5.—(1) The Financial Services and Markets Act 2000 (Regulated Activities) Order 2001(8) is amended as follows.

(2) In article 4 (specified activities: general)—

(a)in paragraph (4A), in the words before sub-paragraph (a), omit the words from “, other than” to the end;

(b)in paragraph (5)—

(i)omit the definition of “ancillary insurance intermediary”;

(ii)for the definition of “insurance distribution”, substitute—

““insurance distribution” means any regulated activity of the kind specified by article 21, 25(1) or (2), 39A, 53, or, so far as relevant to any of those articles, article 64, which is carried on in relation to a contract of insurance;”;

(iii)for the definition of “reinsurance distribution”, substitute—

““reinsurance distribution” means any regulated activity of the kind specified by article 21, 25(1) or (2), 39A, 53, or, so far as relevant to any of those articles, article 64, which is carried on in relation to a reinsurance contract.”.

(3) In article 33B (provision of information - contracts of insurance), in paragraph (4)—

(a)for the meaning of “insurance intermediary”, substitute—

““insurance intermediary” means a person, other than an insurance or reinsurance undertaking, or an employee of such an undertaking, who has Part 4A permission to carry on an insurance distribution activity;”;

(b)for the meaning of “reinsurance intermediary”, substitute—

““reinsurance intermediary” means a person, other than a reinsurance undertaking, or an employee of such an undertaking, who has Part 4A permission to carry on an insurance distribution activity in relation to a contract of insurance that concerns reinsurance;”.

(4) In article 72B (activities carried on by a provider of relevant goods or services), in paragraph (1)(c)—

(a)in paragraph (i), for “600 euro” substitute “£500”;

(b)in paragraph (ii), for “200 euro” substitute “£175”;

(c)in the words after paragraph (ii), omit the words “sterling or”.

(5) Omit Schedule 4 (relevant text of the Insurance Distribution Directive).

Amendment of the Financial Services and Markets Act 2000 (Qualifying Provisions) Order 2013

6.—(1) The Financial Services and Markets Act 2000 (Qualifying Provisions) Order 2013(9) is amended as follows.

(2) In article 2 (qualifying provisions: general), in paragraph (2), omit sub-paragraph (l).

(3) In article 3 (qualifying provisions: disciplinary measures)—

(a)in paragraph (2), omit sub-paragraph (o);

(b)in paragraph (3), omit sub-paragraph (m).

(4) In article 5 (qualifying provisions: injunctions and restitution)—

(a)in paragraph (2), omit sub-paragraph (o);

(b)in paragraph (5), omit sub-paragraph (n).

(5) In article 6 (qualifying provisions: fees), in paragraph (2), omit sub-paragraph (q).

Amendment of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017

7.  In regulation 10(2) (credit institutions and financial institutions) of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017(10), in paragraph (f), for the words from “Article 2.5” to “sub-paragraph (b))” substitute “article 33B(4) of the Regulated Activities Order”.

These Regulations replace references, in three Acts and one Order, to the definition of “insurance intermediary” contained in the Insurance Distribution Directive with references to the same term in article 33B(4) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544) (“RAO”). References to “ancillary insurance intermediary” are removed without replacement.

These Regulations also amend article 72B of the RAO so that the denomination of amounts is changed from euros to sterling. The change in denomination, whilst intending to retain the status quo, may affect the scope of certain regulated activities, due to the fluctuation of currency exchange. Therefore, in the opinion of the Treasury, one of the effects of these Regulations is that an activity which is not a regulated activity (within the meaning of the Financial Services and Markets Act 2000 c. 8) will become a regulated activity.

These Regulations remove references to instruments made under the Insurance Distribution Directive from the Financial Services and Markets Act 2000 (Qualifying Provisions) Order 2013 (S.I. 2013/419). This amendment is consequential on the revocation of those instruments by section 1 of, and Schedule 1 to, the Financial Services and Markets Act 2023 (c. 29) (commenced on 5 April 2024 by regulation 4 of the Financial Services and Markets Act 2023 (Commencement No. 4 and Transitional and Saving Provisions) (Amendment) Regulations 2023 (S.I. 2023/1382 (C. 97)).

An Impact Assessment has not been prepared for this instrument, as no, or no significant, impact on the private, voluntary or public sector is foreseen.