A Look At Recent Changes In Legislation

• Published date: 24 October 2023
• Subject Matter: Finance and Banking, Insurance, Financial Services, Insurance Laws and Products
• Law Firm: ISOLAS
• Author: ISOLAS &nbsp

LN 260/23 Financial Services Act 2019 (Amendment No. 5) Regulations 2023

Type: Subsidiary Legislation, Amendment. Made under: sections 5, 620, and 627, Financial Services Act 2019

Commencement: Day of publication in Gazette (07/09/2023)

Summary of effect: These Regulations amend schedule 2 to the Financial Services Act 2019 to make safeguarding and administering financial instruments its own regulated activity, instead of an ancillary activity. These regulations also create new regulated activities of buying, selling, subscribing for or underwriting a financial instrument, structured deposit or contract of insurance; and agreeing to carry out any activity which is a regulated activity under schedule 2 to the Financial Services Act 2019. These regulations also clarify that any person with a permission for effecting or carrying out contracts of insurance as principal may also carry out a number of ancillary activities set out in paragraphs 48-54B of schedule 2 to the Financial Services Act 2019.

Effect more particularly: These regulations amend the Financial Services Act 2019 to:

• Allow a person with a permission for effecting or carrying out contracts of insurance as principal to also, by virtue of that permission, carry out those activities specified in paragraphs 48-54B of schedule 2. These activities include receiving transmitting, and executing orders, dealing on your own account portfolio management, investment advice, underwriting, placing with or without a firm commitment basis. This also takes effect for currently existing permissions;
• Amend the definition of 'insurance distribution'. One activity which is caught by this definition is assisting in the administration and performance of contracts of insurance. The new definition clarifies that the assistance which is caught by the definition is assistance to the parties to the contract of insurance. The new definition also provides an indicative non-exhaustive list of matters which may constitute assisting the parties to a contract of insurance;
• Remove as an 'ancillary service' the safeguarding and administration of financial instruments for the account of clients This service is no longer included in the regulated activity specified in paragraphs 48-56 for those persons who carry on such regulated activities. The activities specified in paragraphs 48-56 include receiving, transmitting, and executing orders, dealing on your own account, portfolio management, investment advice underwriting,...