(This note is not part of the Regulations)

These Regulations prescribe the descriptions of business which appointed representatives of authorised persons may carry on without themselves requiring authorisation under the Financial Services and Markets Act 2000 ("the Act"). Regulation 2 prescribes, for this purpose, any business comprising the regulated activity of arranging deals in certain investments, arranging for the safeguarding and administration of assets, or advising on investments (or agreeing to do any of those things).

The Regulations also prescribe the requirements with which a contract between an authorised person and his representative must comply if the representative is to benefit from exemption as an appointed representative under the Act. Under regulation 3, those requirements are that, if the contract does not prohibit the representative from acting for persons other than his principal, it must contain provision allowing the principal to prohibit him from doing so, or to restrict the extent to which he can do so.