(1) The FCA must -
(a) assess the risks that the use of leverage by full-scope UK AIFMs with respect to the AIFs managed by them could entail;
(b) use the measures in paragraph (2), if they are necessary in order to ensure the stability and integrity of the financial system, to limit the extent to which the use of leverage by a full-scope UK AIFM with respect to the AIFs managed by it contributes to -
(i) the build up of systemic risk in the financial system; or
(ii) the risks of disorderly markets.
(2) The measures are -
(a) imposing limits on the level of leverage that such an AIFM may employ; or
(b) imposing other restrictions on the management of such an AIF.
(3) [deleted]
(4) [deleted]
(5) [deleted]
(6) [deleted]
(7) The FCA may use its powers under section 55J and 55L of the Act (variation or cancellation on initiative of regulator and imposition of requirements by the FCA) to impose limits on leverage or other restrictions on the management of an AIF, but this paragraph does not
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