(1) Any person who immediately before commencement was authorised under section 25 of the Financial Services Act is to be treated as having, at commencement, a Part IV permission to carry on regulated activities of a kind which, and on a scale which, and in relation to persons for whom he was, immediately before commencement -

(a) by reason of that authorisation, able to carry on in the United Kingdom without contravening section 3 of the Financial Services Act; and

(b) able to carry on there without contravening any rules made under section 48(2)(a) or (b) of that Act.

(2) The reference in paragraph (1) to the regulated activities which immediately before commencement the person was able to carry on "by reason of" his authorisation under section 25 of the Financial Services Act does not include a reference to any activity -

(a) as respects which he was then also an exempted person; or

(b) as respects which he was then also an authorised person by virtue of section 24 or 24A of that Act.