delete The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2002
This Order (SI 2002/1315) amends the Regulated Activities Order 2001 by inserting article 72A, which excludes 'information society services' provided from EEA States other than the UK from being regulated activities under FSMA 2000. It contains an exception for insurance activities falling under insurance directives. The Order also adds numerous cross-references to this exclusion throughout the RAO, effectively creating a passport-like carve-out for cross-border digital/online services from EEA-based providers.
Post-Brexit, this EEA-preferential treatment is obsolete. It grants competitive advantages to EEA-based digital service providers over non-EEA competitors (e.g., US, Singapore) with no corresponding benefit to UK firms. The original rationale was EU single-market passporting, which no longer applies to Britain. The exclusion is overly broad, potentially shielding significant financial activities from UK regulatory oversight based solely on the provider's EEA origin, distorting competition in favour of European firms at the expense of UK consumers and competitors who must comply with full UK authorisation requirements.