The Connected Contracts Exclusion—Article 72B of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001/544
Produced in partnership with Jamie Rogers of Hogan Lovells

The following Insurance & Reinsurance practice note produced in partnership with Jamie Rogers of Hogan Lovells provides comprehensive and up to date legal information covering:

  • The Connected Contracts Exclusion—Article 72B of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001/544
  • The general prohibition
  • Who does Article 72B—the Connected Contracts Exclusion apply to?
  • What is a Connected Contract of Insurance?
  • Which regulated activities does the Connected Contracts Exclusion apply to?
  • Practical considerations
  • Additional requirements for insurance firms distributing through ancillary insurance intermediaries

The Connected Contracts Exclusion—Article 72B of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001/544

IP COMPLETION DAY: The Brexit transition period ended at 11pm on 31 December 2020. At this time (referred to in UK law as ‘IP completion day’), transitional arrangements ended and significant changes began to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see Practice Note: Brexit—Insurance & Reinsurance—overview.

The general prohibition

Pursuant to section 19 of the Financial Services and Markets Act 2000 (FSMA 2000) (the general prohibition), no person may carry on a regulated activity unless authorised by the relevant regulator or exempt. Under FSMA 2000, s 23, breaches of section 19 may constitute a criminal offence.

Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, SI 2001/544, Pt XVII (RAO) sets out exclusions that apply to specified kinds of regulated activity. Their effect is to exclude certain activities from the scope of Regulated Activities for the purposes of FSMA 2000, s 19. For an overview of the different general exclusions that apply, see RAO, SI 2001/544.

RAO, SI 2001/544, art 72B, as amended, provides for a general exclusion from the scope of regulated activities for ‘[a]ctivities carried on by a provider of relevant goods or services’ concerning ‘connected contract[s] of insurance’. Article 72B is more commonly referred to

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