Financial Services And Markets Citation and commencement 1 1 This Order may be cited as the Financial Services and Markets Act 2000 (Collective Investment Schemes) (Amendment) Order 2021. 2 This Order comes into force on 18th June 2021. Amendment of the Financial Services and Markets Act 2000 (Collective Investment Schemes) Order 2001 2 1 The Schedule to the Financial Services and Markets Act 2000 (Collective Investment Schemes) Order 2001 is amended as follows. 2 For paragraph 6A, substitute the following— 6A 1 Arrangements do not amount to a collective investment scheme in so far as they are arrangements of a kind described in one of sub-paragraphs (2) to (6). 2 Arrangements operated by a person specified in paragraph (a) and in one or more of the circumstances specified in paragraph (b). a A person who is— i an authorised person with permission to carry on an activity of the kind specified by article 36H(1) of the Regulated Activities Order (operating an electronic system in relation to lending); ii an appointed representative in relation to that activity; iii an exempt person in relation to that activity; iv a person to whom, as a result of Part 20 of the Act, the general prohibition does not apply in relation to that activity. b The circumstances are— i the operating of the arrangements amounts to the carrying on of an activity of the kind specified by article 36H of the Regulated Activities Order; ii the arrangements amount to the holding of money on behalf of a lender or borrower under a relevant article 36H agreement, or with a view to a lender entering in to such an arrangement; iii the purpose of the arrangements is to compensate a lender when a borrower fails to pay any sum due to that lender under a relevant article 36H agreement. 3 Arrangements forming a necessary part of the operation of arrangements of the kind specified in sub-paragraph (2). 4 Arrangements that— a are operated by a person specified in sub-paragraph (2)(a), and b would consist of arrangements of the kind specified in sub-paragraphs (2) or (3) except that they relate to a non-article 36H agreement rather than an article 36H agreement. 5 Arrangements with the purpose of winding up the operations of a person who operates or operated arrangements of the kind specified in sub-paragraphs (2) to (4). 6 Arrangements with the purpose of continuing the provision of services to a lender and borrower in relation to a relevant article 36H agreement or non-article 36H agreement, which are entered into in connection with the winding up of the operations of a person who provides or provided those services in relation to that agreement. 7 In this paragraph— “article 36H agreement” has the meaning given in article 36H of the Regulated Activities Order; “borrower” means a a person who receives credit under an article 36H agreement or a person to whom the rights and duties of a borrower under an agreement have passed by assignment or operation of law, or b for the purposes of sub-paragraph (4)(b), a person who receives credit under an agreement of the kind described in sub-paragraph (4)(b) or a person to whom the rights and duties of a borrower under such an agreement have passed by assignment or operation of law; “credit” has the meaning given in article 60L of the Regulated Activities Order (interpretation of Chapter 14A etc); “lender” means— a a person providing credit under an article 36H agreement, b a person who by assignment or operation of law has assumed the rights of a person who provided credit under such an agreement, or c for the purposes of sub-paragraph (4)(b), a person providing credit under an agreement of the sort described in sub-paragraph (4)(b), or a person who by assignment or operation of law has assumed the rights of a person who provided credit under such an agreement; “non-article 36H agreement” means an agreement that would be a relevant article 36H agreement but for the fact that it does not satisfy the conditions in article 36H(5) and (6) of the Regulated Activities Order; “relevant article 36H agreement” means an article 36H agreement which has been entered into with the facilitation of a person carrying on an activity of a kind specified by article 36H(1) of the Regulated Activities Order. . Michael Tomlinson David Rutley Two of the Lords Commissioners of Her Majesty’s Treasury 7th May 2021