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  1. Point in time
    2007-03-21

PERG 14.9 Transitional provisions

Q46. I will need to obtain authorisation to carry on home finance activities. What will happen to me if I do not obtain authorisation by 6 April 2007?

Transitional arrangements have been put in place. The broad effect of these arrangements is that you will be able to benefit from interim authorisation as respects any of the new regulated activities that relate to home reversion plans or home purchase plans pending the final determination of your application. This is provided:

  • you were carrying on the regulated activities, for which you are seeking authorisation, before 6 November 2006; and
  • your application for authorisation was received by the FSA on or before 23 March 2007.

An interim authorisation granted under these transitional arrangements will lapse:

  • in the case of the regulated activities involving providing or administering home reversion or home purchase plans, when the application has been finally determined; and
  • in the case of the regulated activities involving arranging or advising on home reversion or home purchase plans, on the earlier of the date on which the application is finally determined or 6 April 2008.

Q47. I am already an authorised person. Will I need to extend the scope of my existing permission?

Yes, you will need to apply for a variation of permission in the normal way if you wish to carry on any of the new regulated activities. As with applications for authorisation (see Q46), you will benefit from interim permission if your application is not finally determined by 6 April 2007 provided:

  • you were carrying on the regulated activities, for which you are seeking to vary your permission, on or before 6 November 2006; and
  • your application to vary your permission was received by the FSA on or before 23 March 2007.

Your interim permission will lapse in the same circumstances as an application for authorisation (see Q46).

Q48. Can I avoid the need to be authorised by becoming an appointed representative of an authorised person?

You cannot be an appointed representative for the purpose of providing or administering home reversion or home purchase plans. But you can be an appointed representative for advising on or arranging such plans.

If you are an appointed representative prior to 6 April 2007 and you intend to carry on any of the new regulated activities, you will need to consider whether your existing agreement with your principal will cover those activities that an appointed representative is permitted to undertake or whether it will need to be amended to do so.

You may currently be an appointed representative of a life office for the purpose of advising on or arranging deals in its investment products and also undertake unregulated activities in relation to home reversion or home purchase plans offered by third parties. If those unregulated activities include activities that will become regulated from 6 April 2007, you will need either to become the appointed representative of another appropriately authorised firm or to seek authorisation yourself. This is because an appointed representative of a life office can only undertake regulated activities that arise directly from the life office’s insurance business.

Remember also that a person cannot generally be authorised and exempt as an appointed representative at the same time. However, this rule is waived if you obtain interim authorisation to carry on the new regulated activities and wish, pending determination of your application for authorisation, to continue to conduct existing regulated activities as an appointed representative.