Explanatory note

The Order transfers certain of the Secretary of State’s functionsunder the Financial Services Act 1986 to the body known as TheSecurities and Investments Board. The functions in question are thosespecified in article 3 of the Order. The principal function transferredis the power to make regulations under section 81(2)(d) of the FinancialServices Act 1986 restricting or regulating the investment and borrowingpowers exercisable in relation to authorised unit trust schemes of acategory specified in the copy of the draft regulations furnished by TheSecurities and Investments Board to the Secretary of State under section114(9) of the Financial Services Act in connection with the proposedtransfer of functions. The categories of scheme specified in the draftregulations are securities funds, money market funds, futures andoptions funds, geared futures and options funds, property funds, warrantfunds, feeder funds, funds of funds and umbrella funds.