The Social Entrepreneurship Funds (Amendment) (EU Exit) Regulations 2019

Subject matter, scope and definitions

3.—(1) In Article 1—

(a) in the first paragraph—

(i) for “EuSEF” substitute “SEF”;

(ii) for “Union, thereby contributing to the smooth functioning of the internal market” substitute “United Kingdom”;

(b) in the second paragraph—

(i) omit “uniform”;

(ii) for “across the Union”, in both places it occurs, substitute “in the United Kingdom”.

(2) In Article 2—

(a) in paragraph 1—

(i) in point (a), for “point (b) of Article 3(2) of Directive 2011/61/EU” substitute “sub-paragraph (a) of regulation 9(1) of the AIFM Regulations(1)”;

(ii) in point (b), for “Union” substitute “United Kingdom”;

(iii) in point (c), for “competent authorities of their home Member State in accordance with point (a) of Article 3(3) of Directive 2011/61/EU” substitute “FCA in accordance with regulation 10 of the AIFM Regulations”;

(b) in paragraph 2—

(i) for “to 20” substitute “, 18 and 19”;

(ii) omit “, the second subparagraph of Article 21(3) and Articles”;

(iii) for “authorised under Article 6 of Directive 2011/61/EU” substitute “who have permission under Part 4A of FSMA(2) to carry on the regulated activity specified by article 51ZC of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001(3) (managing an AIF)”;

(iv) for “that manage” substitute “and who manage”;

(v) for “EuSEF” substitute “SEF”;

(vi) for “Union” substitute “United Kingdom”;

(c) in paragraph 3, for the words from “undertakings” to the end substitute “UK UCITS (which has the meaning given in section 237 of FSMA)”.

(3) In Article 3—

(a) in paragraph 1—

(i) in point (a) (definition of “collective investment undertaking”) for “point (a) of Article 4(1) of Directive 2011/61/EU” substitute “regulation 3 of the AIFM Regulations”;

(ii) in point (b) (definition of “qualifying social entrepreneurship fund”)—

(aa) in the opening words, before “means” insert “, unless the contrary intention appears,”;

(bb) in point (iii), for “territory of a Member State” substitute “United Kingdom”;

(iii) in point (d) (definition of “qualifying portfolio undertaking”)—

(aa) in point (i), for the words “regulated market” to the end, substitute “UK regulated market, an EU regulated market, a UK multilateral trading facility or an EU multilateral trading facility (as defined by points (13A), (13B), (14A) and (14B) of Article 2 of the Markets in Financial Instruments Regulation 2014);”

(bb) in point (v), in the opening words, for “a Member State” substitute “the United Kingdom,”;

(cc) in point (v), in the second indent, for “home Member State of the manager of a qualifying social entrepreneurship fund and with each other Member State in which the units or shares of the qualifying social entrepreneurship funds are intended to be marketed” substitute “United Kingdom”;

(iv) in point (e) (definition of “qualifying investments”)—

(aa) in point (iii), for “in qualifying social entrepreneurship funds” substitute—

“in—

(aa) qualifying social entrepreneurship funds;

(bb) European qualifying social entrepreneurship funds (which has the meaning given to ‘qualifying social entrepreneurship funds’ in Article 3(1)(b) of this Regulation as it applies in the European Union, as amended from time to time);”

(bb) after point (v) insert—

“(vi) an instrument within the meaning of Article 3(1)(e)(ii) of this Regulation as it applies in the European Union, as amended from time to time;”;

(v) in point (i) (definition of “marketing”) for “Union” substitute “United Kingdom”;

(vi) omit points (k), (l), (m) and (n) (definition of “home Member State”, “host Member State”, “competent authority” and “competent authority of the host Member State”);

(vii) after point (j), insert—

“(o) ‘the FCA’ means the Financial Conduct Authority;

(p) ‘FSMA’ means the Financial Services and Markets Act 2000;

(q) ‘the AIFM Regulations’ means the Alternative Investment Fund Managers Regulations 2013;

(r) ‘the Markets in Financial Instruments Regulation 2014’ means Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Regulation (EU) No 648/2012 as that Regulation forms part of domestic law and has effect from time to time.

Any reference in this Regulation to a sourcebook is to a sourcebook in the Handbook of Rules and Guidance published by the FCA containing rules made and guidance issued by the FCA under FSMA as the sourcebook has effect on exit day.”;

(b) in paragraph 2, for “Commission shall be empowered to adopt delegated acts in accordance with Article 26 specifying” substitute “Treasury may by regulations specify”.

(1)

S.I. 2013/1773, to which there are amendments not relevant to these Regulations.

(2)

Part 4A of the Financial Services and Markets Act 2000 was substituted for Part 4 by section 11(2) of the Financial Services Act 2012 (c.21).

(3)

S.I. 2001/544. Article 51ZC was substituted, with Articles 51ZA to 51ZG, for Article 51 by S.I. 2013/1773.