EXPLANATORY NOTE
(This note is not part of this Order)
This Order amends the Schedule to the Financial Services and Markets Act 2000 (Collective Investment Schemes) Order 2001 (S.I. 2001/1062) which sets out arrangements which are not to be regarded as a collective investment scheme (“CIS”) for the purposes of the Financial Services and Markets Act 2000 (c. 8). It substitutes a new paragraph 9 in that Schedule (the “former paragraph 9”).
Sub-paragraph (1) of the new paragraph provides for arrangements first entered into before the date on which this Order comes into force (the “commencement date”). Paragraph (a) provides for the circumstances in which arrangements which, by virtue of the former paragraph 9, did not amount to a CIS continue to not amount to a CIS on and after the commencement date. Paragraph (b) provides for the circumstances in which arrangements which did amount to a CIS immediately before the commencement date no longer do so from that date onwards.
Sub-paragraph (2) provides for the circumstances in which arrangements first entered into on or after the commencement date do not amount to a CIS and sub-paragraph 3 provides a mechanism for the participants to agree that they do.
Sub-paragraph (4) disapplies the exemptions in sub-paragraphs (1) and (2) (whichever is relevant) for as long as any participant in the arrangements is not a permitted participant.
Sub-paragraph (5) sets out the definitions of “permitted participant” and “specified business” on which the tests in sub-paragraphs (1) and (2) as to whether arrangements do not amount to a CIS depend.
Sub-paragraph (6) provides that for the purposes of this paragraph arrangements are not new arrangements merely as a result of any change in participants.
Sub-paragraph (7) provides that an agreement made in accordance with the provisions of sub-paragraph (1)(b)(ii) or sub-paragraph (2) remains valid in the event of a change in participants.
A full regulatory impact assessment of the effect that this instrument will have on the costs of business is available on HM Treasury’s website (www.hm-treasury.gov.uk) or from Savings and Investment Team, HM Treasury, 1 Horse Guards Road, London SW1A 2HQ and is annexed to the Explanatory Memorandum which is available alongside the instrument on the OPSI website (www.opsi.gov.uk).