The Alternative Investment Fund Managers (Amendment) Regulations 2013

Consultation on rules made for the purposes of Article 35 or 37 to 41 of the directive

6.—(1) Before the date on which the European Commission adopts a delegated act pursuant to Article 67.6 of the directive specifying the date when the rules set out in Articles 35 and 37 to 41 of the directive become applicable, the FCA or the PRA may make rules for the purpose of implementing any provision of Article 21.5(b), 21.6, 35 or 37 to 41 of the directive without complying with sections 138I to 138L of the Act (consultation)(1).

(2) Paragraph (3) applies in relation to rules that, as a result of paragraph (1), are made by the FCA or the PRA without complying with sections 138I to 138L of the Act, but does not apply in relation to rules that are revoked before they come into force.

(3) After the rules are made, sections 138I to 138L of the Act apply in respect of those rules with the modifications set out in paragraphs (4) to (7).

(4) Section 138I of the Act has effect as if—

(a) in subsection (1)—

(i) in the opening words for “Before making any rules” there were substituted “Before any rules made by the FCA come into force”, and

(ii) in paragraph (b) for “a draft of the proposed rules” there were substituted “the rules”,

(b) in subsection (2)—

(i) in the opening words for “draft” there were substituted “rules”,

(ii) in paragraphs (b) and (d) “proposed” were omitted, and

(iii) in paragraph (e) for “proposals” there were substituted “rules”,

(c) for subsection (3) there were substituted—

“(3) The FCA must have regard to any representations made to it in accordance with subsection (2)(e) and must consider whether to amend the rules before they come into force.”,

(d) in subsection (4) for “If the FCA makes the proposed rules, it” there were substituted “The FCA”,

(e) in subsection (5) for “If the rules differ from the draft” there were substituted “If the rules that come into force differ from the rules”,

(f) for subsection (7)(a) there were substituted—

“(a) an analysis of the costs together with an analysis of the benefits that would arise—

(i) if the rules came into force as published under subsection (1)(b), or

(ii) if subsection (5) applies, from the rules as amended, and”, and

(g) in subsection (9) for “a draft” there were substituted “rules”.

(5) Section 138J of the Act has effect as if—

(a) in subsection (1)—

(i) in the opening words for “Before making any rules” there were substituted “Before any rules made by the PRA come into force”, and

(ii) in paragraph (b) for “a draft of the proposed rules” there were substituted “the rules”,

(b) in subsection (2)—

(i) in the opening words for “draft” there were substituted “rules”,

(ii) in paragraphs (b) and (d) “proposed” were omitted, and

(iii) in paragraph (e) for “proposals” there were substituted “rules”,

(c) for subsection (3) there were substituted—

“(3) The PRA must have regard to any representations made to it in accordance with subsection (2)(e) and must consider whether to amend the rules before they come into force.”,

(d) in subsection (4) for “If the PRA makes the proposed rules, it” there were substituted “The PRA”,

(e) in subsection (5) for “If the rules differ from the draft” there were substituted “If the rules that come into force differ from the rules”,

(f) for subsection (7)(a) there were substituted—

“(a) an analysis of the costs together with an analysis of the benefits that would arise—

(i) if the rules came into force as published under subsection (1)(b), or

(ii) if subsection (5) applies, from the rules as amended, and”, and

(g) in subsection (9) for “a draft” there were substituted “rules”.

(6) Section 138K of the Act has effect as if—

(a) in subsection (1) for “proposes to make a rule (“the proposed rule”) which would apply” there were substituted “makes a rule which applies”,

(b) in subsection (2)(a) “proposed” were omitted,

(c) in the opening words of subsection (3) for “a regulator makes a rule” there were substituted “a rule comes into force”,

(d) in subsection (3)(b) “draft of the proposed” were omitted, and

(e) in subsection (4)(a) for “the impact of the rule is significantly different from the impact of the proposed rule” there were substituted “the impact of the rule as it comes into force is significantly different from the impact of the rule published under section 138I(1)(b) or 138J(1)(b) (as the case may be)”.

(7) Section 138L(5) of the Act has effect as if—

(a) in paragraph (a) for “the overall position if the rules are made and the overall position if the rules are not made” there were substituted “the overall position if the rules come into force as published under section 138I(1)(b) or 138J(1)(b) (as the case may be) and the overall position if the rules are amended before coming into force”, and

(b) in paragraph (b) for “the overall position after the making of the rules and the overall position before they were made” there were substituted “the overall position after any amendment of the rules and the overall position before any such amendment”.

(1)

Inserted by section 24 of the Financial Services Act 2012 (c. 21)