The Regulatory Roundup of 5th November included an article on ‘alternative finance investment bonds’ which will cover the sukuk (Islamic bond) market. The nature of such bonds is that some could be regarded as collective investment schemes. HM Treasury is introducing a new specified investment known as ‘Alternative Finance Investment Bonds’ (AFIBs) under article 77A of the Regulated Activities Order so that these instruments are regulated in a similar manner to conventional bonds or debentures.
The FSA has sent out letters to firms that it believes have an interest in this area which invited such firms to apply for a VoP using a streamline process. The new legislation is expected to be implemented on 25th February.