The Financial Services and Markets Act 2000 (Collective Investment Schemes) (Amendment) Order 2021

EXPLANATORY NOTE

(This note is not part of the Order)

This Order substitutes a new paragraph 6A of the Schedule to the Financial Services and Markets Act 2000 (Collective Investment Schemes) Order 2001 (S.I. 2001/1062) “the CIS Order”. The Schedule to the CIS Order sets out the kinds of arrangements which do not amount to a collective investment scheme as defined in section 235 of the Financial Services and Markets Act 2000 (c. 8) (“FSMA”). Existing paragraph 6A of the Schedule provides that electronic systems in relation to lending (the operation of which is specified as a regulated activity in article 36H of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544)) and the operation of arrangements closely associated with this, are not a collective investment scheme.

New paragraph 6A, substituted by this Order, clarifies that arrangements with the purpose of continuing the provision of services to a lender or borrower in relation to a relevant article 36H agreement or non-article 36H agreement, where the original firm that operated the electronic system in relation to lending is wound up, also does not amount to a collective investment scheme.

A full impact assessment has not been produced for this instrument as no significant impact on the private, voluntary or public sector is foreseen. A de minimis impact assessment is available from HM Treasury, 1 Horse Guards Road, London, SW1A 2HQ and is published with the Explanatory Memorandum alongside this instrument on www.legislation.gov.uk.