The FSMA (Regulated Activities) (Amendment) Order 2022 has been published, together with an explanatory memorandum. It makes several amendments to FSMA and secondary legislation, primarily the RAO, in preparation for pre-paid funeral plans being brought within scope of regulation from 29 July 2022.
Key provisions include amendments to:
- article 59 RAO to provide that, if certain conditions are met, a funeral plan provider who has agreed to give an undertaking to a customer, which would replace another provider’s undertaking to that same customer under an existing funeral plan contract, is to be treated for the purposes of the regulated activity specified in article 59(1A) as if they were carrying out that existing contract as provider;
- article 72H RAO to exclude the specified activity of carrying out of a funeral plan contract when carried on by a person acting as an insolvency practitioner;
- the FSMA (Collective Investment Schemes) Order 2001, which prescribes arrangements that do not amount to collective investment schemes;
- the FSMA (Exemption) Order 2001 to exclude the specified activity of carrying out of a funeral plan contract when carried on by a person acting as official receiver and liquidator; and
- FSMA to allow the FCA to make rules about how the FSCS will operate for the pre-paid funeral plans sector.
Some articles of the Order come into force on 16 May, with the remainder taking effect on 29 July 2022.