On 10 July 2018, there was published on the legislation.gov.uk website the Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2018 (the Order) together with an explanatory memorandum. The Order was made on 10 July 2018 and came into force on 11 July 2018.

The Order expands the definition of alternative finance investment bonds (AFIBs) to allow these to be admissible for trading on multilateral trading facilities and organised trading facilities.

The Order brings the regulatory treatment of AFIBs under the Financial Services and Markets Act 2000 into line with section 34(2) of the Finance Act 2018. This ensures harmonisation between the regulatory and tax regimes for AFIBs, and fulfils the Government’s commitment to provide a level playing field for Islamic Finance instruments in the UK.

The Order also includes a provision that a person carrying on the regulated activity of administering a benchmark will be seen as carrying on the activity by way of business.