Part XVII Collective Investment Schemes

Chapter III Authorised Unit Trust Schemes

Powers of intervention

I1257 Directions.

C11

The Authority may give a direction under this section if it appears to the Authority that—

a

one or more of the requirements for the making of an authorisation order are no longer satisfied;

F1b

the manager or trustee of an authorised unit trust scheme has contravened, or is likely to contravene, a requirement imposed—

i

by or under this Act; or

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 Authority information which is false or misleading in a material particular; or

d

none of paragraphs (a) to (c) applies, but it is desirable to give a direction in order to protect the interests of participants or potential participants in such a scheme.

2

A direction under this section may—

a

require the manager of the scheme to cease the issue or redemption, or both the issue and redemption, of units under the scheme;

b

require the manager and trustee of the scheme to wind it up.

3

If the authorisation order is revoked, the revocation does not affect any direction under this section which is then in force.

4

A direction may be given under this section in relation to a scheme in the case of which the authorisation order has been revoked if a direction under this section was already in force at the time of revocation.

5

If a person contravenes a direction under this section, section 150 applies to the contravention as it applies to a contravention mentioned in that section.

C26

The Authority 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 Authority—

a

in the case of revocation, that it is no longer necessary for the direction to take effect or continue in force;

b

in the case of variation, that the direction should take effect or continue in force in a different form.