Amendments to the Financial Services and Markets Act 2000I1I22
1
The Financial Services and Markets Act 2000 is amended as follows.
2
In section 55J (variation or cancellation on initiative of regulator)6—
a
in subsection (6A)7, in paragraph (e)—
i
omit the “or” at the end of sub-paragraph (iii);
ii
at the end of sub-paragraph (iv) insert “; or”;
iii
after that sub-paragraph insert—
v
a provision of the MMF Regulation or any directly applicable regulation or decision made under that Regulation.
b
in subsection (7ZA)8—
i
omit the “or” at the end of paragraph (a);
ii
at the end of paragraph (b) insert “or”;
iii
after that paragraph insert—
c
by the MMF Regulation or any directly applicable regulation or decision made under that Regulation,
3
In section 194 (general grounds on which power of intervention is exercisable)9—
a
in subsection (5)—
i
omit the “or” at the end of paragraph (b);
ii
at the end of paragraph (c) insert “; or”;
iii
after that paragraph insert—
d
the MMF Regulation or any directly applicable regulation or decision made under that Regulation.
b
after that subsection insert—
6
The FCA may exercise its powers of intervention in respect of an EEAUCITS if it appears to the FCA that the EEAUCITS has contravened, or is likely to contravene, a requirement imposed by the MMF Regulation or any directly applicable regulation or decision made under that Regulation.
7
A reference in subsection (6) to an EEAUCITS includes, in a case where the UCITS is not a body corporate, a reference to its management company.
4
In section 237 (collective investment schemes: other definitions), in subsection (3)10 omit the definitions of “EEAUCITS” and “UCITS”.
5
In section 242 (applications for authorisation of unit trust schemes)—
a
for subsection (1) substitute—
1
The manager and trustee, or proposed manager and trustee, of a unit trust scheme may apply to the FCA for—
a
an order declaring the scheme to be an authorised unit trust scheme;
b
an order declaring the scheme to be an authorised money market fund.
b
in subsection (3), for “The application” substitute “An application”.
6
In section 243 (authorisation orders)11—
a
in the heading, at the end insert “: authorised unit trust schemes”;
b
in subsection (1), for “242” substitute “242(1)(a)”;
c
omit subsection (3).
7
After that section insert—
243AAuthorisation orders: authorised money market funds
1
If, on an application under section 242(1)(b) in respect of a unit trust scheme, conditions A and B are met the FCA may make an order declaring the scheme to be an authorised money market fund.
2
Condition A is that the FCA is satisfied that the scheme will be able to comply with the requirements imposed on a money market fund under the MMF Regulation.
3
Condition B is that—
a
the scheme is an authorised unit trust scheme, or
b
the scheme—
i
is the subject of an application under section 242(1)(a), and
ii
the conditions in section 243(1)(a) to (c) are met in relation to that application.
4
If the FCA makes an order under subsection (1), it must give written notice of the order to the applicant.
5
In this Chapter “authorisation order” means—
a
an order under section 243(1), or
b
an order under subsection (1) of this section.
8
In section 244 (determination of applications)12—
a
in subsection (1), for “242” substitute “242(1)(a)”;
b
in subsection (1A), for the words from “section 242” to “UCITS” substitute “section 242(1)(a) in respect of a unit trust scheme which is a UCITS, or an application under section 242(1)(b),”.
9
In section 257 (directions), in subsection (1)(b)13—
a
omit the “or” at the end of sub-paragraph (i);
b
at the end of sub-paragraph (ii) insert “or”;
c
after sub-paragraph (ii) insert—
iii
by the MMF Regulation or any directly applicable regulation or decision made under that Regulation;
10
In section 261C (applications for authorisation of contractual schemes)14—
a
for subsection (1) substitute—
1
The operator and depositary, or proposed operator and depositary, of a contractual scheme may apply to the FCA for—
a
an order declaring the scheme to be an authorised contractual scheme;
b
an order declaring the scheme to be an authorised money market fund.
b
in subsection (2) for “The application” substitute “An application under subsection (1)(a)”;
c
after that subsection insert—
2A
An application under subsection (1)(b) must—
a
be made in such a manner as the FCA may direct, and
b
contain or be accompanied by such information as the FCA may reasonably require for the purpose of determining the application.
11
In section 261D (authorisation orders)15—
a
in the heading, at the end insert “: authorised contractual schemes”;
b
in subsection (1), for “261C” substitute “261C(1)(a)”;
c
omit subsection (3).
12
In section 261E (authorisation orders: holding of units)16, in the heading, for “Authorisation orders” substitute “Authorised contractual schemes”.
13
After that section insert—
261EAAuthorisation orders: authorised money market funds
1
If, on an application under section 261C(1)(b) in respect of a contractual scheme, conditions A and B are met the FCA may make an order declaring the scheme to be an authorised money market fund.
2
Condition A is that the FCA is satisfied that the scheme will be able to comply with the requirements imposed on a money market fund under the MMF Regulation.
3
Condition B is that—
a
the scheme is an authorised contractual scheme, or
b
the scheme—
i
is the subject of an application under section 261C(1)(a), and
ii
the conditions in section 261D(1)(a) to (c) are met in relation to that application.
4
If the FCA makes an order under subsection (1), it must give written notice of the order to the applicant.
5
In this Chapter “authorisation order” means—
a
an order under section 261D(1), or
b
an order under subsection (1) of this section.
14
In section 261F (determination of applications)17—
a
in subsection (1), for “261C” substitute “261C(1)(a)”;
b
in subsection (2), for the words from “261C” to “UCITS” substitute “261C(1)(a) in respect of a contractual scheme which is a UCITS, or an application under section 261C(1)(b),”.
15
In section 261X (directions), in subsection (1)(b)18—
a
omit the “or” at the end of sub-paragraph (i);
b
at the end of sub-paragraph (ii) insert “or”;
c
after sub-paragraph (ii) insert—
iii
by the MMF Regulation or any directly applicable regulation or decision made under that Regulation;
16
In section 398 (misleading the FCA or PRA), in subsection (1A)19—
a
omit the “or” at the end of paragraph (g);
b
at the end of paragraph (h), insert “; or”;
c
after that paragraph insert—
i
the MMF Regulation.
17
In section 417 (definitions), in subsection (1)20, at the appropriate places insert the following definitions—
“MMF Regulation” means Regulation (EU) 2017/1131 of the European Parliament and of the Council of 14 June 2017 on money market funds;
“UCITS” has the meaning given in Article 1.2 of the UCITS directive;
18
In section 425 (expressions relating to authorisation elsewhere in the single market)21, in subsection (1)—
a
omit the “and” at the end of paragraph (a);
b
after that paragraph insert—
aa
“EEAUCITS” means a UCITS which is authorised pursuant to Article 5 of the UCITS directive in an EEA State other than the United Kingdom; and
19
In Schedule 3 (EEA Passport Rights), omit paragraph 11C22.