Article 60F RAO exemption
What this means for your business
2
obligations
1
penalties
1
guides
- Applies to
- United Kingdom
- On this page
- 2 compliance obligations, 1 practical guide
What you must do
2 compliance obligations under this legislation.
Offences and prohibitions 1
Make false claim of being a certified person
Unlimited fineIf you (or your business) claim to be a certified person when you are not, or act in a way that leads others to think you are certified, you commit an offence. The offence is the same as the one for false claims to be authorised or exempt under section 24 of the Act. Conviction can lead to a fine (potentially unlimited) and/or imprisonment, depending on how the court decides to proceed.
Reporting and filing 1
Notify FCA of members carrying out exempt insurance distribution activities
If your professional body has members who are selling or distributing insurance without the normal FCA permission, you must write to the FCA and give them that members’ details (name, address, and, for non‑individual members, the people who run the business). Keep the data up to date and inform FCA when a member stops providing such services.
Penalties for non-compliance
1 penalty under this legislation. 1 carry an unlimited fine.
Unlimited fine
Make false claim of being a certified person
Unlimited fine
Practical guidance
Our guides explain how to comply with the requirements above.
Sections and provisions
235 classified provisions from this legislation.
Duties 3
Offences and penalties 1
Powers 6
- s.35 International securities self-regulating organisations
- s.95 Exclusion from record where not fit and proper to carry on insurance distribution activities
- Obtaining information from certified persons etc. Obtaining information from certified persons etc.
- Revocation of certificate on FCA ’s own initiative Revocation of certificate on FCA ’s own initiative
- Rules prohibiting the issue of electronic money at Rules prohibiting the issue of electronic money at a discount
- Total charge for credit Total charge for credit
Definitions 65
- s.3 Interpretation in relation to a person means— his spouse or civil partner;his children and step children, his parents and step-parents, his brothers and sisters and his step-brothers and step-sisters; andthe spouse or civil partner of any person within sub-paragraph (b); - “the Commission Regulation” means Commission Delegated Regulation of 25.4.2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council as regards organisational requirements and operating conditions for investment firms and defined terms for the purposes of that Directive ; - “consumer hire agreement” has the meaning given by article 60N; - “contract of general insurance means any contract of insurance which is a contract of long-term insurance or a contract of general insurance, and includes— fidelity bonds, performance bonds, administration bonds, bail bonds, customs bonds or similar contracts of guarantee, where these are—effected or carried out by a person not carrying on a banking business;not effected merely incidentally to some other business carried on by the person effecting them; andeffected in return for the payment of one or more premiums;tontines;capital redemption contracts or pension fund management contracts, where these are effected or carried out by a person who—does not carry on a banking business; andotherwise carries on a regulated activity of the kind specified by article 10(1) or (2);contracts to pay annuities on human life;contracts of a kind referred to in Article 2(3)(b)(v) of the Solvency 2 Directive; and contracts relating to the length of human life that are regulated by or under any enactment relating to social security, in so far as they are effected or carried out at their own risk by undertakings with permission to effect or carry out contracts of long-term insurance as principals; but does not include a funeral plan contract ...; - “contract of long-term insurance includes any record whether or not in the form of a document; - “investment firm” means a person whose regular occupation or business is the provision or performance of investment services and activities on a professional basis, other than— a person excluded by Schedule 3, read with the Commission Regulation and with Commission Delegated Regulation (EU) 2017/592 of 1 December 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council with regard to regulatory technical standards for the criteria to establish when an activity is considered to be ancillary to the main business;a person whose home State is not the United Kingdom and who would be excluded by Schedule 3, read with the Commission Regulation and with Commission Delegated Regulation (EU) 2017/592, if the person's registered office (or head office, in the case of a person that is not a body corporate or a person that is a body corporate but has no registered office) was in the United Kingdom; - ... - “joint enterprise
- Schedule 7 ADDITIONAL ACTIVITIES INCLUDED IN THE ACTIVITY OF MANAGING AN AIF LISTED IN PARAGRAPH 2 OF ANNEX I TO THE ALTERNATIVE INVESTMENT FUND MANAGERS DIRECTIVE
- Schedule 8 PERSONS EXCLUDED FROM REGULATED ACTIVITY OF MANAGING AN AIF parent undertaking subsidiary
- s.12 Breakdown insurance ) are exclusively or primarily benefits in kind in the event of accident to or breakdown of a vehicle; and b) contains the terms mentioned in paragraph (2). 2) Those terms are that— a) the assistance takes either or both of the forms mentioned in paragraph (3)(a) and (b); b) the assistance is not available outside the United Kingdom and the Republic of Ireland except where it is provided without the payment of additional premium by a person in the country concerned with whom the provider has entered into a reciprocal agreement; and c) assistance provided in the case of an accident or breakdown occurring in the United Kingdom or the Republic of Ireland is, in most circumstances, provided by the provider’s servants. 3) The forms of assistance are— a) repairs to the relevant vehicle at the place where the accident or breakdown has occurred; this assistance may also include the delivery of parts, fuel, oil, water or keys to the relevant vehicle; b) removal of the relevant vehicle to the nearest or most appropriate place at which repairs may be carried out, or to— i) the home, point of departure or original destination within the United Kingdom of the driver and passengers, provided the accident or breakdown occurred within the United Kingdom; ii) the home, point of departure or original destination within the Republic of Ireland of the driver and passengers, provided the accident or breakdown occurred within the Republic of Ireland or within Northern Ireland; iii) the home, point of departure or original destination within Northern Ireland of the driver and passengers, provided the accident or breakdown occurred within the Republic of Ireland; and this form of assistance may include the conveyance of the driver or passengers of the relevant vehicle, with the vehicle, or (where the vehicle is to be conveyed only to the nearest or most appropriate place at which repairs may be carried out) separately, to the nearest location from which they may continue their journey by other means. 4) A contract does not fail to meet the condition in paragraph (1)(a) solely because the provider may reimburse the person entitled to the assistance for all or part of any sums paid by him in respect of assistance either because he failed to identify himself as a person entitled to the assistance or because he was unable to get in touch with the provider in order to claim the assistance. 5) In this article— - “the assistance means an event— which causes the driver of the relevant vehicle to be unable to start a journey in the vehicle or involuntarily to bring the vehicle to a halt on a journey because of some malfunction of the vehicle or failure of it to function, andafter which the journey cannot reasonably be commenced or continued in the relevant vehicle; - “the relevant vehicle
- s.15 Absence of holding out etc. ) does not carry on an activity of the kind specified by article 14 by entering into a transaction which relates to a security or is the assignment (or, in Scotland, the assignation) of a qualifying contract of insurance (or an investment of the kind specified by article 89, so far as relevant to such a contract), unless— a) A holds himself out as willing, as principal, to buy, sell or subscribe for investments of the kind to which the transaction relates at prices determined by him generally and continuously rather than in respect of each particular transaction; b) A holds himself out as engaging in the business of buying investments of the kind to which the transaction relates, with a view to selling them; c) A holds himself out as engaging in the business of underwriting investments of the kind to which the transaction relates; or d) A regularly solicits members of the public with the purpose of inducing them, as principals or agents, to enter into transactions constituting activities of the kind specified by article 14, and the transaction is entered into as a result of his having solicited members of the public in that manner. 2) In paragraph (1)(d), “members of the public
- s.19 Risk management ) if— a) the transaction relates to investments of the kind specified by any of articles 83 to 85 (or article 89 so far as relevant to any of those articles); b) neither B nor C is an individual; c) the sole or main purpose for which B enters into the transaction (either by itself or in combination with other such transactions) is that of limiting the extent to which a relevant business will be affected by any identifiable risk arising otherwise than as a result of the carrying on of a regulated activity; and d) the relevant business consists mainly of activities other than— i) regulated activities; or ii) activities which would be regulated activities but for any exclusion made by this Part. 2) In paragraph (1), “relevant business
- s.23 Risk management ) if— a) the transaction relates to investments of the kind specified by any of articles 83 to 85 (or article 89 so far as relevant to any of those articles); b) neither B nor C is an individual; c) the sole or main purpose for which B enters into the transaction (either by itself or in combination with other such transactions) is that of limiting the extent to which a relevant business will be affected by any identifiable risk arising otherwise than as a result of the carrying on of a regulated activity; and d) the relevant business consists mainly of activities other than— i) regulated activities; or ii) activities which would be regulated activities but for any exclusion made by this Part. 2) In paragraph (1), “relevant person
- s.30 Arranging transactions in connection with lending on the security of insurance policies means a person who is— a money-lending company within the meaning of section 209 of the Companies Act 2006;a body corporate incorporated under the law of, or of any part of, the United Kingdom relating to building societies; ora person whose ordinary business includes the making of loans or the giving of guarantees in connection with loans; - “relevant authorised person
- s.37 Managing investments
- s.40 Safeguarding and administering investments
- s.42 Introduction to qualifying custodians ) to a qualifying custodian with a view to the qualifying custodian providing in the United Kingdom a service comprising an activity of the kind specified by article 40, where the qualifying person (or other person who is to safeguard and administer the assets in question) is not connected with P. 2) For the purposes of paragraph (1)— a) “qualifying custodian
- s.45 Sending dematerialised instructions the 2001 Regulations
- s.48 Instructions in connection with takeover offers means, in the case of a takeover offer made by two or more persons jointly, the joint offers or any of them; b) “takeover offer
- s.59 Funeral plan contracts
- s.61 Regulated mortgage contracts
- s.66 Trustees, nominees and personal representatives X") does not carry on an activity of the kind specified by article 14 where he enters into a transaction as bare trustee or, in Scotland, as nominee for another person (“Y") and— a) X is acting on Y’s instructions; and b) X does not hold himself out as providing a service of buying and selling securities or contractually based investments. 2) Subject to paragraph (7), there are excluded from articles 25(1) and (2) , 25A(1), (2) and (2A) , 25B(1) and (2) , 25C(1) and (2) and 25E (1) and (2) arrangements made by a person acting as trustee or personal representative for or with a view to a transaction which is or is to be entered into— a) by that person and a fellow trustee or personal representative (acting in their capacity as such); or b) by a beneficiary under the trust, will or intestacy. 3) Subject to paragraph (7), there is excluded from article 37 any activity carried on by a person acting as trustee or personal representative, unless— a) he holds himself out as providing a service comprising an activity of the kind specified by article 37; or b) the assets in question are held for the purposes of an occupational pension scheme, and, by virtue of article 4 of the Financial Services and Markets Act 2000 (Carrying on Regulated Activities by Way of Business) Order 2001 , he is to be treated as carrying on that activity by way of business. 3A) Subject to paragraph (7), there is excluded from article 39A any activity carried on by a person acting as trustee or personal representative, unless he holds himself out as providing a service comprising an activity of the kind specified by article 39A. 4) Subject to paragraph (7), there is excluded from article 40 any activity carried on by a person acting as trustee or personal representative, unless he holds himself out as providing a service comprising an activity of the kind specified by article 40. 4A) There is excluded from article 40 any activity carried on by a person acting as trustee which consists of arranging for one or more other persons to safeguard and administer trust assets where— a) that other person is a qualifying custodian; or b) that safeguarding and administration is also arranged by a qualifying custodian. - In this paragraph, “qualifying custodian
- s.68 Activities carried on in connection with the sale of goods or supply of services means a person whose main business is to sell goods or supply services and not to carry on any activities of the kind specified by any of articles 14, 21, 25, 37 , 39A , 40, 45, 51ZA, 51ZB, 51ZC, 51ZD, 51ZE , 52 and 53 and, where the supplier is a member of a group, also means any other member of that group; and - “customer means a sale of goods or supply of services to the customer otherwise than by the supplier, but for or in connection with the same purpose as the sale or supply mentioned above. 2) There is excluded from article 14 any transaction entered into by a supplier with a customer, if the transaction is entered into for the purposes of or in connection with the sale of goods or supply of services, or a related sale or supply. 3) There is excluded from article 21 any transaction entered into by a supplier as agent for a customer , if the transaction is entered into for the purposes of or in connection with the sale of goods or supply of services, or a related sale or supply, and provided that— a) where the investment to which the transaction relates is a security, the supplier does not hold himself out (other than to the customer) as engaging in the business of buying securities of the kind to which the transaction relates with a view to selling them, and does not regularly solicit members of the public for the purpose of inducing them (as principals or agents) to buy, sell, subscribe for or underwrite securities; b) where the investment to which the transaction relates is a contractually based investment, the supplier enters into the transaction— i) with or through an authorised person, or an exempt person acting in the course of a business comprising a regulated activity in relation to which he is exempt; or ii) through an office outside the United Kingdom maintained by a party to the transaction, and with or through a person whose head office is situated outside the United Kingdom and whose ordinary business involves him in carrying on activities of the kind specified by any of articles 14, 21, 25, 37, 40, 45, 51ZA, 51ZB, 51ZC, 51ZD, 51ZE , 52 and 53 or, so far as relevant to any of those articles, article 64, or would do so apart from any exclusion from any of those articles made by this Order. 4) In paragraph (3)(a), “members of the public
- s.71 Activities carried on in connection with employee share schemes include— i) any investment of the kind specified by article 76 , 77 or 77A ; ii) any investment of the kind specified by article 79 or 80 so far as relevant to articles 76 , 77 and 77A ; and iii) any investment of the kind specified by article 89 so far as relevant to investments of the kind mentioned in paragraph (i) or (ii); b) “relevant trustee
- s.72 Overseas persons ), other than with or through an authorised person or such an exempt person, unless— i) either X or Y is in the United Kingdom; and ii) the transaction is the result of an approach (other than a legitimate approach) made by or on behalf of, or to, whichever of X or Y is in the United Kingdom. 3) There are excluded from article 25(1) , 25D or 25DA arrangements made by an overseas person with an authorised person, or an exempt person acting in the course of a business comprising a regulated activity in relation to which he is exempt. 4) There are excluded from article 25(2) , 25D or 25DA arrangements made by an overseas person with a view to transactions which are, as respects transactions in the United Kingdom, confined to— a) transactions entered into by authorised persons as principal or agent; and b) transactions entered into by exempt persons, as principal or agent, in the course of business comprising regulated activities in relation to which they are exempt. 5) There is excluded from article 53 the giving of advice by an overseas person as a result of a legitimate approach. 5A) An overseas person does not carry on an activity of the kind specified by article 25A(1)(a), 25A(2A), 25B(1)(a) , 25C(1)(a) or 25E(1)(a) if each person who may be contemplating entering into the relevant type of agreement in the relevant capacity is non-resident. 5B) There are excluded from articles 25A(1)(b), 25B(1)(b) , 25C(1)(b) and 25E(1)(b) arrangements made by an overseas person to vary the terms of a qualifying agreement. 5C) There are excluded from articles 25A(2), 25B(2) , 25C(2) and 25E(2) , arrangements made by an overseas person which are made solely with a view to non-resident persons who participate in those arrangements entering, in the relevant capacity, into the relevant type of agreement. 5D) An overseas person does not carry on an activity of the kind specified in article 61(1), 63B(1) , 63F(1) or 63J(1) by entering into a qualifying agreement. 5E) An overseas person does not carry on an activity of the kind specified in article 61(2), 63B(2) , 63F(2) or 63J(2) where he administers a qualifying agreement. 5F) In paragraphs (5A) to (5E)— a) “non-resident” means not normally resident in the United Kingdom; b) “qualifying agreement” means— i) in relation to articles 25A and 61, a regulated mortgage contract where the borrower (or each borrower) is non-resident when he enters into it; ii) in relation to articles 25B and 63B, a regulated home reversion plan where the reversion seller (or each reversion seller) is non-resident when he enters into it; iii) in relation to articles 25C and 63F, a regulated home purchase plan where the home purchaser (or each home purchaser) is non-resident when he enters into it; iv) in relation to articles 25E and 63J, a regulated sale and rent back agreement where the agreement seller (or each agreement seller) is non-resident when the agreement seller enters into it; c) “the relevant capacity” means— i) in the case of a regulated mortgage contract, as borrower; ii) in the case of a regulated home reversion plan, as reversion seller or plan provider; iii) in the case of a regulated home purchase plan, as home purchaser; iv) in the case of a regulated sale and rent back agreement, as agreement seller or agreement provider; d) “the relevant type of agreement” means— i) in relation to article 25A, a regulated mortgage contract; ii) in relation to article 25B, a regulated home reversion plan; iii) in relation to article 25C, a regulated home purchase plan ; iv) in relation to article 25E, a regulated sale and rent back agreement . 6) There is excluded from article 64 any agreement made by an overseas person to carry on an activity of the kind specified by article 25(1) or (2), 37 , 39A , 40 or 45 if the agreement is the result of a legitimate approach. 7) In this article, “legitimate approach
- s.76 Shares etc.
- ... and 45 more definitions
Exemptions 65
- Schedule 2 Financial Instruments and Investment services and activities
- s.6 Sums paid by certain persons
- s.9 Sums received in consideration for the issue of debt securities
- s.13 Application of sections 327 and 332 of the Act to insurance market activities
- s.14 Dealing in investments as principal
- s.16 Dealing in contractually based investments
- s.18 Issue by a company of its own shares etc.
- s.21 Dealing in investments as agent
- s.22 Deals with or through authorised persons
- s.25 Arranging deals in investments
- s.27 Enabling parties to communicate
- s.28 Arranging transactions to which the arranger is a party
- s.29 Arranging deals with or through authorised persons
- s.33 Introducing
- s.36 Other exclusions
- s.38 Attorneys
- s.41 Acceptance of responsibility by third party
- s.53 Advising on investments
- s.54 Advice given in newspapers etc.
- s.55 Other exclusions
- ... and 45 more exemptions