Financial Services and Markets Act 2000 (Regulated Activities etc.) (Amendment) (No. 2) Order 2025 published

The Financial Services and Markets Act 2000 (Regulated Activities etc.) (Amendment) (No. 2) Order 2025 has been laid before Parliament, accompanied by an explanatory memorandum. A draft was laid before Parliament in June. The Order amends the Financial Services and Markets Act 2000 (Regulated Activities etc.) (Amendment) Order 2025 (the 2025 Order) which provides for certain buy-now-pay-later (BNPL) agreements to become "regulated deferred payment credit agreements" with effect from 15 July 2026. Under article 3(2) of the 2025 Order, nearly all merchants brokering BNPL products are exempt from the regulatory requirements concerning credit broking by virtue of a new provision (article 36FB) in the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (RAO). Generally, merchants who introduce customers to regulated credit products are undertaking the regulated activity of credit broking under article 36A of the RAO and must have regulatory approval, unless an exemption applies.

The only merchant type excluded from this new regulatory exemption is domestic premises suppliers, an exclusion introduced due to historical concerns. This means that domestic premises suppliers wishing to offer BNPL products to their customers after the regulatory regime for BNPL products goes live on 15 July 2026 would have had to obtain regulatory approval from the UK Financial Conduct Authority (FCA) for undertaking credit broking. This instrument therefore exempts domestic premises suppliers from credit broking regulation when they offer BNPL products to their customers, meaning that these merchants do not have to obtain regulatory approval for credit broking from the FCA in order to offer BNPL products to their customers and bringing them in line with other merchants. The Order enters into force on 3 December.

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