Statutory Instruments
2007 No.
Financial Services and Markets
The Financial Services and Markets Act 2000 (Financial Promotion) (Amendment) Order 2007
Made – - – - ***
Laid before Parliament ***
Coming into force – - ***
The Treasury, in exercise of the powers conferred on them by sections 21(5) and (6) and 428(3) of the Financial Services and Markets Act 2000(1), make the following Order:
Citation, commencement and interpretation
1. This Order may be cited as the Financial Services and Markets Act 2000 (Financial Promotion) (Amendment) Order 2007 and comes into force on [1 October 2007].
2. In this Order, the “principal Order” means the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005(2).
Amendment of the principal Order
3. After article [ ] of the principal Order insert—
Promotion of pensions to employees
[ ]A.—(1) If an employer offers to his employees membership of a group personal pension scheme or stakeholder pension scheme, and if the employer meets the requirements of paragraph (2), the financial promotion restriction does not apply to any communication which is made to an employee in relation to the scheme where the person (“A”) making the communication meets the requirements of paragraph (4).
(2) The requirements of this paragraph are that—
(a) In the event of the employee becoming a member of the scheme, the employer will make a contribution to the group personal pension scheme or stakeholder pension scheme to which the communication by A relates; and
(b) The employer has not received, and will not receive, any direct financial benefit from the scheme.
(3) For the purposes of paragraph (2)(b), “direct financial benefit” includes—
(a) Any commission paid to the employer by the provider of the scheme or by A; and
(b) Any reduction in the amount of the premium payable by the employer in respect of any insurance policy issued to the employer by the provider of the scheme.
(4) The requirements of this paragraph are that—
(a) A is not a person who has permission to carry out the activity—
(i) Of establishing, operating or winding-up a personal pension scheme or a stakeholder pension scheme; or
(ii) of a kind specified in article 14 (dealing in investments as principal), 21 (dealing in investments as agent), 25 (arranging deals in investments), 37 (managing investments), 40 (safeguarding and administering assets), 45 (sending de-materialised instructions), 53 (advising on investments), or 64 (agreeing to carry on specified kinds of activity) (so far as relevant to any such activity) of the Financial Services and Markets Act (2000) Regulated Activities Order 2001(3), in relation to rights under a personal pension scheme or in relation to rights under a stakeholder pension scheme;
(b) A is engaged under a written contract with the employer to provide services to the employer and in particular to provide communications to employees in relation to a group personal pension scheme or stakeholder pension scheme;
(c) The communication by A contains a statement informing the employee that the employer will make a contribution to the scheme;
(d) A notifies the employee in writing, prior to the employee becoming a member of the scheme—
(i) Of the amount of the contribution that the employer will make to the scheme in respect of that employee;
(ii) Of any remuneration which A has received or will receive as a result of either—
(aa) the employee joining the scheme, or
(bb) the employee making an increase to the amount of his contribution to the scheme; and
(e) In the case of a non-real time communication by A, the communication contains, or is accompanied by, a statement informing the employee of his right to seek advice from an authorised person or an appointed representative.
(5) In this article “group personal pension scheme” and “stakeholder pension scheme” have the meaning given by article 72(4).
4. After article [ ] of the principal Order insert—
Promotion of insurance to employees
[ ]A.—(1) If the requirements of paragraph (2) are met, the financial promotion restriction does not apply to any communication which is made by an employer to an employee in relation to rights under a contract of insurance.
(2) The requirements of this paragraph are that—
(a) The employer has not received, and will not receive, any commission from the provider of the insurance as a result of the employee entering into a contract of insurance; and
(b) In the case of a non-real time communication, the communication contains, or is accompanied by, a statement informing the employee of his right to seek advice from an authorised person or an appointed representative.
(3) This article does not apply to a communication to which article 72 applies.
Chapter 1 Extending Employers Freedom – Introduction
Chapter 2 Responding to the Consultation
Chapter 3 FSMA Two-Year Review Exemption
Chapter 4 Pensions Promotions to Employees
Chapter 5 Promoting Insurance Products
Chapter 6 Employee Share Schemes and Plans
Chapter 7 Partial Regulatory Impact Assessment
Chapter 7A Options – Legislate or Not
Annex A Current Pensions Exemption
Annex B Current Insurance Exemptions
Annex C Proposed New Legislation
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