2007 ;

• (ee) the Consumer Credit (Exempt Agreements) Order 2007 ;

• (ff) the Consumer Credit (Exempt Agreements) (Amendment) Regulations 2008 ;

• (gg) the Consumer Credit (Total Charge for Credit) Regulations 2010 ;

• (hh) the Consumer Credit (Advertisements) Regulations 2010 ;

• (ii) the Consumer Credit (Total Charge for Credit) (Amendment) Regulations 2012 .

Saving provision related to article 21

22

Articles 1, 3 and 4 of the Consumer Credit Licensing (Representations) Order 1976 continue to apply in so far as section 34 or 34ZA of the 1974 Act continue to have effect by virtue of Part 8; and for that purpose each reference to the Director is to be treated as a reference to the FCA.

The Consumer Credit (Agreements) Regulations 1983

23

• (1) The Consumer Credit (Agreements) Regulations 1983 are amended as follows.

• (2) In regulation 1(2) (interpretation), for the definition of “the Total Charge for Credit Regulations” substitute—

“the total charge for credit rules” means rules made by the Financial Conduct Authority under article 60M of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 for the purposes of Chapter 14A of Part 2 of that Order;

• (3) In every other place where “Total Charge for Credit Regulations” appears, substitute “ total charge for credit rules ”.

• (4) In regulation 8 (application of Regulations), for paragraph (1B), substitute—

(1B) Article 60C(5) and (6) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 applies for the purposes of paragraph (1A)(c).

• (5) In Schedule 1 (information to be contained in documents embodying regulated consumer credit agreements other than modifying agreements)—

• (a) in paragraph 10, in the second column, omit “regulation 6 of”;

• (b) before paragraph 19A, insert the heading “ Land-related agreements ”;

• (c) in paragraph 19A—

• (i) for the entry in the first column, substitute—

Agreements which— (a) are intended primarily to finance the acquisition or retention of land or the renovation or improvement of a building or any other agreement secured by a mortgage on land or, in Scotland, by a standard security within the meaning of the Conveyancing and Feudal Reform (Scotland) Act 1970 , and (b) provide for the possibility of any variation of the rate of interest if it is to be assumed, by virtue of the total charge for credit rules, that the variation will take place but the amount of the variation cannot be ascertained at the date of the making of the agreement.

• (ii) for the entry in the second column, for “regulation 15A(2) of the Total Charge for Credit Regulations 1980” substitute “the total charge for credit rules”.

• (6) In Schedule 7 (provisions relating to the disclosure of the APR)—

• (a) in paragraph 1, omit “regulation 6 of”;

• (b) in paragraphs 2 and 3, omit “the Schedule to”.

• (7) In Schedule 8 (regulated modifying agreements)—

• (a) in paragraph 9, in sub-paragraph (1) of column 2, omit “regulation 6 of”;

• (b) before paragraph 19A, insert the heading “ Land-related agreements ”;

• (c) in paragraph 19A—

• (i) in the entry in the first column, for “regulation 15A of the Total Charge for Credit Regulations 1980” substitute “ paragraph 19A of Schedule 1 ”;

• (ii) for the entry in the second column, for “regulation 15A(2) of the Total Charge for Credit Regulations 1980” substitute “ the total charge for credit rules ”.

The Consumer Credit (Early Settlement) Regulations 2004

24

In regulation 1(2) of the Consumer Credit (Early Settlement) Regulations 2004 (interpretation) —

• (a) for the definition of “the Total Charge for Credit Regulations” substitute—

“the total charge for credit rules” means rules made by the Financial Conduct Authority under article 60M of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 for the purposes of Chapter 14A of Part 2 of that Order;

• (b) in every other place where “Total Charge for Credit Regulations” appears, substitute “ total charge for credit rules ”.

The Consumer Credit (Information Requirements and Duration of Licences and Charges) Regulations 2007

25

In the Consumer Credit (Information Requirements and Duration of Licences and Charges) Regulations 2007 , omit regulation 42 and 43 (duration of licences and charges).

The Consumer Credit (Disclosure of Information) Regulations 2010

26

• (1) The Consumer Credit (Disclosure of Information) Regulations 2010 are amended as follows.

• (2) In every place where “Total Charge for Credit Regulations” appears (other than in the definition of “the Total Charge for Credit Regulations” and in regulation 1(7)), substitute “ total charge for credit rules ”.

• (3) In regulation 1 (citation, commencement interpretation)—

• (a) in paragraph (2), in the definition of “credit intermediary”, for “section 160A” substitute “ section 61A ”;

• (b) in paragraph (2), for the definition of “the Total Charge for Credit Regulations” substitute—

“the total charge for credit rules” means rules made by the Financial Conduct Authority under article 60M of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 for the purposes of Chapter 14A of Part 2 of that Order;

• (c) omit paragraph (7).

• (4) In regulation 2 (agreements to which these Regulations apply), for paragraph (6) substitute—

(6) Article 60C(5) and (6) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 applies for the purposes of paragraph (4)(c).

• (5) In regulation 3(5)(b) (information to be disclosed: agreements other than telephone contracts, non-telephone distance contracts, excluded pawn agreements and overdraft agreements), for “regulation 6(g) of the Consumer Credit (Total Charge for Credit) Regulations 2010” substitute “ the total charge for credit rules ”.

• (6) In regulation 6 (information to be disclosed: distance contracts for the purpose of a business), for paragraph (3) substitute—

(3) Article 60C(5) and (6) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 applies for the purposes of paragraph (1).

• (7) In regulation 7, for paragraph (3) substitute—

(3) Article 60C(5) and (6) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 applies for the purposes of paragraph (1).

• (8) In Schedule 1 (pre-contract credit information)—

• (a) in table 3, omit “regulation 6(g) of”;

• (b) in table 5, for “Office of Fair Trading” substitute “ Financial Conduct Authority ”.

• (9) In Schedule 2 (provisions relating to calculation and disclosure of the total charge for credit and APR)—

• (a) in paragraph 1(a), for “regulation 6(o) of the Consumer Credit (Total Charge for Credit) Regulations 2010” substitute “ the total charge for credit rules ”;

• (b) in paragraphs 3 and 4, for “regulation 5 of the Consumer Credit (Total Charge for Credit) Regulations 2010” substitute “ the total charge for credit rules ”.

• (10) In Schedule 3 (European Consumer Credit Information), in table 5, for “Office of Fair Trading” substitute “ Financial Conduct Authority ”.

The Consumer Credit (Agreements) Regulations 2010

27

• (1) The Consumer Credit (Agreements) Regulations 2010 are amended as follows.

• (2) In every place where “Total Charge for Credit Regulations” appears (other than in the definition of “the Total Charge for Credit Regulations” and in regulation 1(6)), substitute “ total charge for credit rules ”.

• (3) In regulation 1 (citation, commencement interpretation)—

• (a) in paragraph (3), in the definition of “credit intermediary”, for “section 160A” substitute “ section 61A ”;

• (b) in paragraph (3), for the definition of “the Total Charge for Credit Regulations” substitute—

“the total charge for credit rules” means rules made by the Financial Conduct Authority under article 60M of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 for the purposes of Chapter 14A of Part 2 of that Order;

• (c) omit paragraph (6).

• (4) In regulation 2 (agreements to which these regulations apply), for paragraph (6) substitute—

(6) Article 60C(5) and (6) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 applies for the purposes of paragraphs (3)(c) and (5).

• (5) In Schedule 1 (information to be included in regulated consumer credit agreements), in paragraph 33, in the second column, for “Office of Fair Trading” substitute “ Financial Conduct Authority ”.

• (6) In Schedule 4 (provisions relating to calculation and disclosure of the total charge for credit and APR)—

• (a) in paragraph 1(a), for “regulation 6(o) of the Consumer Credit (Total Charge for Credit) Regulations 2010” substitute “ the total charge for credit rules ”;

• (b) in paragraphs 3 and 4, for “regulation 5 of the Consumer Credit (Total Charge for Credit) Regulations 2010” substitute “ the total charge for credit rules ”.

PART 7 — Consequential amendments and transitional provisions

Consequential amendments to other legislation etc.

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The Schedule to this Order contains further consequential amendments and transitional provisions.

PART 8 — Transitional provisions

CHAPTER 1 — Interpretation

Interpretation of Part 8

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In this Part—

• “appeal period”, “debtor”, “hirer”, “licence”, “licensee”, “regulated agreement” and “standard licence” have the meanings given by the 1974 Act (disregarding any repeal of the 1974 Act by this Order);

• “appropriate regulator” means—in relation to a person who is, or is applying to become, a PRA-authorised person, the PRA;in any other case, the FCA.

CHAPTER 2 — Licensing etc.

Meaning of “relevant person” in Chapter 2

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• (1) In this Chapter, “relevant person” means a person who—

• (a) immediately before 1st April 2014 held a licence under the 1974 Act, and

• (b) on 1st April 2014 has a Part 4A permission to carry on a regulated activity by virtue of this Order (regardless of whether the person had permission via other means).

• (2) Paragraph (3) applies where, before 1st April 2014, the OFT—

• (a) had given a notice to a person (“A”) under section 32A(2) of the 1974 Act (suspension of a standard licence) that it is suspending A’s licence, but

• (b) had not determined under section 34ZA of that Act (representations to OFT: suspension under section 32A) whether or not to confirm such a decision.

• (3) For the purposes of article 39 (suspension of licence where determination made before 1st April 2014 but not confirmed), and of paragraph (1) in so far as it defines “relevant person” for the purposes of that article—

• (a) A is to be treated as holding a licence under the 1974 Act immediately before 1st April 2014, and

• (b) section 32A of that Act (power to suspend licence) is to be treated as if subsection (5) did not apply at that time.

• (4) Paragraph (5) applies where, before 1st April 2014—

• (a) the OFT had—

• (i) given a notice to a person (“B”) under section 32A(2) of the 1974 Act that it is suspending B’s licence, and

• (ii) confirmed under section 34ZA of that Act its determination under section 32A of that Act, and

• (b) either—

• (i) B had submitted a notice of appeal to the First-tier Tribunal under section 41 of the 1974 Act (appeals to First-tier Tribunal under Part 3) with respect to that suspension, and the appeal had not been determined, or

• (ii) B had not submitted such a notice of appeal, but the specified period in respect of an appeal against the suspension had not expired.

• (5) For the purposes of article 40 (suspension of licence where determination made before 1st April 2014 and confirmed), and of paragraph (1) in so far as it defines “relevant person” for the purposes of that article—

• (a) B is to be treated as holding a licence under the 1974 Act immediately before 1st April 2014, and

• (b) section 32A of that Act (power to suspend licence) is to be treated as if subsection (5) did not apply at that time.

• (6) In this article, “specified period” has the meaning given in section 41 of the 1974 Act.

Applications for a standard licence where no determination made before 1st April 2014

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• (1) Paragraphs (3) to (9) apply if, before 1st April 2014—

• (a) the OFT received an application under section 24A of the 1974 Act (applications for standard licences) for a standard licence,

• (b) the applicant (“A”) had not withdrawn the application, and

• (c) the OFT had not determined whether to issue a licence in accordance with the application.

• (2) It is immaterial for the purposes of this article whether the OFT had, before 1st April 2014, given notice to A under section 27 of the 1974 Act (determination of applications) that the OFT was minded to refuse A's application.

• (3) The application is to be treated as if it had been made to the appropriate regulator—

• (a) if A is an authorised person, and the appropriate regulator is the PRA, under section 55I of the Act (variation by PRA at request of authorised person) ;

• (b) if A is not an authorised person, under section 55A of the Act (application for permission) ;

• (c) if A is an authorised person and the appropriate regulator is the FCA, under section 55H of the Act (variation by the FCA at request of authorised person) .