C1PART 5Amendments to other secondary legislation
C1The Financial Services and Markets Act 2000 (Excluded Activities and Prohibitions) Order 2014I1C1192
1
The Financial Services and Markets Act 2000 (Excluded Activities and Prohibitions) Order 2014 M1 is amended as follows.
2
In article 1(4) (interpretation)—
a
for the definition of “alternative investment fund” substitute—
“alternative investment fund” has the meaning given in regulation 3 of the Alternative Investment Fund Managers Regulations 2013 M2, but as if in paragraph (1)(b) of that regulation for “UK UCITS” there were substituted “UCITS;
b
for the definition of “alternative investment fund manager” substitute—
“alternative investment fund manager” means a legal person whose regular business is managing one or more alternative investment funds;
c
after the definition of “alternative investment fund manager” insert—
“Annex 1 activities” has the meaning given in article 4.1(26A) of the prudential requirements regulation;
d
for the definition of “derivative instrument” substitute—
“derivative instrument” includes any instruments within the meaning of article 2.1(29) of the markets in financial instruments regulation;
e
after the definition of “exposure” insert—
“financial conglomerate” means—
a
b
a financial conglomerate within the meaning of Article 2.14 of Directive 2002/87/EC of the European Parliament and of the Council of 16 December 2002 on the supplementary supervision of credit institutions, insurance undertakings and investment firms in a financial conglomerate M5 (but disregarding any decision taken under Article 3(3) of that directive);
f
in the definition of “financial holding company”, for the words from “Annex I” to the end substitute “
the Annex 1 activities
”
;
g
omit the definition of “insurance undertaking”;
h
in the definition of “liquid assets”, for the words from “delegated acts” to the end substitute “
Commission Delegated Regulation (EU) 2015/61 of 10 October 2014 to supplement Regulation (EU) No 575/2013 of the European Parliament and Council with regard to liquidity coverage requirement for Credit Institutions
”
;
i
for the definition of “management company” substitute—
“management company” means—
a
an undertaking, within the meaning of section 1161 of the Companies Act 2006 M6, whose regular business is the management of UK UCITS, or
b
a company within the meaning of Article 2.1(b) of the UCITS directive;
j
in the definition of “mixed financial holding company”—
i
after “insurance undertaking” in each place it occurs insert “
a third country insurance undertaking whose head office is located in an EEA state
”
,
ii
omit the words from “(within” to the end;
k
in the definition of “payment exposures”, in paragraph (d) omit—
i
“, an EEA central counterparty”,
ii
“, an EEA CSD”,
iii
“, EEA central counterparty”,
iv
“, EEA CSD”;
l
omit the definition of “reinsurance undertaking”;
m
omit the definition of “solvency II directive”;
n
in the definition of “third country insurance undertaking”, for the words from “Article” to the end substitute “
regulation 2(1) of the Solvency 2 Regulations 2015 M7
”
;
o
in the definition of “third country reinsurance undertaking”, for the words from “Article” to the end substitute “
regulation 2(1) of the Solvency 2 Regulations 2015
”
;
p
in the definition of “UCITS”, for the words from “Article” to the end substitute “
section 236A of the Act
”
;
q
after the definition of “UK deposit-taker”, insert—
“UK UCITS” has the meaning given in section 237(3) of the Act;
3
In article 2 (relevant financial institution), in paragraph (3)—
a
in sub-paragraph (c)(ii), omit the words from “other” to the end;
b
in sub-paragraph (e), omit “, EEA central counterparties”;
c
in sub-paragraph (ea), omit “, EEA CSDs”;
d
in sub-paragraph (g), for “EEA firm” in each place it occurs substitute “
undertaking located in an EEA state
”
.
4
In article 6 (excluded activities: general exceptions), in paragraph (4)—
a
in sub-paragraph (e)(iii), omit “, an EEA central counterparty”;
b
in sub-paragraph (f), omit “or an EEA central counterparty”.
5
In article 12 (derivatives: general conditions)—
a
in paragraph (1)(e), for paragraphs (i) and (ii) substitute—
i
a UK trading venue,
ii
a trading venue in the EEA, or
iii
a non-EEA trading venue.
b
in paragraph (2)—
i
in sub-paragraph (c), for the words from “Article 4.1(24)” to the end substitute “
Article 2.1(16) of the markets in financial instruments regulation
”
,
ii
after sub-paragraph (c) insert—
ca
“non-EEA trading venue” means a trading venue—
i
which is not a UK trading venue or a trading venue in the EEA, and
ii
which satisfies paragraph 1(d) of Article 28 of the markets in financial instruments regulation;
cb
“UK trading venue” has the meaning given in Article 2.1(16A) of the markets in financial instruments regulation;
6
In article 19A M8 (financial institution exposures: financing of infrastructure projects), in paragraph (2)(b) after “within” insert “
the United Kingdom or
”
.
7
In article 20 (prohibitions: non-EEA branches and subsidiaries)—
a
in the heading, for “Non-EEA” substitute “
Non-UK and non-EEA
”
;
b
in paragraph (1)(a), after “not” insert “
the United Kingdom or
”
;
c
in paragraph (1)(b)—
i
after “not” insert “
the United Kingdom or
”
, and
ii
for “(a “non-EEA undertaking”)” substitute “
(a “non-UK and non-EEA undertaking”)
”
;
d
in paragraph (2), after “interest in a” insert “
non-UK and
”
.
Pts. 3-6 modified in part (31.12.2020) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(2), 11(1)(4)(5) (with reg. 11(8)-(10)) (as amended by S.I. 2020/1301, regs. 1, 3, Sch. para. 40(f)); 2020 c. 1, Sch. 5 para. 1(1)