(1) Section 39 of FSMA 2000 (appointed representatives) is amended as follows.
(2) After subsection (1B) insert -
"(1C) Subsection (1D) applies where an authorised person ("A") -
(a) has permission under Part 4A, or permission resulting from any other provision of this Act, only in relation to one or more qualifying activities,
(b) is a party to a contract with another authorised person (A's "principal") which -
(i) permits or requires A to carry on business of a prescribed description ("the relevant business"), and
(ii) complies with such requirements as may be prescribed, and
(c) is someone for whose activities in carrying on the whole or part of the relevant business A's principal has accepted responsibility in writing.
(1D) Sections 20(1) and (1A) and 23(1A) do not apply in relation to the carrying on by A of a relevant additional activity.
(1E) In subsections (1C) and (1D) -
(a) "qualifying activity" means a regulated activity which is of a prescribed kind and relates -
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