Regulation 47 Amendment of the Alternative Investment Fund Managers Regulations 2013

The Alternative Investment Fund Managers Regulations 2013^f1 are amended as follows.

After regulation 3 (meaning of “AIF”) insert—

“Arrangements not constituting an AIF: qualifying stablecoin arrangements

3A

(1)

Arrangements do not constitute an AIF where—

(a)

they are arrangements under which money or an asset is held for the stabilisation of a qualifying stablecoin, and

(b)

both the conditions in paragraph (2)(a) and (b) are met.

(2)

The conditions referred to in paragraph (1)(b) are—

(a)

that the issuer of the qualifying stablecoin does not pay, or arrange for another to pay, interest or yield arising from money or an asset held for the stabilisation of the qualifying stablecoin, or the benefits accruing from such to a holder;

(b)

that under normal conditions, the qualifying stablecoin offers a holder a right to redeem the stablecoin with the issuer at the same value, in the currency the stablecoin referenced at issue (excluding any fees that may be payable on redemption).

(3)

For the purposes of this regulation—

(a)

“qualifying stablecoin” has the meaning given by article 88G of the Regulated Activities Order (qualifying stablecoin);

(b)

money or an asset is held for the stabilisation of a qualifying stablecoin if it is held for the purpose mentioned in article 88G(2)(b) of the Regulated Activities Order.”.