Regulation 7 I1

in paragraph (3), for points (a) to (h) substitute—

“(a)

an investment firm within the meaning given in Article 2(1A) M1 of MIFIR which:

(i)

has its registered office or head office in the United Kingdom;

(ii)

has permission under Part 4A of the FSMA to carry on regulated activities relating to investment services and activities (as defined in Article 2(1)(2) of the MIFIR) in the United Kingdom;

(iii)

would require authorisation under Directive 2014/65/EU M2 (as it had effect immediately before F1IP completion day) if it had its registered office (or if it does not have a registered office, its head offices) in an EEA state; and

(iv)

is not a firm which has permission under Part 4A of the FSMA to carry on regulated activities as an exempt investment firm, within the meaning of regulation 8 of the Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017 M3;

(b)

a credit institution which is a CRR firm (within the definition in Article 4(1)(2A) M4 of the Capital Requirements Regulation);

(c)

an insurance undertaking or a reinsurance undertaking;

(d)

a UK UCITS (within the definition in section 237(3) M5 of the FSMA) and, where relevant, its management company (within the definition in section 237(2) M6 of the FSMA);

(e)

an occupational pension scheme within the meaning of section 1(1) of the Pension Schemes Act 1993 M7;

(f)

an AIF managed by AIFMs (within the definition in regulation 4 of the Alternative Investment Fund Managers Regulations 2013) authorised or registered in accordance with those Regulations;

(g)

a CCP authorised in accordance with Regulation (EU) No 648/2012 F2as F3it forms part of retained EU law;”;

in paragraph (12), for “Article 5 of Directive 2002/47/EC” substitute “ regulation 16 of the Financial Collateral Arrangements (No.2) Regulations 2003 M8 ”;

in paragraph (13), for “point (b) of Article 2(1) of Directive 2002/47/EC” substitute “ regulation 3 of the Financial Collateral Arrangements (No.2) Regulations 2003 ”;

in paragraph (14), for “point (c) of Article 2(1) of Directive 2002/47/EC” substitute “ regulation 3 of the Financial Collateral Arrangements (No.2) Regulations 2003 ”;

in paragraph (16), for “point (15) of Article 4(1) of Directive 2014/65/EU” substitute “ regulation 2(1) of the Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017/701 ”;

after paragraph (18) insert—

“(19)

“AIF” has the meaning given in the definition in regulation 3 of the Alternative Investment Fund Managers Regulations 2013;

(20)

“Capital Requirements Regulation” means Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) 648/2012;

(21)

“CCP” has the meaning given in Article 2(1) of Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories;

(22)

“CRR firm” has the meaning given in Article 4.1(2A) of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26th June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012;

(23)

“FCA” means the Financial Conduct Authority;

(24)

“the FSMA” means the Financial Services and Markets Act 2000;

(25)

“insurance undertaking” and “reinsurance undertaking” have the meanings given in section 417(1) M9 of the FSMA;

(26)

“investment firm” has the meaning given in Article 2(1A) M10 of Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Regulation (EU) No 648/2012;

(27)

“management company” and “the operator” have the meanings given in section 237(2) M11 of the FSMA;

(28)

“MIFIR” means Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Regulation (EU) 648/2012;

(29)

“open ended investment company” has the meaning given by section 236 of the FSMA;

(30)

any reference in this Regulation to a sourcebook is to a sourcebook in the Handbook of Rules and Guidance published by the FCA under FSMA as in force on F4IP completion dayM12;

(31)

“UCITS” has the meaning given in section 236A M13 of the FSMA;

(32)

“UK law in relation to collective investment undertakings” means the law of any part of the United Kingdom which was relied on by the United Kingdom immediately before IP completion day to implement Directives 2009/65/EC and 2011/61/EU.”.