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The Financial Services and Markets Act 2000 (Collective Investment Schemes) (Amendment) Order 2025

S.I. 2025/17 · Made 8 January 2025

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

Financial Services And Markets

Made 8th January 2025

Laid before Parliament 9th January 2025

Coming into force 31st January 2025

The Treasury make the following Order in exercise of the powers conferred by section 235(5) of the Financial Services and Markets Act 2000f1.

Annotations to the whole text

Footnotes

f1

2000 c. 8.

Contents

  1. 1Citation, commencement and extent
  2. 2Amendment of the Financial Services and Markets Act 2000 (Collective Investment Schemes) Order 2001
  3. Signature
  4. Explanatory note

1Citation, commencement and extent

(1)

This Order may be cited as the Financial Services and Markets Act 2000 (Collective Investment Schemes) (Amendment) Order 2025.

(2)

This Order comes into force on 31st January 2025.

(3)

This Order extends to England and Wales, Scotland and Northern Ireland.

2Amendment of the Financial Services and Markets Act 2000 (Collective Investment Schemes) Order 2001

In the Financial Services and Markets Act 2000 (Collective Investment Schemes) Order 2001f1, after paragraph 21f2 of the Schedule (arrangements not amounting to a collective investment scheme), insert—

“Qualifying cryptoasset staking

22.
(1)

Arrangements for qualifying cryptoasset staking do not amount to a collective investment scheme.

(2)

In this paragraph—

  • “blockchain validation” means the validation of transactions on—

    1. (a)

      a blockchain; or

    2. (b)

      a network that uses distributed ledger technology or other similar technology;

  • “qualifying cryptoasset” has the meaning given by paragraph 26F (qualifying cryptoasset) of Part 2 (controlled investments) of Schedule 1 to the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005f3;

  • “qualifying cryptoasset staking” means the use of a qualifying cryptoasset in blockchain validation.”.

Signature

Anna Turley

Vicky Foxcroft

Two of the Lords Commissioners of His Majesty’s Treasury

8th January 2025

Explanatory note

(This note is not part of the Order)

This Order inserts a new paragraph 22 into the Schedule to the Financial Services and Markets Act 2000 (Collective Investment Schemes) Order 2001 (S.I. 2001/1062) (“the CIS Order”). The Schedule to the CIS Order specifies the kinds of arrangements which do not amount to a collective investment scheme as defined in section 235 of the Financial Services and Markets Act 2000 (c. 8).

New paragraph 22 clarifies that arrangements for qualifying cryptoasset staking do not amount to a collective investment scheme. Staking is a consensus mechanism used by “proof of stake” blockchains. Blockchains are distributed ledgers on which various computers performing the function of “validator nodes” collaboratively enter and validate transactions to achieve consensus on the network’s state. Qualifying cryptoasset is defined by reference to the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (S.I. 2005/1529).

A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen.