Source: http://www.legislation.gov.uk/ukpga/2000/8/part/XVII/2013-07-01
Timestamp: 2019-07-15 23:14:05
Document Index: 627691924

Matched Legal Cases: ['art 18', 'art. 2', 'art. 10', 'art. 3', 'art. 1', 'art. 3', 'art. 23', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 23', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 3', 'art. 6', 'art. 2', 'art. 2', 'art. 2', 'art. 12', 'art. 2', 'art. 3', 'art. 2', 'art. 3', 'art. 2', 'art. 3', 'art. 3', 'art. 3', 'art. 11', 'art. 11', 'art. 3', 'art. 3', 'art. 3', 'art. 3', 'art. 11', 'art. 3', 'art. 3', 'art. 3', 'art. 3', 'art. 2', 'art 4', 'art. 2', 'art. 23', 'art. 23', 'art. 2', 'art. 2', 'art. 2', 'art. 23', 'art. 2', 'art. 2', 'art. 3', 'art. 23', 'art. 2', 'art. 2', 'art. 23', 'art. 3', 'art. 6', 'art. 23', 'art. 3', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 3', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 12', 'art. 3', 'art. 2', 'art. 3', 'art. 2', 'art. 2', 'art. 2', 'art. 3', 'art. 3', 'art. 3', 'art. 3', 'art. 3', 'art. 3', 'art. 3', 'art. 3', 'art. 3', 'art. 3', 'art. 3', 'art. 3', 'art. 3', 'art. 3', 'art. 3', 'art. 3', 'art. 3', 'art. 3', 'art. 3', 'art. 3', 'art. 3', 'art. 3', 'art. 3', 'art. 3', 'art. 3', 'art. 3', 'art. 2', 'art. 2', 'art. 23', 'art. 2', 'art. 2', 'art. 2', 'art. 3', 'art. 23', 'art. 2', 'art. 2', 'art. 2', 'art. 1', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 23', 'art. 2', 'art. 2', 'art. 2', 'art. 23', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 23', 'art. 23', 'art. 23', 'art. 2', 'art. 2', 'art. 23', 'art. 23', 'art. 2', 'art. 23', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 3', 'art. 2', 'art. 2']

Changes over time for: Part XVII
Part XVIIU.K. Collective Investment Schemes
Chapter IU.K. Interpretation
[F1235A.Contractual schemesU.K.
(1)In this Part “contractual scheme” means—
(2)In this Part “co-ownership scheme” means a collective investment scheme which satisfies the conditions in subsection (3).
(4)The deed—
(5)In this Part “partnership scheme” means a collective investment scheme which satisfies the conditions in subsection (6).
(7)In this section “general partner”, “limited partner” and “limited partnership” have the same meaning as in the Limited Partnerships Act 1907.
(8)In this Part “contractual scheme deed” means—
(b)in relation to a partnership scheme, the deed referred to in subsection (6)(c).]
F1S. 235A inserted (6.6.2013) by The Collective Investment in Transferable Securities (Contractual Scheme) Regulations 2013 (S.I. 2013/1388), regs. 1, 3(5) (with reg. 24)
[F2(a)Chapters 3 to 7 of Part 18 of the Companies Act 2006;]
F2S. 236(4)(a) substituted (1.10.2009) for s. 236(4)(a)(b) by The Companies Act 2006 (Consequential Amendments, Transitional Provisions and Savings) Order 2009 (S.I. 2009/1941), art. 2(1), Sch. 1 para. 181(3) (with art. 10)
237 Other definitions.U.K.
(1)In this Part “unit trust scheme” means a collective investment scheme under which the property is held on trust for the participants [F3, except that it does not include a contractual scheme].
“trustee”, in relation to a unit trust scheme, means the person holding the property in question on trust for the participants;
“depositary”, in relation to—
a collective investment scheme which is constituted by a body incorporated by virtue of regulations under section 262, or
any other collective investment scheme which is not a unit trust scheme,
[F4“management company” has the meaning given in Article 2.1(b) of the UCITS directive;]
[F5“the operator”—
in relation to a unit trust scheme with a separate trustee, means the manager;
[F6in relation to a co-ownership scheme, means the operator appointed under the terms of the contractual scheme deed;
in relation to a partnership scheme, means the general partner;]
in relation to an open-ended investment company, means that company; and
in relation to an EEAUCITS which is not an open-ended investment company or unit trust scheme, means the management company for that UCITS;]
“units” means the rights or interests (however described) of the participants in a collective investment scheme.
[F7“working day” has the meaning given in section 191G(2).]
“an authorised unit trust scheme” means a unit trust scheme which is authorised for the purposes of this Act by an authorisation order in force under section 243;
[F8“an authorised contractual scheme” means a contractual scheme which is authorised for the purposes of this Act by an authorisation order in force under section 261D(1);]
“an authorised open-ended investment company” means a body incorporated by virtue of regulations under section 262 in respect of which an authorisation order is in force under any provision made in such regulations by virtue of subsection (2)(l) of that section;
[F9“EEAUCITS” means a UCITS which is authorised pursuant to Article 5 of the UCITS directive in an EEA State other than the United Kingdom;
“feeder UCITS” means a UCITS, or a sub-fund of a UCITS, which has been approved by the [F10FCA] or (where relevant) by its home state regulator to invest 85% or more of the total property which is subject to the collective investment scheme constituted by the UCITS in units of another UCITS or UCITS sub-fund (the “master UCITS”);]
“a recognised scheme” means a scheme recognised under section 264, 270 or 272.
[F11“UCITS” has the meaning given in Article 1.2 of the UCITS directive;
“UKUCITS” means a UCITS which is an authorised unit trust scheme [F12, an authorised contractual scheme] or an authorised open-ended investment company.]
[F13(4)In this Part, references to a sub-fund of a UCITS are references to a part of the property of the UCITS which forms a separate pool where—
(a)the UCITS provides arrangements for separate pooling of the contributions of the participants and the profits and income out of which payments are made to them; and
(b)the participants are entitled to exchange rights in one pool for rights in another.]
[F14(5)In this Part “umbrella co-ownership scheme” means an authorised contractual scheme which satisfies the conditions in subsection (6).
(7)In this Part “sub-scheme”, in relation to an umbrella co-ownership scheme, means the arrangements constituting the scheme so far as they relate to a separate part of the property.
(8)In this Part “stand-alone co-ownership scheme” means an authorised contractual scheme which—
(b)is not an umbrella co-ownership scheme.]
F3Words in s. 237(1) inserted (6.6.2013) by The Collective Investment in Transferable Securities (Contractual Scheme) Regulations 2013 (S.I. 2013/1388), regs. 1, 3(6)(a) (with reg. 24)
F4S. 237(2): definition of "management company" inserted after definition of "depositary" (1.7.2011) by The Undertakings for Collective Investment in Transferable Securities Regulations 2011 (S.I. 2011/1613), reg. 2(14)(a)(i)
F5S. 237(2) definition of "the operator" substituted (1.7.2011) by The Undertakings for Collective Investment in Transferable Securities Regulations 2011 (S.I. 2011/1613), reg. 2(14)(a)(ii)
F6Words in s. 237(2) inserted (6.6.2013) by The Collective Investment in Transferable Securities (Contractual Scheme) Regulations 2013 (S.I. 2013/1388), regs. 1, 3(6)(b) (with reg. 24)
F7S. 237(2) definition of "working day" inserted (1.7.2011) by The Undertakings for Collective Investment in Transferable Securities Regulations 2011 (S.I. 2011/1613), reg. 2(14)(a)(iii)
F8Words in s. 237(3) inserted (6.6.2013) by The Collective Investment in Transferable Securities (Contractual Scheme) Regulations 2013 (S.I. 2013/1388), regs. 1, 3(6)(c)(i) (with reg. 24)
F9S. 237(3): definitions of "EEA UCITS" and "feeder UCITS" inserted after definition of "an authorised open-ended investment company" (1.7.2011) by The Undertakings for Collective Investment in Transferable Securities Regulations 2011 (S.I. 2011/1613), reg. 2(14)(b)(i)
F10Word in ss. 237-239 substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 9(1)(2) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F11S. 237(3): definitions of "UCITS" and "UK UCITS" inserted after definition of "a recognised scheme" (1.7.2011) by The Undertakings for Collective Investment in Transferable Securities Regulations 2011 (S.I. 2011/1613), reg. 2(14)(b)(ii)
F12Words in s. 237(3) inserted (6.6.2013) by The Collective Investment in Transferable Securities (Contractual Scheme) Regulations 2013 (S.I. 2013/1388), regs. 1, 3(6)(c)(ii) (with reg. 24)
F13S. 237(4) inserted (1.7.2011) by The Undertakings for Collective Investment in Transferable Securities Regulations 2011 (S.I. 2011/1613), reg. 2(14)(c)
F14S. 237(5)-(8) inserted (6.6.2013) by The Collective Investment in Transferable Securities (Contractual Scheme) Regulations 2013 (S.I. 2013/1388), regs. 1, 3(6)(d) (with reg. 24)
Chapter IIU.K. Restrictions on Promotion
238 Restrictions on promotion.U.K.
[F15(aa)an authorised contractual scheme;]
(5)Subsection (1) does not apply to anything done in accordance with rules made by the [F10FCA] for the purpose of exempting from that subsection the promotion otherwise than to the general public of schemes of specified descriptions.
F15S. 238(4)(aa) inserted (6.6.2013) by The Collective Investment in Transferable Securities (Contractual Scheme) Regulations 2013 (S.I. 2013/1388), regs. 1, 3(7) (with reg. 24)
(4)If regulations are made under subsection (1), the [F10FCA] may make rules imposing duties or liabilities on the operator and (if any) the trustee or depositary of a scheme exempted by the regulations.
(5)The rules may include, to such extent as the [F10FCA] thinks appropriate, provision for purposes corresponding to those for which provision can be made under section 248 in relation to authorised unit trust schemes.
240 Restriction on approval of promotion.U.K.
241 Actions for damages.U.K.
If an authorised person contravenes a requirement imposed on him by section 238 or 240, [F16section 138D] applies to the contravention as it applies to a contravention mentioned in [F16section 138D(2)].
F16Words in s. 241 substituted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments) Order 2013 (S.I. 2013/636), art. 1(2), Sch. para. 6
Chapter IIIU.K. Authorised Unit Trust Schemes
Applications for authorisationU.K.
(1)Any application for an order declaring a unit trust scheme to be an authorised unit trust scheme must be made to the [F17FCA] by the manager and trustee, or proposed manager and trustee, of the scheme.
(a)must be made in such manner as the [F17FCA] may direct; and
(b)must contain or be accompanied by such information as the [F17FCA] may reasonably require for the purpose of determining the application.
(4)At any time after receiving an application and before determining it, the [F17FCA] may require the applicants to provide it with such further information as it reasonably considers necessary to enable it to determine the application.
(6)The [F17FCA] may require applicants to present information which they are required to give under this section in such form, or to verify it in such a way, as the [F17FCA] may direct.
F17Word in ss. 242-252A substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 9(1)(2) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
C2S. 242 extended (1.12.2001) by S.I. 2001/3592, arts. 1(2), 39(1) (with art. 23(2))
I3S. 242 wholly in force at 1.12.2001; s. 242 not in force at Royal Assent see s. 431(2); s. 242(3) in force for specified purposes at 18.6.2001 by S.I. 2001/1820, art. 2, Sch.; s. 242 in force for specified purposes at 3.9.2001 by S.I. 2001/2632, art. 2(2), Sch. Pt. 2; s. 242 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)
243 Authorisation orders.U.K.
(1)If, on an application under section 242 in respect of a unit trust scheme, the [F17FCA]—
(a)is satisfied that the scheme complies with the requirements set out in this section,
(b)is satisfied that the scheme complies with the requirements of the trust scheme rules, and
(c)has been provided with a copy of the trust deed and a certificate signed by a solicitor to the effect that it complies with such of the requirements of this section or those rules as relate to its contents,
the [F17FCA] may make an order declaring the scheme to be an authorised unit trust scheme.
(2)If the [F17FCA] makes an order under subsection (1), it must give written notice of the order to the applicant.
(4)The manager and the trustee must be persons who are independent of each other.
[F18(5)The manager and the trustee must each be a body corporate incorporated in the United Kingdom or another EEA State, and the affairs of each must be administered in the country in which it is incorporated.
(5A)The trustee must have a place of business in the United Kingdom, and the manager must have a place of business in the United Kingdom or in another EEA State.]
(6)If the manager is incorporated in another EEA State, the scheme must not be one which satisfies the requirements prescribed for the purposes of section 264.
(7)The manager and the trustee must each be an authorised person and the manager must have permission to act as manager and the trustee must have permission to act as trustee.
[F19(7A)The manager must be a fit and proper person to manage the unit trust scheme to which the application relates.]
(8)The name of the scheme must not be undesirable or misleading.
(9)The purposes of the scheme must be reasonably capable of being successfully carried into effect.
(10)The participants must be entitled to have their units redeemed in accordance with the scheme at a price—
(11)But a scheme is to be treated as complying with subsection (10) if it requires the manager to ensure that a participant is able to sell his units on an investment exchange at a price not significantly different from that mentioned in that subsection.
F18S. 243(5)(5A) substituted for s. 243(5) (1.7.2011) by The Undertakings for Collective Investment in Transferable Securities Regulations 2011 (S.I. 2011/1613), reg. 2(15)(a)
F19S. 243(7A) inserted (1.7.2011) by The Undertakings for Collective Investment in Transferable Securities Regulations 2011 (S.I. 2011/1613), reg. 2(15)(b)
C3S. 243(1) extended (1.12.2001) by S.I. 2001/2636, arts. 1(2)(b), 65(1); S.I. 2001/3538, art. 2(1)
I4S. 243 wholly in force at 1.12.2001; s. 243 not in force at Royal Assent see s. 431(2); s. 243 in force for specified purposes at 3.9.2001 by S.I. 2001/2632, art. 2(2), Sch. Pt. 2; s. 243 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)
244 Determination of applications.U.K.
(1)[F20Subject to subsection (1A),] An application under section 242 must be determined by the [F17FCA] before the end of the period of six months beginning with the date on which it receives the completed application.
[F21(1A)An application under section 242 for authorisation of a unit trust scheme which is a UCITS must be determined by the [F17FCA] before the end of two months beginning with the date on which it receives the application.]
(2)The [F17FCA] may determine an incomplete application if it considers it appropriate to do so; and it must in any event determine such an application within twelve months beginning with the date on which it first receives the application.
(3)The applicant may withdraw his application, by giving the [F17FCA] written notice, at any time before the [F17FCA] determines it.
F20Words in s. 244(1) inserted (1.7.2011) by The Undertakings for Collective Investment in Transferable Securities Regulations 2011 (S.I. 2011/1613), reg. 2(16)(a)
F21S. 244(1A) inserted (1.7.2011) by The Undertakings for Collective Investment in Transferable Securities Regulations 2011 (S.I. 2011/1613), reg. 2(16)(b)
C4S. 244 applied (1.12.2001) by S.I. 2001/3592, arts. 1(2), 39(1) (with art. 23(2))
I5S. 244 wholly in force at 1.12.2001; s. 244 not in force at Royal Assent see s. 431(2); s. 244 in force for specified purposes at 3.9.2001 by S.I. 2001/2632, art. 2(2), Sch. Pt. 2; s. 244 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)
Applications refusedU.K.
245 Procedure when refusing an application.U.K.
(1)If the [F17FCA] proposes to refuse an application made under section 242 it must give each of the applicants a warning notice.
(2)If the [F17FCA] decides to refuse the application—
I6S. 245 wholly in force at 1.12.2001; s. 245 not in force at Royal Assent see s. 431(2); s. 245 in force for specified purposes at 3.9.2001 by S.I. 2001/2632, art. 2(2), Sch. Pt. 2; s. 245 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)
CertificatesU.K.
246 Certificates.U.K.
(1)If the manager or trustee of a unit trust scheme which complies with the conditions necessary for it to enjoy the rights conferred by any relevant [F22EU] instrument so requests, the [F17FCA] may issue a certificate to the effect that the scheme complies with those conditions.
F22Word in s. 246(1) substituted (22.4.2011 with application in accordance with art. 3 of the amending S.I.) by virtue of The Treaty of Lisbon (Changes in Terminology) Order 2011 (S.I. 2011/1043), art. 6(1)(3)(4)
C5S. 246 extended (1.12.2001) by S.I. 2001/2636, arts. 1(2)(b), 65(3); S.I. 2001/3538, art. 2(1)
I7S. 246 wholly in force at 1.12.2001; s. 246 not in force at Royal Assent see s. 431(2); s. 246 in force for specified purposes at 3.9.2001 by S.I. 2001/2632, art. 2(2), Sch. Pt. 2; s. 246 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)
247 Trust scheme rules.U.K.
(1)The [F17FCA] may make rules (“trust scheme rules”) as to—
(a)the constitution, management and operation of authorised unit trust schemes;
(b)the powers, duties, rights and liabilities of the manager and trustee of any such scheme;
(c)the rights and duties of the participants in any such scheme; and
(d)the winding up of any such scheme.
(2)Trust scheme rules may, in particular, make provision—
(a)as to the issue and redemption of the units under the scheme;
(b)as to the expenses of the scheme and the means of meeting them;
(c)for the appointment, removal, powers and duties of an auditor for the scheme;
(d)for restricting or regulating the investment and borrowing powers exercisable in relation to the scheme;
(e)requiring the keeping of records with respect to the transactions and financial position of the scheme and for the inspection of those records;
(f)requiring the preparation of periodical reports with respect to the scheme and the provision of those reports to the participants and to the [F17FCA]; and
(g)with respect to the amendment of the scheme.
(3)Trust scheme rules may make provision as to the contents of the trust deed, including provision requiring any of the matters mentioned in subsection (2) to be dealt with in the deed.
(4)But trust scheme rules are binding on the manager, trustee and participants independently of the contents of the trust deed and, in the case of the participants, have effect as if contained in it.
(a)a modification is made of the statutory provisions in force in [F23the United Kingdom] relating to companies,
(b)the modification relates to the rights and duties of persons who hold the beneficial title to any shares in a company without also holding the legal title, and
(c)it appears to the Treasury that, for the purpose of assimilating the law relating to authorised unit trust schemes to the law relating to companies as so modified, it is expedient to modify the rule-making powers conferred on the [F17FCA] by this section,
the Treasury may by order make such modifications of those powers as they consider appropriate.
F23Words in s. 247(5)(a) substituted (12.5.2011) by The Companies Act 2006 (Consequential Amendments and Transitional Provisions) Order 2011 (S.I. 2011/1265), art. 12(2)
248 Scheme particulars rules.U.K.
(1)The [F17FCA] may make rules (“scheme particulars rules”) requiring the manager of an authorised unit trust scheme—
(a)to submit scheme particulars to the [F17FCA]; and
(b)to publish scheme particulars or make them available to the public on request.
(2)“Scheme particulars” means particulars in such form, containing such information about the scheme and complying with such requirements, as are specified in scheme particulars rules.
(3)Scheme particulars rules may require the manager of an authorised unit trust scheme to submit, and to publish or make available, revised or further scheme particulars if there is a significant change affecting any matter—
(a)which is contained in scheme particulars previously published or made available; and
(b)whose inclusion in those particulars was required by the rules.
(4)Scheme particulars rules may require the manager of an authorised unit trust scheme to submit, and to publish or make available, revised or further scheme particulars if—
(a)a significant new matter arises; and
(b)the inclusion of information in respect of that matter would have been required in previous particulars if it had arisen when those particulars were prepared.
(5)Scheme particulars rules may provide for the payment, by the person or persons who in accordance with the rules are treated as responsible for any scheme particulars, of compensation to any qualifying person who has suffered loss as a result of—
(a)any untrue or misleading statement in the particulars; or
(b)the omission from them of any matter required by the rules to be included.
(6)“Qualifying person” means a person who—
(a)has become or agreed to become a participant in the scheme; or
(b)although not being a participant, has a beneficial interest in units in the scheme.
(7)Scheme particulars rules do not affect any liability which any person may incur apart from the rules.
249 [F24Disciplinary measures]U.K.
(1)If it appears to the [F17FCA] that an auditor has failed to comply with a duty imposed on him by trust scheme rules, [F25it may do one or more of the following—
(a)disqualify the auditor from being the auditor of any authorised unit trust scheme [F26, authorised contractual scheme] or authorised open-ended investment company;
(c)impose on the auditor a penalty, payable to the FCA, of such amount as the FCA considers appropriate.]
[F27(2)Sections 345B to 345E have effect in relation to the taking of action under subsection (1) as they have effect in relation to the taking of action under section 345(2).]
F24S. 249 heading substituted (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 10(4) (with Sch. 20); S.I. 2013/113, art. 2(1)(c), Sch. Pt. 3; S.I. 2013/423, art. 3, Sch.
F25Words in s. 249(1) substituted (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 10(2) (with Sch. 20); S.I. 2013/113, art. 2(1)(c), Sch. Pt. 3; S.I. 2013/423, art. 3, Sch.
F26Words in s. 249(1)(a) inserted (6.6.2013) by The Collective Investment in Transferable Securities (Contractual Scheme) Regulations 2013 (S.I. 2013/1388), regs. 1, 3(8) (with reg. 24)
F27S. 249(2) substituted (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 10(3) (with Sch. 20); S.I. 2013/113, art. 2(1)(c), Sch. Pt. 3; S.I. 2013/423, art. 3, Sch.
C6S. 249(1) applied (with modifications) (N.I.) (1.11.2004) by Open-Ended Investment Companies Regulations (Northern Ireland) (S.R. 2004/335), regs. 1(1)(b), 69, {Sch. 5 para. 20} (with reg. 1(2))
C7S. 249(1) applied (with modifications) (1.4.2013) by The Financial Services Act 2012 (Transitional Provisions) (Enforcement) Order 2013 (S.I. 2013/441), arts. 1(1), 12(2)
250 Modification or waiver of rules.U.K.
(a)trust scheme rules; or
(b)scheme particulars rules.
(2)The [F17FCA] may, on the application or with the consent of any person to whom any rules apply, direct that all or any of the rules—
(a)are not to apply to him as respects a particular scheme; or
(b)are to apply to him, as respects a particular scheme, with such modifications as may be specified in the direction.
(3)The [F17FCA] may, on the application or with the consent of the manager and trustee of a particular scheme acting jointly, direct that all or any of the rules—
(4)[F28Section 138A and subsections (1) to (3), (5) and (6) of section 138B] have effect in relation to a direction under subsection (2) as they have effect in relation to a direction under [F29section 138A(1)] but with the following modifications—
(a)F30. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b)any reference to the [F31person] is to be read as a reference to the person mentioned in subsection (2); and
(c)[F32section 138B(3)(c)] is to be read, in relation to a participant of the scheme, as if the word “commercial” were omitted.
(5)[F33Section 138A and subsections (1) to (3), (5) and (6) of section 138B] have effect in relation to a direction under subsection (3) as they have effect in relation to a direction under [F34section 138A(1)] but with the following modifications—
(a)[F35subsection (4)(a) of section 138A] is to be read as if the words “by the F36. . . person” were omitted;
(b)[F37section 138B(3)(c) and the definition of “immediate group” in section 421ZA as it applies to that section] are to be read as if references to the F36. . . person were references to each of the manager and the trustee of the scheme;
(c)[F38section 138B(3)(c)] is to be read, in relation to a participant of the scheme, as if the word “commercial” were omitted;
(d)[F39section 138B(5)] is to be read as if the reference to the F36. . . person concerned were a reference to the scheme concerned and to its manager and trustee; and
(e)[F40section 138A(7)] is to be read as if the reference to the F36. . . person were a reference to the manager and trustee of the scheme acting jointly.
F28Words in s. 250(4) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 11(2)(a) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F29Words in s. 250(4) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 11(2)(b) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F30S. 250(4)(a) omitted (12.7.2007) by virtue of The Regulatory Reform (Financial Services and Markets Act 2000) Order 2007 (S.I. 2007/1973), art. 11(a)
F31Word in s. 250(4)(b) substituted (12.7.2007) by The Regulatory Reform (Financial Services and Markets Act 2000) Order 2007 (S.I. 2007/1973), art. 11(b)
F32Words in s. 250(4)(c) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 11(2)(c) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F33Words in s. 250(5) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 11(3)(a) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F34Words in s. 250(5) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 11(3)(b) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F35Words in s. 250(5)(a) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 11(3)(c) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F36Word in s. 250(5)(a)(b)(d)(e) omitted (12.7.2007) by virtue of The Regulatory Reform (Financial Services and Markets Act 2000) Order 2007 (S.I. 2007/1973), art. 11(c)
F37Words in s. 250(5)(b) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 11(3)(d) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F38Words in s. 250(5)(c) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 11(3)(e) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F39Words in s. 250(5)(d) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 11(3)(f) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F40Words in s. 250(5)(e) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 11(3)(g) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
C8S. 250(2) amended (temp. from 3.9.2001 to 1.12.2001) by S.I. 2001/2659, arts. 1(2), 3(6); S.I. 2001/3538, art. 2(1)
[F41(A1)This section applies where the manager of an authorised unit trust scheme proposes—
(a)to make an alteration to the scheme, other than an alteration—
(i)to which section 252A applies; or
(ii)to which Part 4 of the Undertakings for Collective Investment in Transferable Securities Regulations 2011 (mergers) applies; or
(b)to replace its trustee.
(1)The manager must give written notice of the proposal to the [F17FCA].]
(3)The trustee of an authorised unit trust scheme must give written notice to the [F17FCA] of any proposal to replace the manager of the scheme.
(a)the [F17FCA], by written notice, has given its approval to the proposal; or
(b)one month, beginning with the date on which the notice was given, has expired without the manager or trustee having received from the [F17FCA] a warning notice under section 252 in respect of the proposal.
(5)The [F17FCA] must not approve a proposal to replace the manager or the trustee of an authorised unit trust scheme unless it is satisfied that, if the proposed replacement is made, the scheme will continue to comply with the requirements of section 243(4) to (7).
F41S. 251(A1)(1) substituted for s. 251(1) (1.7.2011) by The Undertakings for Collective Investment in Transferable Securities Regulations 2011 (S.I. 2011/1613), reg. 2(17)
C9S. 251 amended (temp. from 3.9.2001 to 1.12.2001) by S.I. 2001/2659, arts. 1(2), 3(7); S.I. 2001/3538, art. 2(1)
C10S. 251(1) extended (1.12.2001) by S.I. 2001/3592, arts. 1(2), 40(1) (with art. 23(2))
C11S. 251(3) extended (1.12.2001) by S.I. 2001/3592, arts. 1(2), 41(1) (with art. 23(2))
I8S. 251 wholly in force at 1.12.2001; s. 251 not in force at Royal Assent see s. 431(2); s. 251 (except subsection (4)(b)) in force for specified purposes at 3.9.2001 by S.I. 2001/2632, art. 2(2), Sch. Pt. 2; s. 251 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)
252 Procedure when refusing approval [F42of a proposal under section 251].U.K.
(1)If the [F17FCA] proposes to refuse approval of a proposal [F43under section 251] to replace the trustee or manager of an authorised unit trust scheme, it must give a warning notice to the person by whom notice of the proposal was given under section 251(1) or (3).
(2)If the [F17FCA] proposes to refuse approval of a proposal [F43under section 251] to alter an authorised unit trust scheme it must give separate warning notices to the manager and the trustee of the scheme.
(4)If, having given a warning notice to a person, the [F17FCA] decides to refuse approval—
F42Words in s. 252 heading substituted (1.7.2011) by The Undertakings for Collective Investment in Transferable Securities Regulations 2011 (S.I. 2011/1613), reg. 2(18)(a)
F43Words in s. 252(1)(2) inserted (1.7.2011) by The Undertakings for Collective Investment in Transferable Securities Regulations 2011 (S.I. 2011/1613), reg. 2(18)(b)
C12S. 252 amended (temp. from 3.9.2001 to 1.12.2001) by S.I. 2001/2659, arts. 1(2), 3(7); S.I. 2001/3538, art. 2(1)
C13S. 252(3) modified (1.12.2001) by S.I. 2001/3592, arts. 1(2), 40(3), 41(2) (with art. 23(2))
I9S. 252 wholly in force at 1.12.2001; s. 252 not in force at Royal Assent see s. 431(2); s. 252 in force for specified purposes at 3.9.2001 by S.I. 2001/2632, art. 2(2), Sch. Pt. 2; s. 252 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)
[F44252AProposal to convert to a non-feeder UCITSU.K.
(2)The manager must give written notice of the proposal to the [F17FCA].
(4)The [F17FCA] must, within 15 working days after the date on which it received the notice under subsection (2), give—
(a)written notice to the manager of the scheme that the [F17FCA] approves the proposed amendments to the trust deed, or
(b)separate warning notices to the manager and trustee of the scheme that the [F17FCA] proposes to refuse approval of the proposed amendments.
(5)Effect is not to be given to any proposal of which notice has been given under subsection (2) unless the [F17FCA], by written notice, has given its approval to the proposal.
(6)If, having given a warning notice to a person, the [F17FCA] decides to refuse approval—
(8)Where this subsection applies, the [F17FCA] may only approve the proposal subject to the conditions set out in section 283A(5) and (6).
(a)specified in rules made by the [F17FCA] to implement the UCITS directive, or
(b)specified in any directly applicable Community regulation or decision made under the UCITS directive.]
F44S. 252A inserted (1.7.2011) by The Undertakings for Collective Investment in Transferable Securities Regulations 2011 (S.I. 2011/1613), reg. 2(19)
Exclusion clausesU.K.
253 Avoidance of exclusion clauses.U.K.
Any provision of the trust deed of an authorised unit trust scheme is void in so far as it would have the effect of exempting the manager or trustee from liability for any failure to exercise due care and diligence in the discharge of his functions in respect of the scheme.
Ending of authorisationU.K.
254 Revocation of authorisation order otherwise than by consent.U.K.
(1)An authorisation order may be revoked by an order made by the [F45FCA] if it appears to the [F45FCA] that—
(b)the manager or trustee of the scheme concerned has contravened a requirement imposed on him by or under this Act;
(c)the manager or trustee of the scheme has, in purported compliance with any such requirement, knowingly or recklessly given the [F45FCA] information which is false or misleading in a material particular;
(2)For the purposes of subsection (1)(e), the [F45FCA] may take into account any matter relating to—
(b)the manager or trustee;
(c)any person employed by or associated with the manager or trustee in connection with the scheme;
(d)any director of the manager or trustee;
(e)any person exercising influence over the manager or trustee;
(f)any body corporate in the same group as the manager or trustee;
F45Word in ss. 254-262 substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 9(1)(2) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
C14S. 254 applied (with modifications) (1.12.2001) by S.I. 2001/3592, arts. 1(2), 46(4)(5) (with art. 23(2))
C15S. 254(1)(a) modified (1.12.2001) by S.I. 2001/2636, arts. 1(2)(b), 65(2); S.I. 2001/3538, art. 2(1)
C16S. 254(1)(d) excluded (temp. from 3.9.2001 to 1.12.2001) by S.I. 2001/2659, arts. 1(2), 3(2); S.I. 2001/3538, art. 2(1)
255 Procedure.U.K.
(1)If the [F45FCA] proposes to make an order under section 254 revoking an authorisation order (“a revoking order”), it must give separate warning notices to the manager and the trustee of the scheme.
(2)If the [F45FCA] decides to make a revoking order, it must without delay give each of them a decision notice and either of them may refer the matter to the Tribunal.
C17S. 255(1) extended (1.12.2001) by S.I. 2001/3592, arts. 1(2), 46(1) (with art. 23(2))
256 Requests for revocation of authorisation order.U.K.
(1)An authorisation order may be revoked by an order made by the [F45FCA] at the request of the manager or trustee of the scheme concerned.
(2)If the [F45FCA] makes an order under subsection (1), it must give written notice of the order to the manager and trustee of the scheme concerned.
(3)The [F45FCA] may refuse a request to make an order under this section if it considers that—
(b)revocation would not be in the interests of the participants or would be incompatible with [F46an EU] obligation.
(4)If the [F45FCA] proposes to refuse a request under this section, it must give separate warning notices to the manager and the trustee of the scheme.
(5)If the [F45FCA] decides to refuse the request, it must without delay give each of them a decision notice and either of them may refer the matter to the Tribunal.
F46Words in s. 256(3)(b) substituted (22.4.2011 with application in accordance with art. 3 of the amending S.I.) by virtue of The Treaty of Lisbon (Changes in Terminology) Order 2011 (S.I. 2011/1043), art. 6(1)(3)(4)
C18S. 256(1) extended (1.12.2001) by S.I. 2001/3592, arts. 1(2), 46(6) (with art. 23(2))
Powers of interventionU.K.
(1)The [F45FCA] may give a direction under this section if it appears to the [F45FCA] that—
[F47(b)the manager or trustee of an authorised unit trust scheme has contravened, or is likely to contravene, a requirement imposed—
(ii)by any directly applicable Community regulation or decision made under the UCITS directive;]
(c)the manager or trustee of such a scheme has, in purported compliance with any such requirement, knowingly or recklessly given the [F45FCA] information which is false or misleading in a material particular; or
(5)If a person contravenes a direction under this section, [F48section 138D] applies to the contravention as it applies to a contravention mentioned in that section.
(6)The [F45FCA] may, either on its own initiative or on the application of the manager or trustee of the scheme concerned, revoke or vary a direction given under this section if it appears to the [F45FCA]—
F47S. 257(1)(b) substituted (1.7.2011) by The Undertakings for Collective Investment in Transferable Securities Regulations 2011 (S.I. 2011/1613), reg. 2(20)
F48Words in s. 257(5) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 12 (with Sch. 20); S.I. 2013/423, art. 3, Sch.
C19S. 257(1) extended (1.12.2001) by S.I. 2001/2636, arts. 1(2)(b), 69(1); S.I. 2001/3538, art. 2(1)
C20S. 257(6) extended (1.12.2001) by S.I. 2001/2636, arts. 1(2)(b), 69(3); S.I. 2001/3538, art. 2(1)
I10S. 257 wholly in force at 1.12.2001; s. 257 not in force at Royal Assent see s. 431(2); s. 257 in force for specified purposes at 3.9.2001 by S.I. 2001/2632, art. 2(2), Sch. Pt. 2; s. 257 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)
258 Applications to the court.U.K.
(1)If the [F45FCA] could give a direction under section 257, it may also apply to the court for an order—
(a)removing the manager or the trustee, or both the manager and the trustee, of the scheme; and
(b)replacing the person or persons removed with a suitable person or persons nominated by the [F45FCA].
(2)The [F45FCA] may nominate a person for the purposes of subsection (1)(b) only if it is satisfied that, if the order was made, the requirements of section 243(4) to (7) would be complied with.
(3)If it appears to the [F45FCA] that there is no person it can nominate for the purposes of subsection (1)(b), it may apply to the court for an order—
(5)The court may, on the application of the [F45FCA], rescind any such order as is mentioned in subsection (3) and substitute such an order as is mentioned in subsection (1).
(6)The [F45FCA] must give written notice of the making of an application under this section to the manager and trustee of the scheme concerned.
[F49258AWinding up or merger of master UCITSU.K.
(1)Subsection (2) applies if a master UCITS which has one or more feeder UCITS which are authorised unit trust schemes is wound up, whether as a result of a direction given by the [F45FCA] under section 257 [F50or 261X], an order of the court under section 258 [F51or 261Y], rules made by the [F45FCA] or otherwise.
(2)The [F45FCA] must direct the manager and trustee of any authorised unit trust scheme which is a feeder UCITS of the master UCITS to wind up the feeder UCITS unless—
(a)the [F45FCA] approves under section 283A the investment by the feeder UCITS of at least 85% of the total property which is subject to the collective investment scheme constituted by the feeder UCITS in units of another UCITS or master UCITS; or
(b)the [F45FCA] approves under section 252A an amendment of the trust deed of the feeder UCITS which would enable it to convert into a UCITS which is not a feeder UCITS.
(3)Subsection (4) applies if a master UCITS which has one or more feeder UCITS which are authorised unit trust schemes—
(4)The [F45FCA] must direct the manager and trustee of any authorised unit trust scheme which is a feeder UCITS of the master UCITS to wind up the scheme unless—
(a)the [F45FCA] approves under section 283A the investment by the scheme of at least 85% of the total property which is subject to the collective investment scheme constituted by the feeder UCITS in the units of—
(b)the [F45FCA] approves under section 252A an amendment of the trust deed of the scheme which would enable it to convert into a UCITS which is not a feeder UCITS.]
F49S. 258A inserted (1.7.2011) by The Undertakings for Collective Investment in Transferable Securities Regulations 2011 (S.I. 2011/1613), reg. 2(21)
F50Words in s. 258A(1) inserted (6.6.2013) by The Collective Investment in Transferable Securities (Contractual Scheme) Regulations 2013 (S.I. 2013/1388), regs. 1, 3(9)(a) (with reg. 24)
F51Words in s. 258A(1) inserted (6.6.2013) by The Collective Investment in Transferable Securities (Contractual Scheme) Regulations 2013 (S.I. 2013/1388), regs. 1, 3(9)(b) (with reg. 24)
259 Procedure on giving directions under section 257 [F52or 258A] and varying them on [F53FCA's] own initiative.U.K.
(1)A direction [F54under section 257 or 258A] takes effect—
(2)A direction [F55under section 257] may be expressed to take effect immediately (or on a specified date) only if the [F45FCA], having regard to the ground on which it is exercising its power under [F56that section], considers that it is necessary for the direction to take effect immediately (or on that date).
(3)If the [F45FCA] proposes to give a direction under [F57section 257 or 258A, or gives a direction under either section] with immediate effect, it must give separate written notice to the manager and the trustee of the scheme concerned.
(c)state the [F45FCA's] reasons for giving the direction and for its determination as to when the direction takes effect;
(d)inform the person to whom it is given that he may make representations to the [F45FCA] within such period as may be specified in it (whether or not he has referred the matter to the Tribunal); and
(5)If the direction imposes a requirement under section 257(2)(a), the notice must state that the requirement has effect until—
(6)If the direction [F58is given under section 257(2)(b) or section 258A(2) or (4)], the scheme must be wound up—
(7)The [F45FCA] may extend the period allowed under the notice for making representations.
(8)If, having considered any representations made by a person to whom the notice was given, the [F45FCA] decides—
it must give separate written notice to the manager and the trustee of the scheme concerned.
(9)If, having considered any representations made by a person to whom the notice was given, the [F45FCA] decides—
(10)A notice given under subsection (8) must inform the person to whom it is given of his right to refer the matter to the Tribunal.
(12)If a notice informs a person of his right to refer a matter to the Tribunal, it must give an indication of the procedure on such a reference.
(13)This section applies to the variation of a direction on the [F45FCA's] own initiative as it applies to the giving of a direction.
F52Words in s. 259 heading inserted (1.7.2011) by The Undertakings for Collective Investment in Transferable Securities Regulations 2011 (S.I. 2011/1613), reg. 2(22)(a)
F53Word in s. 259 heading substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 9(1)(2) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F54Words in s. 259(1) inserted (1.7.2011) by The Undertakings for Collective Investment in Transferable Securities Regulations 2011 (S.I. 2011/1613), reg. 2(22)(b)
F55Words in s. 259(2) inserted (6.6.2013) by The Collective Investment in Transferable Securities (Contractual Scheme) Regulations 2013 (S.I. 2013/1388), regs. 1, 3(10)(a)(i) (with reg. 24)
F56Words in s. 259(2) substituted (6.6.2013) by The Collective Investment in Transferable Securities (Contractual Scheme) Regulations 2013 (S.I. 2013/1388), regs. 1, 3(10)(a)(ii) (with reg. 24)
F57Words in s. 259(3) substituted (6.6.2013) by The Collective Investment in Transferable Securities (Contractual Scheme) Regulations 2013 (S.I. 2013/1388), regs. 1, 3(10)(b) (with reg. 24)
F58Words in s. 259(6) substituted (1.7.2011) by The Undertakings for Collective Investment in Transferable Securities Regulations 2011 (S.I. 2011/1613), reg. 2(22)(c)
I11S. 259 wholly in force at 1.12.2001; s. 259 not in force at Royal Assent see s. 431(2); s. 259 in force for specified purposes at 3.9.2001 by S.I. 2001/2632, art. 2(2), Sch. Pt. 2; s. 259 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)
260 Procedure: refusal to revoke or vary direction.U.K.
(1)If on an application under section 257(6) for a direction to be revoked or varied the [F45FCA] proposes—
(2)If the [F45FCA] decides to refuse to revoke or vary the direction—
I12S. 260 wholly in force at 1.12.2001; s. 260 not in force at Royal Assent see s. 431(2); s. 260 in force for specified purposes at 3.9.2001 by S.I. 2001/2632, art. 2(2), Sch. Pt. 2; s. 260 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)
261 Procedure: revocation of direction and grant of request for variation.U.K.
(1)If the [F45FCA] decides on its own initiative to revoke a direction under section 257 it must give separate written notices of its decision to the manager and trustee of the scheme.
(2)If on an application under section 257(6) for a direction to be revoked or varied the [F45FCA] decides to revoke the direction or vary it in accordance with the application, it must give the applicant written notice of its decision.
(4)The [F45FCA] may publish such information about the revocation or variation, in such way, as it considers appropriate.
I13S. 261 wholly in force at 1.12.2001; s. 261 not in force at Royal Assent see s. 431(2); s. 261 in force for specified purposes at 3.9.2001 by S.I. 2001/2632, art. 2 Sch. Pt. 2; s. 261 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)
[F59261AInformation for home state regulatorU.K.
(1)Subsection (2) applies if, in accordance with rules made by the [F45FCA] to implement Article 66 of the UCITS directive, the [F45FCA] is informed by the manager of an authorised unit trust scheme which is a master UCITS that a feeder UCITS which invests in units of the scheme is an EEA UCITS.
(2)The [F45FCA] must immediately inform the home state regulator of the feeder UCITS of the investment made by that UCITS in the master UCITS.
F59Ss. 261A, 261B inserted (1.7.2011) by The Undertakings for Collective Investment in Transferable Securities Regulations 2011 (S.I. 2011/1613), reg. 2(23)
261BInformation for feeder UCITSU.K.
(1)The [F45FCA] must immediately inform the operator of any authorised unit trust scheme which is a feeder UCITS of an authorised unit trust scheme [F60, an authorised contractual scheme] or an authorised open-ended investment company (the master UCITS) of—
(a)any failure of which the [F45FCA] becomes aware by the master UCITS to comply with a provision made in implementation of Chapter VIII of the UCITS directive;
(b)any warning notice or decision notice given to the master UCITS in relation to a contravention of any provision made in implementation of Chapter VIII of the UCITS directive by or under any enactment or in rules of the [F45FCA];
(c)any information reported to the [F45FCA] pursuant to rules of the [F45FCA] made to implement Article 106(1) of the UCITS directive which relates to the master UCITS, or to one or more of its directors, or its management company, trustee, depositary or auditor.
(2)The [F45FCA] must immediately inform the operator of any authorised unit trust scheme which is a feeder UCITS of an EEAUCITS of any information received from the home state regulator of the EEAUCITS in relation to—
(3)Where the [F45FCA] has the information described in subsection (1)(a), (b) or (c) in relation to an authorised unit trust scheme which is a master UCITS for one or more feeder UCITS which are EEAUCITS, the [F45FCA] must immediately give that information to the home state regulator of each feeder UCITS established outside the United Kingdom.]
F60Words in s. 261B(1) inserted (6.6.2013) by The Collective Investment in Transferable Securities (Contractual Scheme) Regulations 2013 (S.I. 2013/1388), regs. 1, 3(11) (with reg. 24)
[F61CHAPTER 3AU.K.AUTHORISED CONTRACTUAL SCHEMES
F61Pt. XVII Ch. 3A inserted (6.6.2013) by The Collective Investment in Transferable Securities (Contractual Scheme) Regulations 2013 (S.I. 2013/1388), regs. 1, 3(12) (with reg. 24)
261C.Applications for authorisation of contractual schemesU.K.
261D.Authorisation ordersU.K.
(8)The operator and the depositary must each be an authorised person, and the operator must have permission to act as operator and the depositary must have permission to act as depositary.
261E.Authorisation orders: holding of unitsU.K.
261F.Determination of applicationsU.K.
261G.Procedure when refusing an applicationU.K.
261H.CertificatesU.K.
261I.Contractual scheme rulesU.K.
261J.Contractual scheme particulars rulesU.K.
261K.Disciplinary measuresU.K.
261L.Modification or waiver of rulesU.K.
Co-ownership schemes: rights and liabilities of participantsU.K.
261M.ContractsU.K.
261N.Effect of becoming or ceasing to be a participantU.K.
261O.Limited liabilityU.K.
261P.Segregated liability in relation to umbrella co-ownership schemesU.K.
261Q.Alteration of contractual schemes and changes of operator or depositaryU.K.
261R.Procedure when refusing approval of a proposal under section 261QU.K.
261S.Proposal to convert to a non-feeder UCITSU.K.
261T.Avoidance of exclusion clausesU.K.
261U.Revocation of authorisation order otherwise than by consentU.K.
261V.Procedure for revoking authorisation orderU.K.
261W.Requests for revocation of authorisation orderU.K.
261X.DirectionsU.K.
261Y.Applications to the courtU.K.
261Z.Winding up or merger of master UCITSU.K.
261Z1.Procedure on giving directions under section 261X or 261Z and varying them on FCA’s own initiativeU.K.
261Z2.Procedure: refusal to revoke or vary directionU.K.
261Z3.Procedure: revocation of direction and grant of request for variationU.K.
261Z4.Information for home state regulatorU.K.
261Z5.Information for feeder UCITSU.K.
Chapter IVU.K. Open-ended Investment Companies
262 Open-ended investment companies.E+W+S
(a)facilitating the carrying on of collective investment by means of open-ended investment companies;
(b)regulating such companies.
(a)for the incorporation and registration in [F62the United Kingdom] of bodies corporate;
(b)for a body incorporated by virtue of the regulations to take such form as may be determined in accordance with the regulations;
(c)as to the purposes for which such a body may exist, the investments which it may issue and otherwise as to its constitution;
(d)as to the management and operation of such a body and the management of its property;
(e)as to the powers, duties, rights and liabilities of such a body and of other persons, including—
(i)the directors or sole director of such a body;
(ii)its depositary (if any);
(iii)its shareholders, and persons who hold the beneficial title to shares in it without holding the legal title;
(iv)its auditor; and
(f)as to the merger of one or more such bodies and the division of such a body;
(g)for the appointment and removal of an auditor for such a body;
(h)as to the winding up and dissolution of such a body;
(i)for such a body, or any director or depositary of such a body, to be required to comply with directions given by the [F45FCA];
(j)enabling the [F45FCA] to apply to a court for an order removing and replacing any director or depositary of such a body;
(k)for the carrying out of investigations by persons appointed by the [F45FCA] or the Secretary of State;
(l)corresponding to any provision made in relation to unit trust schemes by Chapter III of this Part.
(b)confer functions on the [F45FCA];
(c)in the case of provision made by virtue of subsection (2)(l), authorise the making of rules by the [F45FCA];
(e)provide for fees to be charged by the [F45FCA in connection with the carrying out of any of its functions under the regulations (including fees payable on a periodical basis);
(4)The provision that may be made by virtue of subsection (3)(f) includes provision extending or adapting any power to make subordinate legislation.
(5)Regulations under this section may, in particular—
(a)revoke the M1Open-Ended Investment Companies (Investment Companies with Variable Capital) Regulations 1996; and
(b)provide for things done under or in accordance with those regulations to be treated as if they had been done under or in accordance with regulations under this section.]
F62Words in s. 262(2)(a) substituted (12.5.2011) by The Companies Act 2006 (Consequential Amendments and Transitional Provisions) Order 2011 (S.I. 2011/1265), art. 12(3)
M1S.I. 1996/2827.
263 Amendment of section 716 Companies Act 1985.E+W+S
In section 716(1) of the M2Companies Act 1985 (prohibition on formation of companies with more than 20 members unless registered under the Act etc.), after “this Act,” insert “ is incorporated by virtue of regulations made under section 262 of the Financial Services and Markets Act 2000 ”.
Chapter VU.K. Recognised Overseas Schemes
Schemes constituted in other EEA StatesU.K.
264 Schemes constituted in other EEA States.U.K.
(1)A collective investment scheme constituted in another EEA State is a recognised scheme if—
(a)it satisfies such requirements as are prescribed for the purposes of this section;F63. . .
[F64(b)the home state regulator of the operator of the scheme has transmitted to the [F65FCA] notice of the operator's intention to invite persons in the United Kingdom to participate in the scheme; and
(i) complies with the requirements of any directly applicable Community regulation or decision made under the UCITS directive, and
(ii)is accompanied by such other information as may be prescribed.]
(2)F66. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3)F66. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4)F66. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5)For the purposes of this section a collective investment scheme is constituted in another EEA State [F67(“the home state”)] if—
(a)it is constituted under the law of [F68the home state] by a contract or under a trust and is managed by a body corporate incorporated under [F69the law of any EEA State]; or
(b)it takes the form of an open-ended investment company incorporated under [F70the law of the home state].
(6)The operator of a recognised scheme may give written notice to the [F65FCA] that he desires the scheme to be no longer recognised by virtue of this section.
F63Word in s. 264(1)(a) omitted (1.7.2011) by virtue of The Undertakings for Collective Investment in Transferable Securities Regulations 2011 (S.I. 2011/1613), reg. 2(24)(a)
F64S. 264(1)(b)(c) substituted for s. 264(1)(b) (1.7.2011) by The Undertakings for Collective Investment in Transferable Securities Regulations 2011 (S.I. 2011/1613), reg. 2(24)(b)
F65Words in s. 264 substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 9(1)(2) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F66s. 264(2)(3)(4) omitted (1.7.2011) by virtue of The Undertakings for Collective Investment in Transferable Securities Regulations 2011 (S.I. 2011/1613), reg. 2(24)(c)
F67Words in s. 264(5) inserted (24.8.2012) by The Undertakings for Collective Investment in Transferable Securities (Amendment) Regulations 2012 (S.I. 2012/2015), regs. 1, 4(a)
F68Words in s. 264(5)(a) substituted (24.8.2012) by The Undertakings for Collective Investment in Transferable Securities (Amendment) Regulations 2012 (S.I. 2012/2015), regs. 1, 4(b)(i)
F69Words in s. 264(5)(a) substituted (24.8.2012) by The Undertakings for Collective Investment in Transferable Securities (Amendment) Regulations 2012 (S.I. 2012/2015), regs. 1, 4(b)(ii)
F70Words in s. 264(5)(b) substituted (24.8.2012) by The Undertakings for Collective Investment in Transferable Securities (Amendment) Regulations 2012 (S.I. 2012/2015), regs. 1, 4(c)
C21S. 264 extended (1.12.2001) by S.I. 2001/2636, arts. 1(2)(b), 66(1); S.I. 2001/3538, art. 2(1)
C22S. 264 applied (with modifications) by S.I. 2001/3084, art. 3A (as inserted (24.8.2012) by The Financial Services and Markets Act 2000 (Gibraltar) (Amendment) Order 2012 (S.I. 2012/2017), arts. 1, 2(3))
I14S. 264 wholly in force at 1.12.2001; s. 264 not in force at Royal Assent see s. 431(2); s. 264(1)(3)(c) in force for certain purposes at 25.2.2001 by S.I. 2001/516, art. 2(b), Sch. Pt. 2; s. 264 in force for specified purposes at 3.9.2001 by S.I. 2001/2632, art. 2(2), Sch. Pt. 2; s. 264 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)
265 Representations and references to the Tribunal.U.K.
F71S. 265 omitted (1.7.2011) by virtue of The Undertakings for Collective Investment in Transferable Securities Regulations 2011 (S.I. 2011/1613), reg. 2(25)
rules made by the [F72FCA] under this Act do not apply to the operator, trustee or depositary of a scheme in relation to the carrying on by him of regulated activities for which he has permission in that capacity.
[F73(1A)But subsection (1) does not affect the application of rules to an operator of a scheme if the operator is an EEA firm falling within paragraph 5(f) of Schedule 3 who qualifies for authorisation under that Schedule.]
F72Word in s. 266 substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 9(1)(2) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F73S. 266(1A) inserted (13.2.2004) by The Collective Investment Schemes (Miscellaneous Amendments) Regulations 2003 (S.I. 2003/2066), reg. 9
267 Power of [F74FCA] to suspend promotion of scheme.U.K.
(1)Subsection (2) applies if it appears to the [F75FCA] that the operator of a scheme has communicated an invitation or inducement in relation to the scheme in a manner contrary to financial promotion rules.
(2)The [F76FCA] may direct that—
(4)The [F77FCA] may, either on its own initiative or on the application of the operator of the scheme concerned, vary a direction given under subsection (2) if it appears to the [F77FCA] that the direction should take effect or continue in force in a different form.
(5)The [F78FCA] may, either on its own initiative or on the application of the operator of the recognised scheme concerned, revoke a direction given under subsection (2) if it appears to the [F78FCA]—
F74Word in s. 267 heading substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 13(b) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F75Word in s. 267(1) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 13(a) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F76Word in s. 267(2) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 13(a) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F77Word in s. 267(4) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 13(a) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F78Word in s. 267(5) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 13(a) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
268 Procedure on giving directions under section 267 and varying them on [F79FCA's] own initiative.U.K.
(1)A direction under section 267 takes effect—
(a)immediately, if the notice given under subsection (3)(a) states that that is the case;
(2)A direction may be expressed to take effect immediately (or on a specified date) only if the [F80FCA], having regard to its reasons for exercising its power under section 267, considers that it is necessary for the direction to take effect immediately (or on that date).
(3)If [F81the FCA] proposes to give a direction under section 267, or gives such a direction with immediate effect, it must—
(a)give the operator of the scheme concerned written notice; and
(b)inform the competent authorities in the scheme’s home State of its proposal or (as the case may be) of the direction.
(b)inform the operator of when the direction takes effect;
(c)state the [F82FCA's] reasons for giving the direction and for its determination as to when the direction takes effect;
(d)inform the operator that he may make representations to the [F83FCA] within such period as may be specified in it (whether or not he has referred the matter to the Tribunal); and
(5)The [F84FCA] may extend the period allowed under the notice for making representations.
(6)Subsection (7) applies if, having considered any representations made by the operator, the [F85FCA] decides—
(b)if it has been given, not to revoke the direction.
(7)[F86The FCA] must—
(b)inform the competent authorities in the scheme’s home State of the direction.
(8)Subsection (9) applies if, having considered any representations made by a person to whom the notice was given, the [F87FCA] decides—
(c)to revoke a direction which has effect.
(9)[F88The FCA] must—
(b)inform the competent authorities in the scheme’s home State of its decision.
(10)A notice given under subsection (7)(a) must inform the operator of his right to refer the matter to the Tribunal.
(11)A notice under subsection (9)(a) given as a result of subsection (8)(b) must comply with subsection (4).
(13)This section applies to the variation of a direction on the [F89FCA's] own initiative as it applies to the giving of a direction.
F79Word in s. 268 heading substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 14(i) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F80Word in s. 268(2) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 14(a) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F81Words in s. 268(3) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 14(b) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F82Word in s. 268(4)(c) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 14(c) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F83Word in s. 268(4)(d) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 14(d) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F84Word in s. 268(5) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 14(d) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F85Word in s. 268(6) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 14(d) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F86Words in s. 268(7) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 14(e) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F87Word in s. 268(8) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 14(f) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F88Words in s. 268(9) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 14(g) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F89Word in s. 268(13) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 14(h) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
269 Procedure on application for variation or revocation of direction.U.K.
(1)If, on an application under subsection (4) or (5) of section 267, the [F90FCA] proposes—
(a)to vary a direction otherwise than in accordance with the application, or
(b)to refuse the application,
(2)If, on such an application, the [F91FCA] decides—
(3)If the application is refused, the operator of the scheme may refer the matter to the Tribunal.
(4)If, on such an application, the [F92FCA] decides to grant the application it must give the operator of the scheme concerned written notice.
(5)If the [F93FCA] decides on its own initiative to revoke a direction given under section 267 it must give the operator of the scheme concerned written notice.
(6)[F94The FCA] must inform the competent authorities in the scheme’s home State of any notice given under this section.
F90Word in s. 269(1) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 15(a) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F91Word in s. 269(2) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 15(a) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F92Word in s. 269(4) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 15(a) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F93Word in s. 269(5) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 15(a) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F94Words in s. 269(6) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 15(b) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
Schemes authorised in designated countries or territoriesU.K.
270 Schemes authorised in designated countries or territories.U.K.
(1)A collective investment scheme which is not a recognised scheme by virtue of section 264 but is managed in, and authorised under the law of, a country or territory outside the United Kingdom is a recognised scheme if—
(a)that country or territory is designated for the purposes of this section by an order made by the Treasury;
(b)the scheme is of a class specified by the order;
(c)the operator of the scheme has given written notice to the [F95FCA] that he wishes it to be recognised; and
(i)the [F95FCA], by written notice, has given its approval to the scheme’s being recognised; or
(ii)two months, beginning with the date on which notice was given under paragraph (c), have expired without the operator receiving a warning notice from the [F95FCA] under section 271.
(2)The Treasury may not make an order designating any country or territory for the purposes of this section unless satisfied—
(a)that the law and practice under which relevant collective investment schemes are authorised and supervised in that country or territory affords to investors in the United Kingdom protection at least equivalent to that provided for them by or under this Part in the case of comparable authorised schemes; and
(b)that adequate arrangements exist, or will exist, for co-operation between the authorities of the country or territory responsible for the authorisation and supervision of relevant collective investment schemes and [F96the FCA].
(3)“Relevant collective investment schemes” means collective investment schemes of the class or classes to be specified by the order.
(4)“Comparable authorised schemes” means whichever of the following the Treasury consider to be the most appropriate, having regard to the class or classes of scheme to be specified by the order—
[F97(aa)authorised contractual schemes which are co-ownership schemes;
(ab)authorised contractual schemes which are partnership schemes;]
[F98(c)any two or more of the kinds of collective investment scheme mentioned in paragraphs (a) to (b).]
(5)If the Treasury are considering whether to make an order designating a country or territory for the purposes of this section—
(a)the Treasury must ask [F99the FCA] for a report—
(i)on the law and practice of that country or territory in relation to the authorisation and supervision of relevant collective investment schemes,
(ii)on any existing or proposed arrangements for co-operation between it and the authorities responsible in that country or territory for the authorisation and supervision of relevant collective investment schemes,
having regard to the Treasury’s need to be satisfied as mentioned in subsection (2);
(b)[F99the FCA] must provide the Treasury with such a report; and
(c)the Treasury must have regard to it in deciding whether to make the order.
(6)The notice to be given by the operator under subsection (1)(c)—
(a)must contain the address of a place in the United Kingdom for the service on the operator of notices or other documents required or authorised to be served on him under this Act; and
(b)must contain or be accompanied by such information and documents as may be specified by the [F100FCA].
F95Word in s. 270(1) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 16(a) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F96Words in s. 270(2)(b) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 16(b) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F97S. 270(4)(aa)(ab) inserted (6.6.2013) by The Collective Investment in Transferable Securities (Contractual Scheme) Regulations 2013 (S.I. 2013/1388), regs. 1, 3(13)(a) (with reg. 24)
F98S. 270(4)(c) substituted (6.6.2013) by The Collective Investment in Transferable Securities (Contractual Scheme) Regulations 2013 (S.I. 2013/1388), regs. 1, 3(13)(b) (with reg. 24)
F99Words in s. 270(5) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 16(b) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F100Word in s. 270(6) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 16(c) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
C23S. 270 extended (1.12.2001) by S.I. 2001/2636, arts. 1(2)(b), 67(2); S.I. 2001/3538, art. 2(1)
C24S. 270(1) extended (1.12.2001) by S.I. 2001/2636, arts. 1(2)(b), 67(1); S.I. 2001/3538, art. 2(1)
C25S. 270(1)(c) extended (1.12.2001) by S.I. 2001/3592, arts. 1(2), 43(1) (with art. 23(2))
I15S. 270 wholly in force at 1.12.2001; s. 270 not in force at Royal Assent see s. 431(2); s. 270 in force for certain purposes at 25.2.2001 by S.I. 2001/516, art. 2(b), Sch. Pt. 2; s. 270 in force for specified purposes at 3.9.2001 by S.I. 2001/2632, art. 2(2), Sch. Pt. 2; s. 270 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)
271 Procedure.U.K.
(1)If the [F101FCA] proposes to refuse approval of a scheme’s being a recognised scheme by virtue of section 270, it must give the operator of the scheme a warning notice.
(2)To be valid the warning notice must be received by the operator before the end of two months beginning with the date on which notice was given under section 270(1)(c).
(3)If, having given a warning notice, the [F101FCA] decides to refuse approval—
(a)it must give the operator of the scheme a decision notice; and
(b)the operator may refer the matter to the Tribunal.
F101Word in ss. 271-283B substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 9(1)(2) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
C26S. 271(2) modified (1.12.2001) by S.I. 2001/3592, arts. 1(2), 43(4) (with art. 23(2))
I16S. 271 wholly in force at 1.12.2001; s. 271 not in force at Royal Assent see s. 431(2); s. 271 (except subsection (2)) in force for specified purposes at 3.9.2001 by S.I. 2001/2632, art. 2(2), Sch. Pt. 2; s. 271 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)
Individually recognised overseas schemesU.K.
(1)The [F101FCA] may, on the application of the operator of a collective investment scheme which—
(d)appears to the [F101FCA] to satisfy the requirements set out in the following provisions of this section,
(5)In deciding whether the matters mentioned in subsection (3) or (4) are adequate, the [F101FCA] must have regard to—
(6)“Comparable authorised schemes” means whichever of the following the [F101FCA] considers the most appropriate, having regard to the nature of scheme in respect of which the application is made—
[F102(aa)authorised contractual schemes which are co-ownership schemes;
[F103(c)any two or more of the kinds of collective investment scheme mentioned in paragraphs (a) to (b).]
(10)The operator and the trustee or depositary (if any) of the scheme must be able and willing to co-operate with the [F101FCA] by the sharing of information and in other ways.
F102S. 272(6)(aa)(ab) inserted (6.6.2013) by The Collective Investment in Transferable Securities (Contractual Scheme) Regulations 2013 (S.I. 2013/1388), regs. 1, 3(14)(a) (with reg. 24)
F103S. 272(6)(c) substituted (6.6.2013) by The Collective Investment in Transferable Securities (Contractual Scheme) Regulations 2013 (S.I. 2013/1388), regs. 1, 3(14)(b) (with reg. 24)
C27S. 272(1) extended (1.12.2001) by S.I. 2001/2636, arts. 1(2)(b), 68(1); S.I. 2001/3538, art. 2(1)
C28S. 272(8)(9) modified (31.10.2001) by S.I. 2001/3374, art. 1, Sch. para. 9
I17S. 272 wholly in force at 1.12.2001; s. 272 not in force at Royal Assent see s. 431(2); s. 272 in force for specified purposes at 3.9.2001 by S.I. 2001/2632, art. 2(2), Sch. Pt. 2; s. 272 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)
For the purposes of subsections (8)(b) and (9)(b) of section 272, the [F101FCA] may take into account any matter relating to—
I18S. 273 wholly in force at 1.12.2001; s. 273 not in force at Royal Assent see s. 431(2); s. 273 in force for specified purposes at 3.9.2001 by S.I. 2001/2632, art. 2(2), Sch. Pt. 2; s. 273 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)
274 Applications for recognition of individual schemes.U.K.
(1)An application under section 272 for an order declaring a scheme to be a recognised scheme must be made to the [F101FCA] by the operator of the scheme.
(a)must be made in such manner as the [F101FCA] may direct;
(b)must contain the address of a place in the United Kingdom for the service on the operator of notices or other documents required or authorised to be served on him under this Act;
(c)must contain or be accompanied by such information as the [F101FCA] may reasonably require for the purpose of determining the application.
(3)At any time after receiving an application and before determining it, the [F101FCA] may require the applicant to provide it with such further information as it reasonably considers necessary to enable it to determine the application.
(5)The [F101FCA] may require an applicant to present information which he is required to give under this section in such form, or to verify it in such a way, as the [F101FCA] may direct.
C29S. 274 extended (1.12.2001) by S.I. 2001/3592, arts. 1(2), 44(1) (with art. 23(2))
I19S. 274 wholly in force at 1.12.2001; s. 274 not in force at Royal Assent see s. 431(2); s. 274(2) in force for specified purposes at 18.6.2001 by S.I. 2001/1820, art. 2, Sch.; s. 274 in force for specified purposes at 3.9.2001 by S.I. 2001/2632, art. 2(2), Sch. Pt. 2; s. 274 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)
(1)An application under section 272 must be determined by the [F101FCA] before the end of the period of six months beginning with the date on which it receives the completed application.
(2)The [F101FCA] may determine an incomplete application if it considers it appropriate to do so; and it must in any event determine such an application within twelve months beginning with the date on which it first receives the application.
(3)If the [F101FCA] makes an order under section 272(1), it must give written notice of the order to the applicant.
C30S. 275(1)(2) modified (1.12.2001) by S.I. 2001/3592, arts. 1(2), 44(2)(3) (with art. 23(2))
I20S. 275 wholly in force at 1.12.2001; s. 275 not in force at Royal Assent see s. 431(2); s. 275 in force for specified purposes at 3.9.2001 by S.I. 2001/2632, art. 2(2), Sch. Pt. 2; s. 275 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)
276 Procedure when refusing an application.U.K.
(1)If the [F101FCA] proposes to refuse an application made under section 272 it must give the applicant a warning notice.
(2)If the [F101FCA] decides to refuse the application—
I21S. 276 wholly in force at 1.12.2001; s. 276 not in force at Royal Assent see s. 431(2); s. 276 in force for specified purposes at 3.9.2001 by S.I. 2001/2632, art. 2(2), Sch. Pt. 2; s. 276 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)
277 Alteration of schemes and changes of operator, trustee or depositary.U.K.
(1)The operator of a scheme recognised by virtue of section 272 must give written notice to the [F101FCA] of any proposed alteration to the scheme.
(2)Effect is not to be given to any such proposal unless—
(a)the [F101FCA], by written notice, has given its approval to the proposal; or
(b)one month, beginning with the date on which notice was given under subsection (1), has expired without the [F101FCA] having given written notice to the operator that it has decided to refuse approval.
(3)At least one month before any replacement of the operator, trustee or depositary of such a scheme, notice of the proposed replacement must be given to the [F101FCA]—
(a)by the operator, trustee or depositary (as the case may be); or
(b)by the person who is to replace him.
C31S. 277(1) amended (temp. from 3.9.2001 to 1.12.2001) by S.I. 2001/2659, arts. 1(2), 3(9); S.I. 2001/3538, art. 2(1)
S. 277(1) extended (1.12.2001) by S.I. 2001/3592, arts. 1(2), 45(1) (with art. 23(2))
C32S. 277(2)(b) modified (1.12.2001) by S.I. 2001/3592, arts. 1(2), 45(2) (with art. 23(2))
C33S. 277(3) extended (1.12.2001) by S.I. 2001/3592, arts. 1(2), 45(3) (with art. 23(2))
I22S. 277 wholly in force at 1.12.2001; s. 277 not in force at Royal Assent see s. 431(2); s. 277 in force for specified purposes at 3.9.2001 by S.I. 2001/2632, art. 2(2), Sch. Pt. 2; s. 277 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)
Schemes recognised under sections 270 and 272U.K.
278 Rules as to scheme particulars.U.K.
The [F101FCA] may make rules imposing duties or liabilities on the operator of a scheme recognised under section 270 or 272 for purposes corresponding to those for which rules may be made under section 248 in relation to authorised unit trust schemes.
279 Revocation of recognition.U.K.
The [F101FCA] may direct that a scheme is to cease to be recognised by virtue of section 270 or revoke an order under section 272 if it appears to the [F101FCA]—
(a)that the operator, trustee or depositary of the scheme has contravened a requirement imposed on him by or under this Act;
(b)that the operator, trustee or depositary of the scheme has, in purported compliance with any such requirement, knowingly or recklessly given the [F101FCA] information which is false or misleading in a material particular;
(c)in the case of an order under section 272, that one or more of the requirements for the making of the order are no longer satisfied; or
(d)that none of paragraphs (a) to (c) applies, but it is undesirable in the interests of the participants or potential participants that the scheme should continue to be recognised.
C34S. 279 applied (1.12.2001) by S.I. 2001/3592, arts. 1(2), 47(4)(b) (with art. 23(2))
S. 279 applied (with modifications) (1.12.2001) by S.I. 2001/3592, arts. 1(2), 48(4)(5) (with art. 23(2))
C35S. 279(c) modified (1.12.2001) by S.I. 2001/2636, arts. 1(2)(b), 68(2); S.I. 2001/3538, art. 2(1)
(1)If the [F101FCA] proposes to give a direction under section 279 or to make an order under that section revoking a recognition order, it must give a warning notice to the operator and (if any) the trustee or depositary of the scheme.
(2)If the [F101FCA] decides to give a direction or make an order under that section—
C36S. 280(1) extended (1.12.2001) by S.I. 2001/3592, arts. 1(2), 47(1), 48(1) (with art. 23(2))
281 Directions.U.K.
(1)In this section a “relevant recognised scheme” means a scheme recognised under section 270 or 272.
(2)If it appears to the [F101FCA] that—
(a)the operator, trustee or depositary of a relevant recognised scheme has contravened, or is likely to contravene, a requirement imposed on him by or under this Act,
(b)the operator, trustee or depositary of such a scheme has, in purported compliance with any such requirement, knowingly or recklessly given the [F101FCA] information which is false or misleading in a material particular,
(c)one or more of the requirements for the recognition of a scheme under section 272 are no longer satisfied, or
(d)none of paragraphs (a) to (c) applies, but the exercise of the power conferred by this section is desirable in order to protect the interests of participants or potential participants in a relevant recognised scheme who are in the United Kingdom,
it may direct that the scheme is not to be a recognised scheme for a specified period or until the occurrence of a specified event or until specified conditions are complied with.
C37S. 281 extended (1.12.2001) by S.I. 2001/2636, arts. 1(2)(b), 70(b), 71(b); S.I. 2001/3538, art. 2(1)
S. 281 amended (temp. from 3.9.2001 to 1.12.2001) by S.I. 2001/2659, arts. 1(2), 3(9); S.I. 2001/3538, art. 2(1)
282 Procedure on giving directions under section 281 and varying them otherwise than as requested.U.K.
(1)A direction takes effect—
(2)A direction may be expressed to take effect immediately (or on a specified date) only if the [F101FCA], having regard to the ground on which it is exercising its power under section 281, considers that it is necessary for the direction to take effect immediately (or on that date).
(3)If the [F101FCA] proposes to give a direction under section 281, or gives such a direction with immediate effect, it must give separate written notice to the operator and (if any) the trustee or depositary of the scheme concerned.
(c)state the [F101FCA's] reasons for giving the direction and for its determination as to when the direction takes effect;
(d)inform the person to whom it is given that he may make representations to the [F101FCA] within such period as may be specified in it (whether or not he has referred the matter to the Tribunal); and
(5)The [F101FCA] may extend the period allowed under the notice for making representations.
(6)If, having considered any representations made by a person to whom the notice was given, the [F101FCA] decides—
(7)If, having considered any representations made by a person to whom the notice was given, the [F101FCA] decides—
(8)A notice given under subsection (6) must inform the person to whom it is given of his right to refer the matter to the Tribunal.
(11)This section applies to the variation of a direction on the [F101FCA's] own initiative as it applies to the giving of a direction.
(12)For the purposes of subsection (1)(c), whether a matter is open to review is to be determined in accordance with section 391(8).
Facilities and information in UKU.K.
(1)The [F101FCA] may make rules requiring operators of recognised schemes to maintain in the United Kingdom, or in such part or parts of it as may be specified, such facilities as the [F101FCA] thinks desirable in the interests of participants and as are specified in rules.
(2)The [F101FCA] may by notice in writing require the operator of any recognised scheme to include such explanatory information as is specified in the notice in any communication of his which—
I23S. 283 wholly in force at 1.12.2001; s. 283 not in force at Royal Assent see s. 431(2); s. 283(1) in force at 18.6.2001 by S.I. 2001/1820, art. 2, Sch.; s. 283 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)
[F104CHAPTER 5AU.K.MASTER-FEEDER STRUCTURES
F104Ch. 5A inserted (1.7.2011) by The Undertakings for Collective Investment in Transferable Securities Regulations 2011 (S.I. 2011/1613), reg. 2(26)
283AMaster-feeder structuresU.K.
(1)The operator of a UKUCITS may not invest a higher proportion of the property which is subject to the collective investment scheme constituted by that UCITS in units of another UCITS than is permitted by rules made by the [F101FCA] implementing Article 55 of the UCITS directive unless the investment is approved by the [F101FCA] in accordance with this section.
(2)An application for approval under subsection (1) of an investment must be made by the operator of the UKUCITS in such manner, and accompanied by such information, as is required by rules made by the [F101FCA].
(3)The [F101FCA] must grant an application made under subsection (2) if it is satisfied—
(a)that the UCITS, its operator, trustee or depositary and auditor and the UCITS in which it proposes to invest, and its operator, have complied with—
(i)the requirements laid down in Chapter VIII of the UCITS directive, and
(ii)any other requirements imposed by the [F101FCA] in relation to the application;
(b)in a case where the application is made by the operator of a feeder UCITS in respect of the investment of the proceeds of the winding-up of its master UCITS, that the proceeds of the winding up are to be paid to the feeder UCITS before the date on which the investment is to be made.
(4)In a case within subsection (3)(b), approval must be subject to the conditions in subsections (5) and (6).
(5)The first condition is that the feeder UCITS is to receive the proceeds of the winding-up—
(b)wholly or partly in assets other than cash in a case where the feeder UCITS so elects and each of the following so permits—
(i)the decision of the master UCITS that it should be wound up;
(ii)the trust deed [F105, contractual scheme deed] or instrument of incorporation of the feeder UCITS; and
(iii)either the agreement between the feeder UCITS and its master UCITS, or the internal conduct of business rules operated by the feeder UCITS and the master UCITS in accordance with rules made by the [F101FCA].
(6)The second condition is that cash received by the feeder UCITS in accordance with paragraph (5)(a) may not be reinvested before the date on which the feeder UCITS proposes to invest in the new UCITS, except for the purpose of efficient cash management.
(7)The [F101FCA] must, within 15 working days of the date on which the [F101FCA] had received all the information required in relation to the application, give written notice to the operator—
(a)that the [F101FCA] approves its application, or
(b)that the [F101FCA] objects to the application.
(8)Following receipt of notice that the [F101FCA] objects to the application, the operator may refer the [F101FCA's] decision to the Tribunal.
F105Words in s. 283A(5)(b)(ii) inserted (6.6.2013) by The Collective Investment in Transferable Securities (Contractual Scheme) Regulations 2013 (S.I. 2013/1388), regs. 1, 3(15) (with reg. 24)
283BReports on derivative instrumentsU.K.
(1)An authorised person who is the management company in relation to a UCITS must report to the [F101FCA] at specified intervals of not more than 12 months about any investment in derivative instruments during the specified period to which the report relates.
(2)The report must be in the specified form and contain the specified information.
(3)The [F101FCA] must review the regularity and completeness of the information provided by each management company under subsection (1).
(4)In this section, “specified” means specified—
(a)in rules made by the [F101FCA] to implement the UCITS directive, or
(b)in any directly applicable Community regulation or decision made under the UCITS directive.]
Chapter VIU.K. Investigations
284 Power to investigate.U.K.
(1)An investigating authority may appoint one or more competent persons to investigate on its behalf—
(a)the affairs of, or of the manager or trustee of, any authorised unit trust scheme,
(b)the affairs of, or of the operator, trustee or depositary of, any recognised scheme so far as relating to activities carried on in the United Kingdom, or
(c)the affairs of, or of the operator, trustee or depositary of, any other collective investment scheme except a body incorporated by virtue of regulations under section 262,
if it appears to the investigating authority that it is in the interests of the participants or potential participants to do so or that the matter is of public concern.
(2)A person appointed under subsection (1) to investigate the affairs of, or of the manager, trustee, operator or depositary of, any scheme (scheme “A”), may also, if he thinks it necessary for the purposes of that investigation, investigate—
(a)the affairs of, or of the manager, trustee, operator or depositary of, any other such scheme as is mentioned in subsection (1) whose manager, trustee, operator or depositary is the same person as the manager, trustee, operator or depositary of scheme A;
(b)the affairs of such other schemes and persons (including bodies incorporated by virtue of regulations under section 262 and the directors and depositaries of such bodies) as may be prescribed.
(3)If the person appointed to conduct an investigation under this section (“B”) considers that a person (“C”) is or may be able to give information which is relevant to the investigation, B may require C—
(a)to produce to B any documents in C’s possession or under his control which appear to B to be relevant to the investigation,
(b)to attend before B, and
(c)otherwise to give B all assistance in connection with the investigation which C is reasonably able to give,
and it is C’s duty to comply with that requirement.
(4)Subsections (5) to (9) of section 170 apply if an investigating authority appoints a person under this section to conduct an investigation on its behalf as they apply in the case mentioned in subsection (1) of that section.
(5)Section 174 applies to a statement made by a person in compliance with a requirement imposed under this section as it applies to a statement mentioned in that section.
(6)Subsections (2) to (4) and (6) of section 175 and section 177 have effect as if this section were contained in Part XI.
(7)Subsections (1) to (9) of section 176 apply in relation to a person appointed under subsection (1) as if—
(a)references to an investigator were references to a person so appointed;
(b)references to an information requirement were references to a requirement imposed under section 175 or under subsection (3) by a person so appointed;
(c)the premises mentioned in subsection (3)(a) were the premises of a person whose affairs are the subject of an investigation under this section or of an appointed representative of such a person.
(8)No person may be required under this section to disclose information or produce a document in respect of which he owes an obligation of confidence by virtue of carrying on the business of banking unless subsection (9) or (10) applies.
(b)the imposing on the person concerned of a requirement with respect to information or a document of a kind mentioned in subsection (8) has been specifically authorised by the investigating authority.
(10)This subsection applies if the person owing the obligation of confidence or the person to whom it is owed is—
(a)the manager, trustee, operator or depositary of any collective investment scheme which is under investigation;
(b)the director of a body incorporated by virtue of regulations under section 262 which is under investigation;
(c)any other person whose own affairs are under investigation.
(11)“Investigating authority” means [F106the FCA] or the Secretary of State.
F106Words in s. 284 substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 17 (with Sch. 20); S.I. 2013/423, art. 3, Sch.
C38S. 284(1) extended (with modifications) (1.12.2001) by S.I. 2001/3646, arts. 1(2), 8
I24S. 284 wholly in force at 1.12.2001; s. 284 not in force at Royal Assent see s. 431(2); s. 284(2) in force for certain purposes at 25.2.2001 by S.I. 2001/516, art. 2(b), Sch. Pt. 2; s. 284 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)