delete The Financial Services Act 1986 (Extension of Scope of Act and Meaning of Collective Investment Scheme) Order 2001
This Order 2001 amends the Financial Services Act 1986 to extend the definition of 'collective investment scheme' to include limited liability partnerships (LLPs). It modifies section 75(7) to create an exception for LLPs, updates the definition of 'operator' in section 75(8) to include LLPs, and adds paragraph 38 to Schedule 1 confirming that arrangements constituting an LLP are not prevented from being a collective investment scheme.
This regulation expands regulatory scope rather than reducing it. By explicitly bringing LLPs within the definition of collective investment schemes, it adds compliance burdens and regulatory costs to a previously unregulated business structure. Such expansion of the regulatory net increases costs for LLP structures, risks driving financial activity to more flexible jurisdictions like Delaware or Singapore, and exemplifies the regulatory creep that erodes City of London competitiveness. The amendment was unnecessary intervention in private ordering - if LLPs were being used inappropriately, market participants and counterparties could address this through contract rather than statute.